U.S. Rep. Elijah Cummings, who helped bring the federal grant to the city, said in a statement that the facility will "create a seamless connection between intercity bus service and local MTA service."
Mayor Stephanie Rawlings-Blake called the project "a great example of what can be achieved when federal, state, and local agencies, as well as private entities work in partnership."
Michael Fleischhauer, Greyhound's regional vice president, said the new facility is "evidence of the growth Greyhound continues to experience and the strides the company is making to enhance the customer experience."
The company said the new facility would offer more than 60 daily routes to cities across the country — including Washington, Virginia Beach and New York — and feature a Pizza Hut and package express service.
It expects to complete the facility by December 2015.