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Federal assistance to public transportation is provided primarily through the public transportation program administered by the Department of Transportation’s Federal Transit Administration (FTA).

Major federal involvement in public transportation dates to the Urban Mass Transportation Act of 1964 (P.L.88-365). Prior to the mid-1960’s there was very little public funding of public transportation. With much lower ridership than existed at the end of World War II and mounting debts, however, many private transit companies were reorganized as public entities. Federal funding was initially used to recapitalize transit systems. Today, the focus of the federal program is still on the capital side, but the program has evolved to support operational expenses in some circumstances, as well as safety oversight, planning, and research.

Financing the construction, operation and maintenance of public transportation systems involves many funding sources, including federal and non-federal grants, cooperative agreements, loans, and revenue sources. Different types of financing arrangements such as leases and public private partnerships have been used to fund the procurement of materials and activities. Idaho Delegation announced that Idaho received over $60 million in federal funding allocations to the transit industry following the President’s signing of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The CARES Act directs the Federal Transit Administration (FTA) to allocate funding to prevent, prepare for, and respond to the coronavirus through the existing Urbanized Area, Formula Grants Program Rural Areas Formula Grants Program, and the Tribal Transit Formula Grants Program.