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* Authorization levels do not include $50M /year for FY 1999-2003 for the Clean Fuels program derived from Bus & Bus Related Facilities.
** Appropriated level since Guarantee did not apply prior to FY 1998.

Program Purpose

The renamed Capital Investment Grants and Loans Program (formerly Discretionary Grants) will continue providing transit capital assistance for new fixed guideway systems and extensions to existing fixed guideway systems (New Starts), fixed guideway modernization, and bus and bus related facilities. [3009]


Funded from both the Mass Transit Account of the Highway Trust Fund and the General Fund.

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.

Continues the 40%, 40%, 20% allocation formula among fixed guideway modernization, new fixed guideway systems and extensions, and bus and bus-related facilities.

New Starts

Continues the discretionary nature of the program.

Projects must still compete for funding using expanded criteria to justify the major investment involved.

New language tightens eligibility criteria.

Projects will be evaluated and rated as "highly recommended," "recommended," or "not recommended."

Limits the amount of new starts funding that can be used for purposes other than final design and construction to 8 percent of the amounts made available for this program.

Fixed Guideway Modernization

Continues formula apportionment using system wide mileage based on data used to apportion the funding in FY 1998. Modifies slightly the allocation of funding under the first four tiers.

Increases the number of tiers from four to seven. Funding in these additional three tiers will be apportioned based on actual route-miles and revenue vehicle-miles on segments at least 7 years old.


Continues the discretionary nature of the program in current law.

Authorizes a total of $3.3 billion for bus and bus related facilities (excluding amount for Clean Fuels).

Authorizes $3M /year for the Bus Testing Facility and $4.85M /year for Fuel Cell Bus and Bus Facility Program.

September 14, 1998

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