This Dear Colleague letter informs State Departments of Transportation that intercity bus providers that request to use a nationwide model to allocate costs are eligible to be reimbursed for net operating costs under FTA’s Formula Grants for Rural Areas program (Section 5311(f)), including funding provided by supplemental COVID programs such as the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (CRRSAA), and the American Rescue Plan Act of 2021.