Public transit agencies across the Southwest are gearing up for major improvements thanks to the Federal Transit Administration’s FY 2025 Bus and Low- and No-Emission Grant Awards. Announced on November 20, 2025, these competitive grants will invest nearly $2.03 billion nationwide in 165 transit projects – and the eight states of the Southwest Transit Association (SWTA) region are among the big winners. In total, SWTA’s member states (Arizona, Arkansas, Colorado, Kansas, Louisiana, New Mexico, Oklahoma, and Texas) secured roughly $389 million in federal funding for new buses, facilities, and service enhancements. From fleet electrification and modernization to rural service expansion and accessible infrastructure, the funded projects promise to deliver a positive impact for public transit across the Southwest.

Arizona – Cleaner Buses and Better Stops

Arizona transit agencies will receive about $21.8 million in FY25 grants. Key projects focus on fleet upgrades and passenger facilities:

• Phoenix Metro Upgrades: Valley Metro (Phoenix area) won an $18.6 million Low-No grant to purchase new compressed natural gas (CNG) buses to replace older diesel models]. This will improve service reliability and reduce emissions across the region’s busiest routes, contributing to cleaner air throughout greater Phoenix.
• Northern Arizona Improvements: In Flagstaff, the Northern Arizona Intergovernmental Public Transportation Authority (Mountain Line) secured $3.2 million to upgrade bus stops and shelters.These Bus & Bus Facilities funds will improve safety and accessibility at stops, enhancing the rider experience and compliance with ADA standards.

Together, Arizona’s grants accelerate the shift toward low-emission transit and better passenger amenities – a win-win for riders and the environment.

Arkansas – Modernizing Campus Transit

Arkansas will benefit from a $13.2 million award aimed at fleet modernization in an important university community:

• Razorback Transit Expansion: The University of Arkansas in Fayetteville (Razorback Transit) will receive $13.175 million to purchase new buses and paratransit vans, replacing an aging fleet and adding capacity for growing ridership[4]. The funding (via the Buses and Bus Facilities program) allows Razorback Transit to meet increased demand while retiring older buses that have reached end-of-life. This fleet refresh will improve reliability and comfort for University of Arkansas students and the surrounding community.

This infusion positions Arkansas’s transit to better serve riders with new vehicles and expanded service, showcasing a commitment to state-of-good-repair investments.

Colorado – Statewide Upgrades from Cities to Mountains

Colorado agencies netted a significant share of funding – roughly $60.3 million across 13 projects – supporting both urban transit systems and rural mountain communities. The focus is on clean propulsion buses, new routes, and critical facility projects:

• Urban Fleet Renewal: Several Colorado cities are upgrading fleets. Colorado Springs’ Mountain Metropolitan Transit secured $7.6 million to launch two new express bus routes and acquire hybrid-electric buses, boosting capacity and cutting emissions. Fort Collins (Transfort) will use a $4.8 million grant for CNG bus replacements, improving reliability and operational flexibility. Pueblo Transit gained $15.7 million to replace aging diesel buses with hybrids, ensuring cleaner and more dependable service for riders.
• Rural and Regional Initiatives: The Colorado Department of Transportation (CDOT) successfully championed many projects for smaller communities. Notably, a $14.4 million award will fund a new bus storage, maintenance, and operations facility for Mountain Express in Crested Butte – a critical investment to support transit in a growing mountain town. CDOT also won grants to build bus shelters at rural stops in Eagle County (Vail area), purchase new buses for Gunnison Valley and San Miguel Authority (replacement of aging fleet)], and rehabilitate the Winter Park Transit Maintenance Facility to improve safety and efficiency. In Western Colorado, the Roaring Fork Transportation Authority (serving Aspen and Glenwood Springs) will receive funding for new diesel-hybrid buses to replace older vehicles as well as additional buses via a Bus Facilities grant. Even far-west Mesa County (Grand Valley Transit in Grand Junction) isn’t left out – a $2.1 million Low-No grant will introduce CNG and paratransit vehicles to modernize its fleet.

From the Front Range to the Western Slope, Colorado’s awards emphasize fleet modernization and expansion of service. The mix of hybrid and CNG buses will lower emissions, while new facilities and rural bus stop upgrades will improve transit access and reliability in communities large and small.

