Downstate Reduced Fare Grant Program
🏛 Illinois Department of Transportation
✓ Free, no account · Source: Illinois GATA Catalog (CSFA) · Last verified Sep 2, 2026
Can you apply?
This grant is for public transportation agencies in Illinois providing reduced fares to eligible students. Agencies must currently operate public transit service and demonstrate capacity to implement a fare reduction program. The program reimburses providers for lost revenue from fare discounts. Agencies cannot use this funding to replace general operating assistance or compete with private school bus operators.
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Program description
The Downstate Reduced Fare Grant program is a competitive grant program providing fare-assistance and fare-replacement to eligible public transportation agencies.
The purpose of the program is to make existing public transportation more affordable for eligible students while reimbursing transit providers for some or all of the resulting fare reduction.
The program shall not replace or support general operating-assistance. Additionally, the program shall not replace ordinary school transportation provided by private school bus operators. Reduce Fare programs shall not operate exclusive school bus service in direct competition with private school bus operators (49 CFR Part 605). The Downstate Reduced Fare Grant program is a competitive grant program providing fare-assistance and fare-replacement to eligible public transportation agencies.
The purpose of the program is to make existing public transportation more affordable for eligible students while reimbursing transit providers for some or all of the resulting fare reduction.
The program shall not replace or support general operating-assistance. Additionally, the program shall not replace ordinary school transportation provided by private school bus operators. Reduce Fare programs shall not operate exclusive school bus service in direct competition with private school bus operators (49 CFR Part 605). n/a Beneficiaries: n/a Administered by the Illinois Department of Transportation via the Illinois GATA Catalog of State Financial Assistance (CSFA 494-80-4112).
Who can apply
Eligible applicants
How to apply
Application links
Required documents
- Grant application (via Illinois GATA system)
- Proof of public transit service provider status
- Current ridership and fare data
- Proposed fare reduction schedule and eligible student population
- Budget and revenue impact projections
- Documentation of compliance with 49 CFR Part 605
Program contact
- 👤 David J. Schafer
- 📧 david.schafer@illinois.gov
Funding history
Annual funding for this program — Illinois state appropriations. How funding has trended year over year.
| 2027 | $20,000,000 |
FAQ
Who can apply for this grant?
Illinois public transportation agencies currently operating transit service. Private operators and school district bus services are not eligible.
What is the funding used for?
Reimbursement for lost revenue from reduced fares offered to eligible students. It cannot support general operating costs or school transportation services.
Can we use this for existing school bus routes?
No. The program cannot fund exclusive school bus service or compete with private school bus operators.
Is there a deadline?
Yes, October 15, 2026. Check the Illinois Department of Transportation website for specific submission dates and procedures.
How competitive is this program?
Very competitive. Total funding is $20 million statewide for all eligible agencies. Strong applications will clearly document student ridership, fare reduction impact, and transit sustainability.
💡 Tips for applicants
- Clearly document current ridership data and identify which student populations will benefit from reduced fares.
- Show how the reduced fare rate will increase student usage and support long-term transit sustainability goals.
- Explain your agency's capacity to track and report fare reductions and revenue impact.
- Align the proposal with existing transit development plans and community transportation priorities.
- Budget carefully—demonstrate how the grant reimburses lost revenue without subsidizing other operations.
⚠️ Common mistakes
Proposals that use grant funds for general operating assistance are rejected. Applications proposing exclusive school bus service violate federal regulations and will be denied. Incomplete ridership projections or vague implementation plans weaken competitiveness.
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