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Discretionary Capital grants (49
USC, Section 5309) provide funds for new rail systems, modifications for
existing rail systems and assistance for bus systems. Funds are provided for
three primary activities:
- New and replacement buses and facilities
- Modernization of existing rail systems
- New fixed guide-way systems
Eligible Recipients
Discretionary capital grants or loans are awarded to state and local public bodies.
Funding
Federal funds may be used to defray up to 80 percent of the cost of eligible
expenditures. The local share is 20 percent on most projects. However, the
Federal Transit Administration encourages applicants to develop projects with
greater non-federal match to secure funding. Americans with Disabilities Act of
1990 (ADA) and Clean Air projects may receive up to 90 percent federal funding.
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