451
(B) in paragraph (4) by striking ‘‘under 
section 5309(o)(1)’’ and inserting ‘‘under section 
5309(i)(1)’’. 
SEC. 3011. FORMULA GRANTS FOR SPECIAL NEEDS OF EL-
DERLY INDIVIDUALS AND INDIVIDUALS WITH 
DISABILITIES. 
(a) IN GENERAL.—Section 5310 is amended—
(1) by striking the section heading and inserting 
the following: 
‘‘§ 5310. Formula grants for special needs of elderly 
individuals and individuals with disabil-
ities’’; 
(2) by striking subsections (a) through (g) and 
inserting the following: 
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) GRANTS.—The Secretary may make grants 
to States and local governmental authorities under 
this section for public transportation capital projects, 
and operating costs associated with public transpor-
tation capital projects, planned, designed, and carried 
out to meet the special needs of elderly individuals 
and individuals with disabilities. 
‘‘(2) SUBRECIPIENTS.—A State that receives a 
grant under this section may allocate the amounts of 
the grant to—
452
‘‘(A) a private nonprofit organization if the 
public transportation service provided under 
paragraph (1) is unavailable, insufficient, or in-
appropriate; or 
‘‘(B) a governmental authority that—
‘‘(i) is approved by the State to coordi-
nate services for elderly individuals and in-
dividuals with disabilities; or 
‘‘(ii) certifies that there are not any 
nonprofit organizations readily available in 
the area to provide the services described 
under paragraph (1). 
‘‘(3) ACQUIRING PUBLIC TRANSPORTATION SERV-
ICES.—A public transportation capital project under 
this section may include acquisition of public trans-
portation services as an eligible capital expense. 
‘‘(4) ADMINISTRATIVE
EXPENSES.—A State or 
local governmental authority may use not more than 
10 percent of the amounts apportioned to the State 
under this section to administer, plan, and provide 
technical assistance for a project funded under this 
section. 
‘‘(b) APPORTIONMENT AND TRANSFERS.—
‘‘(1) APPORTIONMENT.—
453
‘‘(A) FORMULA.—The Secretary shall ap-
portion amounts made available to carry out 
this section under a formula the Secretary ad-
ministers that considers the number of elderly 
individuals and individuals with disabilities in 
each State. 
‘‘(B) LOW DENSITY ADJUSTMENT.—In ad-
ministering the apportionment formula under 
subparagraph (A)—
‘‘(i) in the case of a State with a popu-
lation density of 10 or fewer persons per 
square mile, the Secretary shall multiply by 
a factor of 2 the number of elderly individ-
uals and individuals with disabilities in 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 
to or fewer than 30 persons per square mile, 
the Secretary shall multiply by a factor of 
1.25 the number of elderly individuals and 
individuals with disabilities in the State 
(as determined using the most recent decen-
nial United States Census).
454
‘‘(2) TRANSFERS.—Any State’s apportionment 
remaining available for obligation at the beginning of 
the 90-day period before the end of the period of 
availability of the apportionment is available to the 
State for transfer to supplement amounts apportioned 
to the State under section 5311(c) or 5336(a)(1), or 
both. Any funds transferred pursuant to this para-
graph shall be made available only for eligible 
projects as described in this section. 
‘‘(c) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section shall be for 80 percent of the 
net capital costs of the project, as determined by the 
Secretary; except that in the case of a State described 
in section 120(b)(1) of title 23, such percentage shall 
be increased in accordance with such section. 
‘‘(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
455
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 
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. 
‘‘(d) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—A grant under this section 
shall be subject to all requirements of a grant under 
section 5307. A grant to a subrecipient under this sec-
tion shall be subject to such requirements to the extent 
the Secretary considers appropriate. 
‘‘(2) COORDINATION
WITH
NONPROFIT
PRO-
VIDERS.—A recipient that transfers funds to an ap-
portionment under section 5336(a)(1) pursuant to 
subsection (b)(2) shall certify that the project for 
which the funds are requested under this section has 
been coordinated with nonprofit providers of services.
456
‘‘(3) PROJECT SELECTION AND PLANNING.—A re-
cipient 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. 
‘‘(4) 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. 
‘‘(e) STATE PROGRAM.—
‘‘(1) IN GENERAL.—Amounts made available to 
carry out this section may be used for transportation 
projects to assist in providing transportation services 
for elderly individuals and individuals with disabil-
ities that are included in a State program of projects. 
