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U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

Fact Sheet: Formula Grants for Rural Areas

BIPARTISAN INFRASTRUCTURE LAW FACT SHEET
FORMULA GRANTS FOR RURAL AREAS

* Note: Section Growing State (Sec. 5340) funds are determined based on a statutory formula and are added to the Rural formula (Sec. 5311). Amounts shown for FY22-26 are based on the proportion of Growing States (Sec. 5340) funds provided in FY 2021.
Fiscal Year 2022
(in millions)
2023
(in millions)
2024
(in millions)
2025
(in millions)
2026
(in millions)
5311 Rural Formula $781 $797 $818 $835 $856
Public Transportation
on Indian Reservations
(Formula)
$35 $36 $37 $37 $38
Public Transportation
on Indian Reservations
(Competitive)
$9 $9 $9 $9 $10
Appalachian Development
Public Transportation
Assistance Program
$26 $27 $28 $28 $29
Rural Transit
Assistance Program (RTAP)
$17 $18 $18 $19 $19
5340 Growing States* $112 $114 $117 $120 $123

Program Purpose:

The Bipartisan Infrastructure Law, enacted as the Infrastructure Investment and Jobs Act, continues the Formula Grants for Rural Areas Program, which provides capital, planning, and operating assistance to states and federally recognized Indian tribes to support public transportation in rural areas with populations less than 50,000, where many residents often rely on public transit to reach their destinations. It also provides funding for state and national training and technical assistance through the Rural Transportation Assistance Program.

Statutory References:

49 U.S.C. § 5311 / IIJA § 30006

Eligible Recipients:

  • States and federally recognized Indian tribes.
  • Subrecipients may include state or local government authorities, nonprofit organizations, or operators of public transportation or intercity bus service that receive funds indirectly through a recipient.

Eligible Activities:

The Bipartisan Infrastructure Law continues without change the broad range of activities eligible under the formula grants for rural areas program, including:

  • Planning
  • Public transportation capital projects
  • Operating costs of equipment and facilities for use in public transportation
  • Job access and reverse commute projects
  • Acquisition of public transportation services

What’s Changed?

Establishes fixed funding percentages for the Public Transportation on Indian Reservations and the Appalachian Development Public Transportation Assistance programs:

  • Five percent of Rural Formula (Section 5311) funding is available for the Public Transportation on Indian Reservations program. 20 percent of the Public Transportation on Indian Reservations funds must be distributed on a competitive basis, while the remainder must be apportioned by formula.
  • Three percent of Section 5311 funding is available for the Appalachian Development Public Transportation Assistance program.

 

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