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Bus and Bus Facilities - Section 5339 (Formula)

Federal Agency


Federal Transit Administration (FTA)


To make federal resources available to states and direct recipients to replace, rehabilitate and purchase buses and related equipment and to construct bus-related facilities including technological changes or innovations to modify low or no emission vehicles or facilities.

Applicant and/or Project Eligibility Requirements

Eligible applicants include designated recipients that allocate funds to fixed route bus operators, states or local governmental entities that operate fixed route bus service, and Indian tribes. Eligible subrecipients include all otherwise eligible applicants and also private nonprofit organizations engaged in public transportation.

Decarbonization Considerations

FTA encourages applicants to consider significant community benefits related to the environment, including those projects that incorporate low- or no-emission technology or specific elements to address greenhouse gas emissions and climate change impacts. Decarbonization strategies may focus on investments that expand transit services in a manner that reduces single passenger vehicle miles traveled, invest in zero-emission vehicles and charging infrastructure, and holistic transportation strategies that emphasize walking, cycling, and public transit connectivity alongside electric vehicle (EV) infrastructure build-out for ride-sharing and vehicle sharing programs.

Equity Considerations

FTA encourages applicants to consider projects that encourage racial equity in planning and policies, and project investments that either proactively address racial equity and barriers to opportunity, including automobile dependence as a form of barrier, or redress prior inequities and barriers to opportunity. See the "Equity Design Considerations for Federal Funding" document for general considerations and additional sector-based resources:

Helpful Tips

The formula portion of the grant program provides each state and territory a minimum allocation ($4 million to states and $1 million to territories), with the remaining funds distributed according to population and service levels.

Other Notes

There are three components to this program. The first is a continuation of the formula bus program established on under MAP-21. The remaining two components include the bus and bus facilities competitive program based on asset age and condition, and a low or no emissions bus deployment program. A pilot provision allows designated recipients in in urbanized areas between 200,000 and 999,999 in population to participate in voluntary state pools to allow transfers of formula funds between designated recipients during the period of the authorized legislation.

Deadline (Announced or Anticipated)


Funding Available

$633,000,000 for FY24

Max Award Amount


Expected Allocations


Average Award (Estimated)


Matching Funds

20% cost share required, with exceptions

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