Propane, the Key to $1.5 Billion in Federal Transit Grants
The Federal Transit Administration (FTA) is offering $1.5 billion in competitive grants to modernize and expand public transit systems across the U.S. for fiscal year 2025. The funds are split between two major programs: the Low or No Emission Grant Program ($1.1 billion) and the Buses and Bus Facilities Program ($398 million). Together, they provide support for municipalities, tribes and local transit agencies to upgrade bus fleets, invest in low- or no-emission vehicles and build or modernize related infrastructure. Applications are open through September 10, 2025, and towns, cities and regional agencies are encouraged to apply individually or collaboratively, depending on their size and scope.
While much of the recent focus has been on electric and hydrogen-powered transit, the current funding cycle places new emphasis on propane-powered buses, also known as autogas. Propane is cheaper than gasoline and diesel, produces fewer harmful emissions and doesn’t require costly infrastructure like EV charging stations. In addition, propane buses are easier to maintain, quieter on the road and perform well in cold climates, making them a practical option for many communities. To maximize chances of success, applicants should submit detailed proposals that outline environmental, financial and public health benefits, and consider regional partnerships to strengthen competitiveness. This funding round presents a timely opportunity for cities and towns to modernize fleets, improve air quality and lower long-term transit costs.
