538
‘‘(3) FAIR
AND
EQUITABLE
DISTRIBUTION.—A 
recipient of a grant under this section shall certify 
that allocations of the grant to subrecipients are dis-
tributed on a fair and equitable basis. 
‘‘(f) COORDINATION.—
‘‘(1) IN GENERAL.—The Secretary shall coordi-
nate activities under this section with related activi-
ties under programs of other Federal departments and 
agencies. 
‘‘(2) WITH NONPROFIT PROVIDERS.—A recipient 
that transfers funds to an apportionment under sec-
tion 5336 pursuant to subsection (c)(2) shall certify 
that the project for which the funds are requested 
under this section has been coordinated with non-
profit providers of services. 
‘‘(3) PROJECT SELECTION AND PLANNING.—Be-
ginning in fiscal year 2007, a recipient of funds 
under this section shall certify that—
‘‘(A) the projects selected were derived from 
a locally developed, coordinated public transit-
human services transportation plan; and 
‘‘(B) the plan was developed through a 
process that included representatives of public, 
private, 
and 
nonprofit 
transportation 
and
539
human services providers and participation by 
the public. 
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section may not exceed 80 percent 
of the net capital costs of the project, as determined 
by the Secretary. 
‘‘(2) OPERATING
ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed 50 percent of the net operating costs of the 
project, as determined by the Secretary. 
‘‘(3) REMAINDER.—The remainder of the net 
project costs—
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or depreciation 
cash fund or reserve, a service agreement with a 
State or local social service agency or a private 
social service organization, or new capital; and 
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or 
agency of the Government (other than the De-
partment of Transportation) that are eligible to 
be expended for transportation. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes of 
paragraph (3)(B), the prohibitions on the use of funds
540
for 
matching 
requirements 
under 
section 
403(a)(5)(C)(vii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal 
or State funds to be used for transportation purposes. 
‘‘(5) LIMITATION ON OPERATING ASSISTANCE.—
A recipient carrying out a program of operating as-
sistance under this section may not limit the level or 
extent of use of the Government grant for the payment 
of operating expenses.’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 53 is amended by inserting after the item relating 
to section 5316 the following:
‘‘5317. New freedom program.’’.
SEC. 3019. BUS TESTING FACILITY. 
(a) IN GENERAL.—Section 5318 is amended—
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) FACILITY.—The Secretary of Transportation shall 
maintain one facility for testing a new bus model for main-
tainability, reliability, safety, performance (including brak-
ing performance), structural integrity, fuel economy, emis-
sions, and noise.’’; 
(2) in subsection (d) by striking ‘‘under section 
5309(m)(1)(C) of this title’’ and inserting ‘‘to carry 
out this section’’; and
541
(3) by striking subsection (e) and inserting the 
following: 
‘‘(e) ACQUIRING NEW BUS MODELS.—Amounts appro-
priated or made available under this chapter may be obli-
gated or expended to acquire a new bus model only if a 
bus of that model has been tested at the facility maintained 
by the Secretary under subsection (a).’’. 
(b) CONFORMING AMENDMENT.—Section 5323(c) is re-
pealed. 
SEC. 3020. BICYCLE FACILITIES. 
The first sentence of section 5319 is amended—
(1) 
by 
striking 
‘‘5309(h),’’ 
and 
inserting 
‘‘5309(g),’’; and 
(2) by striking ‘‘and 5311’’ and inserting ‘‘5311, 
and 5320’’. 
SEC. 3021. TRANSIT IN THE PARKS PILOT PROGRAM. 
(a) IN GENERAL.—Section 5320 is amended to read 
as follows: 
‘‘§ 5320. Transit in the parks pilot program 
‘‘(a) PUBLIC TRANSPORTATION DEFINED.—In this sec-
tion, the term ‘public transportation’ means general or spe-
cial transportation to the public by a conveyance that is 
publicly or privately owned. Such term does not include 
schoolbus or charter transportation but does include sight-
seeing transportation.
542
‘‘(b) ESTABLISHMENT.—Not later than 90 days after 
the date of enactment of the Federal Public Transportation 
Act of 2005, the Secretary of Transportation and the Sec-
retary of the Interior shall enter into a memorandum of 
understanding to establish a transit in the parks pilot pro-
gram in accordance with the requirements of this section. 
‘‘(c) PURPOSE.—The purpose of the pilot program 
shall be to encourage and promote the development of trans-
portation systems described in section 5301(a) within units 
of the National Park System to improve visitor mobility 
and enjoyment (including visitors with disabilities), reduce 
pollution and congestion, and enhance resource protection 
through the use of public transportation. 
‘‘(d) ADMINISTRATION OF PROGRAM.—The program 
shall be administered by the Secretary of Transportation, 
in consultation with the Secretary of the Interior. 
‘‘(e) MEMORANDUM OF UNDERSTANDING.—
‘‘(1) PLANNING.—The memorandum of under-
standing under subsection (b) shall include transpor-
tation planning procedures that are consistent with 
the metropolitan and statewide planning processes re-
quired under chapter 52. 
‘‘(2) PROGRAMS.—The memorandum of under-
standing shall include descriptions of programs and
543
activities eligible for assistance under the pilot pro-
gram. 
‘‘(3) EXCEPTIONS.—The memorandum of under-
standing shall limit or modify the applicability of the 
provisions referred to in subsection (f) to the extent 
necessary to carry out the objectives of this section 
and to be compatible with the laws and regulations 
governing units of the National Park System. 
‘‘(f) ELIGIBLE USE OF FUNDS.—Except as provided 
under subsection (e)(3), the Secretary may provide funds 
made available to carry out this section to the Secretary 
of the Interior under interagency agreements for the fol-
lowing purposes: 
‘‘(1) PLANNING, ENGINEERING, DESIGN, AND 
EVALUATION.—Planning, engineering, design, and 
evaluation of public transportation projects in units 
of the National Park System, and for technical stud-
ies, in accordance with section 5305(b)(2). 
‘‘(2) 
PUBLIC
TRANSPORTATION
CAPITAL 
PROJECTS.—Public transportation capital projects 
(as defined in section 5302(a)(1)) for such units in 
accordance with all the terms and conditions to which 
a grant is made under subsections (a), (b), (c), and 
(d) of section 5307 and such other terms and condi-
tions as are determined by the Secretary. The Sec-
544
retary of the Interior shall act as the designated re-
cipient for the purposes of subsection (a)(2) of section 
5307. 
