Assignment of Grant Funds
Third Party Procurement
Frequently Asked Questions
Q = Question; A = Answer
Q. We are considering financing via a lease 100% of the cost of buses to a transit authority that has received approval of a 5307 formula grant related to this capital outlay. Can the formula grant funds be pledged to us by the authority as a source of repayment?
A. Generally, a grantee cannot commit funds to a third party without FTA approval. The transit agency should seek pre-approval from the appropriate FTA Regional Office. (Posted: March 2009).