InfrastructureNEWLast Reviewed: April 2026GM-INS-114 // APRIL 2026
Transit & Transportation Grants 2026: FTA Formula Funds, RAISE & Federal Infrastructure Grants
$14B+
FTA Annual Budget
$1.5B
RAISE Annual
$1.1B
Low-No Emission
80%
Federal Share (typical)
Key Takeaways
FTA Section 5307 (Urbanized Area) and Section 5311 (Rural) are formula programs — transit agencies receive allocations automatically without competitive applications
RAISE grants ($1.5B/year) are competitive and open to states, local governments, tribes, and transit agencies — awards from $1M to $25M for multimodal projects
The Low or No Emission Vehicle Program ($1.1B) funds zero-emission and low-emission bus purchases — electric buses, hydrogen fuel cell buses, charging infrastructure
Federal transportation grants typically require a 20% local match — though RAISE and some programs allow 0% match for projects in rural or low-income areas
Nonprofits and human services agencies can access FTA Section 5310 funds for transportation services for seniors and people with disabilities — awards through state DOTs
FTA Formula Programs: 5307, 5311, and 5310
The Federal Transit Administration distributes the majority of its $14 billion annual budget through formula programs — allocations based on population, transit ridership, and service area characteristics. These are not competitive grants:
Section 5307 — Urbanized Area Formula (CFDA: 20.507)
Largest FTA program — approximately $5.4B/year to transit agencies in urbanized areas (population 50,000+). Eligible uses: operating costs (for smaller urbanized areas only), capital expenses (buses, rail vehicles, stations, technology systems). Transit agencies access 5307 funds by submitting annual grant applications through FTA's TrAMS system, based on their approved Transportation Improvement Program (TIP).
Section 5311 — Rural Area Formula (CFDA: 20.509)
Approximately $800M/year for transit in rural areas (population under 50,000). States receive allocations and award to transit providers — rural transit systems, county transit programs, and tribal transit operators. Rural nonprofits providing transportation can access 5311 through their state DOT. Funds cover operating costs (up to 50%), capital purchases, and training.
Approximately $300M/year to support transportation for seniors and people with disabilities beyond what ADA requires. States administer and award to nonprofits, local governments, and for-profit operators. Nonprofits that provide medical transportation, senior center transportation, or disability services transport can apply through their state DOT for 5310 sub-awards. Awards typically: $50K–$500K for vehicle purchase and operating assistance.
RAISE Grants (Competitive)
The RAISE (Rebuilding American Infrastructure with Sustainability and Equity) program is DOT's signature competitive grant — $1.5B annually for transformative transportation projects. Application window: typically January–April each year on Grants.gov.
Eligible applicants: States, local governments, tribes, transit agencies, port authorities, special purpose districts
Award range: $1M–$25M; typically $5M–$15M for most projects
Eligible projects: Road and bridge reconstruction, transit improvements, port and freight facilities, bicycle/pedestrian infrastructure, multimodal hubs
Rural set-aside: At least 30% of RAISE funds must go to rural projects
Low or No Emission Vehicle Program (Low-No)
The Low-No program ($1.1B/year) funds purchase and lease of zero-emission and low-emission transit buses and supporting infrastructure. This is a competitive grant open directly to transit agencies and state DOTs:
Charging infrastructure and hydrogen fueling stations are eligible capital costs
Average award: $2M–$20M depending on fleet size and technology
Application: competitive, typically released fall each year
20% match required; reduced or waived for agencies in areas with poor air quality
Action Checklist
Transit agencies: Confirm your 5307/5311 allocation with your state DOT and ensure your TIP project list is current before the federal fiscal year (October 1)
Municipalities pursuing RAISE: Engage your congressional delegation early — pre-application consultations with DOT's regional office strengthen applications significantly
Nonprofits providing senior/disability transport: Contact your state DOT's transit office about Section 5310 sub-award opportunities
Transit agencies with diesel fleets: Review Low-No program FOA at transit.dot.gov — electric bus replacement grants are competitive but well-funded
Register in SAM.gov and ensure your organization's UEI is active — required before applying to any DOT competitive grant program
Federal Grant Research & Policy Analysis · Est. 2025
This article was researched and written by the GrantMetric editorial team using primary sources: official federal Notice of Funding Opportunity (NOFO) documents, the Code of Federal Regulations (CFR), OMB Uniform Guidance (2 CFR Part 200), agency budget justifications, and direct data from the Grants.gov API. Program details — funding amounts, eligibility criteria, deadlines — are cross-referenced against the issuing agency's official website before publication.
📅 Last reviewed: 2026-04-17🔄 Live grant data updated daily
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◆ Typical Federal Grant Application Timeline
Wk 1–4
SAM.gov Registration + UEI
Mo 1–2
Find FOA + Eligibility Check
Mo 2–4
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Mo 4
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◆ Common Questions About Federal Grants
Who is eligible to apply for federal grants?
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Eligibility depends on the specific grant. Most federal grants are open to nonprofit organizations, universities, state and local governments, and small businesses. Some grants (like SBIR/STTR) are exclusively for small businesses, while others (like fellowships) target individuals. Always check the Funding Opportunity Announcement (FOA) for specific eligibility requirements.
How do I apply for a federal grant?
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To apply: (1) Register in SAM.gov and obtain a UEI number, (2) Register on Grants.gov, (3) Find a relevant Funding Opportunity Announcement (FOA), (4) Prepare your application package including project narrative, budget, and required forms, (5) Submit before the deadline. Allow at least 2–4 weeks for system registrations before your first submission.
Are federal grants free money?
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Federal grants do not need to be repaid, but they are not unconditional. Recipients must use funds only for the approved purpose, submit progress and financial reports, comply with federal regulations, and allow audits. Misuse of grant funds can result in repayment requirements and debarment from future federal funding.
How long does it take to receive a federal grant?
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The timeline varies by agency and program. Typically, from submission to award decision takes 3–12 months. NIH review cycles run about 9 months. SBIR Phase I awards may take 5–6 months. Some emergency or formula grants move faster. Budget for at least 6 months between application and funding receipt.
What is the difference between a grant and a cooperative agreement?
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A grant gives the recipient substantial independence to carry out the project with minimal federal involvement. A cooperative agreement involves substantial federal agency involvement in directing or participating in the project activities. Both provide funding that does not need to be repaid, but cooperative agreements require closer collaboration with the funding agency.
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