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USDOT Invests $2 Billion in Modernizing Transit Bus Infrastructure

From Houston to Iowa, new federal grants are transforming bus fleets and facilities across 45 states. See which projects made the list.

An image of a public transit bus approaching a bus stop with text reading "USDOT Invests $2 Billion in Modernizing Transit Bus Infrastructure."

"Whether it's to church, school, or work, more people travel by bus than any other form of public transportation,” U.S. Transportation Secretary Sean P. Duffy said.

Photo: METRO

2 min to read


U.S. Transportation Secretary Sean P. Duffy and the Federal Transit Administration (FTA) invested $2 billion in 165 transit projects in 45 states and Washington, D.C., with funds allocated to deliver 2,400 buses built in the United States.

According to a release, funding from the Federal Transit Administration's (FTA) 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.” The competitive grants were also organized to create more jobs in rural and urban communities nationwide.

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"Whether it's to church, school, or work, more people travel by bus than any other form of public transportation,” Secretary Duffy said. “With these grants, thousands of new buses will hit the road and infrastructure will be upgraded—making public transit more efficient, affordable, and safe for American families."

"Transit buses provide a vital service for millions of Americans every day," said FTA Administrator Marc Molinaro. "These grants will strengthen connections between communities, boost bus safety and reliability, and enhance mobility and quality of life for passengers."

Examples of projects selected to receive Fiscal Year (FY) 2025-2026 funding include:

  • The Metropolitan Transit Authority of Harris County (METRO) in Houston will receive approximately $101 million to replace older diesel buses with new compressed natural gas (CNG) buses, build a new CNG fueling station, and upgrade a maintenance facility for safe and efficient CNG bus service.

  • The Hillsborough Transit Authority (HART), in Tampa, Florida, will receive $32 million to buy new CNG buses to replace older diesel buses.

  • The Iowa Department of Transportation will receive $48 million to replace some of its oldest buses that have passed their useful life and to improve and construct bus facilities across the state.

A full breakdown of the project selections is available here.

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