2026 Diesel Emissions Reduction Act (DERA) National Grant Program Notice of Funding Opportunity

The U.S. Environmental Protection Agency (EPA) announced a Notice of Funding Opportunity (NOFO) under the Diesel Emissions Reduction Act (DERA) Program, making approximately $180 million available to help modernize aging diesel fleets nationwide in accordance with Congressional direction. The funding will support the retrofit, replacement, or retirement of older diesel engines, vehicles, and equipment with newer technologies, helping eligible organizations reduce fuel consumption, lower maintenance costs, improve fleet reliability, and strengthen transportation infrastructure.

The funding opportunity is expected to provide between four and 12 grants per EPA Region, with projects expected to span two to four years. Eligible projects may include buses, medium- and heavy-duty trucks, marine engines, locomotives, and nonroad equipment used in construction, cargo handling, agriculture, mining, and energy production.

The Trump EPA is committed to ensuring that DERA funding is administered with strong safeguards and accountability, so taxpayer dollars are used effectively and deliver measurable results.

For more information and to apply, visit National Grants: Diesel Emissions Reduction Act (DERA).