SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Maximum Economic Growth for America 
through Investment in Rural, Elderly, and Disabled Transit Act'' or the 
``MEGA RED TRANS Act''.

SEC. 2. MINIMUM LEVEL OF FUNDING FOR ELDERLY AND DISABLED PROGRAM.

    Section 5310 of title 49, United States Code, is amended--
            (1) in subsection (b), in the first sentence, by striking 
        the period at the end and inserting the following: ``, provided 
        that, for fiscal years 2004, 2005, and 2006, each State shall 
        receive annually, of the amounts apportioned under this 
        section, a minimum of double the amount apportioned to the 
        State in fiscal year 2003 or $1,000,000, whichever is greater, 
        and that for fiscal years 2007, 2008, and 2009, each State 
        shall receive annually, of the amounts apportioned under this 
        section, a minimum equal to the minimum required to be 
        apportioned to the State for fiscal year 2006 plus $500,000.''; 
        and
            (2) by adding at the end the following:
    ``(k) Amounts for Operating Assistance.--Amounts made available 
under this section may be used for operating assistance.
    ``(l) Available Funds.--Notwithstanding any other provision of law, 
of the aggregate amounts made available by and appropriated under this 
chapter, the amount made available to provide transportation services 
to elderly individuals and individuals with disabilities under this 
section in each of the fiscal years 2004 through 2009, shall be not 
less than the amount necessary to match the minimum apportionment 
levels required by subsection (b).''.

SEC. 3. MINIMUM LEVEL OF FUNDING FOR RURAL PROGRAM.

    Section 5311 of title 49, United States Code, is amended--
            (1) in subsection (c), in the first sentence, by striking 
        the period at the end and inserting the following: ``, provided 
        that none of the 50 States shall receive, from the amounts 
        annually apportioned under this section, an apportionment of 
        less than $5,000,000 for each of fiscal years 2004, 2005, and 
        2006, and $5,500,000 for each of fiscal years 2007, 2008, and 
        2009.''; and
            (2) by adding at the end the following:
    ``(k) Amounts.--Notwithstanding any other provision of law, of the 
aggregate amounts made available by and appropriated under this 
chapter, the amount made available for the program established by this 
section in each of fiscal years 2004 through 2009 shall be not less 
than the sum of--
            ``(1) the amount made available for all States for such 
        purpose for fiscal year 2003; and
            ``(2)(A) for each of fiscal years 2004, 2005, and 2006, the 
        amount equal to the difference between $5,000,000 and the 
        apportionment for fiscal year 2003, for each of those 
        individual States that were apportioned less than $5,000,000 
        under this section for fiscal year 2003; or
            ``(B) for each of fiscal years 2007, 2008, and 2009, the 
        amount equal to the difference between $5,500,000 and the 
        apportionment for fiscal year 2003, for each of those 
        individual States that were apportioned less than $5,500,000 
        under this section for fiscal year 2003.''.

SEC. 4. ESSENTIAL BUS SERVICE.

    (a) In General.--Chapter 53 of title 49, United States Code, is 
amended by adding at the end the following:
``Sec. 5339. Essential bus service
    ``(a) In General.--The Secretary shall establish a program under 
which States shall provide essential bus service between rural areas 
and primary airports, as defined in section 47102, and between rural 
areas and stations for intercity passenger rail service, and 
appropriate intermediate or nearby points.
    ``(b) Eligible Activities.--Eligible activities under the program 
established by this section shall include--
            ``(1) planning and marketing for intercity bus 
        transportation;
            ``(2) capital grants for intercity bus shelters, park and 
        ride facilities, and joint use facilities;
            ``(3) operating grants, including direct assistance, 
        purchase of service agreements, user-side subsidies, 
        demonstration projects, and other means; and
            ``(4) enhancement of connections between bus service and 
        commercial air passenger service and intercity passenger rail 
        service.
    ``(c) Availability of Funds.--Amounts made available pursuant to 
this section shall remain available until expended.
    ``(d) Relationship to Section 5311.--Amounts for the program 
established by this section shall be apportioned to the States in the 
same proportion as amounts apportioned to the States under section 
5311. Section 5311(j) applies to this section.
    ``(e) Funds.--Notwithstanding any other provision of law, of the 
aggregate amounts made available by and appropriated under this 
chapter--
            ``(1) for fiscal years 2004, 2005, and 2006, $30,000,000 of 
        the total for each fiscal year shall be for the implementation 
        of this section; and
            ``(2) for fiscal years 2007, 2008, and 2009, $35,000,000 of 
        the total for each fiscal year shall be for the implementation 
        of this section.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 53 of title 49, United States Code, is amended by adding at the 
end the following:

``5339. Essential bus service.''.

