On November 20, 2025 the Federal Transit Administration’s (FTA) announced $2 billion in grants for 165 transit projects in 45 states and Washington, D.C. The funds will deliver 2,400 buses built with American parts and labor.
Funding from the FTA’s Grants for Buses and Bus Facilities Program and the Low or No Emission Grant Program will help modernize America’s bus infrastructure, reduce traffic congestion, and help people travel more efficiently and affordably. These competitive grants will also create good-paying jobs in both rural and urban communities across the country.
SEPTA received $43,000,000 to buy new hybrid buses to replace older buses that have reached their useful life.
Expected delivery of the buses is 2028 at which point SEPTA will no longer have any diesel-burning buses left in its fleet.
A full breakdown of the project selections is available here.
FTA’s Grants for Buses and Bus Facilities Program supports capital projects to replace, rehabilitate, buy, or lease buses and related equipment and to rehabilitate, buy, build, or lease bus-related facilities. Approximately $400 million was available in FY25 through this program.
FTA’s Low or No Emission Program awards funds on a competitive basis for transit agencies to buy or lease low-emission or zero-emission transit buses along with related equipment and facilities. Approximately $1.1 billion was made available for FY25.
The two programs combined created a funding opportunity totaling $1.5 billion for FY25.
The FTA plans to add $518 million in FY26 funding through the Low or No Emission Program to make additional selections.