Funding available for transit agencies to expand service for public school students, grow ridership downstate

Total of $35 million to create reduced fare programs, co-op models to offer service to eligible students

SPRINGFIELD – The Illinois Department of Transportation and the Illinois State Board of Education announced today a formal notice of funding availability for eligible agencies to establish programs that encourage and support public school students to use transit outside of the Chicago area. A total of $35 million is available via a competitive grant process, with applications due Oct. 15.

The Downstate Reduced Fare Grant Program and the Downstate Cooperative Transportation Grant Program are the result of legislation passed by the General Assembly this year. ​
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Available to transit agencies outside the territory covered by the Northern Illinois Transit Authority, the programs are designed to provide additional and affordable transportation options for students enrolled in public schools and increase access to transportation for school, extracurricular and other activities.

  • The Downstate Reduced Fare Grant Program is open to public transit agencies to establish, continue or expand their own free or reduced fare programs for eligible students in public elementary, middle and high schools or enrolled at career centers and public technical education centers administered by ISBE. The program is intended to supplement existing transportation options for students by making transit more affordable, while reimbursing transit agencies for providing free or reduced fares. A total of $20 million through IDOT will be awarded to successful applicants. Grants will be administered in five-year cycles.

  • The Downstate Cooperative Transportation Grant is offered to transit agencies to establish, expand or coordinate student transportation services in partnership with public schools and regional offices of education as well as career centers and public technical education centers administered by ISBE. Eligible activities include transportation planning, scheduling, service coordination and eligible equipment and other costs associated with providing student transportation services. A total of $15 million is available. Grants will be administered in five-year cycles.

Applications should be submitted online through IDOT’s transit grant management system at ildot.blackcattransit.com. Awards will be announced in early 2027.

To explain the funding opportunity and how to apply, IDOT is hosting an informational webinar on Sept. 8 and 22, both at 3 p.m. Registration may be completed for the Sept. 8 session at https://idot.click/nofo-090826 and for Sept. 22 at https://idot.click/nofo-092226.

For more information, contact IDOT’s Bureau Chief of Transit Operations David J. Schafer at David.Schafer@illinois.gov.

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