‘‘(2) SUBMISSION AND APPROVAL.—A program 
shall be submitted annually to the Secretary for ap-
proval and shall contain an assurance that the pro-
gram provides for maximum feasible coordination of 
transportation services assisted under this section
457
with transportation services assisted by other Govern-
ment sources. 
‘‘(f) LEASING VEHICLES.—Vehicles acquired under 
this section may be leased to local governmental authorities 
to improve transportation services designed to meet the spe-
cial needs of elderly individuals and individuals with dis-
abilities.’’; and 
(3) by redesignating subsections (h) through (j) 
as subsections (g) through (i), respectively. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to sec-
tion 5310 and inserting the following:
‘‘5310. Formula grants for special needs of elderly individuals and individuals 
with disabilities.’’.
SEC. 3012. FORMULA GRANTS FOR OTHER THAN URBAN-
IZED AREAS. 
(a) DEFINITIONS.—Section 5311(a) is amended to 
read as follows: 
‘‘(a) DEFINITIONS.—In this section, the following defi-
nitions apply: 
‘‘(1) RECIPIENT.—The term ‘recipient’ means a 
State that receives a Federal transit program grant 
directly from the Government. 
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, non-
profit organization, or operator of public transpor-
458
tation services that receives a Federal transit pro-
gram grant indirectly through a recipient.’’. 
(b) GENERAL AUTHORITY.—Section 5311(b) is amend-
ed to read as follows: 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) GRANTS.—Except as provided in paragraph 
(2), the Secretary may make grants to other than ur-
banized areas under this section for the following: 
‘‘(A) Public transportation capital projects. 
‘‘(B) Operating costs of equipment and fa-
cilities for use in public transportation. 
‘‘(C) Acquisition of public transportation 
services, including service agreements with pri-
vate providers of public transportation services. 
‘‘(2) STATE PROGRAM.—
‘‘(A) IN GENERAL.—Amounts made avail-
able to carry out this section shall be used for 
projects included in a State program for public 
transportation projects, including service agree-
ments with private providers of public transpor-
tation. 
‘‘(B) SUBMISSION.—The program shall be 
submitted annually to the Secretary for ap-
proval.
459
‘‘(C) APPROVAL.—The Secretary may ap-
prove the program only if the Secretary finds 
that the program provides a fair distribution of 
amounts in the State, including Indian reserva-
tions, and the maximum feasible coordination of 
public transportation service assisted under this 
section with transportation service assisted by 
other Federal sources. 
‘‘(3) RURAL TRANSPORTATION ASSISTANCE PRO-
GRAM.—
‘‘(A) IN
GENERAL.—The Secretary shall 
carry out a rural transportation assistance pro-
gram in other than urbanized areas. 
‘‘(B) GRANTS
AND
CONTRACTS.—In car-
rying out this paragraph, the Secretary may use 
not more than 2 percent of the amount made 
available to carry out this section to make grants 
and contracts for transportation research, tech-
nical assistance, training, and related support 
services in other than urbanized areas. 
‘‘(C) PROJECTS OF A NATIONAL SCOPE.—
Not more than 15 percent of the amounts avail-
able under subparagraph (B) may be used by the 
Secretary to carry out projects of a national
460
scope, with the remaining balance provided to 
the States.’’. 
(c) APPORTIONMENTS.—Section 5311(c) is amended to 
read as follows: 
‘‘(c) APPORTIONMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall appor-
tion amounts made available to carry out this section 
among the States in the ratio that—
‘‘(A) the population of other than urbanized 
areas in each State, as shown by the most recent 
Government decennial census of population; 
bears to 
‘‘(B) the population of all other than urban-
ized areas in the United States, as shown by that 
census. 
‘‘(2) LOW
DENSITY
ADJUSTMENT.—In admin-
istering the apportionment formula under paragraph 
(1)—
‘‘(A) 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 population of such other than urbanized 
areas (as determined using the most recent de-
cennial United States Census); and
461
‘‘(B) in the case of a State with a popu-
lation density of more than 10 but equal 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 population 
of such other than urbanized areas (as deter-
mined using the most recent decennial United 
States Census). 
