The Buses and Bus Facilities program (Bus Program) is partnered with the Low or No Emission Grant program (Low-No Program), and both are administered concurrently by the Federal Transit Administration (FTA). These grant programs are intended to modernize public transit fleets and infrastructure across the United States. Both competitive grant programs support the acquisition of buses as well as the development and enhancement of facilities necessary for their operation; the Low-No Program focuses specifically on buses that have zero- and low-emission technologies and facilities upgrades that support these technologies. There is $1.1 billion available in this funding round for Low-No; the Bus Program is smaller with $398 million in grant funding available, and does not have the same emissions requirements.
Application deadline: July 14, 2025
Step 1: Understand program and eligibility requirements
Both the Low-No and Bus Programs are included in the same Notice of Funding Opportunity (NOFO).These two programs have some unique features that applicants should be aware of, including:
Low-No funds can also be used for facilities
Even though there is a separate Bus Program, low- and no- emission bus grants can also be used for constructing, remodeling, purchasing or leasing related facilities and equipment as part of transitioning to low- and no-emissions technology. For example, Knoxville, TN will use their 2023 Low-No grant for chargers that will enable them to increase the number of battery-electric buses in their fleet.
If a project is eligible for both programs, cities can submit the same application to both the Low-No and the Bus Programs
Communities are encouraged in the NOFO to submit their application to both grant programs to maximize their chances of receiving funds, as long as the application meets the eligibility criteria for both programs.
| Tip: Use the ‘Eligible Activities’ row in the table under the 1) Basic Information section and the eligibility table under the 2) Eligibility section as a checklist to make your application eligible for both programs and maximize your funding opportunities. |
Applications for rural communities must be submitted by the state
The Low-No Program requires states to submit project applications for their rural communities/areas ( rural is defined as any area that was not considered an ‘‘urban area’’ and with a population less than 50,000). Small and rural communities should therefore work to coordinate with their state agency to complete an application. For example, in 2024, California Department of Transportation successfully applied for funding for a number of smaller jurisdictions, including the Humboldt Transit Authority, the Redwood Coast Transit Authority, and the Morongo Basin Transit Authority.
Federal match can be maximized by including certain criteria in applications
The maximum federal share for fiscal year 2025 grants is 80%, the same as in prior NOFOs. Applicants can reduce their match requirement to 10-15% instead of 20% if they meet certain criteria, such as Clean Air Act compliance, and improving the accessibility of facilities for people with disabilities. Applicants must itemize the cost of specific equipment or facility components in their budget to demonstrate their eligibility for higher federal shares.
Step 2: Note changes to the FY25 NOFO
While very similar to previous years’ funding opportunities, the FY25 NOFO includes some new areas of emphasis, including:
New consideration for opportunity zones
The FTA will consider whether a project is located in or will benefit a qualified opportunity zone in their review process. Applicants must describe how they believe their project will benefit opportunity zones in order to receive credit for this consideration during application review.
| Tip: To find opportunity zones in your area, you can consult this map. Additional information about qualified opportunity zones can be found on the IRS opportunity zone site. |
New consideration for families with young children
The objective of both grant programs is to maximize benefits for families and communities by increasing access to jobs, healthcare facilities, recreational activities and commercial activity. In keeping with this new focus, the review and selection process will include consideration for whether an applicant demonstrates that their project will improve families’ quality of life, standard of living, or ability to participate fully in the economy. For example, an applicant may want to describe and provide relevant data regarding the portion of their ridership made up of families with young children, the portion of riders that are using public transit to commute to their jobs, or the portion of K12 and/or postsecondary students that use public transit to get to school.
New certification requirement for Immigrations and Customs Enforcement (ICE) cooperation
In the certifications and assurances that applicants sign affirming that they will comply with federal law, there is new text that explicitly mentions ICE cooperation: “including cooperating with and not impeding U.S. Immigration and Customs Enforcement (ICE) and other federal offices and components of the Department of Homeland Security in and the enforcement of Federal immigration law.”
Step 3: Prepare your procurement strategy
To ensure that procurement for grant program projects is as efficient and cost-effective as possible, the NOFO addresses procurement strategies in a couple of ways:
A named partnership meets federal competitive procurement requirements for the purposes of this NOFO
If you have a particular vendor, manufacturer, consultant, etc. that you already have a relationship with, following the guidelines for naming them as a project partner can help you advance to the implementation phases of your project without a lengthy competitive procurement process. Note that this applies only to Low-No applications or applications submitted to both programs and the applicant will need to provide information about how the partnership meets their needs.
Use of efficient procurement strategies will be considered during the application review process
The FY25 NOFO identifies the following procurement strategies that applicants seeking funding for vehicle projects may use to demonstrate compliance with this consideration:
- Procuring from a state schedule without any customization
- Procuring jointly with at least two other transit agencies (for a total of at least three), with all parties requesting the same specifications
- Purchasing a standard model through a named partnership as described above