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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 deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; 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 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
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or State funds to be used for transportation pur-
poses. 
‘(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 pay-
ment of operating expenses. 
‘(i) PROGRAM EVALUATION.—
‘(1) COMPTROLLER
GENERAL.—Beginning 1 
year after the date of enactment of the Federal Pub-
lic Transportation Act of 2005, and every 2 years 
thereafter, the Comptroller General shall—
‘(A) conduct a study to evaluate the grant 
program authorized by this section; and 
‘(B) transmit to the Committee on Trans-
portation and Infrastructure of the House of 
Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
a report describing the results of the study 
under subparagraph (A). 
‘(2) DEPARTMENT OF TRANSPORTATION.—Not 
later than 3 years after the date of enactment of 
Federal Public Transportation Act of 2005, the Sec-
retary shall—
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‘(A) conduct a study to evaluate the effec-
tiveness of the grant program authorized by 
this section and the effectiveness of recipients 
making grants to subrecipients under this sec-
tion; and 
‘(B) transmit to the committees referred to 
in paragraph (1)(B) a report describing the re-
sults of the study under subparagraph (A).’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by inserting after the item relating 
to section 5315 the following:
‘5316. Job access and reverse commute formula grants.’.
(c) REPEAL.—Section 3037 of the Transportation 
Equity Act for the 21st Century (49 U.S.C. 5309 note; 
112 Stat. 387) is repealed. 
SEC. 3018. NEW FREEDOM PROGRAM. 
(a) IN GENERAL.—Chapter 53 is further amended by 
inserting after section 5316 the following: 
‘§ 5317. New Freedom program 
‘(a) DEFINITIONS.—In this section, the following 
definitions apply: 
‘(1) RECIPIENT.—The term ‘‘recipient’’ means 
a designated recipient (as defined in section 
5307(a)(2)) and a State that receives a grant under 
this section directly.
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‘(2) SUBRECIPIENT.—The term ‘‘subrecipient’’ 
means a State or local governmental authority, non-
profit organization, or operator of public transpor-
tation services that receives a grant under this sec-
tion indirectly through a recipient. 
‘(b) GENERAL AUTHORITY.—
‘(1) GRANTS.—The Secretary may make grants 
under this section to a recipient for new public 
transportation services and public transportation al-
ternatives beyond those required by the Americans 
with Disabilities Act of 1990 (42 U.S.C. 12101 et 
seq.) that assist individuals with disabilities with 
transportation, including transportation to and from 
jobs and employment support services. 
‘(2) ADMINISTRATIVE EXPENSES.—A recipient 
may use not more than 10 percent of the amounts 
apportioned to the recipient under this section to ad-
minister, plan, and provide technical assistance for 
a project funded under this section. 
‘(c) APPORTIONMENTS.—
‘(1) FORMULA.—The Secretary shall apportion 
amounts made available to carry out this section as 
follows: 
‘(A) 60 percent of the funds shall be ap-
portioned among designated recipients (as de-
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fined in section 5307(a)(2)) for urbanized areas 
with a population of 200,000 or more in the 
ratio that—
‘(i) the number of individuals with 
disabilities in each such urbanized area; 
bears to 
‘(ii) the number of individuals with 
disabilities in all such urbanized areas. 
‘(B) 20 percent of the funds shall be ap-
portioned among the States in the ratio that—
‘(i) the number of individuals with 
disabilities in urbanized areas with a popu-
lation of less than 200,000 in each State; 
bears to 
‘(ii) the number of individuals with 
disabilities in urbanized areas with a popu-
lation of less than 200,000 in all States. 
‘(C) 20 percent of the funds shall be ap-
portioned among the States in the ratio that—
‘(i) the number of individuals with 
disabilities in other than urbanized areas 
in each State; bears to 
‘(ii) the number of individuals with 
disabilities in other than urbanized areas 
in all States.
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‘(2) USE OF APPORTIONED FUNDS.—Except as 
provided in paragraph (3)—
‘(A) funds apportioned under paragraph 
(1)(A) shall be used for projects serving urban-
ized areas with a population of 200,000 or 
more; 
‘(B) funds apportioned under paragraph 
(1)(B) shall be used for projects serving urban-
ized areas with a population of less than 
200,000; and 
‘(C) funds apportioned under paragraph 
(1)(C) shall be used for projects serving other 
than urbanized areas. 
