The purpose of this funding is to support ongoing transit operating assistance for FY25

The Federal Transit Administration (FTA) awarded the San Luis Obispo Regional Transit Authority (RTA) $7,415,520 under the Federal Transit Formula Grants program (CFDA 20.507) on August 12, 2025, to support ongoing transit operating assistance through June 30, 2025, and capital projects through March 31, 2029. The award encompasses Federal Fiscal Year 2024 and 2025 funding allocated to the San Luis Obispo Urbanized Area (UZA), with RTA coordinating with the San Luis Obispo Council of Governments (SLOCOG) and the City of San Luis Obispo Transit on fund distribution. Operating assistance funds will cover RTA's essential transit service operations serving the SLO UZA region, with federal reimbursement capped at 50 percent of eligible operational expenses under FTA Section 5307 requirements.

Capital assistance components of this award support fixed-route and demand-response rolling stock replacements, bus stop improvements, and vehicle maintenance equipment purchases. The federal share for these capital projects reaches 85 percent for Americans with Disabilities Act (ADA) accessibility projects and zero-emission vehicle replacements, and 80 percent for other capital assistance projects. The grant will directly benefit community members by maintaining critical public transit services across San Luis Obispo County. No subrecipient activities are associated with this award, as RTA serves as the primary grantee responsible for implementation.

Activities

Grant funds will cover operations by the RTA in the SLO UZA purchase of maintenance equipment bus stop improvements and replacement of rolling stock.

Expected outcomes

This grant award will reimburse the RTA for operating costs necessary to maintain critical transit services for the SLO UZA. Under the eligibilities of the FTA section 5307 funds recipients will be able to utilize these funds at a maximum of 50-percent federal share for operational expenses 85-percent federal share for ADA capital projects and zero-emission rolling stock replacements and 80-percent federal share for capital assistance projects.

Intended beneficiaries

Community members will directly benefit from the public transit options provided by the RTA.

Subrecipient activities

There are no subrecipient activities related to this grant.