Formula Grants for Rural Areas and Tribal Transit Program

Pursuant to 49 U.S.C. 5311, FTA apportions or awards funds for planning, public transportation capital projects, operating costs, job access reverse commute projects, and the acquisition of public transportation service to States and Indian Tribes lo

The Formula Grants for Rural Areas program provides capital, planning, and operating assistance to states to support public transportation in rural areas with populations of less than 50,000, where many residents often rely on public transit to reach their destinations. Federal public transportation law 5311(c)(1)(A)) authorizes FTA to award competitive grants "under such terms and conditions as may be established by the Secretary" to Indian tribes for any purpose eligible under FTA's Formula Grants for Rural Areas Program, 49 U.S.C. 5311, including planning, capital, and operating assistance. The Tribal Transit Program supports FTA's strategic goals and objectives through the timely and efficient investment in public transportation. This program also supports the President's Building a Better America initiative to mobilize American ingenuity to build a modern infrastructure and an equitable, clean energy future.

Only designated State agencies and Indian Tribes may apply directly to FTA for grants. Eligible sub-recipients may include State agencies, local public bodies and agencies thereof, nonprofit organizations, Indian tribes, and operators of public transportation services, including intercity bus service, in rural areas. Private for-profit operators of transit or paratransit services may participate in the program only through contracts with eligible recipients. Private intercity bus operators may participate as subrecipients or through contracts. Urbanized areas, as defined by the Bureau of the Census, are not eligible. For the Public Transportation on Indian Reservations Program, eligible applicants include federally recognized Indian tribes or Alaska Native villages, groups, or communities as identified by the U.S. Department of the Interior Bureau of Indian Affairs. Additionally, applicants must be located and provide service in a rural area with a population of 50,000 or less.

The general public, both users and nonusers, and private and public providers of public transportation in nonurbanized areas.

The State agency must be designated by the Governor to administer the program. Projects must be included in the State Transportation Improvement Program (STIP) and approved by FTA and FHWA. The state must also have a State Management Plan in place. The state and sub-recipients must agree to the standard labor protection warranty for the program. Environmental assessments may be required. Compliance with FTA's annual list of Certifications and Assurances is required. Eligible costs must be in accordance with 2 CFR 200. For funding obligated prior to November 1, 2025, the state must submit a program of projects listing all sub-recipients and projects in accordance with FTA Circular 9040.1G issued October 24, 2014. For funding obligated after November 1, 2025, the state must submit a program of projects listing all sub-recipients and projects in accordance with FTA Circular 9040.1H issued September 27, 2024. For funding after FTA annually issues a Federal Register Notice of apportionments, allocations, and program information. This information can be found on the FTA website at www.transit.dot.gov or by contacting the appropriate FTA regional office to obtain copies or publication dates. 2 CFR 200 applies to this program. For the Public Transportation on Indian Reservations Program as evidence of Federal recognition, an Indian tribe may submit a copy of the most up-to-date Federal Register notice published by BIA: Entities Recognized and Eligible to Receive Service from the United States Bureau of Indian Affairs at https://www.bia.gov/service/tribal-leaders-directory/federally-recognized-tribes. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Section 5311 funds may be used for eligible planning, capital, and operating expenses to provide efficient and coordinated public transportation service in non-urbanized areas. States may use up to 10 percent of the annual apportionment for planning and program administration. Job Access and Reverse Commute projects are also eligible under the program. Fifteen percent of the State's annual apportionment must be spent to support rural intercity bus transportation, unless the governor certifies that such needs are adequately met. Rural Transit Assistance Program (RTAP) funds may be used for technical assistance, training, research, and related support services.

Formula funds are apportioned annually to the States or tribal recipients. Amounts apportioned are available for obligation by the State designated agency or tribal recipients for a period of three years (two years following the close of the fiscal year for which sums are apportioned) and amounts remaining unobligated at the end of such period shall be apportioned among the States or tribal recipients for the succeeding fiscal year. States usually fund local recipients on an annual cycle or at their discretion.

An applicant should consult the office or official designated as the single point of contact in their State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Eligible sub-recipients should submit applications to the State agency designated by the Governor to administer the program. This agency will evaluate and select eligible applicants and submit a program of projects to the Federal Transit Administration. In order to receive Public Transportation on Indian Reservations Program formula funds, a tribe must report to the National Transit Database on an annual basis. The steps for applying to the competitive discretionary program are listed yearly in the Notice of Funding Availability published with the Federal Register.

The criteria for selecting projects under State allocations are described by the State designated agency in its procedures or State management plan. There are no criteria for selecting projects under Tribal Transit Formula as allocations are made directly to the tribes. The criteria for selecting projects under the Tribal Transit competitive program are listed yearly in the Notice of Funding Availability published in the Federal Register.

The Federal Transit Administration approves the State's or tribe's program of projects. An FTA grant award obligating Federal funds is reflected in a grant agreement. To access funds, the state or tribe must execute the grant agreement. The state implements grant agreements or other instructions with the subrecipients. The Public Transportation on Indian Reservations competitive discretionary grant project selections are announced and implementation procedures to begin the process outlined above are provided at the time of announcement.

As prescribed by the State agency or tribe designated to administer the Section 5311 program.

Subrecipients typically receive funding through the designated State agency.

Interested persons are afforded the opportunity of a public hearing for capital projects. They can also contact the Headquarters Program Manager listed in this Assistance Listing or the Regional Office to gain more information about a funding decision. The list of Regional Offices is located at https://www.transit.dot.gov/about/regional-offices/regional-offices.