USDOT issues NOFO for $1.5 billion in bus grants, partners with state of Connecticut to accelerate review of individual transportation projects

The U.S. Department of Transportation has issued a notice of funding opportunity (NOFO) for $1.5 billion in funding through the Federal Transit Administration’s (FTA) Grants for Buses and Bus Facilities Program and the Low or No Emission Program to expand bus manufacturing. USDOT has also partnered with the state of Connecticut on an agreement that establishes a unified federal review process and delegates authority to the state to accelerate the review of individual transportation projects that may affect historic properties under Section 106 of the National Historic Preservation Act. 

Bus manufacturing funding 

USODT notes the NOFO for bus manufacturing will help create jobs within the industry by building and renovating bus facilities and expanding accessibility for American families utilizing commuter transit.  

FTA is now requiring transit agencies to describe how their projects will improve the accessibility of transportation for families with young children, with a focus on improved access to jobs, healthcare and retail.    

The Grants for Buses and Bus Facilities Program supports transit agencies in buying and rehabilitating buses and vans and building bus facilities while the Low or No Emission Program helps transit agencies buy or lease buses made in America, purchase equipment and maintain facilities. In fiscal year 2025, approximately $400 million is authorized for the Buses and Bus Facilities Program and $1.1 billion is authorized for the Low or No Emission Program.  

USDOT notes proposals for the NOFO must be submitted electronically through its website by July 14, 2025.  

New agreement with the state of Connecticut 

USDOT notes the new streamlined agreement with the state of Connecticut could cut up to six weeks or more off from the schedules of at least 90 projects in the state per year, including a new bus rapid transit system in New Haven and Metropolitan Transportation Authority Metro-North Railroad customer service improvements along the New Haven Line.   

“Thanks to President [Donald] Trump, America is building again. We’ve slashed costly red tape and prevented unending environmental reviews to build the big, beautiful infrastructure projects that will propel America forward for generations,” said USDOT Secretary Sean P. Duffy.  

“This first-of-its kind agreement is a great example of the commonsense approach we are taking at USDOT to remove unnecessary burdens, empower states and deliver a safe and efficient world class transportation system that Americans deserve. We hope more states are interested in entering this more efficient agreement to streamline the regulatory process,” said USDOT Deputy Secretary Steven Bradbury.   

USDOT notes the agreement brings together multiple federal agencies under a single agreement to accelerate and enhance the review process for transportation projects in Connecticut, including the Federal Highway Administration, FTA and Federal Railroad Administration, along with the Connecticut Department of Transportation (CTDOT), Connecticut State Historic Preservation Office and the Advisory Council on Historic Preservation. The agreement also delegates certain responsibilities to CTDOT in evaluating historic properties and potential impacts in compliance with the National Historic Preservation Act. 

“This agreement is the result of productive collaborations between CTDOT and our federal and state partners, and we deeply appreciate the support from the U.S. Department of Transportation in making it a reality. By streamlining environmental reviews and cutting government red tape, we can more efficiently advance projects and ultimately reduce costs,” said CTDOT Commissioner Garrett Eucalitto.    

The full agreement can be found on USDOT’s website.