MPO Policy and Procedures Manual - Indianapolis Metropolitan ...

FTA Funding
FTA funds are distributed to eligible grantees (denoted as “designated recipients”). For the MPO
planning area, there are two designated recipients– INDOT and IndyGo.
Section 5307 (Urbanized Area Formula Grants)
Nationwide, Section 5307 funds are available for transit improvements for 34 urbanized areas
with populations greater than one million, 91 urbanized areas with populations between 200,000
and one million, and 280 urbanized areas with populations between 50,000 and 200,000. For
urbanized areas with populations greater than 200,000, the funds are distributed directly to the
designated recipients. For areas with populations less than 200,000, the funds are apportioned
to the recipient state's governor for distribution.
Section 5307 funds must be matched by state and local funds. Local matching funds can be
cash or cash-equivalent, depending upon the expenditure. Non-cash shares, such as donations,
volunteered services or in-kind contributions are eligible to be counted toward the local match
only if the value of each share is documented formally. Refer to 49 CFR, part 18 for more
information.
The Section 5307 program provides funding for capital and planning at 80 percent of costs and
for operating at up to 50 percent of costs. Funds are apportioned to urbanized areas utilizing a
formula based on population, population density, and other factors associated with transit
service and ridership. Section 5307 program grants are governed by CFR 20.505, Title 49,
United States Code 5303. The program is funded from general federal revenues and federal
trust funds.
Section 5309 (New Starts) Program
The “New Starts” program is a nationwide competitive program for capital funds for
implementing fixed-guideway transit systems, such as Bus Rapid Transit (BRT) or Light Rail
Transit (LRT). The application process is formally structured, with multiple steps that require
FTA clearance before the next phase can begin. Currently, a rapid transit study is underway for
the Indianapolis Northeast Corridor that may result in an application to the “New Starts”
program.
Section 5310 Program (Focused on transportation for the Elderly and
Persons with Disabilities)
Note that the Section 5310 Program will be overseen by the Central Indiana Regional
Transportation Authority (CIRTA)
The FTA distributes Section 5310 funding based on each State’s share of the number of elderly
persons and persons with disabilities within the United States, based on the latest Census data.
These funds are available for distribution on an 80% federal basis and 20% local (applicant)
matching basis, which are awarded annually by the INDOT on a competitive basis. INDOT may
use up to 10% of the state’s annual Section 5310 allocation for state administration and
technical assistance. Equipment eligible for purchase includes vans and buses, which INDOT
buys through the Indiana Department of Administration.
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