This should be the first contact point. 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 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. 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.
Section 5311 funding may be used for eligible capital expenses, project administration, and operating expenses needed to provide efficient and coordinated public transportation service in nonurbanized areas. Projects must provide for the maximum feasible coordination of public transportation sources assisted under this section with transportation services assisted by other Federal sources, and must provide for the maximum feasible participation of private operators. Fifteen percent of the State's annual apportionment must be spent to support rural intercity bus transportation, unless the governor certifies that such needs are adequately met. As requested by the State and Federal agencies administering the program. Recipient is required to retain intact, for 3 years following submission of the final expenditure report, all contract documents, financial records, and supporting documents.