Driving Zero-Emission Transit Forward: FTA Opens $1.1 Billion in Funding for Clean Bus Projects
The U.S. Federal Transit Administration (FTA) has just released its Fiscal Year 2025 Notice of Funding Opportunity (NOFO), opening the door to over $1.1 billion in competitive grant funding to accelerate the adoption of clean, modern, and efficient public transport across the country.
This funding—available under the Low or No Emission Grant Program (Low-No Program) and the Grants for Buses and Bus Facilities Competitive Program (Bus Program)—presents a major opportunity for transit authorities, local governments, and tribal entities to invest in sustainable bus fleets and the infrastructure that supports them.
At ZeroMission, we see this as a critical moment to help partners future-proof their fleets and infrastructure. Our advanced digital twin technology is already helping transit operators model, de-risk, and accelerate their transition to electric and hydrogen-powered mobility.
What's on Offer?
🚍 $1.1 billion under the Low-No Program
🔧 $398 million under the Bus Facilities Program
📅 Application Deadline: July 14, 2025
📄 Read the full NOFO (PDF)
What Can Be Funded?
These two programs target overlapping but distinct needs:
Low-No Program: Purchase or lease of zero- or low-emission buses (battery-electric, hydrogen, hybrid, CNG, propane) and associated infrastructure (charging stations, maintenance depots, etc.).
Bus Facilities Program: Rehabilitation or construction of bus-related facilities, and procurement or leasing of buses—regardless of propulsion type.
Importantly, 5% of any zero-emission grant funding must be dedicated to workforce development, such as retraining programs and apprenticeships—a requirement aligned with ZeroMission’s own emphasis on the human transition in electrifying fleets.
Who’s Eligible?
Designated recipients of FTA grants
States, territories, and local governments
Federally recognized Indian tribes
Non-profits engaged in public transportation (as subrecipients)
Both urban and rural projects are eligible—with specific set-asides to ensure geographic diversity and rural inclusion.
Why It Matters
In FY 2024, demand for these grants was overwhelming. FTA received applications totaling over $9 billion across both programs—nearly six times the available funding. The appetite for fleet modernization is there. What’s needed now is speed, strategy, and scalability.
That’s where ZeroMission comes in. With our digital twin platform, agencies can simulate every aspect of their zero-emission journey before breaking ground or signing contracts. From charging logistics and energy loads to route analysis and cost forecasting, we turn complexity into clarity.
How to Apply
Proposals must be submitted via Grants.gov:
Low-No Program ID: FTA-2025-008-TPM-LWNO
Bus Program ID: FTA-2025-007-TPM-BUS
Applicants will need to prepare a comprehensive proposal, including:
Project description and justification
Budget and cost-share breakdown
A Zero-Emission Fleet Transition Plan (for ZE projects)
Local or regional planning alignment
Timeline and procurement strategy
FTA will announce award decisions within 75 days of the July 14 deadline, so early submission is encouraged.
ZeroMission: Your Partner in Fleet Electrification
This is more than just a funding opportunity—it’s a transformational moment for public transportation.
If you're planning to apply, now is the time to lean into technology that ensures success. Whether you're electrifying your fleet for the first time or scaling your charging infrastructure, ZeroMission’s digital twin platform helps de-risk every step.
We also support grant applicants in crafting robust, data-backed submissions—integrating our simulations and analytics into your Zero-Emission Fleet Transition Plan to strengthen your proposal.
📩 Interested in working with ZeroMission on your application? Get in touch with our team today.
Together, we can drive toward cleaner, smarter, and more resilient public transit—starting with the buses that move our communities every day.
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