Mayor Lurie Announces $40 Million Award For New Muni Buses

SAN FRANCISCO – Mayor Daniel Lurie today announced that the San Francisco Municipal Transportation Agency (SFMTA) won nearly $40 million from the U.S. Department of Transportation (USDOT) to purchase up to 24 new 40-foot diesel hybrid electric buses. The federal funding will help SFMTA continue to deliver reliable, affordable, and efficient transit service for San Franciscans.  

Earlier this year, Mayor Lurie launched his Heart of the City plan to accelerate San Francisco’s downtown recovery by creating a neighborhood where people live, work, play, and learn. Right now, crime is down more than 40% in Union Square and the Financial District and 30% citywide, hotel room bookings associated with events at Moscone have increased by more than 60% from 2024, more downtown office space is being leased, and workers are returning to the office at higher rates in San Francisco than all other major cities. 

“San Francisco’s recovery depends on a strong and reliable public transit system. This funding will help SFMTA continue delivering efficient, affordable bus service that San Franciscans rely on to get to work, school, doctor's appointments, and so much more,” said Mayor Lurie. “Thank you to the U.S. Department of Transportation and our federal representatives for their support in keeping our city moving and accelerating our comeback.” 

As the SFMTA faces a budget deficit of $306 million that is expected to grow to $434 million in 2030, the Low- or No-Emission Grant issued by USDOT will help build on SFMTA’s efforts to modernize Muni’s fleet, improve system reliability, and advance the city's long-term commitment to a cleaner, more sustainable transit network. SFMTA is taking action to tackle the fiscal crisis, with $160 million in savings found internally while working to become more efficient.  

“Modern, reliable buses are essential to keeping San Francisco moving,” said Julie Kirschbaum, SFMTA Director of Transportation. “This federal investment strengthens our ability to provide excellent service today while accelerating the agency’s efforts to avoid costly breakdowns and loss of service. We thank the Department of Transportation for supporting reliable public transit, especially at a time when our financial outlook is unpredictable.” 

As a system that moves more than 500,000 riders every day across San Francisco’s 49 square miles, maintaining reliability requires constant monitoring, preventative maintenance, and timely vehicle replacement. The SFMTA will move forward with purchasing 24 hybrid coaches with the funding from this grant and will support the continued replacement of SFMTA’s 575 hybrid buses.  

In 2024, Muni achieved its highest customer satisfaction rating in two decades. Investing in fleet modernization ensures that level of performance can not only be maintained but improved. New vehicles reduce breakdowns, enhance comfort, and support more dependable service for hundreds of thousands of daily riders. 

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