The San Francisco Municipal Transportation Agency has secured nearly $40 million in federal funding to purchase up to 24 new diesel-hybrid buses, the Office of Mayor Daniel Lurie announced.

The grant from the U.S. Department of Transportation will help modernize Muni’s fleet and improve system reliability as the agency faces a projected budget deficit of $306 million, expected to rise to $434 million by 2030, the mayor’s office said in a statement Thursday.

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