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April 24, 2020 | An APTA Publication
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Congress Passes Additional COVID-19 Emergency Funding
The U.S. Senate and House of Representatives have passed a fourth legislative package to respond to the impacts of coronavirus. The bipartisan H.R. 266, the “Paycheck Protection Program and Health Care Enhancement Act” provides $484 billion for small businesses and funding for healthcare-related impacts and supplies. The bill now goes to President Trump, who is expected to sign it into law.
Importantly, the bill provides $310 billion for the Paycheck Protection Program (PPP) administered by the U.S. Small Business Administration (SBA). The PPP was established in the CARES Act and its funding ($349 billion) was exhausted within two weeks. Read more about SBA’s PPP.
In addition, the bill provides $60 billion in Economic Injury Disaster Loans (EIDL), including $50 billion of EIDL loan subsidies and $10 billion of EIDL grants through the SBA. Under EIDL grants, small businesses can request up to $10,000 in advance emergency cash to assist in replenishing a temporary loss of revenue as a result of coronavirus. The loan advance will not have to be repaid. Read more about SBA’s EIDL.
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APTA Urges Congress to Include Four Critical Elements in THUD Bill
Today, APTA sent letters to the bipartisan leadership of the House and Senate appropriations committees urging Congress to include four critical elements in the Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations bill:
- Provide a permanent funding limitation prohibiting applicability of the Rostenkowski Test, preventing a devastating $6 billion, 60 percent across-the-board cut to public transit agencies in fiscal year (FY) 2021;
- Provide at least $16 billion in funding for public transportation and passenger rail in FY 2021;
- Deposit the necessary funds in the Mass Transit Account of the Highway Trust Fund to ensure that it can meet all funding commitments throughout the fiscal year; and
- Continue the reforms to the Capital Investment Grant (CIG) program included in the THUD Appropriations Act, 2020.
The letter stated, “As you have seen firsthand in the wake of the novel coronavirus (COVID-19), public transit agencies provide essential services to our nation’s frontline workers each and every day, and we urge you to include each of these four critical elements in the THUD Appropriations bill.”
In the letter, APTA also noted that it is developing additional funding and legislative priorities to address the enormous impacts of COVID-19 on the industry and will send those specific requests to Congress in the near future.
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FTA Waives Local Match for COVID-19 Expenses
FTA has waived the remaining local share requirement for previously appropriated Urbanized Area Formula Grants (49 U.S.C. § 5307) and Rural Area Formula Grants (49 U.S.C. § 5311) for coronavirus-related expenses. This 100-percent federal share applies to all FY 2020 and prior year funds under these formula programs and is available for operating expenses or capital projects.
In an earlier FAQ posted in March, FTA had permitted previously appropriated funding under § 5307 or § 5311 programs to be used at an 80 percent federal share for COVID-19-specific capital or operating expenses. Under normal circumstances, operating expenses are only eligible for a 50-percent share, and large urban areas are not able to use these funds for operating expenses.
In addition, in its updated FAQ, FTA clarified that the increased federal share and expanded eligibilities apply to all available § 5307 and § 5311 funds stating that “Section 5307 and Section 5311 funding that has not already been disbursed by the recipient or passed its period of availability may be used for COVID-19 response at the increased Federal share of 100 percent.”
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FRA Makes Available $311.8 Million for Capital Rail Projects
“We’re committed to addressing the unmet transportation needs of rural areas, which face unique challenges in safety, infrastructure condition and passenger and freight usage,” said FRA Administrator Ronald L. Batory. “I encourage all eligible parties to take full advantage of this funding opportunity.”
Eligible applicants include projects that address highway-rail grade crossings, congestion challenges; improve intercity passenger rail capital assets; deploy railroad safety technology; upgrade short line or regional railroad infrastructure and relocate rail lines.
In addition, $45 million of the $311.8 million is available for projects eligible under 49 U.S.C. 22907(c)(2) that require the acquisition of rights-of-way, track, or track structure to support developing new intercity passenger rail service routes. Read more.
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FTA to Provide Flexibility for Safety Plan Requirements
“We understand that many transit agencies are experiencing disruptions to normal operating procedures during the COVID-19 public health emergency,” said FTA Acting Administrator K. Jane Williams. “To continue to support the transit industry during this unprecedented public health emergency, we are offering this flexibility, recognizing the vital role that transit agencies play in the response to COVID-19.”
The PTASP regulation requires public transit agencies to incorporate Safety Management System policies and procedures. The regulation set July 20, 2020 as the deadline for agencies to certify that they have established a compliant agency safety plan. With this announcement, FTA will refrain from taking any enforcement action until Dec. 31, 2020 against agencies that are unable to meet the July 20 deadline.
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T&I Committee Thanks Public Transit Employees
The House Committee on Transportation and Infrastructure thanked employees from the transportation sector for their role in the fight against coronavirus by holding a bipartisan “tweetstorm” this week. View the hashtag they used: #ToThoseWhoKeepUsMoving.
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