Transit Operating Grant
We distribute state and federal operations funding to eligible rural, small urban, and tribal transit providers.
How it works
State rules require us to collect and consider specific information to allocate funding and award contracts. The information is needed for funding decisions, required for the Management Plan, and/or used in compliance monitoring and contract awards. The details for each item are included in a table within the instructions as well as the Checklist document.
Eligibility
- Any legislatively established public transit commission or authority, any county or statutory or home rule charter city providing financial assistance to or operating public transit, any private operator of public transit, any tribal government, or any combination thereof is eligible to receive financial assistance through the public transit participation program.
- Any organization that did not receive operating funds in the 2025 calendar year will need to contact Noel Shughart, program unit supervisor, at noel.shughart@state.mn.us for eligibility certification before beginning an application.
- A completed solicitation does not guarantee a specific funding allocation. At any time in the review process, OTAT may request additional information or clarification to properly evaluate your submission.
- All Operating Grant submissions will be considered within the confines of the statewide budget target.
Timeline
- May 1, 2026: Application period opens
- June 30, 2026: Applications deadline
- Fall 2026: Operating awards announced
Application period
This solicitation is now closed. The application period will open May 1, 2026.
After you apply
- We'll review your application for compliance.
- We'll announce initial allocations in fall 2026.
- We'll email award contracts in fall 2026.
- You'll need to sign your contract and return it to us within 45 days from receipt.
- Funding is available Jan. 1, 2027.
Reporting requirements
If we award you funds, you must submit the following reports:
- Monthly Operating Budget
- Monthly Ridership Statistics (service level and passenger stats)
- Annual Vehicle Statistics Report (VSR)
For the Monthly Operating Budget and the Monthly Ridership Statistics, you'll complete the reports in BlackCat Transit Data Management System and submit them 30 days after the month of reporting. Work with your transportation program manager to complete these reports.