Rural public transportation
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Rural public transportation

The Rural Public Transportation grants program (49 USC, Section 5311) helps people in rural areas access health care, shopping, education, employment and recreation. Currently, there are 36 operators providing public transportation in rural areas and small cities with populations under 50,000.

Eligible transit providers

Grant recipients may include state agencies, local public bodies, private nonprofit organizations, Indian tribes and public transportation operators.

Private for-profit transit operators may participate in the program through contracts with eligible recipients. In order to receive formula funds, a company must be a rural transit district, which is a political subdivision containing multiple counties to provide rural public transportation.


Section 5311 program funds may be used for capital, planning, operating and administrative costs, with a maximum federal funding ratio for capital, planning and administrative costs of 80 percent and a maximum state/local match of 20 percent on most projects. Americans with Disabilities Act of 1990 (ADA) and Clean Air projects may receive up to 90 percent federal funding. The funding ratio for net operating costs is 50 percent federal match and 50 percent state/local match.

TxDOT awards State funds for public transportation which can be used to fulfill the match requirement.

Eligible recipients can apply for funds through the electronic grants management system (IGX).

Service Expansion Program

The 88th Texas Legislature, Regular Session, appropriated additional state funds for rural public transportation service expansion projects.  Of the 36 rural transit districts 24 elected to participate in the service expansion program. Projects will expand service in unserved and/or underserved areas using the most efficient combination of service design, quality service, resources, and technology available.