Federal Transit Formula Grants

The Urbanized Area Formula Funding Program (49 U.S.C. 5307) makes federal resources available to local and regional government authorities and states for transit capital and operating assistance and for transportation-related planning in urbanized ar

The Urbanized Area Formula Program provides funding to transit agencies, states, and local governments to develop new transit systems and improve, maintain, and operate existing systems in urbanized areas. Public transportation is regular, continuing shared-ride transportation services that are open to the general public or open to a segment of the general public defined by age, disability, or low income.

Funds will be made available for urbanized areas (as defined by the U.S. Census Bureau and in 49 U.S.C. Chapter 53) through states and designated recipients, which must be public entities and have the legal capacity to receive and dispense federal funds. A state's or territory's Governor, responsible local officials, and publicly owned operators of mass transportation services must jointly select the designated recipient(s) for an urbanized area with a population of 200,000 or more. The Governor or her/his designee acts as the designated recipient for an urbanized area with a population of 50,000 to 199,999. Recipients must submit a program of projects detailing how the funds will be used and by whom to FTA; submit a program application to FTA; enter into formal agreements with FTA; and certify that certain public participation requirements have been met.

The general public (both users and non-users of public transportation); segments of the general public defined by age, disability, or low income; and publicly owned operators of public transportation services. Under certain conditions, private non-profit organizations and their constituents may also benefit from the assistance.

The following documentation must be submitted prior to award of a formula grant under this program: A resolution by an authorized public body approving the filing of an application, the transportation improvement program (TIP) of the respective urbanized area's metropolitan planning organization (MPO), and the statewide transportation improvement program (STIP) of the respective state approved by FTA and FHWA. In addition, depending on the project for which funds are proposed to be used, information must be provided on labor agreements, environmental impacts of proposed projects, legal capacity, financial capacity, technical capacity, use of competitive procurements, asset maintenance plans, coordinated regional planning, and compliance with certifications and assurances as compiled in FTA's Annual List of Certifications and Assurances. Eligible costs must be in accordance with OMB Circular 2 CFR 200. Prior to the award of a discretionary grant under this program, applicants must submit a project application based on criteria outlined in the Notice of Funding Opportunity published annually in the Federal Register. A notice is published annually in the Federal Register on FTA's fiscal year apportionments and applications. The notice contains a list of the amount apportioned to each urbanized area and the total available for discretionary award. You can find current and prior year notices on FTA's website at: https://www.transit.dot.gov/funding/apportionments or by contacting the appropriate FTA Regional Office to obtain copies or publication dates.

Funds may be used for capital projects to finance the planning, design, acquisition, construction, lease, improvement, and maintenance of equipment and facilities for use in transit. For urbanized areas with populations under 200,000 and urbanized areas with 200,000 or more in population with recipients operating 100 or fewer vehicles in peak service, funds may be used to finance transit operating costs for modes other than rail fixed-guideway. Recipients of these grants are required to make information available to the public and to publish a program of projects to afford affected citizens opportunities through public hearings to submit comments on the proposed program and the performance of the recipient. In addition, a Passenger Ferry Grant Program component awards funding on a competitive discretionary selection basis.

Funds apportioned under the Federal Transit Formula Grants - Urbanized Area Formula Program are available for obligation by the Governor, designated recipient, or other grant recipient authorized by the Governor or designated recipient for a period of 5 years following the close of the fiscal year for which such funds are apportioned. Any amounts remaining unobligated at the end of this period are distributed among all urbanized areas.

An applicant should consult its regional FTA office, state, or designated recipient for more information on the process to be followed in applying for assistance. Depending on the nature of the project to be financed, an environmental impact assessment may be required. In addition, an environmental impact statement may also be required. Other pre-application coordination pertaining to an applicant's demonstration of appropriate capacity to carry out a proposed project may also apply.

This program is subject to the provisions of OMB Circular No. A-87 and 49 CFR Part 18. Applications are to be submitted in the Transit Award Management System (TrAMS), which is the FTA electronic grant-making and record keeping system.

Projects must be eligible public transportation projects and meet all formula grant requirements. Discretionary projects must respond to a list of criteria published in the Notice of Funding Opportunity as part of the application process.

An FTA grant award obligating Federal funds is reflected in a grant agreement. To access funds, the recipient must execute the grant agreement. This program is comprised of both formula and competitive funds. Funds are primarily awarded via grant applications processed by FTA Regional Offices.

From the date of the application submittal in FTA's Transit Award Management System (TrAMS), the approximate time of award is 15 to 30 days.

Funds are apportioned annually for each urbanized area. Grants may be amended to add newly available funds for a continuing project.

For competitive funding, if a project is not selected, a recipient can request additional information from FTA's Headquarters staff. The regional offices can address any questions and direct applicants to the appropriate individual.