Changes to Federal Transportation Funding Law

 

 

Introduction

 

On June 9, 1998, PL 105-178, the Transportation Equity Act for the 21st Century (TEA-21) was signed into federal law. The bill authorizes highway, highway safety, transit and other surface transportation programs for the next six years. Subsequently, technical corrections were issued in the TEA 21 Restoration Act. For the most part, TEA-21 continues the policies of its predecessor, The Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) with significant increases in funding. Not enough time has passed for federal, state and local agencies and MPO's to fully translate the differences between TEA-21 and ISTEA into new guidance and regulation. However, some differences are highlighted below.

 

 

Operating Assistance

 

The FTA provides federal funding specifically for transit capital and operating under its various Sections. The largest source of federal funds for transit capital is the Section 5307 formula-based program. Under certain circumstances, these transit funds can be used for highway projects. For the first time, TEA-21 restricts the use of Section 5307 funds to capital expenses in metropolitan areas with a population greater than 200,000. Therefore, the CDTC area no longer can use Section 5307 funds for operating expenses. However, transit agencies in metropolitan areas greater than 200,000 in population are now eligible to use capital funds for preventive vehicle maintenance.

 

These changes are reflected in CDTC's TIP. Project T14 (Transit Operating Assistance) is no longer part of the TIP. Project T57 uses Section 5307 funds for preventive vehicle maintenance.

 

 

Enhancement Projects

 

There were changes to the procedure for allocating Enhancement funds to projects in New York State. The new procedure is detailed on page *.

 

 

Eligibility for Highway Funds

 

To qualify for highway funds, projects must meet certain criteria, depending on the fund source. These criteria are detailed in Appendix G on page *. For the most part, eligibility criteria for funds under TEA-21 are the same as that of ISTEA. However, there are a few minor exceptions. These are highlighted in the above referenced section in Appendix G. They include: