Federal Programs

The United States Department of Transportation, through the Federal Transit Administration (FTA), provides a number of programs designed to assist in the provision of local public transportation services. FTA requires each state to have an approved State Management Plan (SMP) on file with their regional office. Some of the programs that Main Street Connections specializes in are listed below.

Metropolitan, Statewide, and Nonmetropolitan Planning Programs (5303, 5304, and 5305)

These programs provide funding and procedural requirements for multimodal transportation planning in metropolitan areas and States that is cooperative, continuous, and comprehensive, resulting in long-range plans and short-range programs of transportation investment priorities.

Metropolitan Planning Organizations (MPOs) and States are required to establish performance targets that address national performance measures issued by the U.S. DOT and are based on goals outlined in law – safety, infrastructure condition, congestion reduction, system reliability, economic vitality, environmental sustainability, reduced project delivery delays, transit safety, and transit asset management. Transportation Improvement Programs (TIPs) must include a description of the anticipated progress toward achieving the targets brought about by implementing the TIP.

Within two years of the date of enactment, MPOs in urbanized areas designated as transportation management areas must include transit officials on their policy boards.

MPOs may undertake scenario development exercises in preparing the long-range transportation plan that consider alternative demographic growth, revenue options, and other factors.

Regional transportation planning organizations comprised of volunteer local government and transportation officials may be designated to assist the State in addressing the needs of non-metropolitan areas. Accordingly, “statewide planning” has been renamed “statewide and non-metropolitan planning” to signify the important role local officials play in the development of statewide plans and programs in non-metropolitan areas of States.

Urbanized Area Formula Program (5307) absorbed the former "Job access and reverse commute program (5316)" 

This program provides grants to urbanized areas to support public transportation. Funding is distributed by formula based on the level of transit service provision, population, and other factors. The program also absorbed the formerly called "Job access and reverse commute program (5316)"  whose activities are now eligible under the 5307 program. The former Job Access and Reverse Commute (JARC) program focused on providing services to low-income individuals to access jobs. This included operating assistance with a 50 percent local match for job access and reverse commute activities. In addition, the urbanized area formula for distributing funds now includes the number of low-income individuals as a factor. There is no floor or ceiling on the amount of funds that can be spent on job access and reverse commute activities.

Other notable changes are the eligibility for operating expenses for systems with 100 or fewer buses. Previously only urbanized areas with populations below 200,000 were eligible to use Federal transit funding for operating expenses. Transit systems in urbanized areas over 200,000 can use their formula funding for operating expenses if they operate 100 buses or less as follows:

  • Systems operating between 76 and 100 buses in fixed route service during peak service hours may use up to 50 percent of their “attributable share” of funding for operating expenses.
  • Systems operating 75 or fewer buses in fixed-route service during peak service hours may use up to 75 percent of their “attributable share” of funding for operating expenses.

This expanded eligibility for operating assistance under the Urbanized formula program excludes rail systems.

MAP-21 sets aside one half of one percent of Urbanized Area Formula funds for State safety oversight grants, a new law (Safety (5329)) that requires all recipients of FTA funding to develop agency safety plans that include performance targets, strategies, and staff training.

Fixed Guideway Capital Investment Grants (5309)

This program awards grants on a competitive basis for major investments in new and expanded rail, bus rapid transit (BRT), and ferry systems. Core capacity projects are now eligible (projects that expand capacity by at least 10 percent in existing fixed guideway transit corridors that are at or above capacity, or are expected to be at capacity within five years).

Reorganization of the fixed guideway modernization and bus and bus facilities programs, which were previously funded under Section 5309, have now been restructured and moved to a new Section 5337 State of Good Repair Program and a new Section 5339 Bus and Bus Facilities Program.

Enhanced Mobility of Seniors and Individuals with Disabilities (5310) absorbed the former "new freedoms program (5317)" 

This program provides formula funding to increase the mobility of seniors and persons with disabilities. Funds are apportioned based on each State’s share of the targeted populations and are now apportioned to both States (for all areas under 200,000) and large urbanized areas (over 200,000). The former New Freedom program (5317) is folded into this program. The New Freedom program provided grants for services for individuals with disabilities that went above and beyond the requirements of the Americans with Disabilities Act (ADA). Activities eligible under New Freedom are now eligible under the Enhanced Mobility of Seniors and Individuals with Disabilities program.

