Report to Congress on Incentives in Federal Transit Formula Grant Programs

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The Safe, Accountable, Flexible, Efficient Transportation Equity Act:  A Legacy for Users (SAFETEA-LU) amended 49 U.S.C. 5336(c) requiring FTA to conduct and submit a study on the feasibility of an incentive funding system for transit formula programs.

Specifically, Congress required that the study address the following components:

  • An analysis of the availability of appropriate measures to be used as a basis for the distribution of incentive payments.
  • The optimal number and size of any incentive programs.
  • What types of systems should compete for various incentives.
  • How incentives should be distributed.
  • The likely effects of the incentive funding system.

This report explores the feasibility of implementing incentive systems under two FTA programs, the Urbanized Areas (49 U.S.C. 5307) and Rural and Small Urban Areas (49 U.S.C. 5311) formula grant programs. 

The report was published and transmitted to Congress in August 2008.

Text of Report [Word] [PDF]

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