Section 3: Program Specifics for Sections 5309 and 3037 (Discretionary Programs)
Who Is Eligible
Section 5309 (Capital Program): Transit authorities and public bodies, including: States, municipalities, and other political subdivisions of States, public agencies and instrumentalities of one or more States.
| Private operators can benefit from the program through lease arrangements with public agencies. |
Section 3037 (Job Access and Reverse Commute Program): Private non-profit organizations, local agencies and local authorities, including: States, local governments, metropolitan planning organizations, public transit agencies and tribal organizations.
| The JARC Program was specifically set up to encourage non-traditional applicants (faith based and community organizations) to apply for funding. |
| If not currently a direct FTA applicant, it is suggested that you request the State agency or another existing grantee to apply on your behalf. Using public agencies that are already familiar with FTA requirements may significantly reduce grant processing time. |
What Is Eligible
Section 5309 (Capital Program): Funds may be used for project specific planning and capital activities, which include the purchase of buses and other rolling stock, equipment and the construction of bus facilities.
Section 3037 (Job Access and Reverse Commute Program): These funds are used to provide new or expanded transportation service to benefit welfare recipients and other low-income individuals to and from jobs and other employment-related services. Capital and operating costs for such projects are eligible. JARC funds cannot be used for planning activities.
Funding Availability
Section 5309 (Capital) and 3037 (JARC): Funds are available for obligation (approval) in the year of apportionment plus two years, unless otherwise noted in the Federal Register of Fiscal Year Apportionments. Once funds are obligated in a grant they are available until fully expended and the grant is complete and ready for closeout.
| FTA funds should be used for projects that are ready for implementation. After grant approval, the funds should be expended as expediously as possible. |
Funding Ratios
The Section 5309 Program requires a local match. The specific matching requirements follow:
| Federal Share | Local Share | |
|---|---|---|
| Capital Assistance | 80% | 20% |
| Capital bicycle facility projects* | 90% | 10% |
| Capital ADA vehicle related equipment* | 90% | 10% |
| Capital CAA vehicle related equipment* | 90% | 10% |
*There are four exceptions to the 80% match for capital projects. The Federal share may be 90% to provide access for bicycles to transit facilities, or to install racks or other equipment for transporting bicycles on transit vehicles; for vehicle-related equipment to comply with the Americans with Disabilities Act (ADA); or vehicle-related equipment for the purpose of complying with or maintaining compliance with the Clean Air Act, as amended (CAA). The fourth exception allows an applicant to request less than 80% Federal share of the net project cost.
The Federal percentages are maximum amounts. An overmatch of local or State funds is allowed.
Section 3037 (Job Access and Reverse Commute)
All activities are funded at a 50% Federal share and 50% local share.
Sources of Local Share
Section 5309 (Capital Program) - All of the local share must be provided in cash from sources other than Federal funds unless another Federal statute permits the use of specific Federal funds for local share. In-kind contributions and the market value of real property needed for the project are counted as cash.
FTA Circular 9300.1A, Page I-9 & 10
| The value of land, not presently in transit use, may be used as the local share for a project. |
Section 3037 (JARC) - The local share may be provided in cash and/or funds from other Federal programs (other than DOT) where allowed by Federal statute. In-kind contributions and revenues from service contracts are counted as cash. Typical matching funds from other Federal programs include:
U. S. Department of Health and Human Services (DHHS):
U. S. Department of Labor (DOL):
U. S. Department of Housing and Urban Development (HUD):
| The JARC program has the most local share flexibility of all FTA programs. Many recipients have been able to proceed with JARC projects by using the matching funds that are available from DHHS, DOL & HUD. |
| FTA, DHHS and DOL have issued guidance on how their Welfare to Work programs can support one another. See website. |
Application Content
An applicant must submit specific elements that constitute a grant application. These include a Project Budget, Milestones, Environmental Findings, Fleet Status and union information for Department of Labor (DOL). Each element is explained below:
- Project Budget: The project budget should include separate activity line items for each eligible activity.
- Milestones: These indicate significant project events and estimated completion dates for each activity line item.
- Environmental Findings: FTA's environmental impact regulation requires different levels of analysis and documentation for the various types of projects.
Most projects are "categorically excluded" from the requirement to prepare an environmental document. - Fleet Status: Indicates the number of vehicles used in peak service and the number of spares in the fleet.
- Certification to DOL: All applications under Sections 5309 and 3037 require DOL Certification prior to approval. The application must identify labor unions (names & addresses) that represent transit employees of the recipient(s) and all labor organizations that represent employees of other transportation providers that operate in the service area. If non-union, provide a statement to that effect. FTA will forward your application to the DOL.
FTA cannot approve an application until the DOL certifies that the 49 USC Section 5333(b) requirements have been met.