‘‘(3) AVAILABILITY.—The amount apportioned to 
a State under this subsection may be obligated by the 
State for 2 fiscal years after the fiscal year in which 
the amount is apportioned. An amount that is not ob-
ligated at the end of that period shall be reappor-
tioned among the States for the next fiscal year.’’. 
(d) USE FOR ADMINISTRATION, PLANNING, AND TECH-
NICAL ASSISTANCE.—Section 5311(e) is amended—
(1) in the subsection heading by inserting ‘‘, 
PLANNING,’’ after ‘‘ADMINISTRATION’’; 
(2) by striking ‘‘(1) The Secretary’’ and insert-
ing ‘‘The Secretary’’; 
(3) by striking paragraph (2); and 
(4) by striking ‘‘recipient’’ and inserting ‘‘sub-
recipient’’. 
(e) 
INTERCITY
BUS
TRANSPORTATION.—Section 
5311(f) is amended—
462
(1) in paragraph (1) by striking ‘‘after Sep-
tember 30, 1993,’’; and 
(2) in paragraph (2) by striking ‘‘A State’’ and 
inserting ‘‘After consultation with affected intercity 
bus service providers, a State’’. 
(f) 
GOVERNMENT’S
SHARE
OF
COSTS.—Section 
5311(g) is amended to read as follows: 
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section shall be for 80 percent of the 
net capital costs of the project, as determined by the 
Secretary; except that in the case of a State described 
in section 120(b)(1) of title 23, such percentage shall 
be increased in accordance with such section. 
‘‘(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 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
463
‘‘(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 purposes. 
‘‘(5) LIMITATION ON OPERATING ASSISTANCE.—
A State carrying out a program of operating assist-
ance under this section may not limit the level or ex-
tent of use of the Government grant for the payment 
of operating expenses.’’. 
(g) RELATIONSHIP TO OTHER LAWS.—Section 5311 is 
amended—
(1) by striking subsection (h); and 
(2) by redesignating subsections (i) and (j) as 
subsections (h) and (i), respectively. 
(h) CORRECTION TO CHAPTER ANALYSIS.—The anal-
ysis for chapter 53 is amended by striking the item relating 
to section 5311 and inserting the following:
‘‘5311. Formula grants for other than urbanized areas.’’.
464
SEC. 3013. RESEARCH, DEVELOPMENT, DEMONSTRATION, 
AND DEPLOYMENT PROJECTS. 
(a) IN GENERAL.—Section 5312 is amended—
(1) in subsection (a)—
(A) by striking the first parenthetical 
phrase; 
(B) by striking ‘‘or contracts’’ and inserting 
‘‘, contracts, cooperative agreements, or other 
transactions’’; 
(C) by striking ‘‘help reduce urban trans-
portation needs, improve mass transportation 
service,’’ and inserting ‘‘improve transportation 
service’’; 
(D) by striking ‘‘urban’’ each place it ap-
pears; and 
(E) 
by 
striking 
‘‘and 
demonstration 
projects’’ and inserting ‘‘, demonstration or de-
ployment projects, or evaluation of technology of 
national significance’’; 
(2) by striking subsections (b) and (c); 
(3) by redesignating subsections (d) and (e) as 
subsections (b) and (c), respectively; 
(4) in subsection (b)(2) (as so redesignated) by 
striking ‘‘other agreements’’ and inserting ‘‘other 
transactions’’; and
465
(5) in subsection (c)(2) (as so redesignated) by 
striking ‘‘public and’’ and inserting ‘‘public or’’. 
(b) CONFORMING AMENDMENTS.—
(1) SECTION HEADING.—Section 5312 is amend-
ed by striking the section heading and inserting the 
following: 
‘‘§ 5312. Research, development, demonstration, and 
deployment projects’’. 
(2) CHAPTER ANALYSIS.—The analysis for chap-
ter 53 is amended by striking the item relating to sec-
tion 5312 and inserting the following:
‘‘5312. Research, development, demonstration, and deployment projects.’’.
SEC. 3014. COOPERATIVE RESEARCH PROGRAM. 
