Formula Grants for Rural Areas (Section 5311)

Formula Grants for Rural Areas (Section 5311) is sponsored by U.S. Department of Transportation, Federal Transit Administration (FTA). This program provides formula funding to states for public transportation in rural areas.

Mobility management is an eligible capital expense under this program, which can include coordinating transportation services for older adults, individuals with disabilities, and low-income individuals, and developing call centers to coordinate travel information.

[](https://www. transit. dot.

gov/rural-formula-grants-5311) ## Formula Grants for Rural Areas (Section 5311 ) The Formula Grants for Rural Areas program (49 U.S.C. 5311) provides federal funding to states for capital, planning, and operating assistance to support public transportation in rural areas with populations of less than 50,000, where many residents often rely on public transit to reach their destinations.

The program also provides funding for state and national training and technical assistance through the Rural Transportation Assistance Program. ## Funding Availability and Allocation Section 5311 funds are available for obligation for three federal fiscal years, the year of apportionment plus two additional years. For example, funds apportioned in FY 2024 are available until September 30, 2026.

FTA apportions Section 5311 funds using a statutory formula based on the latest U.S. Census data. The majority of rural formula funds (83. 15 percent) are apportioned based on land area and population factors.

The remaining rural formula funds (16. 85 percent) are apportioned based on land area, vehicle revenue miles, and low-income individuals factors. View current or archived apportionments to access detailed information.

Eligible recipients include states and federally recognized Indian tribes. Subrecipients may include state or local government authorities, nonprofit organizations, and operators of public transportation or intercity bus service.

Eligible activities include planning, capital, operating, job access and reverse commute projects, non-emergency medical transportation, mobility management programs, and the acquisition of public transportation services.

The federal share of the project cost may not exceed 80 percent for planning and capital expenses, 50 percent for operating assistance, and 80 percent for Americans with Disabilities Act (ADA) non-fixed route paratransit service. Federal funds from other agencies may be used as match for the Section 5311 Program. For additional information on local match and federal fund braiding refer to the Section 5311 Circular (9040.

1H) and the Coordinating Council on Access and Mobility (CCAM) Federal Fund Braiding Guide.

## Additional Information To continue streamlining processes and providing high-quality customer service, FTA updated program guidance and award management requirements to incorporate provisions from the Fixing America's Surface Transportation (FAST) Act, the Infrastructure Investment and Jobs Act, the Uniform Administrative Requirements for federal awards to non-federal entities, and current FTA policies and procedures.

The Rural Areas Formula Grant Program Guidance, C 9040. 1H replaces, consolidates and updates guidance for the Buses and Bus Facilities Program (5339(a)); Formula Grants for Rural Areas Program (5311); and the Tribal Transit Program (5311(c)).

### Intercity Bus Program Each state must spend no less than 15 percent of its annual apportionment for the development and support of intercity bus transportation, unless it can certify, after consultation with intercity bus service providers, that the intercity bus needs of the state are being adequately met.

FTA has published a Dear Colleague letter stating that intercity bus providers that use a nationwide allocation model to allocate costs are eligible to be reimbursed for net operating costs under 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.

### Transportation Coordination Coordinated transportation involves multiple entities working together to deliver one or more components of a transportation service to increase capacity.

FTA provided transportation coordination guidance clarification to reduce overlap between the more than 130 CCAM programs across nine agencies that may fund human services transportation and incentivize collaboration by clarifying eligible reporting into the National Transit Database (NTD).

This guidance addresses the following topics as they relate to NTD reporting: definition of public transportation; paratransit; charter service; incidental use of transit assets; and trip brokering.

### Tribal Transportation Self-Governance Program The Tribal Transportation Self-Governance Program (TTSGP) provides federally recognized tribes and tribal organizations with greater control, flexibility, and decision-making authority over USDOT funds used to carry out tribal transportation programs, functions, services, and activities (PFSAs) in tribal communities.

The TTSGP also affords tribes and tribal organizations with specific rights and federal resources to implement and support their Self-Governance program. Learn more about TTSGP. The Transportation Technical Assistance Coordination Library (TACL) provides a sustainable methodology and platform to access resources across a diverse range of transportation technical assistance centers and FTA.

For additional technical assistance information and resources, visit the FTA-Sponsored Technical Assistance, Training, and Research Resource Programs webpage.