There are several Grant Programs administered by the Federal Transit Authority (FTA). It is important to remember that transit funding is provided directly to Designated Recipients, which may operate public transit services, or which may pass through funding to agencies and companies that operate public transit services.  For more information about Transit in Orange County, visit Transit Orange for services available and visit the Transportation Improvement Program page for transit projects.

FTA Funding Programs

SECTION 5307 (Urbanized Area)/5340 (High Density and Growing States)

This program, the largest of FTA’s grant programs, makes Federal resources available to urbanized areas and to state governors for transit capital and operating assistance in urbanized areas and for transportation related planning. All preventive maintenance and some Americans with Disabilities Act complementary paratransit service costs are considered capital costs. Section 5307/5340 capital assistance is available to MTA Metro North and (via Orange County) to bus operators providing service in and through the urbanized portions of the County.

With the establishment of the Mid-Hudson Valley Transportation Management Area, 5307/5340 capital funds are distributed to the TMA by the Federal Transit Administration rather than directly to the individual Metropolitan Planning Organizations (MPO). Accordingly, it is the responsibility of the Mid-Hudson Valley Transportation Management Area to divide the funds among Orange County, Dutchess County, and Ulster County Metropolitan Planning Organizations, as well as the North Jersey Transportation Planning Area.

SECTION 5310 (Enhanced Mobility of Seniors and Individuals with Disabilities)

This program provides formula funding to States for the purpose of assisting private nonprofit groups in meeting the transportation needs of the elderly and persons with disabilities when the transportation service provided is unavailable, insufficient, or inappropriate to meeting these needs. Funds are apportioned based on each State’s share of population for these groups of people. In order to be selected for funding, projects must be included in the locally developed Coordinated Public Transit Human Services Transportation Plan.

SECTION 5311 (Formula Grants for Rural Access)

This program provides funding for capital, planning, and operating assistance, job access and reverse commute projects, and the acquisition of public transportation services in order to support public transportation in rural areas.

SECTION 53337 (State of Good Repair)

This program provides funding for public transit systems in urbanized areas. Funding can be used for the repair and upgrade of rail transit systems, along with high-intensity bus systems that use high-occupancy vehicle lanes, including bus rapid transit. These projects must be either replacement or rehabilitation, or capital project required to maintain public transportation systems in a state of good repair.

SECTION 5339 (Bus and Bus Facilities)

This formula grant program provides funding to replace, rehabilitate, and purchase buses and related equipment. This funding is also eligible to be used to construct bus-related facilities.