RURAL TRANSPORTATION GRANTS

What's In it for You?: Section 5311(f) capital assistance grants may be used to purchase buses, vans, radios, wheelchair lifts, computers and other equipment necessary to maintain and transport human-service agency clients and general-public passengers in non-urbanized areas. Funds may also be used to build intercity bus shelters, joint-use stops, intermodal facilities and bus depots, as well as performing preventive maintenance. The federal funds may pay up to 80% of the costs. Section 5311(f) operating assistance grants provide funds for directly subsidizing operations, providing user-side subsidies (i.e. ticket or transfer subsidies, promotional subsidies), facilitating the coordination of rural transit connections between small transit operators and intercity bus carriers, and covering the costs of marketing rural intercity bus transportation services. For example, in FY 2003 California awarded $1.3 million to fund 23 different projects (an average of $58,141 per award) to install several bus shelters, expand routes, design a bus depot, purchase ticket reader/issue machines, replace damaged/worn vehicles, acquire additional vehicles, and to provide operating and marketing subsidies.

When is it available?: 5311(f) money is available each year, but you must check with your State Department of Transportation for their grant schedule and the eligibility of your project. You may need to coordinate with multiple state offices, depending on the routes that you intend to serve. On average $1.2 million will be available to each state each year. In FY 2000, 847 vehicles were purchased in 37 states with less than $1 million spent per state.

How do I apply?: Each state has its own application forms and process, but all projects are awarded on a competitive basis. Charter and tour services are not eligible for 5311(f) funding, since they do not meet the definition of intercity service, nor provide operational support for intercity service. Similarly, commuter service (service primarily designed to provide daily work trips within the local commuting area) also does not meet the definition of intercity service, and is therefore ineligible for 5311(f) funding.

Related Resources

Contact:
Norm Littler
Vice President Regulatory and Industry Affairs
202-218-7246