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Rail News Home Passenger Rail

9/11/2002



Rail News: Passenger Rail

U.S. House passes transit flexibility act


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U.S. House of Representatives Sept. 9 unanimously approved The Transit Operating Flexibility Act (H.R. 5157), which extends flexibility in the use of federal transit funds to some smaller urbanized areas, benefiting 52 communities.



In the 2000 Census, these communities’ populations crossed the 200,000 mark; under federal transit law, those communities no longer were allowed to use federal formula grant funds to pay for transit operating expenses.



For communities not expecting such a change in urbanized area designation, the loss of operating flexibility might have been sufficient to cease operations altogether.



With the passage of H.R. 5157, these communities now may use their federal transit formula grants throughout fiscal-year 2003 — without disrupting service — while they determine how to pay those operating expenses without using federal funds.



Affected areas include communities in Alabama, California, Colorado, Connecticut, Florida, Idaho, Illinois, Maryland, Massachusetts, Rhode Island, New Hampshire, Missouri, Mississippi, Nebraska, New Jersey, New York, North Carolina, Pennsylvania, Ohio, Oregon, Puerto Rico, Texas, Virginia and Wisconsin.