The Alabama Department of Economic and Community Affairs (ADECA) is accepting applications for its 2026 Volkswagen Settlement Eligible Mitigation Action grant cycle to reduce nitrogen oxide emissions in Alabama. ADECA’s current funding page states applications are open through October 6, 2026 at 11:59 p.m. Central; the 2026 application-workshop slides state October 6, 2026 at 11:59 p.m. CST. Because Alabama is observing daylight time on that date, applicants should use the earlier local-Central interpretation for safe planning and confirm directly with ADECA if timing is material.
ADECA states that awards under the 2026 solicitation will total no more than $5,732,000. The updated 2026 beneficiary allocation assigns $5,499,799.99 to Class 4-8 school buses, shuttle buses and transit buses across the mitigation plan; that allocation is not an applicant-specific award cap. Eligible applicants are Alabama government and non-government entities seeking to upgrade equipment that qualifies as an Eligible Mitigation Action.
For school-related projects, eligible buses include Class 4-8 school, shuttle or transit buses that satisfy the Volkswagen Settlement vehicle requirements. The current 2026 workshop states that government-owned eligible buses may receive up to 80% of eligible project cost, leaving the applicant responsible for the balance. Non-government bus funding percentages vary by repower or replacement option. Eligible project types include diesel or alternative-fuel repower/replacement and all-electric repower/replacement, subject to the program’s detailed vehicle and scrappage rules.
The 2026 application package requires Grant Applicant Information, Project Budget, Risk Assessment, Project Detail and NOx Savings Information, the organization’s audit, a Certificate of Compliance with the Beason-Hammon Alabama Taxpayer and Citizen Protection Act, an E-Verify MOU, and the State of Alabama Disclosure Statement. ADECA also provides a 2026 checklist and Signatory Authority Form. Grant recipients must register in the State of Alabama Accounting and Resource System (STAARS) Vendor Self Service portal to receive payment.
Applications are submitted electronically to vwsettlement@adeca.alabama.gov. ADECA’s current program contacts include Daphne Ball, Natasha Marvin, Brian Miller and Jon Bodin in the Special Projects Unit, with the program mailbox serving as the principal submission/contact channel.
Atlas analysis: Atlas Opportunity Score 66/100. N9+ Fit Score 0/100. This is a transportation emissions-reduction opportunity, not a telehealth, remote physical examination, diagnostics or clinical-device funding source. The strongest school applicants are Alabama public school systems that can document currently eligible older heavy-duty buses, satisfy the required applicant share, comply with scrappage/property-management requirements, and submit the complete ADECA package. Applicant outreach should be performed only after current eligible fleet inventory is verified. Dr. Miltie, LLC is not advanced as a direct applicant because no relevant eligible vehicle/equipment ownership has been established.
Official sources: ADECA — VW Settlement; ADECA — 2026 Volkswagen Application Workshop Slides.