FY26 Section 5339 (Busand Bus Facilities) Grant Applicationtitle
Ratification: Grant Application Submission for FY26 Section 5339 (Bus and Bus Facilities)
end
|
DESCRIPTION: Application for grant funding to replace aging bus engines and transmissions in RTA’s fixed-route fleet to enhance reliability, reduce maintenance costs, and extend vehicle useful life. |
AGENDA NO: Click or tap here to enter text. |
|
ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Ratify the Chief Executive Officer’s decision to apply for federal funds not to exceed $2,299,250 under the FY2026 FTA Section 5339 (Bus and Bus Facilities) Large & Small Urban Call for Projects for the replacement of aging engines and transmissions in fixed-route vehicles.
The total project cost is $2,705,000, with a required local match not to exceed $405,750 (15%) to be provided through RTA’s 2025-2029 Capital Investment Program (CIP).
end
ISSUE/BACKGROUND:
body
RTA’s fixed-route fleet includes vehicles that are due for engine and transmission replacements in 2027 and beyond. Without the necessary overhauls of these components, the RTA fleet will face increased maintenance costs, reliability challenges, and reduced fuel efficiency.
To address these issues, RTA is focused on the replacement of engines and transmissions for its fixed-route buses that are due for this major service. This investment will significantly improve vehicle performance, reduce downtime, and extend useful life, thereby aligning with FTA’s intent for State of Good Repair and Bus and Bus Facilities funding. The RTA has already secured funding for engine and transmission replacement for eight buses. The FTA Section 5339 grant funding that RTA has recently applied for in December 2025 would cover these replacement costs for another twenty buses.
This application aligns with RTA’s Strategic Mobility Plan (Major Action Area 8), which prioritizes modernization of rolling stock, operational efficiency, and environmental sustainability.
The FTA Section 5339 (Bus and Bus Facilities) program, administered through the Louisiana Department of Transportation and Development (LADOTD), provides capital assistance to transit systems for bus and facility investments that maintain and improve public transportation service across the state. The grant application for these funds was submitted to LADOTD on December 5, 2025. The notice of funding availability from LADOTD for these funds was issued too close to the application deadline for staff to present this item to the RTA Board prior to the grant application deadline. Thus, staff is requesting that the Board ratify the decision to apply for these funds.
end
DISCUSSION:
RTA’s FY2026 Section 5339 application has two components: funding for the aforementioned engine and transmission replacements for twenty buses and limited funding for cost escalation/contingency.
This project will:
• Improve system reliability and service quality for riders.
• Reduce unplanned maintenance costs and service disruptions.
• Maintain the fleet in a state of good repair and extend overall fleet longevity.
A detailed project budget is included as an Attachment.
FINANCIAL IMPACT:
The total project cost is estimated at $2,705,000, with federal funding of $2,299,250 (85%) and a local match not to exceed $405,750 (15%). The local share will be funded through RTA’s FY2026-2027 capital budgets and is included in the 2026-2030 5-Year Capital Investment Program (CIP).
NEXT STEPS:
FY26 Section 5339 (Bus and Bus Facilities) Grant Application was due on December 5, 2025. RTA submitted the application in time. Once RTA receives notice of an award, RTA will work to obligate the funds as quickly as possible and commence procurement of replacement engines and transmissions for its fixed route fleet.
ATTACHMENTS:
1. Resolution FY26 Section 5339 (Bus and Bus Facilities) Grant Application
2. Proposed budget
Prepared By: Rafe Rabalias, rrabalais@rtaforward.org
Title: Director of Capital Projects
Reviewed By: Ryan Moser, rmoser@rtaforward.org
Title: Click or tap here to enter text.
Reviewed By: Gizelle Johnson Banks
Title: Chief Financial Officer
12/3/2025
Lona Edwards Hankins Date
Interim Chief Executive Officer