The Federal Transit Act provides formula grants for areas other than urbanized. Seven public transit systems are in operation under Section 5311 Program.
The program was designed to provide public transportation for rural areas and communities under 50,000 in population. No restrictions are placed on those who may want to use the services offered.
To encourage public transportation in rural areas, Section 5311 offers federal financial assistance to share 80 percent of the cost with local operators for capital outlay (vehicles, equipment, etc.). Administrative and Operating costs are reimbursed at 80 percent and 50 percent, respectively.
Eligible operators of Section 5311 transportation systems can be local public bodies and agencies, non-profit organizations, Indian tribes and groups, and operators of public transportation services. Private for-profit intercity agencies are also eligible.
