NJ Transit approves $507M bus purchase in fleet overhaul

Matthew Fazelpoor//September 22, 2025//

NJ Transit is aiming to expand its electric bus infrastructure.

NJ Transit is aiming to modernize its bus and rail fleet by 2031, including expanding its electric bus infrastructure. - PROVIDED BY NJ TRANSIT/2024 FILE PHOTO

NJ Transit is aiming to expand its electric bus infrastructure.

NJ Transit is aiming to modernize its bus and rail fleet by 2031, including expanding its electric bus infrastructure. - PROVIDED BY NJ TRANSIT/2024 FILE PHOTO

NJ Transit approves $507M bus purchase in fleet overhaul

Matthew Fazelpoor//September 22, 2025//

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NJ Transit took its next step forward toward a full modernization of its bus and rail fleet by 2031.

On Sept. 19, the NJ Transit Board of Directors authorized the purchase of 260 40-foot transit style buses and 26 at a cost of $506.7 million (plus 10% for contingencies – and subject to availability of funds).

It marks the final authorization required for the agency to reach that 2031 goal – and fulfills a pledge made President and CEO to replace every vehicle in need of replacement.

NJ Transit appointed Kris Kolluri to serve as president and CEO, effective Jan. 15, 2025.
Kolluri

“Authorizing these bus purchases marks the necessary final step towards the full modernization of our fleet by 2031 for the first in the agency’s 45-year history, a goal Gov. Murphy and I set to strengthen NJ Transit for the people it serves,” said Kolluri in a Sept. 19 press release.

As NJBIZ reported Sept. 9, the board exercised a $1.055 billion contract with Alstom to purchase 200 additional multilevel rail cars; as well as an additional 12 ALP 45 dual-powered locomotives, a $203.9 million purchase, that will replace some of NJ Transit’s older, diesel-only engines.

During a gaggle with reporters that day in New Brunswick, Kolluri spoke about the modernization effort. He hinted that this action for new buses would come later in the month during the Sept. 19 board meeting.

“If that happens, we will then have met our promise,” to replace every single train car and bus, Kolluri told reporters.

Gov. Phil Murphy addresses the crowd gathered Oct. 30, 2024, for NJ Transit's new Multilevel III cars presentation.
Gov. Phil Murphy addresses the crowd gathered Oct. 30, 2024, for NJ Transit’s new Multilevel III cars presentation. When combined with the 2023 order of 174 cars, NJ Transit’s total purchase order is up to 374 new multilevel rail cars. – PROVIDED BY JAKE HIRSCH/NJ GOVERNOR’S OFFICE

Getting on board

Grand total

NJ Transit’s total investment = $1.7 billion in +1,400 new buses

The board authorization follows a series of bus purchases over the past several years, including:

  • Approval in April to purchase 208 additional 60-foot articulated buses and 20 battery electric buses;
  • Authorization in November 2023 to purchase 550 40-foot buses and 200 60-foot articulated buses.

Key things to know about the most recent approval:

  • New buses include amenities such as USB charging ports, security camera, blind spot cameras and turning warning systems
  • NJ Transit has 1,228 40-foot transit/suburban buses – including 121 buses operated by private carriers – the majority of which are overage and due for replacement
  • Authorized purchases keep in line with agency’s Bus Fleet Strategy and its strategic 10-year plan –
  • Prior authorizations, combined with the Sept. 19 board approval, bring NJ Transit’s total investment to more than $1.7 billion in more than 1,400 new buses

Kolluri says the new buses will provide riders with increased reliability, while offering reduced operating and maintenance costs.

“Customers will see the impact through vastly improved reliability while offering reduced operating and maintenance costs,” said Kolluri.