Section 5307 – Urban Area Transportation Grants (Commuter Bus) | American Bus Association

Section 5307 – Urban Area Transportation Grants (Commuter Bus)

The purpose of this program is to provide funds for capital and operating assistance for transit operations in urbanized areas with populations greater than 50,000 and for transportation related planning.

Administrative Body

The Federal Transit Administration (FTA) makes direct grants to recipients in urban areas with populations greater than 200,000.

Each State Department of Transportation (DOT) provides funding to urban areas under 200,000 generally using the area’s Metropolitan Planning Organization (MPOs) to administer the program on behalf of the Federal Transit Administration.

Funding

These funds should be used to provide capital and operating assistance for transit operations in urbanized areas. Eligible purposes for Urbanized Area Formula Funds include planning, engineering design and evaluation of transit projects and other technical transportation-related studies; capital investments in bus and bus-related activities such as replacement of buses, overhaul of buses, rebuilding of buses, crime prevention and security equipment and construction of maintenance and passenger facilities; and computer hardware/software. All preventive maintenance and some Americans with Disabilities Act complementary paratransit service costs are also considered capital costs.

Private bus companies may receive these funds as sub-recipients or contractors on urban transportation projects.

The American Bus Association serves a thriving industry that provides nearly 600 million passenger trips annually on charters, tours, scheduled service, and shuttles. Membership in ABA includes motorcoach operators, tour operators, tourism-related organizations, and products and service suppliers.

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