‘‘(3) OPERATING
COSTS.—Operating costs of 
equipment and facilities used in public transpor-
tation for such units. 
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) 
CAPITAL
PROJECTS.—The 
Government 
share of the cost of any capital project or activity 
under this section shall be 100 percent of the costs of 
the project, as determined by the Secretary. 
‘‘(2) OPERATING
ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed 50 percent of the net operating costs of the 
project, as determined by the Secretary. 
‘‘(h) SAVINGS CLAUSE.—Nothing in this section shall 
be construed as superseding, amending, modifying, or re-
pealing any provision of law applicable to units of the Na-
tional Park System.’’. 
(b) CONFORMING AMENDMENT.—The analysis for such 
chapter is further amended by striking the item relating 
to section 5320 and inserting the following:
‘‘5320. Transit in the parks pilot program.’’.
SEC. 3022. HUMAN RESOURCE PROGRAMS. 
Section 5322 is amended—
545
(1) by inserting ‘‘(a) In General.—’’ before ‘‘The 
Secretary’’; and 
(2) by adding at the end the following: 
‘‘(b) GRANTS TO HIGHER LEARNING INSTITUTIONS.—
‘‘(1) AUTHORITY TO MAKE GRANTS.—The Sec-
retary may make grants to nonprofit institutions of 
higher learning—
‘‘(A) to conduct research and investigations 
into the theoretical or practical problems of pub-
lic transportation; and 
‘‘(B) to train individuals to conduct further 
research or obtain employment in an organiza-
tion that plans, builds, operates, or manages a 
public transportation system. 
‘‘(2) RESEARCH AND INVESTIGATIONS.—Research 
and investigations under this subsection include—
‘‘(A) the design and use of public transpor-
tation systems and public roads and highways; 
‘‘(B) the interrelationship between various 
modes of urban, suburban, rural, and intercity 
transportation; 
‘‘(C) the role of transportation planning in 
overall urban planning; 
‘‘(D) public preferences in transportation;
546
‘‘(E) the economic allocation of transpor-
tation resources; and 
‘‘(F) the legal, financial, engineering, and 
esthetic aspects of public transportation. 
‘‘(3) PREFERENCE.—When making a grant 
under this subsection, the Secretary shall give pref-
erence to an institution that brings together knowl-
edge and expertise in the various social science and 
technical disciplines related to public transportation 
problems. 
‘‘(c) FELLOWSHIPS.—
‘‘(1) AUTHORITY TO MAKE GRANTS.—The Sec-
retary may make grants to States, local governmental 
authorities, and operators of public transportation 
systems to provide fellowships to train personnel em-
ployed in managerial, technical, and professional po-
sitions in the public transportation field. 
‘‘(2) TERMS.—
‘‘(A) PERIOD OF TRAINING.—A fellowship 
under this subsection may be for not more than 
one year of training in an institution that offers 
a program applicable to the public transpor-
tation industry. 
‘‘(B) SELECTION OF INDIVIDUALS.—The re-
cipient of the grant shall select an individual on
547
the basis of demonstrated ability and for the con-
tribution the individual reasonably can be ex-
pected to make to an efficient public transpor-
tation operation. 
‘‘(C) AMOUNT.—A grant for a fellowship 
may not be more than the lesser of $65,000 or 
75 percent of—
‘‘(i) tuition and other charges to the 
fellowship recipient; 
‘‘(ii) additional costs incurred by the 
training institution and billed to the grant 
recipient; and 
‘‘(iii) the regular salary of the fellow-
ship recipient for the period of the fellow-
ship to the extent the salary is actually 
paid or reimbursed by the grant recipient.’’. 
SEC. 3023. GENERAL PROVISIONS ON ASSISTANCE. 
(a) INTERESTS IN PROPERTY.—Section 5323(a)(1) is 
amended—
(1) in the matter preceding subparagraph (A)—
(A) by striking ‘‘private mass transpor-
tation company’’ each place it appears and in-
serting ‘‘private company engaged in public 
transportation’’;
548
(B) by striking ‘‘mass transportation equip-
ment or a mass transportation facility’’ and in-
serting ‘‘a public transportation facility or 
equipment’’; and 
(C) by striking ‘‘mass transportation com-
pany’’ and inserting ‘‘public transportation 
company’’; and 
(2) in subparagraph (B) by striking ‘‘private 
mass transportation companies’’ and inserting ‘‘pri-
vate companies engaged in public transportation’’. 
(b) NOTICE AND PUBLIC HEARING.—Section 5323(b) 
is amended—
(1) in paragraph (1)—
(A) by striking ‘‘(1) An application’’ and 
inserting the following: 
‘‘(1) APPLICATIONS.—An application’’; 
(B) in the matter preceding subparagraph 
(A) by striking ‘‘or loan’’; and 
(C) by moving subparagraphs (A) through 
(D) 2 ems to the right; 
(2) in paragraph (2) by striking ‘‘(2) Notice of’’ 
and inserting the following: 
‘‘(2) NOTICE.—Notice of’’; and 
(3) by adding at the end the following:
549
‘‘(3) ENVIRONMENTAL
RECORD.—An applicant 
shall include in the environmental record for a project 
under this chapter evidence that the applicant has 
complied with the requirements of subparagraphs (A) 
through (D) of paragraph (1).’’. 
(c) CONDITION ON CHARTER BUS TRANSPORTATION 
SERVICE.—Section 5323(d) is amended—
(1) by striking ‘‘(1) Financial assistance’’ and 
inserting the following: 
‘‘(1) AGREEMENTS.—Financial assistance’’; and 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) VIOLATIONS.—
‘‘(A) INVESTIGATIONS.—On receiving a 
complaint about a violation of the agreement re-
quired under paragraph (1), the Secretary shall 
investigate and decide whether a violation has 
occurred. 
‘‘(B) ENFORCEMENT OF AGREEMENTS.—If 
the Secretary decides that a violation has oc-
curred, the Secretary shall correct the violation 
under terms of the agreement. 
