Section 5339 (Bus & Bus Facilities Programs) supports Tennessee transit agencies with capital funding for buses, related equipment, and bus facilities to sustain public transportation services.
Funder: Tennessee Department of Transportation
Due Dates (Anticipated): February 2027 (Application deadline)
Funding Amounts: Capital: 80% federal, 10% state, 10% local; ADA capital: 85% federal, 7.5% state, 7.5% local
Summary: Capital funding for eligible Tennessee public transportation agencies to replace, rehabilitate, or purchase buses, related equipment, and bus-related facilities.
Key Information: Rural projects are limited to replacing revenue vehicles that have met useful life through years of service or mileage.
Section 5339 provides capital funding to support the continuation of public transportation services through investment in buses, related equipment, and bus-related facilities. The Tennessee Department of Transportation (TDOT) administers the program through its Public Transportation Section and Office of Grants Administration. Eligible Tennessee applicants are public transportation agencies in rural and small urban areas that provide general public transportation and currently receive Section 5307 or 5311 funds.
TDOT allocates small urban funds by formula, while rural agencies compete for the statewide allocation. Eligible capital activities include bus replacement, rehabilitation, and purchase, related equipment purchases, and bus-related facilities. For rural agencies, TDOT limits projects to replacement of revenue vehicles that have reached their useful life. Rural selection draws on the statewide vehicle inventory, agency application materials, fleet characteristics, and service performance data.