State Buses and Bus Facilities Grant Program

The State Buses and Bus Facilities Grant Program is administered by the Washington State Department of Transportation as part of the state’s broader transportation and climate initiatives. The program is funded entirely through Washington’s Climate Commitment Act, which directs cap-and-invest revenues toward reducing greenhouse gas emissions, improving public health, and supporting infrastructure modernization. This grant program is also codified within the state’s long-term Move Ahead Washington transportation package, reflecting a sustained policy commitment to transit system investment and climate-aligned transportation improvements. The primary purpose of the program is to provide capital funding to transit agencies across Washington state for the acquisition, rehabilitation, and modernization of transit vehicles and facilities. Eligible uses include the replacement, expansion, and purchase of rolling stock such as buses, as well as the construction, modification, or rehabilitation of transit facilities. The program also supports technological innovation, including retrofitting vehicles and facilities to accommodate emerging technologies, and includes newer priorities such as safety and security improvements. However, certain costs, such as ongoing security personnel expenses, are explicitly excluded from eligibility. Funding for the 2027-2029 biennium is anticipated to reach approximately $38 million, although final allocations are subject to legislative approval. The program ensures equitable geographic distribution of funds across urban, small urban, and rural transit agencies, with at least 10 percent of funding reserved for smaller agencies with operating budgets under $15 million. Projects may be structured as either two-year or four-year initiatives depending on whether they involve vehicles and equipment or construction activities. Eligibility is limited to transit agencies operating within Washington state, including city transit systems, county transportation authorities, metropolitan municipal corporations, public transportation benefit areas, and special purpose districts established to provide transit services. Applicants may submit multiple applications, but each project must be submitted separately through the state’s Grants Management System. Applicants must also ensure compliance with WSDOT policies, including maintaining good standing status to avoid disqualification during the fatal flaw review process. A matching requirement applies to most applicants and is determined using a tiered system based on the agency’s operating budget. Larger agencies are required to provide up to 20 percent in matching funds, while smaller agencies may have reduced requirements or no match at all. Matching contributions must be direct and may include cash or assets that directly support the project. Certain prior expenditures and non-WSDOT grants may also be used to satisfy match requirements, subject to program rules. The application process is conducted through the online Grants Management System, with the application opening on June 16, 2026 and closing at 3:00 p.m. on August 18, 2026. Applicants are required to complete system registration prior to submission and are encouraged to submit early to avoid technical issues. Applications are evaluated through a competitive process by an independent review panel using criteria that include demonstrated need, expected benefits, project readiness, alignment with regional priorities, and organizational experience. Following submission, applications undergo evaluation between August and September 2026, with funding recommendations provided to the Legislature and Governor’s Office. Final award notifications are expected after the state budget is approved, with project performance periods beginning July 1, 2027. Two-year projects conclude by June 30, 2029, while four-year construction projects may extend through June 30, 2031. The program operates on a biennial cycle, indicating that future funding opportunities are likely to recur in subsequent legislative periods.

Emphasize demonstrated need, measurable service improvements, project readiness, and alignment with regional priorities; ensure compliance with eligibility and good standing requirements