FTA 10-06
Contact: Name: Paul
Griffo, Tel.: (202) 366-4064
June 30, 2006
Additional $20.5 Million in FEMA Funds for New Orleans RTA Comes with
Increased Federal Transit Administration Oversight
The Federal Transit Administration will make $20.5 million in additional Federal
Emergency Management Administration funds available over the next five months to
allow the New Orleans Regional Transit Authority to continue operating bus and
streetcar service, U.S. Transportation Secretary Norman Y. Mineta announced
today.
FTA and FEMA officials agreed to today’s extension of RTA’s contract on the
understanding that the transit authority would develop plans for funding
continuing operations once the FEMA money expires on Nov. 30. In addition, RTA
has agreed to resume charging fares—which were $1.25 before the hurricane, and
have since been suspended—by Aug. 6. FTA will require the measures to encourage
the transit authority to take the steps needed to return to non-emergency
operations.
“There is no such thing as business as usual when it comes to dealing with a
changed city, which is why we are taking extraordinary steps to keep the
trolleys and buses running,” said Secretary Mineta. “This agreement will give
local transit officials the time and resources they need to shore up their
revenue, finances and operations.”
Last October, the FTA awarded New Orleans RTA a $47 million contract—funded by
FEMA—to provide emergency transit services to the city. The contract was set to
expire in March, but was extended to June 30.
FTA has provided technical assistance for the transfer of buses from other
agencies to supplement the transit authority’s reduced fleet, waived a series of
requirements to reduce red tape, deferred the local share for the remaining
Federal funds in the agency’s active grants for five years, and preserved
pre-Katrina federal funding levels. FTA also deployed senior executives and
staff to Louisiana to assist with recovery.
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Briefing Room