(a) IN GENERAL.—Section 5313 is amended—
(1) in subsection (a) by striking ‘‘(1) The 
amounts made available under paragraphs (1) and 
(2)(C)(ii) of section 5338(d) of this title’’ and insert-
ing ‘‘The amounts made available under paragraphs 
(1)(C)(iv) and (2)(C) of section 5338(d)’’; 
(2) by striking subsection (b); 
(3) in subsection (a)(2) by striking ‘‘(2) The’’ 
and inserting ‘‘(b) FEDERAL ASSISTANCE.—The’’; 
and 
(4) in subsection (c) by striking ‘‘subsection (a) 
of’’. 
(b) CONFORMING AMENDMENTS.—
466
(1) IN GENERAL.—Section 5313 is amended by 
striking the section heading and inserting the fol-
lowing: 
‘‘§ 5313. Cooperative research program’’. 
(2) CHAPTER ANALYSIS.—The analysis for chap-
ter 53 is amended by striking the item relating to sec-
tion 5313 and inserting the following:
‘‘5313. Cooperative research program.’’.
SEC. 3015. NATIONAL RESEARCH AND TECHNOLOGY PRO-
GRAMS. 
(a) IN GENERAL.—Section 5314 is amended—
(1) by striking the section heading and inserting 
the following: 
‘‘§ 5314. National research and technology programs’’; 
(2) in subsection (a)(1)—
(A) by striking ‘‘subsections (d) and (h)(7) 
of section 5338 of this title’’ and inserting ‘‘sec-
tion 5338(d)’’; 
(B) by striking ‘‘and contracts’’ and insert-
ing ‘‘, contracts, cooperative agreements, or other 
transactions’’; 
(C) by striking ‘‘5303–5306,’’; and 
(D) by striking ‘‘5317,’’; 
(3) in subsection (a)(2) by striking ‘‘Of the 
amounts’’ and all that follows through ‘‘$3,000,000 
to’’ and inserting ‘‘The Secretary shall’’;
467
(4) by striking subsection (a)(4)(B); 
(5) by redesignating subsection (a)(4)(C) as sub-
section (a)(4)(B); and 
(6) in subsection (b) by striking ‘‘or contract’’ 
and all that follows through ‘‘section,’’ and inserting 
‘‘, contract, cooperative agreement, or other trans-
action under subsection (a) or section 5312,’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to sec-
tion 5314 and inserting the following:
‘‘5314. National research and technology programs.’’.
SEC. 3016. NATIONAL TRANSIT INSTITUTE. 
Section 5315 is amended—
(1) in subsection (a) by striking ‘‘public mass 
transportation’’ and inserting ‘‘public transpor-
tation’’; and 
(2) in subsection (d) by striking ‘‘mass’’ each 
place it appears. 
SEC. 3017. JOB ACCESS AND REVERSE COMMUTE FORMULA 
GRANTS. 
(a) IN GENERAL.—Chapter 53 is amended by insert-
ing after section 5315 the following: 
‘‘§ 5316. Job access and reverse commute formula 
grants 
‘‘(a) DEFINITIONS.—In this section, the following defi-
nitions apply:
468
‘‘(1) ACCESS TO JOBS PROJECT.—The term ‘ac-
cess to jobs project’ means a project relating to the de-
velopment and maintenance of transportation services 
designed to transport welfare recipients and eligible 
low-income individuals to and from jobs and activi-
ties related to their employment, including—
‘‘(A) transportation projects to finance 
planning, capital, and operating costs of pro-
viding access to jobs under this chapter; 
‘‘(B) promoting public transportation by 
low-income workers, including the use of public 
transportation by workers with nontraditional 
work schedules; 
‘‘(C) promoting the use of transit vouchers 
for welfare recipients and eligible low-income in-
dividuals; and 
‘‘(D) promoting the use of employer-pro-
vided transportation, including the transit pass 
benefit program under section 132 of the Inter-
nal Revenue Code of 1986. 
‘‘(2) ELIGIBLE
LOW-INCOME
INDIVIDUAL.—The 
term ‘eligible low-income individual’ means an indi-
vidual whose family income is at or below 150 per-
cent of the poverty line (as that term is defined in 
section 673(2) of the Community Services Block
469
Grant Act (42 U.S.C. 9902(2)), including any revi-
sion required by that section) for a family of the size 
involved. 
‘‘(3) 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. 
