Applicants must provide a match of the total project costs via cash and/or in-kind contributions, the amount of which will vary according to project type, as follows:
- Projects that involve leasing or acquiring transit buses, including clean fuel or alternative fuel vehicles, for purposes of complying with, or maintaining compliance with, the Clean Air Act (CAA) or the Americans with Disabilities Act (ADA) of 1990: at least 15 percent
- Projects to acquire, install, or construct vehicle-related equipment or facilities, including clean fuel or alternative fuel vehicle-related equipment or facilities, for purposes of complying with, or maintaining compliance with, the CAA or ADA: at least 10 percent
- All other projects: at least 20 percent
Eligible types of matching contributions include:
- Cash from non-government sources other than revenues from providing public transportation services
- Revenues derived from the sale of advertising and concessions
- Amounts received under a service agreement with a state or local social service agency or private social service organization
- Revenues generated from value capture financing mechanisms
- Funds from an undistributed cash surplus
- Replacement or depreciation cash fund or reserve
- New capital
- Transportation development credits
Federal funds from non-U.S. Department of Transportation (DOT) sources may also be used as match if the proposed project is eligible under the federal program and the federal program expressly authorizes funding to fulfill the match requirement of other federal programs.
Federal funds from DOT sources may not be used as a match.
A total of $1,103,963,762 is available to support awards through this program. The funding agency may cap the amount a single recipient or state may receive through this program.
Applicants are encouraged to identify scaled funding options in case insufficient funding is available to fund the project at the full requested amount. If the applicant indicates that the project is scalable, the applicant must provide an appropriate minimum funding amount that will fund an eligible project that achieves the objectives of the program and meets all relevant program requirements.
At least 25 percent of total funding available through this program, or a total of $275,990,941, will be allocated to low-emission projects other than zero-emission vehicles and related facilities.
Funds must be obligated within three fiscal years after the fiscal year in which awards were made. Favorable consideration will be given to applicants that can obligate funds within 12 months of funding selection and implement the project within a reasonable time frame.
The funding agency will grant pre-award authority to incur costs for selected projects beginning on the date of award announcement.
In general, up to 0.5 percent of the total award amount may be allocated for workforce development activities, such as on-the-job training, labor management partnership training, and registered apprenticeships. For projects related to zero-emission vehicles, 5 percent of the total requested amount, including costs for workforce development activities, must be allocated for workforce development to retrain the existing workforce and develop the workforce of the future, including registered apprenticeships and other joint labor-management training programs, unless the applicant certifies that less funding is needed to carry out the plan.
Up to 0.5 percent of the total award amount may also be allocated for costs associated with training at the National Transit Institute.
Funds may not be used for:
- Costs incurred prior to award announcements
- Development or deployment of prototype vehicles
For FY 2023, 83 awards ranging from $181,250 to $104 million were distributed through this program. For FY 2022, a total of $1,105,329,750 was distributed via 100 awards ranging from $167,257 to $116 million. For FY 2021, a total of $182,156,692 was distributed via 49 awards ranging from $611,840 to $7,404,210. Refer to the Award file for details.