Formula Grants for Rural Areas and Tribal Transit Program

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.

The Tribal Transit Formula Program provides funding to federally recognized tribes for capital, operating, planning, and administrative expenses in rural tribal communities.

The Tribal Transit Competitive Program provides funding to federally recognized tribes through a competitive process for capital, operating, planning, and administrative expenses in rural tribal communities.

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.

The program operates under the statutory formula prescribed in 49 USC 5335. The federal share is not to exceed 80 percent of the net project cost for capital projects. The federal share may be 90 percent for the cost of vehicle-related equipment attributable to compliance with the Americans with Disabilities Act and the Clean Air Act or 85 percent for the cost of a vehicle that complies with these requirements. The federal share may also be 90 percent for projects or portions of projects related to bicycle facilities. The federal share may not exceed 50 percent of the net cost for operating assistance. Recipients may use up to 20 percent of the amounts apportioned under Section 5311 for ADA complementary paratransit at an 80 percent federal share if certain conditions are met.

For the Public Transportation on Indian Reservation Program, no local match is required for the formula program. For the discretionary program, follow the requirements outlined in the corresponding NOFO.