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Yesterday, the U.S. Department of Transportation (USDOT) announced $280 million is available in federal grants for urban circulator projects, such as streetcar and bus systems.

The money represents the first batch of funding provided by the Obama Administration through the Livability Initiative, a joint venture comprising USDOT, the U.S. Department of Housing and Urban Development, and U.S. Environmental Protection Agency.  

The Federal Transit Administration (FTA) will provide a maximum of $25 million per streetcar or other urban circulator project using discretionary funds from the New Starts/Small Starts program. The administration will place priority on projects that “connect destinations and foster the redevelopment of communities into walkable, mixed-use, high-density environments,” according to a prepared statement.

The FTA expects to announce grant recipients in early 2010.