FTA Announces $610 Million in Transit Grants: Agencies Urged to Leverage Funding for Proven, Low-Emission Propane Autogas Fleets

RICHMOND, VA (August 17, 2026) — As transit and paratransit agencies nationwide evaluate strategies to modernize fleets while managing budgets, the 2026 Buses and Bus Facilities Competitive Program and the Low or No Emission Grant Program offers a funding-eligible pathway to meet sustainability goals. Propane autogas stands out as a proven solution that enables agencies to modernize their fleets today, avoiding the complex infrastructure overhauls required by other alternative fuels.

With the federal application window currently open, transit leaders should act quickly. Propane autogas offers a practical, reliable alternative that can be integrated into existing operations with minimal disruption, helping agencies meet strict timelines and environmental targets. By choosing propane autogas, agencies benefit from a lower total cost of ownership through reduced fuel and maintenance expenses, allowing them to reinvest savings into expanding service and supporting riders.

Unlike alternative technologies that may require extensive utility interconnection or multi-year implementation timelines, propane autogas fueling infrastructure can be deployed quickly and affordably. Agencies using propane autogas benefit from established service networks and dependable performance in real-world transit environments, including demand-response and fixed-route services.

Furthermore, with simplified engine systems that eliminate the need for complex diesel aftertreatment or diesel exhaust fluid (DEF) requirements, propane autogas reduces maintenance complexity, helping ensure vehicles stay on the road serving communities and out of the shop.

“For transit leaders, the decision to modernize is a balance between meeting sustainability mandates and maintaining fiscal responsibility,” Joel Stutheit, senior manager of autogas business development at the Propane Education & Research Council (PERC) said. “Agencies can leverage this federal funding to adopt a technology that is proven to reduce emissions and maximize long-term operational savings. With the application window for the FY 2026 grants closing soon, I encourage agencies to evaluate how propane autogas can support their fleet modernization efforts immediately.”

Transit and paratransit agencies are invited to explore the FY 2026 FTA Low or No Emission Grant Program and discover how propane autogas can help maximize available funding for cleaner, more cost-effective transit.

To learn more about the benefits of propane autogas and to access resources for your agency’s grant application, visit propane.com/low-no.

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About PERC: The Propane Education & Research Council is a nonprofit that provides leading propane safety and training programs and invests in research and development of new propane-powered technologies. PERC is operated and funded by the propane industry. For more information, visit Propane.com.