This award will support the procurement of up to 27 diesel-electric hybrid buses

The Department of Transportation Federal Transit Administration awarded the Ann Arbor Area Transportation Authority $31.25 million on July 27, 2026, to procure up to 27 diesel-electric hybrid buses under the Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs (CFDA 20.526).

Funding covers all eligible expenses associated with purchasing the hybrid buses, including progress payments to original equipment manufacturers throughout the production process. The replacement vehicles will retire high-mileage, less efficient diesel-operated buses past their useful life. The hybrid buses are expected to deliver improved fuel efficiency and mileage, lower operating costs, reduced maintenance needs, and decreased air pollution and carbon emissions. Transit riders will benefit from increased reliability and service frequency, while the broader Ann Arbor and Ypsilanti service communities will realize congestion reduction and public health improvements as transit ridership grows.

Performance occurs in Michigan with an ultimate completion date of September 30, 2030. The award carries no sub-recipient activities. The actual number of buses purchased may vary based on inflation rates at the time of order.

Activities

Funds will cover all eligible expenses associated with purchasing the hybrid buses including providing progress payments if needed to the vehicles original equipment manufacturer (oems) throughout the production process to strengthen the american vehicle manufacturing industry and reduce the financial burden on the oems.

Expected outcomes

This funding will permit aaata to purchase up to 27 low-emission diesel-electric hybrid buses (the total number of buses will depend on the rate of inflation at the time of order). By replacing current less efficient diesel-operated buses past their useful life with more fuel-efficient and environmentally friendly vehicles aaata will reduce air pollution and carbon emissions thereby promoting sustainability and public health.

Intended beneficiaries

ANN arborarea transportation authority will benefit from this funding by replacing old high-mileage expensive-to-operate less efficient diesel-operated buses that are past their useful life. Replacing old high mileage expensive-to-operate diesel-operated buses with low-emission vehicles will cause a significant improvement in energy efficiency and reduction over fuel costs at aaata. Aaatas riders will benefit from increased transit reliability as realized by the less-frequent maintenance needs and improved mileage of the hybrid buses. The project will also promote increased ridership by adding new innovative vehicles to aaatas operations attracting riders who may not have been utilizing aaatas services. By promoting public transportation more personal vehicles can be removed from the road reducing congestion and carbon emissions.

Subrecipient activities

No subrecipient activities are included in this award.