Kansas – A Greener Wichita Fleet

Kansas received a targeted investment in clean transit technology:

• Wichita Goes Hybrid: Wichita Transit secured a $2.07 million Low-No grant to purchase new hybrid buses, replacing older vehicles that have reached their useful life. This upgrade will modernize Wichita’s fleet with more fuel-efficient, low-emission vehicles. For riders, the new buses mean improved reliability and a smoother ride, and for the city, they mean progress toward a greener transit system.

Though modest in dollar amount, this award is poised to make a noticeable difference in Wichita by reducing maintenance costs and contributing to better air quality.

Louisiana – Better Bus Access and Rural Transit Renewal

Louisiana’s transit agencies will gain about $4.56 million across two projects, focusing on accessibility and rural service improvements:

• Jefferson Parish ADA Bus Stops: Jefferson Transit in suburban New Orleans will use a $2.98 million Bus Facilities grant to upgrade bus stops across Jefferson Parish. The project will bring stops into full compliance with the Americans with Disabilities Act (ADA), improving ramps, signage, and shelters. The result will be safer, more accessible boarding for riders with disabilities, seniors, and all passengers – a meaningful quality-of-life upgrade for the region’s transit users.
• Rural Fleet and Facility (Rapides Area): The Louisiana Governor’s Office of Rural Development, on behalf of the Rapides Area Planning Commission (serving central Louisiana), received $1.58 million under the Low-No program. The funding will replace aging vehicles in its fleet and construct new maintenance and bus parking facilities to support rural transit operations. These investments will enhance transit reliability in rural communities and ensure that buses serving small towns are modern and well-maintained.

Louisiana’s grants highlight both urban accessibility and rural connectivity, helping transit agencies provide safe, inclusive service whether in a busy parish or a smaller community.

New Mexico – Expanding Clean Transit in Cities and Regions

New Mexico will see approximately $7.9 million funneled into low-emission buses and expanded service:

• Santa Fe Clean Bus Fleet: The City of Santa Fe’s transit system (Santa Fe Trails) secured $3.84 million to purchase new CNG buses to replace older diesel models[18]. This investment refreshes Santa Fe’s fleet with cleaner-burning vehicles, which will reduce emissions in the capital city and improve transit reliability for riders. It’s a boost toward Santa Fe’s sustainability goals as well as rider comfort.
• New Route for Southern New Mexico: The New Mexico Department of Transportation, on behalf of the South Central Regional Transit District (SCRTD), received $4.05 million in Low-No funding. SCRTD will use the grant to buy new hybrid buses and launch a new regional route, expanding transit access in the south-central part of the state. By connecting more communities with reliable bus service, this project addresses rural mobility needs and provides residents with greater access to jobs, education, and services.

Across New Mexico, the focus is on cleaning up the fleet and extending reach. Riders can expect quieter, more eco-friendly buses and, in the south, completely new transit connections linking rural areas – a clear positive for regional mobility and air quality.

Oklahoma – Tribal Transit Boost and Rural Buses

Oklahoma’s transit funding – about $18.2 million – is concentrated in three awards that will benefit tribal nations and rural communities:

• Cherokee Nation Transit Hub: The Cherokee Nation will receive $10.01 million (Bus Facilities program) to construct a brand-new transit facility. This state-of-the-art center will house bus maintenance, operations, dispatch, vehicle storage, and even workforce training space for the Cherokee Nation’s transit services. The project will greatly enhance transit operations in Northeast Oklahoma, improving efficiency and allowing the tribal transit system to expand and better serve its residents and visitors.
• Choctaw Nation Fleet Renewal: The Choctaw Nation was awarded $3.73 million to purchase new buses and retire older vehicles[21]. This infusion of modern buses will ensure that transit in the Choctaw service area is reliable and can meet demand efficiently. It’s a win for riders who will see fewer breakdowns and more comfortable, eco-friendly trips.
• Rural Transit Statewide Upgrades: The Oklahoma Department of Transportation (ODOT) secured $4.47 million on behalf of seven rural transit agencies statewide. These funds will buy new buses for rural communities, replacing fleets that have reached their useful life. By upgrading vehicles in multiple counties, ODOT’s grant improves safety and dependability of rural transit, ensuring that people in small towns continue to have access to mobility with modern equipment.

