U.S. Transportation Secretary Ray LaHood announced that $775 million in federal funds is being made available to the nation’s transit providers to upgrade their bus systems.

“The FTA is addressing the challenge of bringing our nation’s transit systems into a state of good repair head-on,” said Transportation Secretary Ray LaHood. “These funds will get us started, but we still have a long way to go.”  

Federal Transit Administrator Peter Rogoff made the announcement on Sunday in an address during the general session of the American Public Transportation Association’s Bus and Paratransit Conference in Cleveland.

"Well maintained, clean and reliable buses make a world of difference to the millions of Americans who use transit every day," Administrator Rogoff said. "The Obama Administration is making these funds available to ensure that financially strapped transit providers can keep buses rolling and serving the public during these difficult economic times.”

FTA will review applications for the discretionary bus and bus facility funds, and will prioritize proposals based on how they address the issue of the transit system’s state of good repair and recapitalization needs.

Eligible expenses for the funds include purchase and rehabilitation of buses and vans, modernization of buses, bus facilities and revenue service facilities, bus-related equipment and components of transit asset management plans. The deadline for applications is June 18, 2010. Grantees are expected to be announced in late summer 2010.

The Notice of Funding Availability will be published in the Federal Register on Tuesday. The notice includes instructions on submitting applications for the funds.