‘‘(4) REVERSE
COMMUTE
PROJECT.—The term 
‘reverse commute project’ means a public transpor-
tation project designed to transport residents of ur-
banized areas and other than urbanized areas to sub-
urban employment opportunities, including any 
projects to—
‘‘(A) subsidize the costs associated with add-
ing reverse commute bus, train, carpool, van 
routes, or service from urbanized areas and other 
than urbanized areas to suburban workplaces; 
‘‘(B) subsidize the purchase or lease by a 
nonprofit organization or public agency of a van 
or bus dedicated to shuttling employees from 
their residences to a suburban workplace; or 
‘‘(C) otherwise facilitate the provision of 
public transportation services to suburban em-
ployment opportunities.
470
‘‘(5) 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 section 
indirectly through a recipient. 
‘‘(6) WELFARE RECIPIENT.—The term ‘welfare 
recipient’ means an individual who has received as-
sistance under a State or tribal program funded 
under part A of title IV of the Social Security Act at 
any time during the 3-year period before the date on 
which the applicant applies for a grant under this 
section. 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) GRANTS.—The Secretary may make grants 
under this section to a recipient for access to jobs and 
reverse commute projects carried out by the recipient 
or a subrecipient. 
‘‘(2) ADMINISTRATIVE
EXPENSES.—A recipient 
may use not more than 10 percent of the amounts ap-
portioned to the recipient under this section to ad-
minister, plan, and provide technical assistance for a 
project funded under this section. 
‘‘(c) APPORTIONMENTS.—
471
‘‘(1) FORMULA.—The Secretary shall apportion 
amounts made available to carry out this section as 
follows: 
‘‘(A) 60 percent of the funds shall be appor-
tioned among designated recipients (as defined 
in section 5307(a)(2)) for urbanized areas with 
a population of 200,000 or more in the ratio 
that—
‘‘(i) the number of eligible low-income 
individuals and welfare recipients in each 
such urbanized area; bears to 
‘‘(ii) the number of eligible low-income 
individuals and welfare recipients in all 
such urbanized areas. 
‘‘(B) 20 percent of the funds shall be appor-
tioned among the States in the ratio that—
‘‘(i) the number of eligible low-income 
individuals and welfare recipients in ur-
banized areas with a population of less than 
200,000 in each State; bears to 
‘‘(ii) the number of eligible low-income 
individuals and welfare recipients in ur-
banized areas with a population of less than 
200,000 in all States.
472
‘‘(C) 20 percent of the funds shall be appor-
tioned among the States in the ratio that—
‘‘(i) the number of eligible low-income 
individuals and welfare recipients in other 
than urbanized areas in each State; bears to 
‘‘(ii) the number of eligible low-income 
individuals and welfare recipients in other 
than urbanized areas in all States. 
‘‘(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) EXCEPTIONS.—A State may use funds ap-
portioned under paragraphs (1)(B) and (1)(C)—
‘‘(A) for projects serving areas other than 
the area specified in paragraph (2)(B) or (2)(C), 
as the case may be, if the Governor of the State
473
certifies that all of the objectives of this section 
are being met in the specified area; or 
‘‘(B) for projects anywhere in the State if 
the State has established a statewide program for 
meeting the objectives of this section. 
‘‘(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 ap-
plications for grants to the recipient and subrecipi-
ents under this section. 
‘‘(3) APPLICATION.—Recipients and subrecipi-
ents seeking to receive a grant from funds apportioned 
under subsection (c) shall submit to the recipient an 
application in the form and in accordance with such 
requirements as the recipient shall establish.
474
‘‘(4) GRANT AWARDS.—The recipient shall award 
grants under paragraphs (1) and (2) on a competitive 
basis. 
‘‘(e) TRANSFERS.—
‘‘(1) IN GENERAL.—A State may transfer any 
funds apportioned to it under subsection (c)(1)(B) or 
(c)(1)(C), or both, to an apportionment under section 
5311(c) or 5336, or both. 
‘‘(2) LIMITED TO ELIGIBLE PROJECTS.—Any ap-
portionment transferred under this subsection shall be 
made available only for eligible job access and reverse 
commute projects as described in this section. 
‘‘(3) CONSULTATION.—A State may make a 
transfer of an amount under this subsection only after 
consulting with responsible local officials and publicly 
owned operators of public transportation in each area 
for which the amount originally was awarded under 
subsection (d)(4). 
‘‘(f) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—A grant under this section 
shall be subject to the requirements of section 5307. 