‘‘(C) ADDITIONAL REMEDIES.—In addition 
to any remedy specified in the agreement, the 
Secretary shall bar a recipient or an operator
550
from receiving Federal transit assistance in an 
amount the Secretary considers appropriate if 
the Secretary finds a pattern of violations of the 
agreement.’’. 
(d) BOND PROCEEDS ELIGIBLE FOR LOCAL SHARE.—
Section 5323(e) is amended to read as follows: 
‘‘(e) 
BOND
PROCEEDS
ELIGIBLE
FOR
LOCAL 
SHARE.—
‘‘(1) USE
AS
LOCAL
MATCHING
FUNDS.—Not-
withstanding any other provision of law, a recipient 
of assistance under section 5307 or 5309 may use the 
proceeds from the issuance of revenue bonds as part 
of the local matching funds for a capital project. 
‘‘(2) MAINTENANCE OF EFFORT.—The Secretary 
shall approve of the use of the proceeds from the 
issuance of revenue bonds for the remainder of the net 
project cost only if the Secretary finds that the aggre-
gate amount of financial support for public transpor-
tation in the urbanized area provided by the State 
and affected local governmental authorities during the 
next 3 fiscal years, as programmed in the State 
transportation improvement program under chapter 
52 is not less than the aggregate amount provided by 
the State and affected local governmental authorities
551
in the urbanized area during the preceding 3 fiscal 
years. 
‘‘(3) DEBT SERVICE RESERVE.—The Secretary 
may reimburse an eligible recipient for deposits of 
bond proceeds in a debt service reserve that recipient 
established pursuant to section 5302(a)(1)(K) from 
amounts made available to the recipient under section 
5307 or 5309, or both; except that such reimbursement 
in a fiscal year may not exceed 10 percent of the 
amounts made available to the recipient under section 
5307 in such fiscal year.’’. 
(e) SCHOOLBUS TRANSPORTATION.—Section 5323(f) is 
amended—
(1) by striking ‘‘(1) Financial assistance’’ and 
inserting the following: 
‘‘(1) AGREEMENTS.—Financial assistance’’; 
(2) in paragraph (1) by moving subparagraphs 
(A), (B), and (C) 2 ems to the right; and 
(3) by striking paragraph (2) and inserting the 
following: 
‘‘(2) VIOLATIONS.—If the Secretary finds that an 
applicant, governmental authority, or publicly owned 
operator has violated the agreement required under 
paragraph (1), the Secretary shall bar a recipient or
552
an operator from receiving Federal transit assistance 
in an amount the Secretary considers appropriate.’’. 
(f) BUYING BUSES UNDER OTHER LAWS.—Section 
5323(g) is amended by striking ‘‘103(e)(4)’’ each place it 
appears and inserting ‘‘133’’. 
(g) BUY AMERICA.—
(1) PUBLIC INTEREST WAIVER.—Section 5323(j) 
is amended—
(A) 
by 
redesignating 
paragraphs 
(3) 
through (7) as paragraphs (4) through (8), re-
spectively; and 
(B) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) WRITTEN JUSTIFICATION FOR PUBLIC IN-
TEREST WAIVER.—When issuing a waiver based on a 
public 
interest 
determination 
under 
paragraph 
(2)(A), the Secretary shall issue a detailed written 
justification as to why the waiver is in the public in-
terest. The Secretary shall publish such justification 
in the Federal Register and provide the public with 
a reasonable period of time for notice and comment.’’. 
(2) INELIGIBILITY
FOR
CONTRACTS.—Section 
5323(j)(6) (as so redesignated) is amended by striking 
‘‘Intermodal Surface Transportation Efficiency Act of
553
1991 (Public Law 102–240, 105 Stat. 1914)’’ and in-
serting ‘‘Federal Public Transportation Act of 2004’’. 
(3) ADMINISTRATIVE REVIEW.—Section 5323(j) 
is amended by adding at the end the following: 
‘‘(9) ADMINISTRATIVE
REVIEW.—A party ad-
versely affected by an agency action under this sub-
section shall have the right to seek review under sec-
tion 702 of title 5.’’. 
(4) REPEAL OF GENERAL WAIVER.—Subsections 
(b) and (c) of Appendix A of section 661.7 of title 49, 
Code of Federal Regulations, shall cease to be in effect 
beginning on the date of enactment of this Act. 
(5) RULEMAKING.—Not later than 180 days 
after the date of enactment of this Act, the Secretary 
shall issue a final rule on implementation of the re-
quirements of section 5323(j) of title 49, United 
States Code (in this paragraph referred to as the 
‘‘Buy America requirements’’). The purposes of the 
regulations shall be as follows: 
(A) MICROPROCESSOR WAIVER.—To clarify 
that any waiver from the Buy America require-
ments issued under section 5323(j)(2) of such 
title for a microprocessor, computer, or micro-
computer applies only to a device used solely for 
the purpose of processing or storing data and
554
does not extend to a product containing a micro-
processor, computer, or microcomputer. 
(B) DEFINITION OF END PRODUCT.—To de-
fine the term ‘‘end product’’ for purposes of part 
661 of title 49, Code of Federal Regulations. In 
defining the term, the Secretary shall develop a 
list of representative items that are subject to the 
Buy America requirements, and shall address the 
procurement of systems under the definition to 
ensure that major system procurements are not 
used to circumvent the Buy America require-
ments. 
(h) GRANT
REQUIREMENTS.—Section 5323(o) is 
amended by striking ‘‘the Transportation Infrastructure Fi-
nance and Innovation Act of 1998’’ and inserting ‘‘chapter 
6 (other than section 609) of title 23’’. 
SEC. 3024. SPECIAL PROVISIONS FOR CAPITAL PROJECTS. 
(a) IN GENERAL.—Section 5324 is amended to read 
as follows: 
‘‘§ 5324. Special provisions for capital projects 
‘‘(a) RELOCATION PROGRAM REQUIREMENTS.—Fi-
nancial assistance may be provided under section 5309 only 
if the Secretary decides that—
‘‘(1) an adequate relocation program is being 
carried out for families displaced by a project; and
555
‘‘(2) an equal number of decent, safe, and sani-
tary dwellings are being, or will be, provided to those 
families in the same area or in another area gen-
erally not less desirable for public utilities and public 
and commercial facilities, at rents or prices within 
the financial means of those families, and with rea-
sonable access to their places of employment. 
