U.S. Department of Transportation
2003 Budget in Brief

 Federal Transit Administration

Overview: Transit safely and efficiently moves millions of people every day, reducing congestion, facilitating economic development, connecting people to their jobs and communities, and helping to protect the environment. Promoting the security of America’s public transportation assets, and the safety and security of the people who depend upon them, is the responsibility of every transit agency. The events of September 11, 2001, have proven that this responsibility must receive even more attention in order to keep our communities safe and moving. The budget addresses this critical issue, and, when combined with State and local funding, preserves and increases investment in our Nation’s public transit infrastructure. The proposed budget is $7.2 billion, 5 percent above 2002, promotes mobility and access, addresses critical security vulnerabilities, and furthers the President’s Management Agenda.

Federal Transit Administration Budget
(Dollars In Millions)

1/ Includes estimated accrual payments of $3.5 million in FY 2001 and $3.7 million in FY 2002 for civil service retirement and health benefits.
2/ Includes $1,231 million in FHWA Flex Funding for Formula Grants and $60 million in FHWA Flex Funding for Research & Planning.

FY 2003 Budget

Transit Security: Transit system security will remain a high priority in FY2003. Emphasis will be given to improving the state of security knowledge among transit professionals through training and through the Federal Transit Administration’s (FTA) technical assistance efforts. FTA will also focus on testing and validating technology that could be used in a transit environment and rapidly deployed.

New Freedom Initiative: DOT will seek authorizing legislation to provide $145 million for the New Freedom Initiative. The initiative reflects the President’s goal of reducing barriers for persons with disabilities to enter the workforce by providing funding to States, and searching for innovative solutions to transportation barriers faced by persons with disabilities. This program will create opportunities for Americans with disabilities and will also strengthen the communities in which they live and work.

Formula Grants Program: $3.8 billion, 8 percent above 2002, is available for all transit capital purposes, including security, planning, bus and railcar purchases, facility repair and construction, maintenance and, where eligible, operating expenses. This program includes grants specifically targeted to urbanized areas, non-urbanized areas, and the special needs of the elderly and persons with disabilities. In 2003, funds proposed for the Formula Grants program will contribute almost $7 million to improve the accessibility of over-the-road buses. It will mitigate the costs of compliance with the Americans with Disabilities Act for rural and disadvantaged communities, and will help keep fare prices affordable.

Capital Investment Grants: $3 billion, 2 percent above 2002, is proposed in 2003 for the following initiatives to enhance and maintain transit infrastructure: $607 million for the replacement, rehabilitation, and purchase of buses and the construction of bus-related facilities; $1.2 billion for the modernization of existing fixed guideway systems, including heavy and light rail, commuter rail, and ferryboat operations; and $1.2 billion for the construction of new fixed guideway systems and extensions to existing fixed guideway systems.

The 2003 budget recommendation includes funding for 27 existing and pending Full Funding Agreements (FFGAs), which are multi-year contractual agreements between FTA and the grantees. Located in every geographic area of the country and in cities of all sizes, these projects include commuter rail, light rail, heavy rail, and bus rapid transit. When complete, they will carry over 190 million riders annually, save over 61 million hours in travel time, and significantly improve mobility in America. The table on page 27 lists the New Starts projects recommended for funding in 2003.

Project and Financial Management Oversight: To provide oversight of DOT grants to States and localities, $48 million is requested in 2003. Grants management and oversight, including assuring that Federal funds are spent efficiently and effectively, are core management responsibilities of FTA.

Research and Technology Program: For the National Research and Technology Program, a total of $49 million is requested. This program includes $31.5 million for the National Research Program, $8.3 million for the Transit Cooperative Research Program, $4 million for the National Transit Institute training programs, and $5.3 million for the Rural Transit Assistance Program.

Metropolitan and Statewide Planning Programs: The 2003 budget requests $73 million, 9 percent above 2002, in formula grants to support the activities of regional planning agencies and States, helping them to plan for the capital transit investments that best meet the needs of the urban and rural communities they serve. This includes $60.4 million for Metropolitan Planning and $12.6 million for State Planning and Research.

University Transportation Centers: To provide continued support for research, education, and technology transfer activities aimed at addressing regional and national transportation issues, a total of $6 million is requested.

Job Access and Reverse Commute Program: The 2003 request provides $150 million, 20 percent above 2002, to address transportation needs of individuals moving from welfare to work. This program also supports transportation services to help people of all income levels access jobs in suburban locations.

Federal Transit Administration
FY 2003 Proposed Section 5309 New Starts
(Dollars In Millions)

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Last Updated: February 4, 2002