Urbanized Area Formula (Section 5307)

Urbanized Area Formula Program

The March 5, 2009, Federal Register Notice (PDF) included apportionment tables for the $5.4 billion provided to urbanized areas through the Section 5307 program.  Funds were apportioned directly to the 38 urbanized areas over 1 million population and 114 urbanized areas with populations between 200,000 and 1 million, and to 52 States and territories for urbanized areas under 200,000 in population.  Fifty percent of each of these 204 apportionments must be obligated by September 1, 2009, to avoid losing the balance of that amount remaining unobligated.  The balance of the initial apportionment must be obligated by March 5, 2010.  All funds, including balances withdrawn from areas that did not meet the obligation deadlines and redistributed to other areas that met the deadlines, must be obligated by September 30, 2010.  Once obligated, funds must be disbursed by September 30, 2015.  Any balances remaining after that date will revert to the U.S. Treasury.

The funds may be used for any capital purpose eligible under 49 U.S.C. 5302(a)(1), including such activities as vehicle replacements, facilities renovation or construction, preventive maintenance, and mobility management.

All projects must be included in a metropolitan Transportation Improvement Program (TIP) and the approved State Transportation Improvement Program (STIP) before grant award.  An appropriate local official must certify that the projects have been properly vetted and are an appropriate use of ARRA funds (Section 1511 certification requirement).

States and metropolitan areas may transfer Surface Transportation Program (STP) funds allocated by FHWA to the Section 5307 program for ready to go transit projects.

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