‘‘(b) CONSIDERATION OF ECONOMIC, SOCIAL, AND EN-
VIRONMENTAL INTERESTS.—
‘‘(1) COOPERATION AND CONSULTATION.—In car-
rying out the policy of section 5301(e), the Secretary 
shall cooperate and consult with the Secretaries of the 
Interior, Health and Human Services, and Housing 
and Urban Development and the Administrator of the 
Environmental Protection Agency on each project 
that may have a substantial impact on the environ-
ment. 
‘‘(2) PUBLIC PARTICIPATION IN ENVIRONMENTAL 
REVIEWS.—In performing environmental reviews, the 
Secretary shall review each transcript of a hearing 
submitted under section 5323(b) to establish that an 
adequate opportunity to present views was given to 
all parties having a significant economic, social, or 
environmental interest in the project, and that the 
project application includes a record of—
556
‘‘(A) the environmental impact of the pro-
posal; 
‘‘(B) adverse environmental effects that can-
not be avoided; 
‘‘(C) alternatives to the proposal; and 
‘‘(D) irreversible and irretrievable impacts 
on the environment. 
‘‘(3) APPROVAL OF APPLICATIONS FOR ASSIST-
ANCE.—
‘‘(A) FINDINGS BY THE SECRETARY.—The 
Secretary may approve an application for finan-
cial assistance for a capital project in accord-
ance with this chapter only if the Secretary 
makes written findings, after reviewing the ap-
plication and the transcript of any hearing held 
before a State or local governmental authority 
under section 5323(b), that—
‘‘(i) 
an 
adequate 
opportunity 
to 
present views was given to all parties hav-
ing a significant economic, social, or envi-
ronmental interest; 
‘‘(ii) the preservation and enhancement 
of the environment and the interest of the 
community in which the project is located 
were considered; and
557
‘‘(iii) no adverse environmental effect 
is likely to result from the project, or no fea-
sible and prudent alternative to the effect 
exists and all reasonable steps have been 
taken to minimize the effect. 
‘‘(B) HEARING.—If a hearing has not been 
conducted or the Secretary decides that the 
record of the hearing is inadequate for making 
the findings required by this subsection, the Sec-
retary shall conduct a hearing on an environ-
mental issue raised by the application after giv-
ing adequate notice to interested persons. 
‘‘(C) AVAILABILITY OF FINDINGS.—The Sec-
retary’s findings under subparagraph (A) shall 
be made a matter of public record.’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to sec-
tion 5324 and inserting the following:
‘‘5324. Special provisions for capital projects.’’.
SEC. 3025. CONTRACT REQUIREMENTS. 
(a) IN GENERAL.—Section 5325 is amended—
(1) by striking subsections (a) and (b) and in-
serting the following: 
‘‘(a) COMPETITION.—Recipients of Federal assistance 
under this chapter shall conduct all procurement trans-
558
actions involving such assistance in a manner providing 
full and open competition, as determined by the Secretary. 
‘‘(b) ARCHITECTURAL, ENGINEERING, AND DESIGN 
CONTRACTS.—
‘‘(1) PROCEDURES FOR AWARDING CONTRACT.—
A contract or requirement for program management, 
architectural engineering, construction management, 
a feasibility study, and preliminary engineering, de-
sign, architectural, engineering, surveying, mapping, 
or related services for a project for which Federal as-
sistance is provided under this chapter shall be 
awarded in the same way as a contract for architec-
tural and engineering services is negotiated under 
chapter 11 of title 40 or an equivalent qualifications-
based requirement of a State. 
‘‘(2) EFFECT OF STATE LAWS.—This subsection 
does not apply to the extent a State has adopted, be-
fore the date of enactment of the Federal Public 
Transportation Act of 2005, by law a formal proce-
dure for procuring those services. 
‘‘(3) ADMINISTRATION
OF
CONTRACTS.—When 
awarding such contracts, recipients of assistance 
under this chapter shall maximize efficiencies of ad-
ministration by accepting nondisputed audits con-
ducted by other governmental agencies as follows:
559
‘‘(A) PERFORMANCE OF AUDITS.—Any con-
tract or subcontract awarded under this chapter 
shall be performed and audited in compliance 
with cost principles contained in the Federal Ac-
quisition Regulation (part 31 of title 48, Code of 
Federal Regulations). 
‘‘(B) INDIRECT
COST
RATES.—Instead of 
performing its own audits, a recipient of funds 
under a contract or subcontract awarded under 
this chapter shall accept indirect cost rates estab-
lished in accordance with the Federal Acquisi-
tion Regulation for one-year applicable account-
ing periods by a cognizant Federal or State gov-
ernment agency, if such rates are not currently 
under dispute. 
‘‘(C) APPLICATION
OF
RATES.—Once a 
firm’s indirect cost rates are accepted under this 
paragraph, the recipient of the funds shall apply 
such rates for the purposes of contract esti-
mation, negotiation, administration, reporting, 
and contract payment and shall not be limited 
by administrative or de facto ceilings. 
‘‘(D) PRENOTIFICATION; CONFIDENTIALITY 
OF DATA.—A recipient of funds requesting or 
using the cost and rate data described in para-
560
graph (3) shall notify any affected firm before 
such request or use. Such data shall be confiden-
tial and shall not be accessible or provided, in 
whole or in part, to another firm or to any gov-
ernment agency that is not part of the group of 
agencies sharing cost data under this paragraph, 
except by written permission of the audited firm. 
If prohibited by law, such cost and rate data 
shall not be disclosed under any circumstances.’’; 
and 
(2) by adding at the end the following: 
‘‘(d) DESIGN-BUILD SYSTEM PROJECTS.—
‘‘(1) DEFINITION.—In this section, the term ‘de-
sign-build system project’ means a project under 
which a recipient enters into a contract with a seller, 
firm, or consortium of firms to design and build a 
public transportation system or an operable segment 
thereof that meets specific performance criteria. Such 
project may also include an option to finance, or op-
erate for a period of time, the system or segment or 
any combination of designing, building, operating, or 
maintaining such system or segment. 
