Fixed Guideway Modernization (5309 (b)(2))

Program Overview

The transit capital investment program (49 U.S.C. 5309) provides capital assistance for three primary activities:

Modernization of existing rail systems (Fixed Guideway Modernization program).
New and replacement buses and facilities (Bus and Bus Related Equipment and Facilities program).
New fixed guideway systems (New Starts program and Small Starts).

Fixed Guideway Modernization

A "fixed guideway" refers to any transit service that uses exclusive or controlled rights-of-way or rails, entirely or in part. The term includes heavy rail, commuter rail, light rail, monorail, trolleybus, aerial tramway, inclined plane, cable car, automated guideway transit, ferryboats, that portion of motor bus service operated on exclusive or controlled rights-of-way, and high-occupancy-vehicle (HOV) lanes.

The Fixed Guideway Modernization Program was originally designed to ensure the proper renovation of the nation's older rail transit systems, and the program continues to ensure that as Federal New Starts investment projects age, they can be modernized.

Eligible Recipients

Eligible recipients are public bodies and agencies (transit authorities and other state and local public bodies and agencies thereof) including states, municipalities, other political subdivisions of states; public agencies and instrumentalities of one or more states; and certain public corporations, boards, and commissions established under state law.

Eligible Activities

Eligible activities are capital projects to modernize or improve existing fixed guideway systems, including purchase and rehabilitation of rolling stock, track, line equipment, structures, signals and communications, power equipment and substations, passenger stations and terminals, security equipment and systems, maintenance facilities and equipment, operational support equipment including computer hardware and software, system extensions, and preventive maintenance.

Statutory Reference

49 USC §5309(b)(2)

Funding Availability

Funds are available the year appropriated plus three years (total of four years)

Allocation of Funding

Funds are allocated by a statutory formula to urbanized areas with rail systems that have been in operation for at least seven years.

The formula for allocating funds contains seven tiers. The allocation of funding under the first four tiers is based on data used to apportion the funding in fiscal year 1997. Funding under the last three tiers is apportioned based on the latest available route miles and revenue vehicle miles on segments at least seven years old as reported to the National Transit Database. A threshold level of more than one mile of fixed guideway is required to receive these funds.