Jefferson Lines Bus Co. of Minneapolis received a grant of $153,000 to operate two Minnesota routes being abandoned by Greyhound Lines in mid-August.
The routes include a 289-mile route between Minneapolis and Sioux Falls, S.D., and a 383-mile route between Minneapolis and Grand Forks, N.D., reported the Associated Press.
Jefferson Lines will receive the federal grant through the Minnesota Department of Transportation to operate and market the two routes through the end of 2004.
The Dallas-based Greyhound announced last month that it would discontinue service to many small towns between Chicago and Seattle in an effort to cut costs and focus on its most profitable routes.
The cuts will also mean about 150 layoffs and will eliminate about 100 buses from the company's fleet, according to the news service.
Greyhound said it lost more than $140 million the past two years on all of its routes.