SEC. 5. MINIMUM LEVEL OF FUNDING FOR URBANIZED AREAS WITH A POPULATION 
              OF LESS THAN 200,000.

    (a) Minimum Apportionment.--Section 5336(a)(1) of title 49, United 
States Code, is amended by striking ``mile; and'' and inserting the 
following: ``mile,
        provided that the apportionments under this paragraph shall be 
        modified to the extent required so that urbanized areas that 
        are eligible under this paragraph and are located in a State in 
        which all urbanized areas in the State eligible under this 
        paragraph collectively receive apportionments totaling less 
        than $5,000,000 in any of fiscal years 2004, 2005, or 2006, or 
        less than $5,500,000 in any of fiscal years 2007, 2008, or 
        2009, shall each have their apportionments increased, 
        proportionately, to the extent that, collectively, all of the 
        urbanized areas in the State that are eligible under this 
        paragraph receive, of the amounts apportioned annually under 
        this paragraph, $5,000,000 for each of fiscal years 2004, 2005, 
        and 2006, and $5,500,000 for each of fiscal years 2007, 2008, 
        and 2009; and''.
    (b) Funds.--Section 5307 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(o) Funds.--Notwithstanding any other provision of law, of the 
aggregate amounts made available by and appropriated under this 
chapter, in each of the fiscal years 2004 through 2009, the amount made 
available for the program established by this section shall be not less 
than the sum of--
            ``(1) the amount made available for such purpose for fiscal 
        year 2003; and
            ``(2) the amount equal to the sum of the increase in 
        apportionments for that fiscal year over fiscal year 2003, to 
        urbanized areas with a population of less than 200,000, in 
        affected States, attributable to the operation of section 
        5336(a)(1).''.

SEC. 6. LEVEL PLAYING FIELD FOR GOVERNMENT SHARE.

    (a) In General.--Chapter 53 of title 49, United States Code, as 
amended by this Act, is amended by adding at the end the following:
``Sec. 5340. Government share
    ``With respect to amounts apportioned or otherwise distributed for 
fiscal year 2004 and each subsequent fiscal year, the Government share 
of eligible transit project costs or eligible operating costs, shall be 
the greater of--
            ``(1) the share applicable under other provisions of this 
        chapter; or
            ``(2) the share that would apply, in the State in which the 
        transit project or operation is located, to a highway project 
        under section 133 of title 23.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 53 of title 49, United States Code, is amended by adding at the 
end the following:

``5340. Government share.''.

SEC. 7. INTEREST CREDITED TO MASS TRANSIT ACCOUNT.

    Section 9503(f)(2) of the Internal Revenue Code of 1986 (relating 
to the Highway Trust Fund) is amended by striking the period at the end 
and inserting the following: ``, provided that after September 30, 
2003, interest accruing on the balance in the Mass Transit Account 
shall be credited to such account.''.
Output: Maximum Economic Growth for America through Investment in Rural, Elderly, and Disabled Transit Act (or the MEGA RED TRANS Act) - Amends Federal transportation law to set forth certain minimum funding levels of amounts made available from the Mass Transit Account of the Highway Trust Fund for: (1) formula grants and loans to States to provide mass transportation services to elderly individuals and individuals with disabilities and in non-urbanized areas; and (2) block grants to States for mass transportation service projects in urbanized areas with a population of less than 200,000.Establishes an essential bus service program under which States provide essential bus service between rural areas and primary airports, and between rural areas and stations for intercity passenger rail service, and appropriate intermediate or nearby points.Sets forth certain requirements regarding the Federal share of eligible project costs or eligible operating costs with respect to funds distributed for transit projects after FY 2004.Amends the Internal Revenue Code to require interest that is accrued on balances in the Mass Transit Account of the Highway Trust Fund to be credited to such account.