FTA announces availability of American Rescue Plan funding for transit systems

American Rescue Plan Act funding includes $30.5 billion for public transportation

March 30, 2021 / 1 minute read
public transit systems

The Federal Transit Administration (FTA) yesterday announced a total of $30.5 billion in federal funding from the American Rescue Plan Act is now available to support the nation’s public transportation systems.

The American Rescue Plan Act—signed by President Biden on March 11, 2021—includes $30.5 billion for public transportation, including $26.6 billion to be allocated by statutory formulas to urban and rural areas, tribal governments, and for the enhanced mobility of seniors and individuals with disabilities, and $2.2 billion to FTA grant recipients in communities that demonstrate additional pandemic-associated needs.

Funds will be made available at 100% federal share and primarily directed to operations and payroll. An additional $1.7 billion is provided for projects in the Capital Investment Grants (CIG) Program and another $25 million for competitive planning grants. 

“This is an important moment in our nation’s pandemic response,” FTA Acting Administrator Nuria Fernandez said in a statement. “The American Rescue Plan Act contains funding to help speed up vaccine distribution and provide relief to transit agencies so they can continue to provide service to the many Americans who depend on transit to get to essential jobs, healthcare, and vaccine appointments.” 

Formula funding under the American Rescue Plan Act will be made available this week, and eligible funding recipients can begin developing and submitting their grant applications to the department immediately.

FTA will host a webinar about the American Rescue Plan Act funding on Friday, April 2, at 2 p.m. to provide additional guidance to transit stakeholders.

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SOURCE: Federal Transit Administration

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