‘(3) LOW DENSITY ADJUSTMENT.—
‘(A) SMALLER URBANIZED AREAS.—In ad-
ministering the apportionment formula under 
paragraph (1)(B)—
‘(i) in the case of a State with a popu-
lation density of 10 or fewer persons per 
square mile in other than urbanized areas 
of the State, the Secretary shall multiply 
by a factor of 2 the number of individuals 
with disabilities in urbanized areas of the 
State with a population of less than
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200,000 (as determined using the most re-
cent decennial United States Census); and 
‘(ii) in the case of a State with a pop-
ulation density of more than 10 but equal 
to or fewer than 30 persons per square 
mile, the Secretary shall multiply by a fac-
tor of 1.25 the number of individuals with 
disabilities in urbanized areas of the State 
with a population of less than 200,000 (as 
determined using the most recent decennial 
United States Census). 
‘(B) OTHER THAN URBANIZED AREAS.—In 
administering the apportionment formula under 
paragraph (1)(C)—
‘(i) in the case of a State with a popu-
lation density of 10 or fewer persons per 
square mile in other than urbanized areas 
of the State, the Secretary shall multiply 
by a factor of 1.5 the number of individ-
uals with disabilities in other than urban-
ized areas of the State (as determined 
using the most recent decennial United 
States Census); and 
‘(ii) in the case of a State with a pop-
ulation density of more than 10 but equal
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to or fewer than 12 persons per square 
mile in other than urbanized areas of the 
State, the Secretary shall multiply by a 
factor of 1.25 the number of individuals 
with disabilities in other than urbanized 
areas of the State (as determined using the 
most recent decennial United States Cen-
sus). 
‘(4) TRANSFERS.—
‘(A) IN GENERAL.—A State may transfer 
any funds apportioned to it under paragraph 
(1)(B) or (1)(C), or both, to an apportionment 
under section 5311(c) or 5336, or both. 
‘(B) LIMITED TO ELIGIBLE PROJECTS.—
Any funds transferred pursuant to this para-
graph shall be made available only for eligible 
projects selected under this section. 
‘(C) CONSULTATION.—A State may make 
a transfer of an amount under this subsection 
only after consulting with responsible local offi-
cials and publicly owned operators of public 
transportation in each area for which the 
amount originally was awarded under sub-
section (d)(4).
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‘(d) COMPETITIVE PROCESS FOR GRANTS TO SUB-
RECIPIENTS.—
‘(1) AREAWIDE SOLICITATIONS.—A recipient of 
funds apportioned under subsection (c)(1)(A) shall 
conduct, in cooperation with the appropriate metro-
politan planning organization, an areawide solicita-
tion for applications for grants to the recipient and 
subrecipients under this section. 
‘(2) STATEWIDE SOLICITATION.—A recipient of 
funds apportioned under subsection (c)(1)(B) or 
(c)(1)(C) shall conduct a statewide solicitation for 
applications for grants to the recipient and sub-
recipients under this section. 
‘(3) APPLICATION.—Recipients and subrecipi-
ents seeking to receive a grant from funds appor-
tioned under subsection (c) shall submit to the re-
cipient an application in the form and in accordance 
with such requirements as the recipient shall estab-
lish. 
‘(4) GRANT
AWARDS.—The recipient shall 
award grants under paragraphs (1) and (2) on a 
competitive basis. 
‘(e) GRANT REQUIREMENTS.—
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‘(1) IN GENERAL.—Except as provided in para-
graph (2), a grant under this section shall be subject 
to all the requirements of section 5307. 
‘(2) 
EMPLOYEE
PROTECTIVE
ARRANGE-
MENTS.—Section 5333(b) shall apply to grants 
under this section, except that the Secretary of 
Labor shall utilize, for urbanized areas with a popu-
lation of less than 200,000 and for other than ur-
banized areas, a special warranty described in sec-
tion 215.7 of title 29, Code of Federal Regulations 
(as in effect on the date of enactment of the Federal 
Public Transportation Act of 2005), that provides a 
fair and equitable arrangement to protect the inter-
est of employees. 
