Commonly known by its authorizing legislation as Section 5307, this program provides formula funding to urbanized areas with a population greater than 50,000. In areas of with populations greater than 200,000, funds are used to support transit capital expenses, although up to 10 percent of an urbanized area’s formula funding allocation may be used to assist with the operating costs of ADA-mandated complementary para-transit services. One percent of funding allocations must be spent on transit-related safety and security measures, and one percent must also be spent on transit enhancements. Designated public bodies in these larger urbanized areas receive their funding allocations directly from the Federal Transit Administration. In urbanized areas with populations between 50,000 and 200,000, funds are used to support transit capital and operating expenses. Formula funding allocations for these smaller urbanized areas are made either directly to designated recipients in urbanized areas, or to state transit administering agencies, who then disburse funds to local transit providers, as determined by the state’s governor. Funding for this program is approximately $3,600,000,000 annually.

The statutory language pertaining to transportation provisions within this program is found within the following citation(s): 

49 U.S.C.A. § 5307

http://www.fta.dot.gov/funding/grants/grants_financing_3561.html