‘‘(2) FINANCIAL
ASSISTANCE.—Government fi-
nancial assistance under this chapter may be made 
available for the capital costs of a design-build system
561
project after the recipient complies with Government 
requirements. 
‘‘(e) MULTIYEAR ROLLING STOCK.—
‘‘(1) CONTRACTS.—A recipient procuring rolling 
stock with Government financial assistance under this 
chapter may make a multiyear contract to buy the 
rolling stock and replacement parts under which the 
recipient has an option to buy additional rolling 
stock or replacement parts for not more than 5 years 
after the date of the original contract. 
‘‘(2) COOPERATION
AMONG
RECIPIENTS.—The 
Secretary shall allow at least 2 recipients to act on 
a cooperative basis to procure rolling stock in compli-
ance with this subsection and other Government pro-
curement requirements. 
‘‘(f) ACQUIRING ROLLING STOCK.—A recipient of fi-
nancial assistance under this chapter may enter into a con-
tract to expend that assistance to acquire rolling stock—
‘‘(1) based on—
‘‘(A) initial capital costs; or 
‘‘(B) 
performance, 
standardization, 
life 
cycle costs, and other factors; or 
‘‘(2) with a party selected through a competitive 
procurement process.
562
‘‘(g) EXAMINATION OF THE RECORDS.—Upon request, 
the Secretary, the Comptroller General, or a representative 
of the Secretary or the Comptroller General shall have access 
to and the right to examine and inspect all records, docu-
ments, papers, including contracts, related to a project for 
which a grant is made under this chapter. 
‘‘(h) GRANT PROHIBITIONS.—A grant may not be used 
to support a procurement that uses an exclusionary or dis-
criminatory specification.’’. 
(b) CONFORMING AMENDMENTS.—Section 5326, and 
the item relating to section 5326 in the analysis for chapter 
53, are repealed. 
SEC. 3026. PROJECT MANAGEMENT OVERSIGHT AND RE-
VIEW. 
(a) PROJECT MANAGEMENT PLAN REQUIREMENTS.—
Section 5327(a) is amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(11); 
(2) by striking the period at the end of para-
graph (12) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(13) safety and security management.’’. 
(b) LIMITATIONS.—Section 5327(c) is amended to read 
as follows: 
‘‘(c) LIMITATIONS.—
563
‘‘(1) LIMITATIONS
ON
USE
OF
AVAILABLE 
AMOUNTS.—The Secretary may use not more than .5 
percent of amounts made available for a fiscal year 
to carry out section 5311, not more than .75 percent 
of amounts made available for a fiscal year to carry 
out section 5307, and not more than 1 percent of 
amounts made available for a fiscal year to carry out 
section 5309 to make contracts for the following ac-
tivities: 
‘‘(A) To oversee the construction of a major 
project. 
‘‘(B) To review and audit the safety and se-
curity, procurement, management, and financial 
compliance of a recipient or subrecipient of 
funds under sections 5307, 5309, and 5311. 
‘‘(C) To provide technical assistance to cor-
rect deficiencies identified in compliance reviews 
and audits carried out under this section. 
‘‘(2) LIMITATIONS
ON
APPLICABILITY.—Sub-
sections (a), (b), and (e) do not apply to contracts 
under this section for activities described in para-
graphs (1)(B) and (1)(C). 
‘‘(3) GOVERNMENT’S
SHARE
OF
COSTS.—The 
Government shall pay the entire cost of carrying out 
a contract under this subsection.’’.
564
SEC. 3027. INVESTIGATIONS OF SAFETY AND HAZARDS. 
(a) IN GENERAL.—Section 5329 is amended to read 
as follows: 
‘‘§ 5329. Investigation of safety and hazards 
‘‘(a) IN GENERAL.—The Secretary may investigate 
safety and security risks associated with a condition in 
equipment, a facility, or an operation financed under this 
chapter that the Secretary believes causes a serious hazard 
of death or injury to establish the nature and extent of the 
condition and how to eliminate, mitigate, or correct it. 
‘‘(b) PLANS FOR ELIMINATING, MITIGATING, OR COR-
RECTING HAZARDS.—If the Secretary establishes that a 
condition causes a hazard, the Secretary shall require the 
local governmental authority receiving amounts under this 
chapter to submit a plan for eliminating, mitigating, or 
correcting it. 
‘‘(c) WITHHOLDING FINANCIAL ASSISTANCE.—Finan-
cial assistance under this chapter, in an amount to be deter-
mined by the Secretary, may be withheld until a plan is 
approved and carried out.’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to sec-
tion 5329 and inserting the following:
‘‘5329. Investigation of safety and hazards.’’.
SEC. 3028. STATE SAFETY OVERSIGHT. 
(a) IN GENERAL.—Section 5330 is amended—
565
(1) by striking the section heading and all that 
follows through subsection (a) and inserting the fol-
lowing: 
‘‘§ 5330. State safety oversight 
‘‘(a) APPLICATION.—This section applies only to—
‘‘(1) States that have rail fixed guideway public 
transportation systems not subject to regulation by 
the Federal Railroad Administration; and 
‘‘(2) States that are designing rail fixed guide-
way public transportation systems that will not be 
subject to regulation by the Federal Railroad Admin-
istration.’’; 
(2) in subsection (d) by inserting ‘‘shall ensure 
uniform safety standards and enforcement and’’ after 
‘‘affected States’’; and 
(3) by striking subsection (f). 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to sec-
tion 5330 and inserting the following:
‘‘5330. State safety oversight.’’.
SEC. 3029. CONTROLLED SUBSTANCES AND ALCOHOL MIS-
USE TESTING. 
(a) DEFINITIONS.—Section 5331(a)(3) is amended by 
striking the period at the end and inserting the following: 
‘‘or section 2303a, 7101(i), or 7302(e) of title 46. The Sec-
retary may also decide that a form of public transportation
566
is covered adequately, for employee alcohol and controlled 
substances testing purposes, under the alcohol and con-
trolled substance statutes or regulations of an agency within 
the Department of Transportation or the Coast Guard.’’. 
(b) TECHNICAL
CORRECTIONS.—Subsections (b)(1) 
and (g) of section 5331 are each amended by striking ‘‘or 
section 103(e)(4) of title 23’’. 
