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Carter Wins Grant Flexibility for Local Public Transit

09/09/11

For Immediate Release: September 9, 2011

(WASHINGTON, DC)  - Congressman John Carter won a victory for local transit systems this week during Appropriations Committee markup of the Transportation, Housing, and Urban Development (THUD) Appropriations Act with passage of an amendment to allow local government to use federal 5307 program grant funds for fuel costs in addition to new equipment and infrastructure.

“With fuel costs rising from $1.79 a gallon to nearly $4 since 2009, our local transit systems need help in meeting these higher costs,” says Carter. “This amendment allows them to use a portion of their existing federal program funds to offset these costs and save jobs, without costing the taxpayer any additional funds, and without adding to the federal debt.”

Rising fuel costs have forced over 80% of transit systems to cut their services since 2009, leading to the layoff of 130 bus operators in that year alone.  The cost of fuel can be between 5-10% of the operating budget of a transit system.

The Carter amendment allows transit systems to use up to 4% of their allowances under the program for fuel costs, while capping the total amount of 5307 program funds used for fuel costs to $200 million nationwide.

 
Contact: John.Stone@mail.house.gov; (202) 225-3864
U.S. Rep. John Carter
31st District of Texas
409 Cannon House Office Building
Washington, DC 20515