US Department of Transportation announces US$1.5B grant funding for bus manufacturing expansion; agency removes previous administration's DEI requirements from federal transit projects

Federal transit funding strips DEI requirements from the last administration to put the focus on building incredible transit systems that support American jobs and move American families

WASHINGTON – U.S. Department of Transportation Secretary Sean P. Duffy today announced the availability of approximately $1.5 billion in competitive grant funding for projects that expand bus manufacturing as part of his agenda to get America building again. This new federal funding from the Federal Transit Administration (FTA) will help create jobs within the industry by building and renovating bus facilities and expanding accessibility for American families utilizing commuter transit.

Under Transportation Secretary Sean Duffy, this year’s Notice of Funding Opportunity (NOFO) strips DEI requirements related to climate change, sustainability, environmental justice, and diversity, equity and inclusion (DEI) applied under the disastrous Biden Administration so that American manufacturers can get back to basics and focus on building big, beautiful transit systems for American families, front line responders, students, and more.

"American commuters don’t want to pay for deranged, leftist DEI mandates that don’t improve the efficiency of their daily commutes. They care about getting home safely and quickly to the families they are working so hard to provide for," said U.S. Transportation Secretary Sean P. Duffy. "At FTA, we stripped the unnecessary and wasteful woke requirements our transit manufacturing system was burdened by under the last administration so American manufacturers can focus on building big, beautiful transit systems for American families to reach their destinations safely and efficiently."

FTA is now requiring transit agencies to describe how their projects will improve the accessibility of transportation for families with young children, with a focus on improved access to jobs, healthcare and retail.  

Background:

FTA's Grants for Buses and Bus Facilities Program supports transit agencies in buying and rehabilitating buses and vans and building bus facilities. FTA's Low or No Emission Program helps transit agencies buy or lease buses made in America, purchase equipment, and maintain facilities. The twin programs are announced together, although each has different requirements and funding amounts. In Fiscal Year 2025, approximately $400 million is authorized for the Buses and Bus Facilities Program and $1.1 billion is authorized for the Low or No Emission Program.  

The Notice of Funding Opportunity (NOFO) focuses on strengthening U.S. bus manufacturing, which can stabilize the cost of new buses and accelerate delivery to the transit agencies that need them. Transit agencies competing for funds are encouraged to consider strategies to avoid customization, as procuring more standardized bus models will shorten manufacturing timelines and result in more American-built buses getting on the road faster.

Instructions for applying and eligibility information is available on GRANTS.GOV (FTA-2025-008-TPM-LWNO; FTA-2025-007-TPM-BUS). Complete proposals must be submitted electronically through the GRANTS.GOV “APPLY” function by July 14, 2025.

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