Use of a Nationwide Allocation Model for Intercity Bus Net Operating Costs

Published on: July 7, 2022

Section 5311(f) of title 49, United States Code, requires each state to spend 15 percent of its annual Section 5311 apportionment “to carry out a program to develop and support intercity bus transportation” unless the governor certifies that “the intercity bus service needs of the state are being met adequately.” In many states, intercity bus service is a vital link between otherwise isolated rur…-operating-costs/al communities and the rest of the nation.

This week, FTA published a Dear Colleague letter stating that intercity bus providers that use a nationwide allocation model to allocate costs are eligible to be reimbursed for net operating costs under Section 5311(f), including funding provided by supplemental COVID programs such as the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (CRRSAA), and the American Rescue Plan Act of 2021.

FTA Dear Colleague Letters
Formula Grants for Rural Areas

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