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We are writing to congratulate you on your efforts to obligate Transit Capital Assistance formula funds made available for public transportation under the American Recovery and Reinvestment Act (ARRA) and to remind you of important, approaching deadlines for submitting grant applications to obligate any of these funds that still remain available.

As you know, ARRA required 50 percent of the Transit Capital Assistance funds to be obligated in grants by September 1, 2009.  Any portion of the 50 percent that remained unobligated after that date was to be redistributed to other States or urbanized areas that had fully obligated their allocations.

You rose to this initial challenge and 100 percent of the States and urbanized areas apportioned Transit Capital Assistance funds met their 50% obligation goal thereby avoiding redistribution.

At this juncture, the Federal Transit Administration (FTA) wishes to remind you of additional deadlines involving ARRA Transit Capital Assistance funds.    ARRA requires 100 percent of the formula funds apportioned to each State or urbanized area be obligated in a grant by March 5, 2010.  After that date, FTA must redistribute any remaining funds to States or urbanized areas that fully obligated their ARRA formula funds. Thus, a grant recipient that fails to meet this deadline will—

  1. forfeit the opportunity to use the unobligated money for eligible purposes; and
  2. lose the opportunity to receive any additional Recovery Act funds that are redistributed after March 5, 2009.

In order to avoid these consequences, we encourage you to submit your grant application promptly for any remaining funds that may be available to you for eligible ready-to-go projects. All new grants and grant amendment applications must be submitted to FTA by December 27, 2009 in order to ensure that FTA will be able to process the applications in time for the March 5, 2010 deadline.

On the other hand, if you know that you will be unable to use the remainder of your apportioned funds, please notify your regional office, so that we can anticipate how much, if any, will be available for redistribution in March.

Please feel free to contact FTA’s regional and headquarters offices.  FTA staff will work closely with you to process your grant applications and address your questions.

Best wishes for a happy holiday season and New Year.