Oklahoma’s share of the FY25 awards underscores a commitment to tribal transit improvements and rural connectivity. New facilities and buses will bolster service reliability and capacity, helping transit reach Oklahomans across both tribal lands and the broader countryside.

Texas – Major Investments Fueling Transit Transformation

Everything’s bigger in Texas, and that includes its transit grants – Texas agencies hauled in over $260 million in FY25 Bus & Low-No funding, by far the largest of the SWTA states. This windfall will drive significant fleet modernization, facility construction, and service enhancements across the Lone Star State:

• Houston METRO’s Clean Fleet & Facilities: The Metropolitan Transit Authority of Harris County (Houston METRO) scored one of the nation’s largest awards at $100.7 million[23]. This Low-No grant will enable METRO to replace aging diesel buses with new CNG buses and build a new CNG fueling station, as well as upgrade an existing maintenance facility for CNG operations. The investment accelerates Houston’s shift toward cleaner fuel technology and provides the infrastructure to support a growing zero/low-emission fleet – a huge step toward Houston’s sustainability and resilience goals.
• Statewide Rural Support (TxDOT): The Texas Department of Transportation will receive $36.0 million to assist 27 rural transit agencies statewide. The funds will go toward building new operations/maintenance facilities and purchasing buses to replace older vehicles in rural and small urban areas. From the Panhandle to the Gulf Coast, this grant means rural Texans can look forward to improved transit garages, upgraded buses, and more reliable service connecting remote communities.
• Coastal Bend Resilience – Corpus Christi: The Corpus Christi Regional Transportation Authority secured $46.28 million for a major facilities project. The grant will replace an aging maintenance facility with a modern, hardened structure designed to withstand severe weather events (critical in this hurricane-prone coastal city) and safely maintain the bus fleet. This investment not only modernizes CCRTA’s infrastructure but also ensures continuity of transit service during extreme weather, benefiting thousands of riders.
• Fleet Modernization in Mid-Size Cities: Several mid-sized Texas cities are getting funding to modernize their bus fleets with low-emission vehicles. Notably, Citibus in Lubbock will receive $26.25 million to procure a new fleet of hybrid buses, replacing older buses that have reached end-of-life]. The Brazos Transit District (serving Bryan-College Station and surrounding areas) was awarded $18.9 million to replace aging diesel buses with hybrid vehicles, significantly upgrading its fleet’s reliability and efficiency. In Fort Bend County (a growing Houston suburb), a $13.75 million grant will fund a new CNG fueling station, maintenance facility upgrades, and CNG bus purchases – bolstering capacity for this rapidly expanding commuter transit service. Dallas Area Rapid Transit (DART) also secured $7.09 million to add new CNG buses to its fleet, improving service in the Dallas metro area.
• Additional City Improvements: A number of other Texas communities will see benefits. Amarillo’s City Transit will get $5.44 million for ADA-compliant new buses to enhance reliability and accessibility. El Paso’s Sun Metro was granted $1.96 million to modernize its support vehicles fleet (critical for daily operations). The City of San Marcos will receive $1.76 million to replace its buses with new hybrids], and Denton County Transportation Authority was awarded $2.30 million to replace aging buses in its fleet. Each of these projects targets service reliability and accessibility for riders, whether through fleet renewal or improved infrastructure.

From big-city transit agencies to rural county systems, Texas’s haul of grants touches nearly every corner of the state. The emphasis is on clean energy (CNG and hybrid buses), state-of-good-repair upgrades, and even disaster-resilient facilities – all translating to more dependable and sustainable transit for Texans. Transit professionals in Texas are hailing this as a transformative investment that will pay dividends in improved service quality and capacity for years to come.

Across the SWTA region, the FY25 Bus and Low-No Emission grants are kick-starting a new era of transit improvements. Dozens of aging buses will be replaced with modern low-emission models, new routes and services will launch in growing areas, and critical facilities from maintenance garages to bus stops will be built or rehabilitated. The positive ripple effects – from job creation during construction to long-term operational savings and better rider experiences – will reinforce public transit as a reliable, efficient, and forward-looking mobility option. Transit professionals throughout these eight states have cause to celebrate: with this infusion of federal support, they can accelerate plans to drive innovation, sustainability, and connectivity in Southwest transit networks]. The Southwest Transit Association region is truly seizing the moment to ensure its public transportation is on the road to a greener and brighter future.

https://www.transit.dot.gov/lowno