Projects selected for funding must be included in a locally developed, coordinated public transit-human services transportation plan; and the competitive selection process, which was required under the former New Freedom program, is now optional. At least 55 percent of program funds must be spent on the types of capital projects eligible under the former section 5310 -- public transportation projects planned, designed, and carried out to meet the special needs of seniors and individuals with disabilities when public transportation is insufficient, inappropriate, or unavailable. The remaining 45 percent may be used for: public transportation projects that exceed the requirements of the ADA; public transportation projects that improve access to fixed-route service and decrease reliance by individuals with disabilities on complementary paratransit; or, alternatives to public transportation that assist seniors and individuals with disabilities. Using these funds for operating expenses requires a 50 percent local match while using these funds for capital expenses (including acquisition of public transportation services) requires a 20 percent local match.

Rural Area Formula Grants (5311) absorbed the former "Job access and reverse commute program (5316)" 

This program provides capital, planning, and operating assistance to support public transportation in rural areas, defined as areas with fewer than 50,000 residents. Funding is based on a formula that uses land area, population, and transit service. The program also absorbed the formerly called "Job access and reverse commute program (5316)” whose activities are now eligible under the 5311 program. The former Job Access and Reverse Commute (JARC) program focused on providing services to low-income individuals to access jobs. The rural area formula for distributing funds now includes the number of low-income individuals as a factor. There is no floor or ceiling on the amount of funds that can be spent on job access and reverse commute activities.

  • Public Transportation on Indian Reservations 5311(c)(1)(2)

The Tribal program (5311(c)(1)) is a formula and discretionary grant program. Formula factors include vehicle revenue miles and the number of low-income individuals residing on tribal lands. Appalachian Development Public Transportation Assistance Program (5311(c)(2)) provides funding in support of public transportation in the Appalachian region.

  • Rural Transportation Assistance Program 5311(b)(3)

The Rural Transit Assistance Program provides a source of funding to assist in the design and implementation of training and technical assistance projects and other support services tailored to meet the needs of transit operators in nonurbanized areas.

Asset Management Provisions (5326)

All FTA grantees and their subrecipients are required to develop transit asset management plans. These plans must include, at a minimum, capital asset inventories, condition assessments, and investment prioritization. Each designated recipient of FTA formula funding will be required to report on the condition of its system, any change in condition since the last report, targets set under the above performance measures, and progress towards meeting those targets. These measures and targets must be incorporated into metropolitan and statewide transportation plans and transportation improvement programs (TIPs).

Safety (5329)

The new law requires all recipients of FTA funding to develop agency safety plans that include performance targets, strategies, and staff training. For rural recipients, the plan may be drafted by the State. These measures and targets must be incorporated into metropolitan and statewide transportation plans and transportation improvement programs.

State of Good Repair Grants (5337) Formerly "Bus and Bus Facilities (5309)"

This program replaces the fixed guideway modernization program (Section 5309). Funding is limited to fixed guideway systems (including rail, bus rapid transit, and passenger ferries) and high intensity bus (high intensity bus refers to buses operating in high occupancy vehicle (HOV) lanes.) Projects are limited to replacement and rehabilitation, or capital projects required to maintain public transportation systems in a state of good repair. Projects must be included in a transit asset management plan (see "Asset Management Provisions (5326)") to receive funding. The new formula comprises: (1) the former fixed guideway modernization formula; (2) a new service-based formula; and (3) a new formula for buses on HOV lanes.

Bus and Bus Facilities Program (5339) Formerly "Bus and Bus Facilities (5309)"

This capital program provides funding to replace, rehabilitate, and purchase buses and related equipment, and to construct bus-related facilities. This program requires a 20 percent local match. 

Transit-Oriented Development Planning Pilot (20005(b))

This is a new discretionary pilot program for transit-oriented development (TOD) planning grants. Eligible activities include comprehensive planning in corridors with new rail, bus rapid transit, or core capacity projects. The comprehensive plans should seek to enhance economic development, ridership, and other goals; facilitate multimodal connectivity and accessibility; increase access to transit hubs for pedestrian and bicycle traffic; enable mixed-use development; identify infrastructure needs associated with the project; and include private sector participation.

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