Motorcoaches are the only source of intercity public transportation in thousands of rural communities, providing unsubsidized passenger and package express service to these small towns of less than 50,000 people and their surrounding areas. The rural intercity bus program in 49 U.S.C. § 5311(f) has helped stem the decline in bus service to rural communities. Congress first authorized this formula-based funding in 1979 in response to the abandonment of unprofitable routes and a general loss of bus service, particularly in rural areas.

The 5311(f) Program
The program's goal is to enhance the access of residents in non-urbanized areas to urbanized areas with health care, shopping centers, educational opportunities, employment, public services and recreation; Assist in the maintenance, continued development, and improvement of the infra-structure and operation of public transportation in rural and small-urban areas; Encourage and facilitate the most efficient use of all federal funds used to provide passenger transportation in non-urbanized areas through the coordination of programs and services by supplementing them with local matching assistance; and Provide for the participation of private transportation providers in non-urbanized transportation to the maximum feasible extent.

The money authorized under SAFETEA-LU more than doubles the funding for section 5311(f) programs over the life of the bill, reaching almost $70 million in FY 2009, an increase of over $33 million from FY 2003. More importantly, this bill requires each state to consult with intercity bus service providers before they can certify that there are no unmet intercity bus needs and use the money for some other program.

The Section 5311 Non-urbanized Area Formula program provides funding for rural public transportation to communities with populations of less than 50,000. Congress authorized this formula-baseh12d funding in 1979 in response to the abandonment of unprofitable routes and a general loss in bus service, particularly in rural areas. Managed by the Federal Transit Administration (FTA), the purpose of the 5311(f) funds is to carry out a program to develop and support intercity bus transportation in non-urbanized areas by providing planning, capital, operating and administrative assistance to state agencies, local public bodies, nonprofit organizations, Native American organizations, and operators of public transportation in non-urbanized areas. Each state is required to spend at least 15% of its total annual 5311 apportionment unless the governor certifies the intercity bus transportation needs of the state are adequately being met. With the passage of SAFETEA-LU, the governor is now required to consult with private operators before certifying that the state's intercity bus transportation needs are being met.