US unveils $1.5 billion in bus grants, ditches DEI

The US Department of Transportation has announced US$1.5 billion in federal transit grants, targeting expansion of bus manufacturing and modernisation of transit infrastructure.

The funds, split between the Low or No Emission Vehicle Program (US$1.1 billion) and the Buses and Bus Facilities Program (US$398 million), aim to help transit agencies acquire clean vehicles and build supporting infrastructure.

“The era of wasting taxpayer dollars on deranged, leftist DEI mandates is over,” said Sean Duffy (pictured), US Secretary of Transportation. “American commuters don’t want to pay for woke requirements–they care about getting home safely and quickly to their families.”

Transit agencies applying for the competitive grants must now emphasise how projects improve accessibility for families with young children and enhance connections to jobs, healthcare, and retail. The Biden-era emphasis on climate change, environmental justice, and equity has been stripped from the funding criteria.

However, the 2025 Notice of Funding Opportunity (NOFO) maintains core programmatic elements. Eligible projects include procurement or leasing of low- or zero-emission buses–including battery-electric, hydrogen fuel cell, and hybrid models–as well as construction or rehabilitation of refuelling and maintenance facilities.

And at least 25 percent of Low-No awards must go to low-emission (non-zero) projects. Zero-emission projects must still dedicate 5 percent of federal funds to workforce development unless a lower need is certified.

To streamline delivery, the Federal Transit Administration (FTA) encourages applicants to avoid customisation in vehicle procurement, instead opting for standardised models to reduce production backlogs. Applications are due by the end of 14 July, via Grants.gov.

City transit agencies, designated recipients, and eligible non-profit operators are encouraged to apply under one or both programmes, though proposals must meet eligibility criteria for each. For joint submissions, FTA retains discretion over which programme the funding will be awarded through.

The policy shift signals a renewed federal focus on hard infrastructure and domestic manufacturing.

Duffy said: “We’re focused on building big, beautiful transit systems that work for real American families.”

Image: X/@SecDuffy