Federal Stimulus Package Includes Funding for Transportation Investments

On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act (ARRA) of 2009, which authorized $787 billion in federal funding for initiatives to help stimulate America’s economy. The bill provides $48.76 billion in transportation funding, much of which will be used for rail and transit investments.

U.S. Secretary of Transportation LaHood and federal agencies are working to develop final recommendations regarding the allocation of stimulus funds to the states. Once state allocations are finalized, the Virginia Department of Rail and Public Transportation (DRPT) will review the funding criteria and develop funding recommendations for Virginia projects based on applications received and projects submitted on stimulus.virginia.gov, a Web site created to accept public proposals for projects to receive stimulus funding. The deadline to submit projects on stimulus.virginia.gov is Friday, March 6, 2009.

Below is a summary of the rail and transit funding made available through the ARRA of 2009.

High Speed Rail Corridors and Intercity Passenger Rail
Eight billion dollars was designated for capital investments in high speed rail corridors and intercity passenger rail. Within 60 days of the bill’s passage, Secretary LaHood will submit a strategic plan to the House and Senate Appropriations Committees that describes how the Secretary will administer the funding. Priority will be given to projects that support the development of intercity high speed rail service, and projects do not have to be included in state rail plans to receive funding. Within 120 days of the bill’s passage, the Secretary will issue interim guidance that covers grant terms, conditions and procedures until final regulations are issued.

Amtrak
Amtrak will receive $1.3 billion in the ARRA, $450 million of which must be used for capital security grants. The remaining funds may be used for projects to repair, rehabilitate or upgrade rail assets or infrastructure, as well as for capital projects that expand passenger rail capacity. Funds cannot be used to subsidize Amtrak operating losses, and no more than 60 percent of funds may be used for projects in the Northeast Corridor. Amtrak funds must be awarded for specific projects within 30 days of the bill’s passage and projects that receive stimulus funding must be complete within two years.

Transit Capital Funding
The ARRA provided $6.9 billion for transit investments. One hundred million was provided for discretionary grants to reduce energy consumption or greenhouse gas emissions. Of the remaining funds, 80 percent will be allocated through 5307 grants (urbanized areas), 10 percent will be allocated through 5311 grants (rural areas) and 10 percent will be allocated through 5340 grants (growing states and high density program). Funds will be distributed within 21 days of the bill’s passage. Fifty percent of those funds must be assigned to specific projects within 180 days. Any funds not assigned will be redistributed. The remaining fifty percent must be assigned to specific projects within one year, or that funding will be redistributed.

Preliminary Funding Estimates from the Federal Transit Administration
Section 5340 Urbanized:
• District of Columbia (Washington, D.C., VA, MD)- $214.64 million
• Hampton Roads, VA- $25.36 million
• Richmond, VA - $13.84 million
• Virginia (other) - $11.99 million

Section 5340 Non-Urbanized:
• Virginia - $18.56 million

Rail Fixed Guideway Transit Modernization
Seven hundred and fifty million dollars was designated for infrastructure investment in rail fixed guideway transit systems, such as Metrorail in Northern Virginia and The Tide in Hampton Roads. Of the $750 million, up to one percent of funds may be used for administrative or program management oversight expenses. Funds will be distributed within 21 days of the bill’s passage. Fifty percent of those funds must be assigned to specific projects within 180 days. Any funds not assigned will be redistributed. The remaining fifty percent must be assigned to specific projects within one year, or that funding will be redistributed.

Preliminary Funding Estimates from the Federal Transit Administration
Fixed Guideway Transit Modernization:
• District of Columbia (Washington, D.C., VA, MD) - $17.75 million
• Hampton Roads, VA - $437,148

Other Transit Capital Investment
Discretionary transit grant funding in the amount of $750 million was designated for transit capital investment. These funds will be distributed at the Secretary’s discretion, with priority given to projects that are currently in construction or are able to obligate funds within 150 days of the bill’s passage. Up to one percent of funds provided may be used for administrative or program management oversight expenses.

Supplemental Funding
In addition to the specific categories of funding, $1.5 billion was allocated for discretionary grants for capital investments in projects that will significantly improve surface transportation in the nation, a metro area or region. These funds will be distributed at the Secretary’s discretion. Eligible projects include, but are not limited to, highways, bridges, transit, passenger and freight rail, or port projects.

Performance Reporting
Each grant recipient will submit periodic reports on the use of federal stimulus funds. Information in the reports will include items such as the amount of funds received; the number of projects that have begun the bidding process, awarded contracts, initiated work, or completed work, and the funds associated with each project; and the number of direct jobs created by projects that received federal stimulus funds.

For more information on the FTA preliminary estimates, visit www.fta.dot.gov/index_9118.html. For more information on the ARRA visit www.recovery.gov.