|
Transportation Secretary Ray LaHood announced April 11 that selected public transportation agencies in cash-strapped municipalities throughout the U.S. and in Puerto Rico may now use certain FTA funds from the Section 5307 Urbanized Area Formula Program to cover the cost of the fuel that keeps their fleets in operation.
The item in the April 11, 2012, Federal Register lists the recipients that will benefit from this flexibility.
The provision, part of Congress’s Fiscal Year 2012 appropriations legislation, allows public transit operators in the most populated urban areas to use a portion of their allocated FY 2012 FTA funds specifically for this purpose. According to FTA, this will help smaller cities cope with increased ridership and higher operating costs that typically result from rising oil prices. With a total of up to $100 million in funding nationwide, the program will not add to the deficit or increase government expenditures.
“As our economy continues to recover, we must ensure that Americans have reliable transportation choices that provide access to jobs and other vital services,” said LaHood. “Rising fuel prices impact the nation’s transit providers, too, and this measure delivers critical relief that will ensure that buses, light rail, and other vehicles are on the road at a time when their service is needed most.”
Under the provision, smaller cities can make their federal dollars go further as they do not need to match federal funds dollar-for-dollar, as was required in the past. For example, Panama City, FL, may use nearly $140,000 to pay for fuel; Pascagoula, MS, may use $25,000; and Sioux Falls, SD, may use more than $190,000.
More than 175 urbanized areas in 40 states and Puerto Rico responded to FTA’s announcement published in the Jan. 11, 2012, Federal Register requesting designated recipients to submit maximum eligible expenses for reimbursement. FTA has allocated a portion of the $100 million to every urbanized area that responded to the announcement. |
