Section 5339, Bus and Bus Facilities

The Section 5339 Bus and Bus Facilities program is a federal capital assistance grant administered through the Nebraska Department of Transportation (NDOT) for the benefit of public transit systems operating in rural and small urban areas across Nebraska. Originally authorized under the federal MAP-21 legislation and serving as a replacement for the former Section 5309 discretionary program, Section 5339 supports eligible entities with capital investments that enhance transit operations by facilitating the replacement, rehabilitation, and acquisition of buses and bus-related infrastructure. This program specifically targets the modernization and improvement of transit systems, ensuring that communities outside of large metropolitan areas have access to safe, reliable, and efficient public transportation. Key objectives include purchasing new or replacement buses, refurbishing older vehicles to extend their useful life, and investing in the construction or renovation of essential facilities such as maintenance garages, administrative buildings, transfer hubs, and intermodal transit centers. Additional eligible expenses under this program include equipment like fare boxes, mobile radio units, and preventative vehicle maintenance tools. NDOT acts as the recipient of the state’s apportionment of Section 5339 funds, managing allocations for both rural and small urban areas. Applications are accepted on a rolling basis and may be submitted through the official Nebraska Transit website. The department conducts ongoing reviews to determine project eligibility and completeness. If an applicant’s capital project qualifies for Section 5339 funding, NDOT may allocate funds in lieu of those from the Section 5311 program, which also supports rural transit capital improvements. This flexibility allows the department to manage and optimize its portfolio of transit infrastructure investments. Eligible subrecipients include public agencies and private nonprofit organizations that deliver public transportation services. These entities can apply for assistance without restriction to a specific application window, offering an ongoing opportunity to improve their transit assets. The federal cost-share for approved projects is 80 percent, with a mandatory 20 percent local funding match required from the applicant. This match can be met through local government contributions, private funds, or in-kind services as defined under applicable federal regulations. No specific deadlines, evaluation criteria, or review periods were indicated in the source material, but NDOT encourages interested parties to review the funding guidelines and submit their requests at any time. All relevant application forms and instructions can be accessed at https://www.nebraskatransit.com/funding-and-applications. Though no direct contacts were provided in the source, it is expected that inquiries may be submitted through the website or directed to NDOT’s Transit Section. The Section 5339 program represents an important federal investment in sustainable and modern public transit infrastructure in Nebraska’s underserved communities. Through targeted capital improvements, the program aims to enhance mobility, improve safety, and ensure long-term service reliability for rural and small urban residents.