FTA Administrator Peter Rogoff said the money would primarily be used to improve bus service in cities and rural areas.
"These grant funds will make sure that bus service in our communities remains reliable and desirable while putting thousands of Americans to work at the same time,” Rogoff said in a statement.
Rogoff also pushed for Congress to pass the jobs act.
“By passing the American Jobs Act, Congress can accelerate these efforts and give the American people the opportunity to keep more of their paycheck in their wallet rather than hand it over at the gas pump," he said.
The Senate recently voted down the president's $447 billion Jobs Act proposal, but Obama said Monday during a campaign stop in North Carolina that he expected Congress to vote on the separate proposals that compose the plan.
"Maybe they just couldn't understand the whole thing, so we're going to break it up into bite-sized pieces," Obama said in Asheville, N.C.