TEA-21 - Transportation Equity Act for the 21st Century Moving Americans into the 21st Century
	Fact Sheet
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URBANIZED AREA FORMULA GRANTS PROGRAM
Year	1997	1998	1999	2000	2001	2002	2003
Authorization	0	$2,299M	$2,698M	$2,923M	$3,147M	$3,371M	$3,596M
Guaranteed	$1,978*	$2,299M	$2,548M	$2,773M	$2,997M	$3,221M	$3,446M

* Appropriated level since Guarantee did not apply prior to FY 1998.

Program Purpose

The Urbanized Area Formula Grants Program provides transit capital and operating assistance to urbanized areas with populations of more than 50,000. [3007]

Funding Features

Approximately $18 billion is provided to transit agencies for bus and rail vehicle replacements and facility recapitalization.

Continues the apportionment formula in the current law

• for areas under 200,000 in population - based on population and population density

• for areas over 200,000 in population - based on population, population density, and transit data

Continues to be funded from both the Mass Transit Account and the General Fund.

Establishes a new transit enhancements program— in urbanized areas with populations of 200,000 or more, at least one percent of the funds apportioned each fiscal year shall be used for activities defined as transit enhancements.

Continues 90% Federal share for the incremental costs of vehicle related equipment needed to comply with the Clean Air Act Amendments and the Americans with Disabilities Act requirements, and 80% Federal share for all other eligible costs.

Eligibility for Funding

Expands eligibility so grants may be made to finance the operating costs of equipment and facilities only to urbanized areas with populations of less than 200,000.

Expands the definition of capital expenses in areas over 200,000 population to include preventive maintenance.

Eliminates eligibility for operating assistance in areas over 200,000 population.

Capital is redefined to include ADA paratransit costs, leasing, and transit enhancements.

Transferability

Continues flexibility by permitting funds to be used for a highway project under the same requirements as ISTEA.

September 14, 1998