Formula Grants for Rural Areas
This program enhances the access of people in non-urbanized areas by providing public transportation. Federal funds pay 86.58 percent of capital costs and 54.11 percent of deficit operating costs, 80 percent of administrative costs, and 80 percent of maintenance costs. The remaining 13.42, 45.89, 20, and 20 percent, respectively, must come from the local recipient. Eligible recipients of these funds can be a state agency, a local public body, a nonprofit agency, or an operator of public transportation services. Ten percent of the state’s Section 5311 apportionment is dedicated to carry out a program to develop and support intercity bus transportation. In some instances, MDT transfers excess 5311 funds to the three urban areas as Section 5307 funds.