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New Starts Fact Sheet

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The Federal Transit Administration’s discretionary New Starts program is the federal government’s primary financial resource for supporting locally planned, implemented, and operated major transit capital investments.

The New Starts program funds new and extensions to existing fixed guideway transit systems in every area of the country. These projects include commuter rail, light rail, heavy rail, bus rapid transit, streetcars, and ferries.

The Federal Transit Administration is preparing rulemaking, per SAFETEA-LU.


SAFETEA-LU authorizes $6.6 billion in total funding for fiscal years 2006, 2007, 2008, and 2009. This includes funding for more than 330 projects for proposed, pending, and existing Full Funding Grant Agreements (FFGA). FFGAs are multi-year contractual agreements between the FTA and project sponsors that formally define the project scope, cost and schedule. They also establish the maximum level of federal financial assistance and outline the terms and conditions of federal financial participation.

Project Development

New Starts projects, like all transportation investments in metropolitan areas, must emerge from a regional, multi-modal transportation planning process. The process is based upon rational decision making that benefits from the information developed during the following three phases of New Starts project development:

  1. Phase I – Alternatives Analysis
    Local project sponsors are required to perform an alternatives analysis that evaluates the mode and alignment options for a particular corridor in the community. This analysis informs local officials and community members on the benefits, costs and impacts of transportation options, so that the community can identify a preference. This phase is complete when local and regional decision makers select a locally preferred alternative, and it is adopted by the metropolitan planning organization (MPO) into the region's long-range transportation plan.
  2. Phase II – Preliminary Engineering
    During the preliminary engineering (PE) phase of project development for New Starts investments, local project sponsors consider their design options to refine the locally preferred alternative and complete the National Environmental Policy Act (NEPA) process. Preliminary engineering hones the estimates of project costs, benefits, and impacts. In addition, during the PE phase of project development, local sponsors finalize management plans, demonstrate their technical capabilities to develop the project, and commit local funding sources.
  3. Phase III – Final Design
    Final design is the last phase of project development and includes the preparation of final construction plans, detailed specifications and bid documents.

Project Evaluation

New Starts projects must undergo evaluation by the FTA throughout the entire project development process. Projects are evaluated according to a variety of criteria. As required by SAFETEA-LU, which amends 49 USC §5309(d)(5)(B), the FTA assigns ratings of “high,” “medium-high,” “medium,” “medium-low,” or “low” throughout the project development process as information concerning costs, benefits, and impacts is refined.

Based on these evaluations, the FTA makes decisions about moving projects forward, from preliminary engineering to final design, to annual funding recommendations to Congress, and to the execution of a FFGA. In the Annual Report on New Starts, FTA applies these evaluations to recommend funding for projects anticipated to be ready for an FFGA before the end of the budget fiscal year, and to recommend funding for other meritorious projects.


49 USC §5309(d) establishes the criteria under which proposed New Starts projects are evaluated. The FTA evaluates the project justification and the local financial commitment according to the following measures:

Project Justification

  • Mobility Improvements
    - measured by travel time benefits per project passenger mile, low-income households served, and employment near stations.
  • Environmental Benefits
    - measured by change in regional pollutant emissions, change in regional energy consumption, and EPA air quality designation
  • Cost Effectiveness
    - measured as the cost per hour of travel time saved.
  • Operating Efficiencies
    - measured by system operating cost per passenger mile.
  • Transit Supportive Land Use & Future Patterns
    - measured by existing land use, transit supportive plans and policies and performance, and impacts of policies.
  • Other
    - includes a number of optional factors, including the projected economic impact of project.

In addition, SAFETEA-LU adds two criteria - Economic Development and the Reliability of Forecasts.

Local Financial Commitment

  • The proposed share of total project costs from sources other than 49 USC §5309 New Starts, including federal formula and flexible funds, the local match required by federal law, and any additional capital funding.
  • The stability and reliability of the proposed capital financing plan.
  • The ability of the sponsoring agency to fund operations and maintenance of the entire transit system (including existing service) as planned, once the project is built.

Overall Evaluation

To assign overall project ratings to each proposed New Starts project, FTA considers the individual ratings for each of the project justification and local financial commitment measures. FTA combines this information into summary “finance” and “project justification” ratings for each prospective New Starts project. Individual measures, summary criteria ratings, and overall project ratings are designated as “high,” “medium-high,” “medium,” “medium-low” or “low.”

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Commitment to Accessibility: DOT is committed to ensuring that information is available in appropriate alternative formats to meet the requirements of persons who have a disability. If you require an alternative version of files provided on this page, please contact