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The competitive grant funds are provided through the Public Transportation Innovation Program.
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The AIM challenge grants will help transit agencies explore new service models that provide more efficient and frequent service, which will help retain riders.
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Twenty-five projects in 23 states will receive funding under the program.
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Cities will partner to encourage innovators and start-ups to find creative solutions to major transportation challenges.
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The goal of the new service models is to encourage travelers to choose transit.
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From making trip planning easier for its customers to tying operations together as one, the company relies on tech and enhancing the customer experience.
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Program was announced the agency's Signaling Innovation Summit, which included a Demo Day.
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Will bring stakeholders together to develop new ideas, test them, and roll them out in close partnership with local communities.
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The agency will pinpoint challenges and opportunities using data, public input, and innovation to improve bus service.
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The new programs will look to develop and deploy innovations in technology and further interagency partnerships to improve mobility.
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