Key Takeaways
- FTA Section 5307 (Urbanized Area) and Section 5311 (Rural) are formula programs — transit agencies receive allocations automatically without competitive applications
- RAISE grants ($1.5B/year) are competitive and open to states, local governments, tribes, and transit agencies — awards from $1M to $25M for multimodal projects
- The Low or No Emission Vehicle Program ($1.1B) funds zero-emission and low-emission bus purchases — electric buses, hydrogen fuel cell buses, charging infrastructure
- Federal transportation grants typically require a 20% local match — though RAISE and some programs allow 0% match for projects in rural or low-income areas
- Nonprofits and human services agencies can access FTA Section 5310 funds for transportation services for seniors and people with disabilities — awards through state DOTs
FTA Formula Programs: 5307, 5311, and 5310
The Federal Transit Administration distributes the majority of its $14 billion annual budget through formula programs — allocations based on population, transit ridership, and service area characteristics. These are not competitive grants:
Section 5307 — Urbanized Area Formula (CFDA: 20.507)
Largest FTA program — approximately $5.4B/year to transit agencies in urbanized areas (population 50,000+). Eligible uses: operating costs (for smaller urbanized areas only), capital expenses (buses, rail vehicles, stations, technology systems). Transit agencies access 5307 funds by submitting annual grant applications through FTA's TrAMS system, based on their approved Transportation Improvement Program (TIP).
Section 5311 — Rural Area Formula (CFDA: 20.509)
Approximately $800M/year for transit in rural areas (population under 50,000). States receive allocations and award to transit providers — rural transit systems, county transit programs, and tribal transit operators. Rural nonprofits providing transportation can access 5311 through their state DOT. Funds cover operating costs (up to 50%), capital purchases, and training.
Section 5310 — Enhanced Mobility for Seniors & Disabilities (CFDA: 20.513)
Approximately $300M/year to support transportation for seniors and people with disabilities beyond what ADA requires. States administer and award to nonprofits, local governments, and for-profit operators. Nonprofits that provide medical transportation, senior center transportation, or disability services transport can apply through their state DOT for 5310 sub-awards. Awards typically: $50K–$500K for vehicle purchase and operating assistance.
RAISE Grants (Competitive)
The RAISE (Rebuilding American Infrastructure with Sustainability and Equity) program is DOT's signature competitive grant — $1.5B annually for transformative transportation projects. Application window: typically January–April each year on Grants.gov.
- Eligible applicants: States, local governments, tribes, transit agencies, port authorities, special purpose districts
- Award range: $1M–$25M; typically $5M–$15M for most projects
- Eligible projects: Road and bridge reconstruction, transit improvements, port and freight facilities, bicycle/pedestrian infrastructure, multimodal hubs
- Priority criteria: Safety, environmental sustainability, equity, economic competitiveness, multimodal connectivity
- Rural set-aside: At least 30% of RAISE funds must go to rural projects
Low or No Emission Vehicle Program (Low-No)
The Low-No program ($1.1B/year) funds purchase and lease of zero-emission and low-emission transit buses and supporting infrastructure. This is a competitive grant open directly to transit agencies and state DOTs:
- Zero-emission buses (battery electric, hydrogen fuel cell) receive priority scoring
- Charging infrastructure and hydrogen fueling stations are eligible capital costs
- Average award: $2M–$20M depending on fleet size and technology
- Application: competitive, typically released fall each year
- 20% match required; reduced or waived for agencies in areas with poor air quality
Action Checklist
- Transit agencies: Confirm your 5307/5311 allocation with your state DOT and ensure your TIP project list is current before the federal fiscal year (October 1)
- Municipalities pursuing RAISE: Engage your congressional delegation early — pre-application consultations with DOT's regional office strengthen applications significantly
- Nonprofits providing senior/disability transport: Contact your state DOT's transit office about Section 5310 sub-award opportunities
- Transit agencies with diesel fleets: Review Low-No program FOA at transit.dot.gov — electric bus replacement grants are competitive but well-funded
- Register in SAM.gov and ensure your organization's UEI is active — required before applying to any DOT competitive grant program
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Frequently Asked Questions
What are the main federal transit funding programs?
The Federal Transit Administration distributes formula funds (Urbanized Area 5307, Rural 5311, State of Good Repair) and competitive programs like Capital Investment Grants for major projects, Low or No Emission bus grants, and RAISE for multimodal projects through DOT.
How do small cities fund transit improvements?
Rural and small-urban systems receive Section 5311 and 5307 formula money through state DOTs, and compete well in the Low-No bus program and 5339 bus facility grants. Coordinated planning with the state DOT is the entry point — they program most of the funds smaller systems receive.
What is the Safe Streets and Roads for All program?
SS4A awards planning grants (often $100,000 to $1 million) and implementation grants to local governments for roadway safety — developing safety action plans, then funding the projects in them. Unlike most DOT programs, it goes directly to cities, counties, and MPOs, bypassing states.
What match do transit grants require?
Typically 20 percent local match for capital and 50 percent for operating costs, with reduced match for some vehicle accessibility and clean-fuel purchases. Toll credits and in-kind contributions can sometimes substitute for cash — your FTA regional office can confirm what counts.