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The New Orleans Regional Transit Authority (NORTA) will be able to continue rebuilding portions of its Hurricane Katrina-damaged trolley system while offering bus and limited trolley service. Yesterday, the U.S. Department of Transportation (USDOT) announced the Federal Transit Administration (FTA) had approved a $13.6 million grant to help cover the agency’s operating costs.

Through an emergency provision in the FTA’s rules, NORTA can obtain federal funding without providing local matching dollars. The agency also won’t be required to meet federal regulations that prohibit transit providers from using capital funds for operating expenses.

In June, the USDOT granted NORTA an administrative waiver to use the city’s pre-hurricane population data to calculate the amount of federal transit funding the agency is eligible for in 2007.