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Formula Grants for Other Than Urbanized Areas

Published on AidPage by IDILOGIC on Jun 24, 2005

Administered by:

US Federal Government Agency (see all agencies)
Department of Transportation , Federal Transit Administration
CFDA #: 20.509

Assistance considerations...

Length and Time Phasing of Assistance

Funds will be apportioned annually to the States. Sums apportioned shall be available for obligation by the State designated agency for a period of 2 years following the close of the fiscal year for which sums are apportioned, and amounts remaining unobligated at the end of such period shall be apportioned among the States for the succeeding fiscal year. States usually fund local recipients on an annual cycle.

Formula and Matching Requirements

This program operates under a statutory allocation formula to the States as prescribed in 49 U.S.C., Chapter 53, Section 5311. The Federal share for eligible capital and project administration costs shall not exceed 80 percent of these costs; except projects designed specifically to increase the accessibility of public transportation to bicycles may be funded at 90 percent Federal share; vehicle related equipment required to comply with ADA or the Clean Air Act may be funded at 90 percent Federal match. The Federal share of the eligible operating deficit shall not exceed 50 percent. Income from purchase of service contracts with human service agencies may be used for the entire local share. (Many programs of the Department of Health and Human Services and other Federal agencies provide local match through purchase of service contracts.) In addition, current year funds can be transferred from the Federal Highway Administration for capital projects under Nonurbanized Area Formula Grants, 49 U.S.C. Chapter 53, Section 5311.

A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.

Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.

In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.

Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.