The purpose of the award is to provide of this award is to provide operating funds for the period of july 1 2024 to june 30 2025 provide seven (7) replacement vehicles one (1) service expansion…

The State of California Department of Transportation (Caltrans) received a Formula Grant of $133.4 million from the Federal Transit Administration (FTA) under the Formula Grants for Rural Areas and Tribal Transit Program (CFDA 20.509), awarded on September 2, 2025, with a completion date of October 1, 2028. The grant provides operating and capital funding for the period of July 1, 2024 through June 30, 2025 to support public transportation services in California's rural areas. Key deliverables include the procurement of seven replacement transit vehicles and one service expansion vehicle, performance of preventive maintenance on transit assets, and ongoing state administrative and oversight activities to ensure federal compliance.

Caltrans distributes funding to over 50 local transit agencies and authorities throughout California serving as subrecipients. Operating expenses covered under the grant include salaries, fuel, and consumable items with useful lives of less than one year, while capital expenses support vehicle acquisitions and maintenance activities. The grant directly benefits California residents utilizing transit services in rural areas with populations under 50,000, enabling the continuation of fixed-route and demand-response transportation services while supporting timely vehicle replacement, service expansion, and preventive maintenance essential for maintaining safe and reliable rural transit operations.

Activities

Funds will cover operating expenses such as salaries fuel and items having a useful life of less than one year capital expenses for vehicles preventive maintenance and costs incurred by the state for its grant administration and subrecipient oversight activities.

Expected outcomes

Funding will allow the continued operation of transit services timely replacement service expansion and preventative maintenance and oversight for federal compliance requirements.

Intended beneficiaries

California residents using transit within the rural areas of the state.

Subrecipient activities

Subrecipients will receive funding assistance for the following project types under this grant: purchases of vehicles preventative maintenance and operating assistance.