Posts Tagged ‘FTA Capital Investment Grants’

FTA Changes Matching Fund Rule

February 19, 2021

The Federal Transit Administration has made a significant rule change for projects seeking to receive Capital Investment Grant funding.

The agency no longer will prohibit grant recipients from using CIG grants as part of their local funding match when applying for grants.

That prohibition, which had been imposed during the Trump administration, has been criticized for establishing barriers to certain public transit projects.

In a letter sent this past week the FTA said it will now “rely on the CIG statutory framework”to ensure that projects have met federal transportation law, the Major Capital Investment Projects Final rule, and the CIG Final Interim Policy Guidance published in June 2016.

Some congressional Democrats had accused the Trump administration of using funding policies to delay or thwart such Northeast Corridor rail infrastructure projects as replacing the century old Portal Bridge and constructing a new tunnel linking New York City and New Jersey under the Hudson River, also known as the Gateway project.

Under the new FTA policy, states will be allowed to use federal loans to cover their share of a project’s costs, something New York and New Jersey had planned to do with their federal loans in order to meet their 50 percent match of funding for the Gateway project.

Former Secretary of Transportation Elaine Chao had in May 2018 prohibited states from using federal loans as part of their project match funding.

Although Congress a year later prohibited USDOT from doing that, the agency continued to maintain its policy of banning use of loans for state matching funds.

FTA Downgrades NEC Projects

February 16, 2018

The proposed Amtrak Gateway projects in the Northeast Corridor were downgraded in importance this week by the Federal transit Administration, a move that might make receiving federal funding, more difficult.

The FTA in its annual funding recommendations report to Congress on the Capital Investment Grants program rated the Hudson Tunnel and the Portal North Bridge replacement projects as “medium-low” in priority for federal grants.

That is the second-lowest rating on a five-point scale that helps determine whether federal funding is warranted.

The FTA ratings indicate the Trump administration’s shift away from the Obama administration’s support for federal help in paying for the projects, Gateway program supporters said.

“In case it wasn’t clear before, President Trump today tried to land another death blow to Gateway, by having his Federal Transit Administration vindictively and inexplicably downgrade the project in order to cut off critical federal funding,” said U.S. Senator Robert Menendez in a statement.

Michael Friedberg, executive director of the Coalition for the Northeast Corridor said the FTA’s decision means the corridor’s stakeholders need to “raise their voices and work harder” to show the administration and Congress that the Gateway program is necessary to support the region’s economy.

The Portal North bridge is a two-track moveable swing-span structure located between Kearny and Secaucus, New Jersey, that forms a link between New Jersey and New York Penn Station.

Amtrak, New Jersey Transit and the Port Authority of New York and New Jersey have agreed to fund half of the $1.5 billion cost to build the new bridge.

The Hudson Tunnel project calls for a new tunnel to be built under the Hudson River and rebuild the 106-year-old North River Tunnel, which currently has two tracks under the river between New York Penn Station and New Jersey.

The tunnel was severely damaged during Hurricane Sandy in October 2012.

Although Amtrak claims the tunnel is safe for use, emergency maintenance continues to interrupt service.