FTA Allocates $25B for Public Transportation

Written by Andrew Corselli, Managing Editor
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The Federal Transit Administration (FTA), via the CARES Act, recently allocated a total of $25 billion in Federal funding to help the Nation’s public transportation systems respond to COVID-19.

FTA is allocating the $25 billion to recipients of urbanized area and rural area formula funds, with $22.7 billion allocated to large and small urban areas and $2.2 billion allocated to rural areas. Funding will be provided at a 100% Federal share, with no local match required, and will be available to support capital, operating and other expenses generally eligible under those programs to prevent, prepare for and respond to COVID-19.

Further, operating expenses incurred beginning on Jan. 20, 2020 for all rural and urban recipients, even those in large urban areas, are also eligible, including operating expenses to maintain transit services as well as paying for administrative leave for transit personnel due to reduced operations during an emergency. More information on eligibility can be found here.

In addition to the $25 billion, FTA has taken a number of steps to support the transit industry during this public health emergency, including expanding the eligibility of Federal assistance available under FTA’s Emergency Relief Program to help transit agencies respond to COVID-19 in states where the Governor has declared an emergency.

FTA also established an Emergency Relief docket that allows transit providers in States where the Governor has declared a COVID-19-related emergency to request temporary relief from Federal requirements under 49 U.S.C. Chapter 53 as well as any non-statutory FTA requirements.

Additionally, FTA recently announced that it would provide a 30-day extension of the deadline for current competitive grant program funding opportunities, including: FTA’s Grants for Buses and Bus Facilities Program; Passenger Ferry Grant Program; Accelerating Innovative Mobility (AIM) Challenge Grants; and Helping Obtain Prosperity for Everyone (HOPE) Program.

“We know that many of our Nation’s public transportation systems are facing extraordinary challenges and these funds will go a long way to assisting our transit industry partners in battling COVID-19,” said FTA Acting Administrator K. Jane Williams. “These Federal funds will support operating assistance to transit agencies, including those in large urban areas as well as pay transit workers across the country not working because of the public health emergency.”

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