The March 5, 2009, Federal Register Notice (PDF) included an apportionment table for the $742.5 million provided to urbanized areas through the Section 5309 Fixed Guideway Modernization program. Funds were apportioned directly to 39 urbanized areas under the first four tiers of the seven-tier statutory formula. All of these areas have fixed guideway transit systems that include segments more than seven years old and one mile in length. Fifty percent of each of these 39 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 All funds, including balances withdrawn from areas that did not meet the obligation deadlines and redistributed, must be obligated by September 30, 2010.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 USC 5302(a)(1), that supports the maintenance and improvement of fixed guideway transit facilities and equipment.
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).
Metropolitan areas may transfer Surface Transportation Program (STP) funds allocated by FHWA to the Section 5307 program for ready to go fixed guideway modernization projects to supplement the 5309 apportionment.