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Discretionary Capital Grants Program

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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