Press Release: $5 Million in Transit Capital Assistance Funds Announced for Wisconsin Communities

Madison, Wis. - This week, Wisconsin Department of Administration (DOA) Secretary Kathy Blumenfeld announced that applications are now being accepted for the Transit Capital Assistance Grant Program to fund the replacement of eligible public transit buses under the Volkswagen Environmental Mitigation Trust.

“Public transit is a key pillar of our state’s innovative Clean Energy Plan, and these funds help support clean, modern, and reliable transportation options for Wisconsin communities,” said DOA Secretary Kathy Blumenfeld. 

“Efficient, reliable public transit is vital to our state’s economy and quality of life,” added Wisconsin Department of Transportation Secretary Kristina Boardman. “Continuing to modernize our transit system reflects our ongoing commitment to reduce our environmental impact, while improving efficiency and reliability for the Wisconsinites who use public transit every day.”

Program announcement details and application are available on the VW Mitigation Program webpage, with applications due March 20, 2026. Questions regarding the grant program must be submitted by February 23, 2026.

Judicial settlements require Volkswagen to pay more than $2.9 billion into an Environmental Mitigation Trust Fund, for violating the federal Clean Air Act by selling diesel engine vehicles that utilized software designed to cheat on federal emissions tests by reporting inaccurate data on nitrogen oxide emissions. The State of Wisconsin is a designated beneficiary and has been allocated $67.1 million in total to offset the excess pollution emitted by affected Volkswagen vehicles.

2017 Wisconsin Act 59 established the Transit Capital Assistance Grant Program. The grant program funds the replacement and scrapping of 4 to 8 public transit buses in the 1992-2009 engine model year class with new clean diesel or alternate fueled buses, including battery electric. The program gives preference to communities or routes that DOA determines are critical for connecting employees with employers. In the first three rounds of grants, DOA competitively awarded over $61 million of Volkswagen Trust funds to 11 communities for the replacement of 107 eligible public transit buses.

For more information on the Transit Capital Assistant Grant funds or the VW Mitigation Program please contact Erin Smith, Department of Administration VW Mitigation Program Administrator​, at vwsettlement@wisconsin.gov.