‘‘(2) FAIR
AND
EQUITABLE
DISTRIBUTION.—A 
recipient of a grant under this section shall certify to 
the Secretary that allocations of the grant to sub-
475
recipients are distributed on a fair and equitable 
basis. 
‘‘(g) 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 State 
that transfers funds to an apportionment under sec-
tion 5336 pursuant to subsection (e) shall certify to 
the Secretary that any project for which the funds are 
requested under this section has been coordinated with 
nonprofit providers of services. 
‘‘(3) PROJECT SELECTION AND PLANNING.—A re-
cipient of funds under this section shall certify to the 
Secretary 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. 
‘‘(h) GOVERNMENT’S SHARE OF COSTS.—
476
‘‘(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 
for 
matching 
requirements 
under 
section 
403(a)(5)(C)(vii) of the Social Security Act (42
477
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. 
‘‘(i) PROGRAM EVALUATION.—
‘‘(1) COMPTROLLER
GENERAL.—Beginning 1 
year after the date of enactment of the Federal Public 
Transportation Act of 2004, and every 2 years there-
after, 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 Banking, 
Housing, and Urban Affairs of the Senate a re-
port describing the results of the study under 
subparagraph (A). 
‘‘(2) DEPARTMENT
OF
TRANSPORTATION.—Not 
later than 3 years after the date of enactment of Fed-
eral Public Transportation Act of 2004, the Secretary 
shall—
478
‘‘(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 section; 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 Eq-
uity 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 defi-
nitions 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. 
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, non-
479
profit organization, or operator of public transpor-
tation services that receives a grant under this section 
indirectly through a recipient. 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) GRANTS.—The Secretary may make grants 
under this section to a recipient for new public trans-
portation services and public transportation alter-
natives beyond those required by the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) that 
assist individuals with disabilities with transpor-
tation, 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 ap-
portioned 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 appor-
tioned among designated recipients (as defined 
in section 5307(a)(2)) for urbanized areas with
480
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 appor-
tioned 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 appor-
tioned 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.
481
‘‘(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 persons per square mile 
or fewer, 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 200,000 (as 
determined using the most recent decennial 
United States Census); and
482
‘‘(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 factor of 
1.25 the number of individuals with disabil-
ities in urbanized areas of the State with a 
population of less than 200,000 (as deter-
mined 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 persons per square mile 
or fewer, the Secretary shall multiply by a 
factor of 1.5 the number of individuals with 
disabilities in other than urbanized areas of 
the State (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 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 disabil-
483
ities in other than urbanized areas of the 
State (as determined using the most recent 
decennial United States Census). 
‘‘(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 officials 
and publicly owned operators of public transpor-
tation in each area for which the amount origi-
nally was awarded under subsection (d)(4). 
‘‘(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-
484
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 ap-
plications for grants to the recipient and subrecipi-
ents under this section. 
‘‘(3) APPLICATION.—Recipients and subrecipi-
ents seeking to receive a grant from funds apportioned 
under subsection (c) shall submit to the recipient an 
application in the form and in accordance with such 
requirements as the recipient shall establish. 
‘‘(4) GRANT AWARDS.—The recipient shall award 
grants under paragraphs (1) and (2) on a competitive 
basis. 
‘‘(e) GRANT REQUIREMENTS.—
‘‘(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 ARRANGEMENTS.—
Section 5333(b) shall apply to grants under this sec-
tion, except that the Secretary of Labor shall utilize, 
for urbanized areas with a population of less than 
200,000 and for other than urbanized areas, a special 
warranty described in section 215.7 of title 29, Code
485
of Federal Regulations (as in effect on the date of en-
actment of the Federal Public Transportation Act of 
2004), that provides a fair and equitable arrangement 
to protect the interest 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 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.—A re-
cipient 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
486
‘‘(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. 
‘‘(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-
487
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 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.’’;
488
(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 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
489
publicly or privately owned. Such term does not include 
schoolbus or charter transportation but does include sight-
seeing transportation. 
‘‘(b) ESTABLISHMENT.—Not later than 90 days after 
the date of enactment of the Federal Public Transportation 
Act of 2004, 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.
490
‘‘(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 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
491
(d) of section 5307 and such other terms and condi-
tions as are determined by the Secretary. The Sec-
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.’’.
492
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 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;
493
‘‘(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
494
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’’;
495
(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:
496
‘‘(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
509
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.