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.