‘(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 recipi-
ent that transfers funds to an apportionment under
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section 5336 pursuant to subsection (c)(2) shall cer-
tify that the project for which the funds are re-
quested under this section has been coordinated with 
nonprofit providers of services. 
‘(3) PROJECT SELECTION AND PLANNING.—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 
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.
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‘(3) REMAINDER.—The remainder of the net 
project costs—
‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; 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 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 pur-
poses. 
‘(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 pay-
ment of operating expenses.’.
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(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 maintainability, reliability, safety, performance (in-
cluding braking performance), structural integrity, fuel 
economy, emissions, 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 
(3) by striking subsection (e) and inserting the 
following: 
‘(e) ACQUIRING NEW BUS MODELS.—Amounts ap-
propriated or made available under this chapter may be 
obligated or expended to acquire a new bus model only 
if a bus of that model has been tested at the facility main-
tained by the Secretary under subsection (a).’. 
(b) CONFORMING AMENDMENT.—Section 5323(c) is 
repealed.
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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 
section, the term ‘‘public transportation’’ means general 
or special transportation to the public by a conveyance 
that is publicly or privately owned. Such term does not 
include schoolbus or charter transportation but does in-
clude sightseeing transportation. 
‘(b) ESTABLISHMENT.—Not later than 90 days after 
the date of enactment of the Federal Public Transpor-
tation Act of 2005, the Secretary of Transportation and 
the Secretary of the Interior shall enter into a memo-
randum of understanding to establish a transit in the 
parks pilot program 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 
transportation systems described in section 5301(a) within
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units of the National Park System to improve visitor mo-
bility 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 
required under chapter 52. 
‘(2) PROGRAMS.—The memorandum of under-
standing shall include descriptions of programs and 
activities eligible for assistance under the pilot pro-
gram. 
‘(3) EXCEPTIONS.—The memorandum of un-
derstanding shall limit or modify the applicability of 
the provisions referred to in subsection (f) to the ex-
tent necessary to carry out the objectives of this sec-
tion and to be compatible with the laws and regula-
tions governing units of the National Park System. 
‘(f) ELIGIBLE USE OF FUNDS.—Except as provided 
under subsection (e)(3), the Secretary may provide funds
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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 conditions as are determined by the Secretary. 
The Secretary of the Interior shall act as the des-
ignated recipient 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
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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 relat-
ing to section 5320 and inserting the following:
‘5320. Transit in the parks pilot program.’.
SEC. 3022. HUMAN RESOURCE PROGRAMS. 
Section 5322 is amended—
(1) by inserting ‘(a) In General.—’ before ‘The 
Secretary’; and 
(2) by adding at the end the following: 
‘(b) GRANTS
TO
HIGHER
LEARNING
INSTITU-
TIONS.—
‘(1) AUTHORITY TO MAKE GRANTS.—The Sec-
retary may make grants to nonprofit institutions of 
higher learning—
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‘(A) to conduct research and investigations 
into the theoretical or practical problems of 
public 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.—Re-
search and investigations under this subsection in-
clude—
‘(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; 
‘(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-
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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 govern-
mental authorities, and operators of public transpor-
tation systems to provide fellowships to train per-
sonnel employed in managerial, technical, and pro-
fessional positions 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 
recipient of the grant shall select an individual 
on the basis of demonstrated ability and for the 
contribution the individual reasonably can be 
expected to make to an efficient public trans-
portation operation. 
‘(C) AMOUNT.—A grant for a fellowship 
may not be more than the lesser of $65,000 or 
75 percent of—
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‘(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’; 
(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 com-
pany’; and
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(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 in-
serting 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: 
‘(3) ENVIRONMENTAL RECORD.—An applicant 
shall include in the environmental record for a 
project under this chapter evidence that the appli-
cant has complied with the requirements of subpara-
graphs (A) through (D) of paragraph (1).’. 
(c) CONDITION ON CHARTER BUS TRANSPORTATION 
SERVICE.—Section 5323(d) is amended—
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(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 
required 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 
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: