FTA opens $2.2 billion in funding provided through the American Rescue Plan

Sept. 8, 2021
The competitive grant program is designed for transit systems that are in need of additional pandemic-associated relief.

The Federal Transit Administration (FTA) is accepting applications for $2.2 billion in competitive grant funding provided by the American Rescue Plan Act of 2021, which became law in March 2021. The Notice of Funding Availability (NOFO) will be published in the Federal Register Sept. 9 and applications will be accepted until Nov. 8, 2021.

The funding was included in the American Rescue Plan to provided additional funding for transit systems demonstrating additional assistance is needed to cover operating expenses related to maintaining day-to-day operations, cleaning and sanitization, combating the spread of pathogens on transit systems and maintaining critical staffing levels.

"As public transit systems continue to recover from the devastating financial and public health impacts of COVID, they must have the resources they need to keep trains and buses running, especially in heavily transit-dependent communities," said U.S. Transportation Deputy Secretary Polly Trottenberg. "The funding opportunity we are announcing today will help connect people to jobs, services and opportunities, while supporting crucial health and safety measures for the traveling public and our nation’s dedicated transit workforce."

FTA will review applications based on the level of financial need, including projections of future financial need to maintain service as a percentage of the 2018 operating costs. Funding that is requested by an eligible applicant must not have been replaced by funding made available through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) of 2021 and other ARP funding.

"The Additional Assistance Funding will support transit agencies demonstrating a continuing need for assistance in maintaining daily operations," said FTA Administrator Nuria Fernandez. "Public transportation connects people to jobs, education and vital services, and this program will help transit agencies continue to provide critical transit services in communities that need it most."

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