Competitive Transit Grant

The Competitive Transit Grant is administered by the Oregon Department of Transportation Public Transportation Division as part of a consolidated funding approach that replaces several prior discretionary transit programs. This program combines federal and state funding streams into a single competitive solicitation intended to support public transportation providers across Oregon. The program is designed to improve, maintain, and expand the state’s public transportation system by funding both capital investments and operational activities. Funding is sourced from the Federal Transit Administration Section 5339(a) Grants for Buses and Bus Facilities Program as well as the Statewide Transportation Improvement Fund Discretionary and Intercommunity programs. The primary purpose of the grant is to provide financial assistance to eligible public transportation providers for projects that enhance transit service delivery, infrastructure, and accessibility. The program supports a wide range of project types including vehicle acquisitions, construction or rehabilitation of transit facilities, capital equipment purchases, and operations-related activities such as maintaining existing service levels, restoring reduced services, and launching pilot programs. The grant also allows funding for preventive maintenance and purchased transportation services that help sustain transit operations. Applicants are expected to demonstrate how their proposed projects contribute to safety, accessibility, climate benefits, and overall community impact. Funding for Phase 2 of the program totals up to 21.6 million dollars, combining both federal and state resources. Applicants must provide a minimum local match of 20 percent of the total project cost, although certain federally funded projects may qualify for a 90 percent federal share with a 10 percent local contribution depending on eligibility criteria. The program requires applicants to demonstrate financial capacity to meet match requirements and to sustain project implementation. Additionally, applicants must consider environmental compliance requirements, including adherence to the National Environmental Policy Act and related federal statutes, and may be required to submit supporting documentation for environmental review. Eligible applicants include a broad range of public and quasi-public transportation providers such as public transportation agencies, mass transit districts, transportation districts, federally recognized tribes, cities, counties, special districts, intergovernmental entities, and municipal corporations. Private nonprofit organizations engaged in public transportation that provide fixed route services are also eligible. However, applicants undergoing forensic audits or with significant financial deficiencies may be subject to additional scrutiny and risk assessment during the evaluation process. The application process is structured in two phases to ensure timely allocation of funds and compliance with federal deadlines. For Phase 2, applications opened on March 11, with initial submissions due April 20 and final applications due June 22. Applicants must first submit an initial application for review of completeness and eligibility before submitting a final application. Applications are submitted through a web-based platform, and each project must be submitted as a separate application. The process includes opportunities for applicant training and question-and-answer sessions to support submission quality. Applications are evaluated competitively by a committee consisting of Public Transportation Division staff and members of the Public Transportation Advisory Committee. Evaluation criteria include safety improvements, accessibility and equity considerations, climate impact, readiness to proceed, infrastructure and multimodal connectivity, and overall community benefits. Successful applicants are expected to demonstrate clear project outcomes and the ability to complete the project within the specified grant agreement period, which varies by funding source but generally spans from 2027 through 2031 for capital projects and one year for operations projects. Awards are expected to be announced in February following the application cycle, with selected applicants notified via email. The grant agreement period typically begins in July 2027 for state-funded projects and October 2027 for federally funded projects. Recipients are required to comply with reporting requirements, including quarterly performance and financial reporting, and may be subject to additional documentation requirements based on project scope. The program is part of an ongoing transition to a standardized biennial funding cycle, indicating that similar funding opportunities are expected to recur in future years.

Align project with evaluation criteria including safety, access, climate benefits, and readiness; ensure environmental compliance documentation is anticipated; clearly demonstrate community benefits and project feasibility