I don't know if Madison is eligible but the U.S. Department of Transportation has got $775 million
burning a hole in their pocket and wants to help upgrade the nation's buses.Eligible expenses for the funds include purchase and rehabilitation of buses and vans, modernization of buses, bus facilities and revenue service facilities, bus-related equipment and components of transit asset management plans. Deadline for applications is June 18, 2010. Grantees are expected to be announced in late summer 2010.
I haven't read everything to know if Madison can apply for money, but I do see that you can get the Feds to pay for 90% of the cost of projects that make your bus service more ADA compliant. Perhaps some hybrid buses with the ramp-lift hoolies to replace those with steps?