Federal Grant Award Summary

The Federal Transit Administration (FTA) awarded $960,155 to the Kenaitze Indian Tribe on January 29, 2026, under the Formula Grants for Rural Areas and Tribal Transit Program (CFDA 20.509) to establish and operate a fixed-route public bus service in Alaska's central Kenai Peninsula region. The project, which will conclude on December 30, 2027, addresses a critical gap in affordable public transportation by connecting the communities of Nikiski, Kenai, Soldotna, and Sterling via service along the Kenai Spur Highway, Sterling Highway, and Kalifornsky Beach Road. The Kenaitze Indian Tribe will deploy two transit buses from its existing transportation department fleet to provide passenger service that complements existing demand-response transit options operated by the Central Area Rural Transit System (CARTS) and private cab services.

This two-year pilot program is designed to expand transportation access for low-income tribal members and regional residents who cannot afford private vehicle ownership or maintenance, while leveraging existing infrastructure and partnerships with local municipalities and the Kenai Peninsula Borough Government. By achieving over 200,000 annual vehicle miles during the performance period, the Tribe will qualify for ongoing FTA formula funding to sustain bus operations long-term, establishing a reliable and cost-effective transit network that serves both tribal members and the broader public.