Urban and rural transit providers are slated to gain some operating assistance flexibility with their American Recovery and Reinvestment Act (ARRA) funds, based on a provision tucked into a supplemental appropriations measure (HR 2346), which President Obama signed into law on June 24.
Under this provision, 10 percent of formula-based ARRA allocations to states and urbanized areas may be used "for the operating costs of equipment and facilities for use in public transportation, or for [rural intercity bus] activities under Section 5311(f)."
FTA Administrator Peter M. Rogoff has issued a "Dear Colleague" letter announcing this provision. His letter, which includes a link to FTA's detailed questions and answers on this topic, can be found on the FTA website at http://www.fta.dot.gov/regional_offices_10012.html.
The New York Times recently ran a story illustrating the need and anticipation for this feature of the new bill: http://www.nytimes.com/2009/
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