I 
111TH CONGRESS 
1ST SESSION H. R. 1827 
To amend title 49, United States Code, to provide for the establishment 
of a flexibility incentive grant program. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 31, 2009 
Ms. MATSUI introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure 
A BILL 
To amend title 49, United States Code, to provide for the 
establishment of a flexibility incentive grant program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Flexibility Incentive 
Grant Act of 2009’’. 
SEC. 2. FLEXIBILITY INCENTIVE GRANT PILOT PROGRAM. 
(a) IN GENERAL.—Chapter 53 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing: 
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‘‘§ 5341. Flexibility incentive grant pilot program 
‘‘(a) PURPOSE.—The purpose of this section is to 
provide incentives to encourage States to establish new 
sources of revenue for public transportation projects and 
services and to reward States for creating more flexibility 
in the use of their existing transportation funds. 
‘‘(b) ESTABLISHMENT OF PROGRAM.—The Secretary 
of Transportation shall establish a flexibility incentive 
grant pilot program in accordance with this section. 
‘‘(c) APPLICATIONS.— 
‘‘(1) IN GENERAL.—A State may submit an ap-
plication to the Secretary for a grant under the sec-
tion for each of fiscal years 2010 through 2013 not 
later than the August 1 preceding the first day of 
such fiscal year. 
‘‘(2) CONTENTS.—An application of a State for 
a grant for a fiscal year under this section shall con-
tain, at a minimum, the aggregate amount that the 
State and the counties of the State expended (ex-
cluding amounts from Federal sources) on public 
transportation projects and services for each of the 
State’s 2 fiscal years preceding the date of the appli-
cation, together with such supporting documentation 
as the Secretary may require by regulation. 
‘‘(d) DETERMINATIONS BY THE SECRETARY.—Not 
later than September 1 of each of calendar years 2010 
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through 2013, the Secretary shall determine for each 
State that submitted an application for a grant under sub-
section (c) for the fiscal year beginning on September 30th 
of that calendar year if the State and the counties of the 
State increased the aggregate amount that the State and 
such counties expended (excluding amounts from Federal 
sources) on public transportation projects and services 
from the State’s second fiscal year preceding such Sep-
tember 1 to the State’s first fiscal year preceding such 
September 1, the amount of such increase, and the per-
centage of such increase over the State’s second preceding 
fiscal year. 
‘‘(e) GRANTS FOR INCREASED PUBLIC TRANSPOR-
TATION FUNDING.— 
‘‘(1) STATES WITH AN INCREASE OF 10 PER-
CENT OR MORE.— 
‘‘(A) IN GENERAL.—Subject to paragraph 
(2) and subsection (g), the Secretary shall make 
a grant for each of fiscal years 2010 through 
2013 to each State— 
‘‘(i) whose percentage increase, as de-
termined by the Secretary under sub-
section (d) with respect to such fiscal year, 
in expenditures for public transportation 
projects and services over the preceding 
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fiscal year of the State was 10 percent or 
more; and 
‘‘(ii) whose aggregate expenditures for 
such projects and services in the State’s 
preceding fiscal year was $1,000,000,000 
or less, as determined by the Secretary 
under subsection (d); and 
‘‘(B) AMOUNT.—The amount of a grant 
under subparagraph (A) shall be equal to the 
increase in the aggregate amount that the State 
and the counties of the State expended (exclud-
ing amounts from Federal sources) on public 
transportation projects and services from the 
second preceding fiscal year of the State to the 
first preceding fiscal year of the State, as deter-
mined by the Secretary under subsection (d). 
‘‘(2) LARGE STATES WITH AN INCREASE OF 1 
PERCENT OR MORE.—Subject to subsection (g), for 
each of fiscal years 2010 through 2013, the Sec-
retary shall make a grant of $50,000,000 to each 
State— 
‘‘(A) whose percentage increase, as deter-
mined by the Secretary under subsection (d) 
with respect to such fiscal year, in expenditures 
for public transportation projects and services 
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over the preceding fiscal year of the State was 
1 percent or more; and 
‘‘(B) whose aggregate expenditures for 
such projects and services in the State’s pre-
ceding 
fiscal 
year 
was 
more 
than 
$1,000,000,000, as determined by the Secretary 
under subsection (d). 
‘‘(f) STATES CREATING FLEXIBLE TRANSPORTATION 
FUNDS.— 
‘‘(1) NEW DEDICATED SOURCE OF REVENUE.— 
‘‘(A) IN GENERAL.—Subject to subsection 
(g), for each of fiscal years 2010 through 2013, 
the 
Secretary 
shall 
make 
a 
grant 
of 
$10,000,000 to each State that established in 
the first preceding fiscal year of the State a 
dedicated source of revenue for carrying out 
only public transportation projects and services 
that the Secretary— 
‘‘(i) determines was not in effect in 
the second preceding fiscal year of the 
State; and 
‘‘(ii) projects will result in an increase 
of 10 percent in State funds available for 
expenditure on such projects and services 
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within 2 years after the date of such imple-
mentation. 
‘‘(B) DEDICATED SOURCE OF REVENUES 
DEFINED.—For purposes of this paragraph, the 
term ‘dedicated source of revenue’ may include 
the dedication of a State motor fuels tax or 
sales tax, interest on existing highway funds, 
motor vehicle excise tax, tolls, loans to be made 
out of highway funds, and such other sources of 
revenue as the Secretary determines. 
‘‘(2) 
UNRESTRICTED
USE
OF
HIGHWAY 
FUNDS.—Subject to subsection (h), for each of fiscal 
years 2010 through 2013, the Secretary shall make 
a grant of $10,000,000 to each State that in the 
preceding fiscal year of the State amended State law 
or the State constitution to allow funds that were re-
stricted for highway purposes only to be used for 
public transportation projects and services as well as 
highway purposes. 
‘‘(g) LIMITATION
FOR STATES ELIGIBILITY
FOR 
MULTIPLE GRANTS.—If the Secretary determines that a 
State is eligible for a grant under more than one of sub-
sections (e)(1), (e)(2), (f)(1), and (f)(2) for a fiscal year, 
the Secretary may only make the grant to the State that 
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