(c) REGULATIONS.—Section 5331(f) is amended by 
striking paragraph (3). 
SEC. 3030. EMPLOYEE PROTECTIVE ARRANGEMENTS. 
Section 5333(b)(1) is amended by striking ‘‘5318(d), 
5323(a)(1), (b), (d), and (e), 5328, 5337, and 5338(b)’’ each 
place it appears and inserting ‘‘5316, 5317, 5318, 5320, 
5323(a)(1), 5323(b), 5323(d), 5328, 5337, 5338(b), 5338(g), 
and 5338(h)’’. 
SEC. 3031. ADMINISTRATIVE PROCEDURES. 
Section 5334 is amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ at the end of para-
graph (9); 
(B) by striking the period at the end of 
paragraph (10) and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(11) issue regulations as necessary to carry out 
the purposes of this chapter.’’;
567
(2) by striking subsection (i); 
(3) by redesignating subsections (b) through (h) 
as subsections (c) through (i), respectively; 
(4) by inserting after subsection (a) the fol-
lowing: 
‘‘(b) PROHIBITIONS
AGAINST
REGULATING
OPER-
ATIONS AND CHARGES.—
‘‘(1) IN GENERAL.—Except for purposes of na-
tional defense or in the event of a national or regional 
emergency, the Secretary may not regulate the oper-
ation, routes, or schedules of a public transportation 
system for which a grant is made under this chapter, 
nor may the Secretary regulate the rates, fares, tolls, 
rentals, or other charges prescribed by any provider 
of public transportation. 
‘‘(2) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this subsection shall be construed 
to prevent the Secretary from requiring a recipient of 
funds under this chapter to comply with the terms 
and conditions of its Federal assistance agreement.’’; 
(5) in subsection (c)(4) (as redesignated by para-
graph (3) of this section)—
(A) by striking ‘‘subsections (h) and (i)’’ 
and inserting ‘‘subsection (i)’’; and
568
(B) by striking ‘‘5323(c), 5323(e), 5324(c),’’; 
and 
(6) by adding at the end of subsection (c) (as re-
designated by paragraph (3) of this section) the fol-
lowing: 
‘‘(5) 
NONREGULATORY
SUBSTANTIVE
POLICY 
STATEMENTS.—The Secretary shall provide notice 
and an opportunity for public comment at least 60 
days before issuing any nonregulatory substantive 
policy statements (regardless of the form of issuance), 
including guidance, policy statements, and regulatory 
interpretations.’’. 
SEC. 3032. NATIONAL TRANSIT DATABASE. 
(a) IN GENERAL.—Section 5335 is amended—
(1) by striking the section heading and inserting 
the following: 
‘‘§ 5335. National transit database’’; 
(2) by striking subsection (b); and 
(3) in subsection (a)—
(A) by striking ‘‘(1) To help’’ and inserting 
‘‘To help’’; and 
(B) by striking ‘‘(2) The Secretary’’ and in-
serting ‘‘(b) REPORTING
AND UNIFORM SYS-
TEMS.—The Secretary’’.
569
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to sec-
tion 5335 and inserting the following:
‘‘5335. National transit database.’’.
SEC. 3033. APPORTIONMENTS BASED ON FIXED GUIDEWAY 
FACTORS. 
(a) DISTRIBUTION.—Section 5337 is amended—
(1) by striking the section designation and all 
that follows before paragraph (1) of subsection (a) 
and inserting the following: 
‘‘§ 5337. Apportionment based on fixed guideway fac-
tors 
‘‘(a) DISTRIBUTION.—The Secretary shall apportion 
amounts made available for fixed guideway modernization 
under sections 5338(b) and 5338(g) as follows:’’; 
(2) in subsection (a) by striking ‘‘(e)(1)’’ each 
place it appears and inserting ‘‘(e)’’; and 
(3) in subsection (a) by striking ‘‘(e)(2)’’ each 
place it appears and inserting ‘‘(e)’’. 
(b) ROUTE SEGMENTS TO BE INCLUDED IN APPOR-
TIONMENT FORMULAS.—Section 5337(e) is amended by 
striking paragraph (1) and all that follows through ‘‘(2) 
Other Standards.—’’.
570
(c) CONFORMING AMENDMENT.—The item relating to 
section 5337 in the table of sections for chapter 53 is amend-
ed to read as follows:
‘‘5337. Apportionment based on fixed guideway factors.’’.
SEC. 3034. AUTHORIZATIONS. 
Section 5338 is amended to read as follows: 
‘‘§ 5338. Authorizations 
‘‘(a) FORMULA GRANTS.—
‘‘(1) FISCAL YEAR 2004.—
‘‘(A) FROM TRUST FUND.—There shall be 
available from the Mass Transit Account of the 
Highway Trust Fund to carry out sections 5307, 
5308, 5310, 5311, 5316, 5317, and 5318 of this 
chapter, 1118(b) of the Transportation Equity 
Act: A Legacy for Users (relating to the non-
motorized transportation pilot program), and 
section 3038 of the Transportation Equity Act 
for the 21st Century (49 U.S.C. 5310 note; 112 
Stat. 392–393) $3,132,304,000 for fiscal year 
2004. 
‘‘(B) FROM GENERAL FUND.—In addition 
to amounts made available under subparagraph 
(A), there are authorized to be appropriated to 
carry out sections 5307, 5308, 5310, 5311, 5316, 
and 5318 of this chapter, 1118(b) of the Trans-
portation Equity Act: A Legacy for Users (relat-
571
ing to the nonmotorized transportation pilot pro-
gram), and section 3038 of the Transportation 
Equity Act for the 21st Century (49 U.S.C. 5310 
note; 112 Stat. 392–393) $783,076,000 for fiscal 
year 2004. 
