Urbanized Area Formula Funding (Section 5307)

Urbanized Area Formula Funding (Section 5307) is sponsored by Federal Transit Administration (FTA). The Urbanized Area Formula Funding grant (Section 5307) is a program from the Federal Transit Administration that provides federal funding to states and local recipients for transit capital and operating assistance and transportation-related planning in urbanized areas.

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

gov/funding/grants/urbanized-area-formula-grants-5307) ## Urbanized Area Formula Grants (Section 5307) The Urbanized Area Formula Funding program (49 U.S.C. 5307) provides federal funding to states and local recipients for transit capital and operating assistance and transportation-related planning in urbanized areas.

An Urbanized Area (UZA) is an area that has been defined and designated by the U.S. Department of Commerce, Census Bureau as an 'Urban Area' with a population of 50,000 or more (see 2020 Census resources for additional information). ## Funding Availability and Allocation Section 5307 funds are available for obligation for six federal fiscal years, the year of apportionment, plus five additional years.

For example, funds apportioned in FY 2022 are available until September 30, 2027. FTA apportions Section 5307 funds using a statutory formula based on the latest U.S. Census data and information reported by the National Transit Database (NTD). * For urbanized areas of 50,000 to 199,999 in population, the formula is based on population, low-income population, and population density.

These urbanized areas are also eligible to receive Small Transit Intensive Cities (STIC) funds if transit service provided in the urbanized area meets or exceeds the STIC performance criteria.

* For urbanized areas with a population of 200,000 or more, the formula is based on a combination of bus vehicle revenue miles, bus passenger miles, fixed guideway vehicle revenue miles, fixed guideway directional route miles, fixed guideway passenger miles, and operating expenses, as well as population, low-income population, and population density.

* FY 2025: $7,394,716,046 * FY 2024: $7,245,004,560 * FY 2023: $7,060,120,714 View current or archived apportionments to access detailed information. Eligible recipients are public, governmental entities involved in providing public transportation within an urbanized area.

In Large Urbanized Areas (population 200,000 or more), the primary eligible recipient is the designated recipient—a government agency officially chosen by the Governor to receive, allocate, and oversee Section 5307 funds on behalf of the urbanized area.

With approval from the state or designated recipient, other public agencies (such as transit authorities or local governments) may also become Direct Recipients and apply directly to FTA for their share of Section 5307 funds, assuming they accept full responsibility for grant compliance.

In Small Urbanized Areas (population between 50,000 and 199,999), the Governor or the Governor’s designee is the eligible recipient, though funds may be passed through to local public transit operators.

Private nonprofit operators may receive Section 5307 funds only as subrecipients through a public entity, and private for profit operators are not eligible recipients but may provide service under contract, subject to federal requirements. Eligible activities include: * Planning, engineering, design and evaluation of transit projects and other technical transportation-related studies.

* Capital investments in bus and bus-related activities such as replacement, overhaul and rebuilding of buses, crime prevention and security equipment and construction of maintenance and passenger facilities. * Capital investments in new and existing fixed guideway systems including rolling stock, overhaul and rebuilding of vehicles, station infrastructure, track, signals, communications, and computer hardware and software.

In addition, associated transit improvements, workforce development activities, non-emergency medical transportation, and certain expenses associated with mobility management programs are eligible under the program. All preventive maintenance and some Americans with Disabilities Act complementary paratransit service costs are considered capital costs.

For urbanized areas with populations less than 200,000, operating assistance is an eligible expense. Urbanized areas of 200,000 or more may not use funds for operating assistance unless identified by FTA as eligible under 49 U.S.C. 5307(a)(2) and (3).

The federal share of the project costs may not exceed 80 percent for planning and capital expenses and 50 percent for operating assistance.

However, for projects undertaken to comply with or maintain compliance with the Americans with Disabilities Act and the Clean Air Act, the federal share may be 85 percent for the acquisition of vehicles and 90 percent for vehicle‑related equipment or facilities, including clean or alternative fuel vehicle‑related equipment or facilities. 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 5307 Circular (9050. 1A) and the Coordinating Council on Access and Mobility (CCAM) Federal Fund Braiding Guide.

## Additional Information 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, visit the FTA-Sponsored Technical Assistance, Training, and Research Resource Programs webpage.