EV Bus Funding: Understanding FTA Grants for Buses and Bus Facilities

According to the Federal Transit Administration (FTA), electric zero-emission buses made up approximately 3% of all new full-size bus registrations in 2023. About 2% of the U.S. transit bus fleet is electric — and the FTA is on a mission to increase that share.

The Grants for Buses and Bus Facilities Competitive Program allows for federal resources to be used by states — and direct recipients — for replacing, rehabilitating, and purchasing buses and related equipment. It also opens up resources for constructing “bus-related facilities, including technological changes or innovations to modify low or no emission vehicles.” 

If you operate a fixed-route public transportation service (or if such a service would improve your community), you need to know about the FTA’s electric bus grants. Here’s an overview. 

Who’s Eligible for the FTA’s EV Bus Grants? 

Unlike some grant programs, the FTA's electric bus funding is directly accessible to bus operating companies and municipalities. Transit agencies can apply for funds without going through intermediary organizations.

The Buses and Bus Facilities Program is open to virtually every type of organization involved with public transportation:

• State agencies, including territories and Washington D.C.  
• Cities, counties, and other local government agencies.
• Indian tribes recognized by the federal government.
• Private nonprofit organizations engaged in public transportation.
• Public-private partnerships engaged in public transportation. 

Note that funding is allocated to projects on a competitive basis. That means that applicants must respond to a Notice of Funding Opportunity (NOFO) and submit a proposal.

What Can Electric Bus Grants Be Used For?

Grant recipients have the flexibility to allocate funds for various aspects of electric bus implementation. That includes:

• Purchasing Electric Buses: The core of any electrification project is, of course, the vehicles. Per the Department of Energy, an average electric transit bus costs just under $400,000.
• Building Charging Infrastructure: Funds can be utilized to build charging stations, purchase EV Charging Stands, and install related equipment. Learn how to choose technology for EV charging stations.
• Supporting Operational Costs: While primarily focused on capital expenditures, the grant may also cover some operational costs associated with electric bus deployment.

Here, we should note that the FTA’s grants aren’t specific to EVs, but the implementation of zero-emission fleets can have practical benefits for applicants. 

Under the program, the federal share of eligible capital costs is 80 percent of the net capital project cost. However, the federal share may exceed 80 percent for projects related to the Americans with Disabilities Act (ADA) and the Clean Air Act. And since the FTA is prioritizing electrification, zero-emission buses could improve an applicant’s chances of approval.

How to Apply for FTA EV Bus Grants

To apply for FTA EV bus grants, you'll primarily use Grants.gov, a centralized federal platform for all grant opportunities. Create an account, then search for FTA opportunities (in our research, we found several opportunities focused on bus infrastructure improvement — but because grants are highly time-specific, we’re not linking them directly here). 
Keep in mind that some grants may require using the FTA's Transit Award Management System (TrAMS) for specific processes or grant management. To make your application stronger, consider building partnerships with state or municipal agencies. You should also include as much technical detail as possible, including info on fixed routes, upfront costs, maintenance costs, and potential community engagement. 

If you're considering electrifying your bus fleet and are interested in exploring FTA grant opportunities, we’re here to help. Reach out to Solus Group through our contact form or call 314-696-0200.