‘‘(C) ALLOCATION OF FUNDS.—Of the aggre-
gate of amounts made available by and appro-
priated under this paragraph for a fiscal year—
‘‘(i) $4,849,950 shall be available to the 
Alaska Railroad for improvements to its 
passenger operations under section 5307; 
‘‘(ii) $125,000,000 shall be available to 
provide job access and reverse commute for-
mula grants under section 5316; 
‘‘(iii) $50,000,000 shall be available to 
provide clean fuels formula grants under 
section 5308; 
‘‘(iv) $8,000,000 shall be available to 
provide 
over-the-road 
bus 
accessibility 
grants under section 3038 of the Transpor-
tation Equity Act for the 21st Century (49 
U.S.C. 5310 note); 
‘‘(v) $3,100,000 shall be available to 
carry out bus testing under section 5318;
572
‘‘(vi) $93,110,751 shall be available to 
provide transportation services to elderly 
individuals and individuals with disabil-
ities under section 5310; 
‘‘(vii) $297,954,404 shall be available 
to provide financial assistance for other 
than urbanized areas under section 5311; 
and 
‘‘(viii) $3,333,364,895 shall be avail-
able to provide financial assistance for ur-
banized areas under section 5307, subject to 
section 3041(h) of the Federal Public Trans-
portation Act of 2005. 
‘‘(2) FISCAL YEARS 2005 THROUGH 2009.—
‘‘(A) FROM TRUST FUND.—There shall be 
available from the Mass Transit Account of the 
Highway Trust Fund to carry out sections 5307, 
5308, 5310, 5311, 5316, 5317, 5318, and 5320 of 
this chapter, section 3038 of the Transportation 
Equity Act for the 21st Century (49 U.S.C. 5310 
note; 112 Stat. 392–393), and section 1118(b) of 
the Transportation Equity Act: A Legacy for 
Users (relating to the nonmotorized transpor-
tation pilot program)—
573
‘‘(i) $4,133,500,000 for fiscal year 
2005; 
‘‘(ii) $4,592,000,000 for fiscal year 
2006; 
‘‘(iii) $4,898,000,000 for fiscal year 
2007; 
‘‘(iv) $5,223,000,000 for fiscal year 
2008; and 
‘‘(v) $5,570,000,000 for fiscal year 
2009. 
‘‘(B) ALLOCATION
OF
FUNDS
FOR
BUS 
TESTING
AND
OVER-THE-ROAD
BUS
ACCESSI-
BILITY.—Of the aggregate of amounts made 
available by this paragraph for a fiscal year—
‘‘(i) $3,100,000 shall be available to 
carry out section 5318; and 
‘‘(ii) $8,000,000 shall be available to 
carry out section 3038 of the Transpor-
tation Equity Act for the 21st Century (49 
U.S.C. 5310 note). 
‘‘(C) ALLOCATION
OF
FUNDS
FOR
CLEAN 
FUELS FORMULA GRANT PROGRAM.—Of the ag-
gregate of amounts made available by this para-
graph, $75,000,000 for fiscal year 2005 and 
$100,000,000 for each of fiscal years 2006, 2007,
574
2008, and 2009 shall be available to carry out 
section 5308. 
‘‘(D) ALLOCATION OF FUNDS FOR JOB AC-
CESS AND REVERSE COMMUTE FORMULA GRANT 
PROGRAM.—Of the aggregate of amounts made 
available by this paragraph, $150,000,000 for 
fiscal year 2005, $175,000,000 for fiscal year 
2006, 
$200,000,000 
for 
fiscal 
year 
2007, 
$200,000,000 
for 
fiscal 
year 
2008, 
and 
$200,000,000 for fiscal year 2009 shall be avail-
able to carry out section 5316. 
‘‘(E) ALLOCATION
OF
FUNDS
FOR
NEW 
FREEDOM
PROGRAM.—Of 
the 
aggregate 
of 
amounts made available by this paragraph, 
$95,000,000 for fiscal year 2005, $100,000,000 
for fiscal year 2006, $105,000,000 for fiscal year 
2007, $115,000,000 for fiscal year 2008, and 
$125,000,000 for fiscal year 2009 shall be avail-
able to carry out section 5317. 
‘‘(F) ALLOCATION OF FUNDS FOR TRANSIT 
IN THE PARKS PILOT PROGRAM.—Of the aggre-
gate of amounts made available by this para-
graph, 
$8,000,000 
for 
fiscal 
year 
2005, 
$16,000,000 for fiscal year 2006, $16,000,000 for 
fiscal year 2007, $16,000,000 for fiscal year
575
2008, and $16,000,000 for fiscal year 2009 shall 
be available to carry out section 5320. 
‘‘(G) ALLOCATION
OF
FUNDS
FOR
NON-
MOTORIZED
TRANSPORTATION
PILOT
PRO-
GRAM.—Of the aggregate of amounts made avail-
able by this paragraph, $4,000,000 for fiscal 
year 2005, $4,000,000 for fiscal year 2006, 
$4,000,000 for fiscal year 2007, $8,000,000 for 
fiscal year 2008, and $8,000,000 for fiscal year 
2009 shall be available to carry out section 
1118(b) of the Transportation Equity Act: A 
Legacy for Users (relating to the nonmotorized 
transportation pilot program). 
‘‘(H) ALLOCATION
OF
FUNDS
FOR
THE 
ALASKA RAILROAD.—Of the aggregate of amounts 
made available by this paragraph, $10,000,000 
for fiscal year 2005, $11,000,000 for fiscal year 
2006, 
$12,000,000 
for 
fiscal 
year 
2007, 
$13,000,000 
for 
fiscal 
year 
2008, 
and 
$14,000,000 for fiscal year 2009 shall be avail-
able to the Alaska Railroad for improvements to 
its passenger operations under section 5307. 
‘‘(I) REMAINDER.—Of the remainder of the 
aggregate amounts made available by this para-
graph for a fiscal year after the allocations
576
under subparagraphs (B) through (H) for such 
fiscal year—
‘‘(i) 2.5 percent shall be available to 
provide transportation services to elderly 
individuals and individuals with disabil-
ities under section 5310; 
‘‘(ii) 8.0 percent shall be available to 
provide financial assistance for other than 
urbanized areas under section 5311; and 
‘‘(iii) 89.5 percent shall be available to 
provide financial assistance for urbanized 
areas under section 5307, subject to section 
3041(h) of the Federal Public Transpor-
tation Act of 2005. 
‘‘(b) CAPITAL PROGRAM GRANTS
IN FISCAL YEAR 
2004.—
‘‘(1) FROM TRUST FUND.—There shall be avail-
able from the Mass Transit Account of the Highway 
Trust Fund to carry out section 5309, $2,499,504,000 
for fiscal year 2004. 
