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FTA 2024 Circular Update & Rural Transit Funding Opportunities
In November 2024, the Federal Transit Administration (FTA) updated guidelines for several programs with revised circulars. These revisions are designed to improve customer satisfaction and ensure compliance with key transportation legislation, including the Fixing America’s Surface Transportation (FAST) Act, the Bipartisan Infrastructure Law (BIL), and the Infrastructure Investment and Jobs Act (Federal Transit Administration, 2024).
The FTA's updated circulars include:
- Award Management Requirements Circular, C 5010.1F
This circular updates and refines guidance for award administration and management activities across all applicable FTA Federal assistance programs. - Urbanized Areas Formula Grant Programs Guidance, C 9050.1A
This circular replaces, consolidates, and updates guidance for several urban transit programs, including the Urbanized Area Formula Grants Program (5307), the State of Good Repair Grants Program (5337), and the Urbanized Area Formula component of the Grants for Buses and Bus Facilities Program (5339(a)). - Rural Areas Formula Grant Program Guidance, C 9040.1H
This circular addresses the Buses and Bus Facilities Program (5339(a)), the Formula Grants for Rural Areas Program (5311), and the Tribal Transit Program (5311(c)), providing updated guidance for rural transit funding. - Enhanced Mobility for Seniors and Individuals with Disabilities Program Guidance, C 9070.1H
This update focuses on improving services for seniors and individuals with disabilities through the Enhanced Mobility of Seniors and Individuals with Disabilities Program (5310).
One of the most important updates is to the Rural Areas Formula Grant Program Guidance, C 9040.1H, which plays a crucial role in supporting public transportation in rural communities with populations under 50,000. Rural areas often rely heavily on public transit to reach essential locations like healthcare, employment, and educational facilities (Federal Transit Administration, n.d.).
Eligibility and Funding Breakdown
To participate in this grant program, a state must have federally recognized Indian tribes. Eligible recipients of the funds include local governments, nonprofit organizations, and transit operators.
The grant funding is available for a variety of purposes, including:
- Planning: Developing transportation plans for rural areas.
- Capital: Funding for infrastructure and equipment to improve transit services.
- Operating Assistance: Support for running public transit services in rural areas.
- Job Access and Reverse Commute Projects: Projects aimed at improving transportation to employment opportunities.
In terms of funding, the federal share is broken down as follows:
- 80% for capital projects
- 50% for operating assistance
- 80% for Americans with Disabilities Act (ADA) non-fixed route paratransit services
Funds are allocated based on a legislative formula, which takes into account factors such as land area, population, revenue vehicle miles, and the number of low-income individuals in rural areas. States receive funding for the current fiscal year with the possibility of using these funds for up to two additional years.
The Importance of Rural Transit Funding
The updated guidance and funding opportunities under the Rural Areas Formula Grant Program (5311) are essential for ensuring that rural communities remain connected and that public transportation is accessible to all residents. These grants not only help build and maintain infrastructure but also ensure that transit services are reliable and equitable, especially for those who rely on them most.
After the states receive funding, the state is required to spend at least 15 percent of its award amount towards the development and support of intercity bus transportation, unless the intercity bus needs of the state are being adequately met.
For more information on how to apply for these grants and how they can benefit your rural community, visit the FTA’s Rural Formula Grants page.
Grant Management Presentations
The FTA hosted multiple webinars on various grant management topics. You can find the recordings in this circular update here: https://www.transit.dot.gov/regulations-and-programs/fta-circulars/fta-2024-circular-update
Sources:
Rural Formula Grants (5311) Page: Federal Transit Administration. "Rural Formula Grants (5311)." U.S. Department of Transportation, www.transit.dot.gov/rural-formula-grants-5311.
FTA 2024 Circular Update Page: Federal Transit Administration. "FTA 2024 Circular Update." U.S. Department of Transportation, www.transit.dot.gov/regulations-and-programs/fta-circulars/fta-2024-circular-update.
