Funds (5340)

Q.  What restrictions apply to the expenditure of Section 5340 funds? Do they spend like Section 5307 funds because that is the original source of funding?

A. The Growing States and High Density States Formula Program (49 U.S.C. 5340) was established by SAFETEA-LU to apportion additional funds to the Urbanized Area Formula and Rural Area Formula programs. Recipients of funds are existing Urbanized Area (Section 5307) and Rural Area (Section 5311) formula fund recipients. With a few exceptions, Section 5340 funds may be used as Section 5307 funds or Section 5311 funds, but you should follow the guidance in FTA's "Frequently Asked Questions" at  In addition, you should contact your liaison in your FTA Regional Office if you have any specific questions. (Revised: March 2010)