Zero-Emission Buses Get Nearly $16 Million in Proposed FY2026 Funding

In September 2025, Capitol Hill rolled out a fresh plan to modernize public transit: Congress unveiled its proposed FY2026 Transportation, Housing and Urban Development Appropriations Act, setting aside nearly $16 million in federal transportation funding for zero-emission buses and the infrastructure to keep them humming. It’s a landmark moment for transit decarbonization—as long as legislators beat the September 30 deadline and sidestep a shutdown.

How Will These Funds Drive Transit Decarbonization?

We’re at a turning point. This investment underscores the federal government’s push to slash greenhouse gases, clear up city air, and spark fresh innovation in bus tech. Riding the wave of the 2021 Bipartisan Infrastructure Law and the booming FTA Low or No Emission Grant Program, these dollars will help transit agencies swap out diesel fleets for both hydrogen fuel cell buses and battery electric buses. On top of that, they’ll cover the chargers, batteries, and even solar panels needed to keep routes running cleanly and efficiently.

Inside the Investment

Here’s how that nearly $16 million slices up across four states and seven agencies:

• Central Contra Costa Transit Authority (CA): $2.0 M to power up a solar-backed battery system.
• Foothill Transit (CA): $1.7 M to bulk up its zero-emission buses fleet.
• Culver City (CA): $1.2 M plus $0.85 M for a pilot of hydrogen fuel cell buses with added safety features.
• Omnitrans Public Transit Agency (CA): $1.0 M for battery electric buses and new charging stations.
• Toledo Area Regional Transit Authority (OH): $2.45 M to switch to zero-emission buses and build a brand-new garage.
• Steamship Authority Shuttle (MA): $2.0 M to swap gas-powered shuttles for electric models.
• Community Transit (WA): $2.0 M to bring battery electric buses to Snohomish County.

Together, these initiatives span California’s innovation hubs, Ohio’s budget-savvy upgrades, Massachusetts’ clean-air push, and Washington’s leadership in green infrastructure.

Meet the Key Players

At the heart of this effort is U.S. Congress, which drafted the bill with strong backing from over a dozen California Democrats. If both chambers sign off, the U.S. Department of Transportation will dole out the cash, while the U.S. Department of Housing and Urban Development makes sure it lands with local transit agencies. But all of this hinges on approving the 12 appropriations bills by September 30—otherwise, even the most forward-thinking projects hit the brakes.

Why Hydrogen Fuel Cell and Battery Electric Buses?

Hydrogen fuel cell buses generate on-board electricity by merging stored hydrogen with oxygen—so their only tailpipe output is water vapor. They refill quickly and go the distance. Battery electric buses run on lithium-ion packs, glide silently through city streets, and recharge overnight or at on-route stations. Both models rely on robust chargers and battery systems—and sometimes rooftop solar—to balance grid loads and shrink their carbon footprints.

Benefits on Every Route

• Air quality: Cutting tailpipe pollutants means less smog and healthier lungs, especially where traffic clogs city corridors.
• Climate impact: Electric fleets align with net-zero goals and trim transit’s carbon footprint.
• Economic gains: Higher up-front costs pay off over time with lower maintenance and fuel bills.
• Workforce development: New roles in clean-tech installation, maintenance, and safety monitoring.
• Local manufacturing: Growing demand for buses, batteries, and hydrogen gear could boost U.S. production and R&D partnerships.

Of course, hurdles remain—hydrogen infrastructure is still a novelty in many regions, and agencies will need ongoing training plus solid safety measures, like hydrogen leak detectors and alarms, to keep everyone out of harm’s way.

What’s Next for Zero-Emission Transit?

If the appropriations package clears Congress, expect shovels in the ground—and charging cables overhead—well before the end of 2026. Transit agencies will soon issue RFPs, pick their tech partners, and start retrofitting garages. As hydrogen and battery prices continue to drop, these early pilots could pave the way for much larger rollouts.

It won’t be an overnight switch, but with federal transportation funding, state leadership, and public support all lined up, the blueprint for a cleaner, quieter, and more efficient transit future is coming into focus. Buckle up—zero-emission buses are about to hit the road in a big way.