‘‘(2) FROM
GENERAL
FUND.—In addition to 
amounts made available by paragraph (1), there is 
authorized to be appropriated to carry out section 
5309, $624,876,200 for fiscal year 2004. 
‘‘(c) PLANNING.—
577
‘‘(1) FISCAL YEAR 2004.—
‘‘(A) FROM TRUST FUND.—There shall be 
available from the Mass Transit Account of the 
Highway Trust Fund to carry out sections 5303, 
5304, and 5305, $72,660,000 for fiscal year 
2004. 
‘‘(B) FROM GENERAL FUND.—In addition 
to amounts made available by subparagraph (A), 
there is authorized to be appropriated to carry 
out sections 5303, 5304, and 5305, $18,165,000 
for fiscal year 2004. 
‘‘(2) FISCAL YEARS 2005 THROUGH 2009.—
‘‘(A) FROM THE TRUST FUND.—There shall 
be available from the Mass Transit Account of 
the Highway Trust Fund to carry out sections 
5303, 5304, and 5305—
‘‘(i) $96,875,000 for fiscal year 2005; 
‘‘(ii) $103,325,000 for fiscal year 2006; 
‘‘(iii) $110,200,000 for fiscal year 
2007; 
‘‘(iv) $117,537,500 for fiscal year 2008; 
and 
‘‘(v) $125,362,500 for fiscal year 2009.
578
‘‘(B) ALLOCATION OF FUNDS.—Of the funds 
made available by this paragraph for a fiscal 
year—
‘‘(i) 82.72 percent shall be available for 
metropolitan planning under sections 5303, 
5304, and 5305 (other than 5305(e)); and 
‘‘(ii) 17.28 percent shall be available 
for State planning under section 5305(e). 
‘‘(d) RESEARCH.—
‘‘(1) FISCAL YEAR 2004.—
‘‘(A) FROM TRUST FUND.—There shall be 
available from the Mass Transit Account of the 
Highway Trust Fund to carry out sections 
5311(b), 5312, 5313, 5314, 5315, 5322, and 
5335, $41,888,000 for fiscal year 2004. 
‘‘(B) FROM GENERAL FUND.—In addition 
to amounts made available by subparagraph (A), 
there is authorized to be appropriated to carry 
out sections 5311(b), 5312, 5313, 5314, 5315, 
5322, and 5335, $10,472,000 for fiscal year 
2004. 
‘‘(C) ALLOCATION OF FUNDS.—Of the funds 
made available by or appropriated pursuant to 
this paragraph for fiscal year 2004—
579
‘‘(i) not less than $4,500,000 shall be 
available to carry out programs under the 
National Transit Institute under section 
5315; 
‘‘(ii) not less than $3,500,000 shall be 
available to carry out section 5335; 
‘‘(iii) not less than $3,500,000 shall be 
available to carry out section 5314(a)(2); 
and 
‘‘(iv) not less than $8,860,000 shall be 
available to carry out section 5313(a). 
‘‘(2) FISCAL YEARS 2005 THROUGH 2009.—
‘‘(A) FROM THE GENERAL FUND.—There is 
authorized to be appropriated to carry out sec-
tions 5312, 5313, 5314, 5315, 5322, and 5335—
‘‘(i) $54,500,000 for fiscal year 2005; 
‘‘(ii) $57,000,000 for fiscal year 2006; 
‘‘(iii) $59,500,000 for fiscal year 2007; 
‘‘(iv) $62,000,000 for fiscal year 2008; 
and 
‘‘(v) $64,500,000 for fiscal year 2009. 
‘‘(B) ALLOCATION OF FUNDS.—Of the funds 
appropriated pursuant to this paragraph for a 
fiscal year—
580
‘‘(i) not less than $4,500,000 shall be 
available to carry out programs under the 
National Transit Institute under section 
5315; 
‘‘(ii) not less than $3,500,000 shall be 
available to carry out section 5335; and 
‘‘(iii) not less than $3,500,000 shall be 
available to carry out section 5314(a)(2). 
‘‘(C) TRANSIT
COOPERATIVE
RESEARCH 
PROGRAM.—Of the funds appropriated pursuant 
to this paragraph, $9,000,000 for fiscal year 
2005, 
$9,500,000 
for 
fiscal 
year 
2006, 
$10,000,000 for fiscal year 2007, $10,500,000 for 
fiscal year 2008, and $11,000,000 for fiscal year 
2009 shall be available to carry out section 
5313(a). 
‘‘(D) REMAINDER.—The remainder of the 
funds appropriated pursuant to this paragraph 
for a fiscal year after the allocations under sub-
paragraphs (A) and (B) for such fiscal year 
shall be available to carry out national research 
and technology programs under sections 5312, 
5314, and 5322. 
‘‘(e) UNIVERSITY TRANSPORTATION RESEARCH.—
‘‘(1) FISCAL YEAR 2004.—
581
‘‘(A) FROM TRUST FUND.—There shall be 
available from the Mass Transit Account of the 
Highway Trust Fund to carry out sections 5505 
and 5506, $6,400,000 for fiscal year 2004. 
‘‘(B) FROM GENERAL FUND.—In addition 
to amounts made available by subparagraph (A), 
there is authorized to be appropriated to carry 
out sections 5505 and 5506, $1,600,000 for fiscal 
year 2004. 
‘‘(2) FISCAL YEARS 2005 THROUGH 2009.—Subject 
to paragraph (3), there is authorized to be appro-
priated to carry out sections 5505 and 5506, 
$8,000,000 for each of fiscal years 2005 through 2009. 
‘‘(3) FUNDING OF UNIVERSITY TRANSPORTATION 
CENTERS.—
‘‘(A) IN GENERAL.—Of the amounts made 
available by and appropriated under paragraphs 
(1) and (2) $2,000,000 for each of fiscal years 
2004, 2005, and 2006 shall be available for the 
institution identified in section 5505(j)(3)(E), as 
so in effect. 
‘‘(B) USE OF FUNDS.—Funds made avail-
able for the institution identified in subpara-
graph (A)(iii) shall be used to make grants 
under 5506(f)(5) for that institution