On May 14, 2025, the Federal Transit Administration (FTA) released the notice of funding opportunity (NOFO) for the FY 2025 Low or No Emission Grant Program and Buses and Bus Facilities Program. The joint NOFO offers nearly $1.5 billion for the purchase or lease of low- or zero-emission buses and related equipment and facilities.
Top 10 Takeaways
- Goal: Enhance safety and renew our transit systems through the deployment of modern buses and associated equipment and facilities. The objective is to maximize benefits for families and communities by increasing access to jobs, healthcare facilities, recreational activities, and commercial activity.
- Eligible Applicants: Direct or designated FTA grant recipients, states (including territories and Washington, D.C.), local governmental entities, and federally recognized Indian Tribes.
- Due Date: Applications are due July 14, 2025, by 11:59 p.m. ET via grants.gov.
- Cost Share: The federal cost share is 80% in general; it is 85% for buses that comply with the Clean Air Act or are accessible to people with disabilities, and 90% for related facilities and equipment. The project is stackable with other non-DOT funds.
- Total Funding: Nearly $1.5 billion will be awarded this year, with $1.1 billion through the Low-No Program and $398 million for the Buses and Bus Facilities Program.
- Updated Selection Priorities: In addition to the cost-effective vehicle procurement strategies from the 2024 NOFO (joint procurement, standard vehicle models), entities must commit to procuring vehicles from a state schedule without customization options. (new)
- Application Priorities: FTA intends to prioritize low-emission projects over zero-emission projects, to the maximum extent permitted by law. (new)
- Principles: The Department also intends to apply principles from DOT Order 2100.7, Ensuring Reliance Upon Sound Economic Analysis in DOT’s Policies, Programs and Activities when evaluating applications and making award selections. To the maximum extent permitted by law, FTA will prioritize projects that are in alignment with the principles outlined in DOT Order 2100.7. (new)
- Benefits for Families and Communities: Applicants must demonstrate improvements to accessibility to families with young children.
- Opportunity Zones: Applicants must describe in detail how projects support public transportation services in qualified opportunity zones and the proposed impact of the project. (new)
Please reach out to the Electrification Coalition team at infrastructure@electrificationcoalition.org with any questions!