By Ron Thaniel
May 11, 2009

As Americans continue switch to public transit, U.S. Department of Transportation Secretary Ray LaHood announced May 6 that transit projects around the country will receive $742.5 million in American Recovery and Reinvestment Act of 2009 (ARRA) funds.

“This money will not only put people back to work and spur the economy, it will also provide an alternative form of transportation for people around the country to get to their homes, work and school,” Secretary LaHood said.

The grants will go toward projects for which the Federal Transit Administration has already entered into multi-year federal commitments known as “full funding grant agreements,” in Arizona, California, Colorado, New York, Oregon, Texas, Utah, Virginia and Washington State.

The ARRA grants announced today do not increase the federal commitment to the projects, but expedite funds committed under the agreement between the federal government and the transit agencies.

The arrival of federal funds will allow the transit agencies to save on financing costs while putting additional dollars into the local economy; will supplement local resources, which have declined during the economic downturn, and allow for a quicker investment in the project.

A U.S. Conference of Mayors economic recovery priority, ARRA is providing 8.4 billion for transit projects, including $6.9 billion for transit formula grants, $750 million for the Fixed Guideway Modernization program, and $750 for New Starts/Small Starts. According to the American Public Transportation Association (APTA), Americans took 10.7 billion trips on public transportation in 2008, the highest level of ridership in 52 years and a modern ridership record.

For additional information on the Conference’s ARRA priorities, go to usmayors.org/recovery.