Urbanized Area Formula Grants (FTA 5307)

Program Overview

The Urbanized Area Formula Funding program (49 U.S.C. 5307) makes federal resources available to governors and other urban area recipients for transit capital, operating assistance and transportation-related planning. An urbanized area is an area that has been defined and designated by the U.S. Department of Commerce, Bureau of the Census as an 'Urban Area' with a population of 50,000 or more.

The FTA publishes annual apportionment tables Apportionments | FTA (dot.gov) for FTA Section 5307 Urbanized Area Formula Grants - 5307 | FTA (dot.gov) that display funding allocations for urbanized areas (UZA’s). These allocations are based on population, low-income population, and population density.

Large Urban

All large urban recipients – population 200,000 or greater, apply for their apportionment directly from FTA.

Small Urban

For recipients in a UZA with a population between 50,000-199,999 (classified as small urban systems), Caltrans is designated by the FTA and the governor of California to be the “Designated Recipient”. Designated Recipients can receive and/or sub-allocate FTA Section 5307 small urban funds. Caltrans’ role as Designated Recipient focuses on program administration in collaboration with the FTA, Caltrans Districts/Divisions, MPO’s, and transit providers. These administrative functions include:

Ensuring the link between Metropolitan Transit Planning and Project Programming for allocated funds
Facilitating MPO/recipient agency annual suballocation process for small urban areas, statewide
Tracking unobligated balances
Re-directing unobligated (unused) balances that are due to lapse

Note: All MPO’s are strongly encouraged to engage their transit providers/direct recipients in the Metropolitan Transportation Planning Process Transportation Planning | FTA (dot.gov) outlined by the FTA, the FHWA and agreed to under the auspices of Caltrans, MPO/transit agency planning and programming MOU’s to ensure transit projects are ready for programming and fund obligation in the year for which they were planned. Transit projects should be identified in a formal adopted plan – such as a Regional Transportation Plan (RTP), a Long-Range Transit Plan, a Transit Asset Management (TAM) Plan or a Public Transportation Agency Safety Plan (PTASP). Planned projects may also be chosen for unobligated balance redistribution should resources become available.

Key milestones:

FTA apportionment tables published

Caltrans suballocation request sent to MPO’s

MPO’s inform Caltrans of suballocations

Caltrans issues Statewide suballocation letter to FTA (posts to this website)

MPO’s work with transit providers to program projects in TIPS

Direct Recipients/transit providers submit applications in TrAMS

Unobligated balance tracking

Unobligated balance re-distribution before September 30 of the lapsing year

Caltrans/FTA Monitoring:

A Direct Recipient’s FTA Section 5307 formula funds are available for five years and 5339 formula funds are available for three years after the Federal Fiscal Year in which the amount was apportioned. The FTA Region IX Office and Caltrans begin monitoring all allocations 6 months after the Caltrans statewide suballocation letter is issued. One year prior to an apportionment’s lapse date FTA Region IX and Caltrans begin the process of communicating with transit providers about the need to obligate unobligated balances. Six months prior to an apportionment’s lapse date Caltrans will begin to identify alternate recipients for unobligated balances. Three months prior to an apportionment’s lapse date, FTA Region IX and Caltrans collaborate to ensure all unused funds are re-distributed to any other small UZA in the State that has a resource need or has a planned project that’s ready to deliver (State’s discretion). This process is cyclical and done to ensure unobligated balances to not lapse.

Suballocation letters:

FFY 2023