U.S. Allocates $1.7 Billion for Purchase of Electric and Low-Emission Buses

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The U.S. Department of Transportation is set to distribute almost $1.7 billion in grants for the procurement of zero- and low-emission buses. The funds, aimed at supporting transit projects in 46 states and territories, are sourced from the bipartisan infrastructure bill of 2021, signed into law by President Joe Biden.

This financial aid will empower transit agencies, alongside state and local governments, to acquire about 1,700 U.S.-manufactured buses. Nearly half of these will be carbon-neutral, aligning with President Biden’s commitment to increase the presence of electric vehicles on the roads — particularly in schools and public transport — as part of the country’s climate change mitigation strategy.

“Every day, millions of Americans use over 60,000 buses for commuting to their workplace, schools, medical appointments, and other destinations,” said Transportation Secretary Pete Buttigieg during a press call. He emphasized that this significant funding marks an unprecedented level of investment in modern, environmentally-friendly buses.

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The recent announcement marks the second wave of grants designated for buses and associated infrastructure. The total U.S. investment in these projects now stands at $3.3 billion, with an additional $5 billion expected to be awarded over the next three years.

The Biden administration has highlighted that these new buses will benefit public health by reducing diesel exhaust emissions and will be more cost-effective to maintain.

The government received nearly 475 project proposals for these grants, amounting to approximately $8.7 billion, indicating a high demand for this funding.

Notable recipients include the Seattle region, set to receive $33.5 million for the purchase of 30 electric battery buses and chargers, and the Washington, D.C., transit authority, allocated $104 million for the transformation of a bus garage into an electric facility and the procurement of about 100 electric battery buses. Additionally, grants have also been awarded to regions beyond major U.S. cities, including Iowa City, Iowa, and the Seneca Nation in Western New York.