	Introduction

Federal assistance to public transportation is provided primarily through the public transportation program administered by the Federal Transit Administration (FTA). The federal public transportation program was authorized through FY2014 as part of the Moving Ahead for Progress in the 21 st Century Act (MAP-21; P.L. 112-141 ) and extended through May 31, 2015, as part of the Highway and Transportation Funding Act of 2014 ( P.L. 113-159 ). While maintaining the previous funding level, MAP-21 simplified the structure of the public transit program by eliminating some programs and consolidating others, recast some discretionary programs as formula programs, strengthened FTA's role in safety oversight, and introduced performance management into the planning process. MAP-21 authorized $10.6 billion for the federal public transportation program in FY2013 and $10.7 billion in FY2014. It should be noted, however, that the distinction between money from the highway trust fund and money from the general fund has become artificial to an extent, in that Congress authorized a $4.8 billion transfer of general fund money into the mass transit account of the highway trust fund in FY2010 and another $4.0 billion transfer in FY2014. The federal government supports less than 10% of operating expenditures, but more than 40% of capital expenditures ( Table 2 ). Program Structure

There are six major funding programs administered by FTA: (1) Urbanized Area Formula; (2) State of Good Repair (SGR); (3) New Starts; (4) Rural Area Formula; (5) Bus and Bus Facilities Formula; and (6) Enhanced Mobility of Seniors and Individuals with Disabilities. Fixed-guideway includes transit rail, bus rapid transit, and ferry. MAP-21 made substantial changes to the New Starts Program, allowing program funds to be used for investments in existing fixed-guideway systems that increase the capacity of a corridor by at least 10%. These types of projects are termed "core capacity improvement projects." Specific issues that may come up as Congress considers extending or reauthorizing the programs include funding levels and revenue sources (particularly as they relate to the highway trust fund), problems with the Bus and Bus Facilities Program, support for operating expenditures, privatization, the operation of the New Starts program, and special-needs paratransit. All of these assessments estimate a substantial gap between current levels of public transportation capital spending and the amount required to prevent an overall deterioration in the condition of public transportation assets and ultimately operational performance. Use of the Highway Trust Fund

Traditionally about 80% of the funding for the federal public transportation program has come from the mass transit account of the highway trust fund and about 20% from the general fund of the U.S. Treasury. Outlays from the mass transit account have outpaced receipts over the past few years, an imbalance the Congressional Budget Office (CBO) projects will continue in the future under current law. The primary revenue source for the highway trust fund is the fuels tax. The tax was last raised in 1993. Because of the imbalance between receipts and outlays, a more sustainable solution for the mass transit account would have to involve a cut in program spending, an increase in revenues paid in to the account, or a combination of the two. Because of the serious budget problems faced by many transit agencies whose local revenue sources have been squeezed, there has been pressure to increase the availability of federal funding for operating expenditures.
The federal public transportation program, administered by the Federal Transit Administration (FTA), is the primary means by which the federal government funds and regulates public transportation, such as local buses, subways, and ferries. The program was reauthorized through FY2014 as part of the Moving Ahead for Progress in the 21st Century Act (MAP-21; P.L. 112-141) and extended through May 31, 2015, as part of the Highway and Transportation Funding Act of 2014 (P.L. 113-159). Funding was authorized at $10.6 billion in FY2013 and $10.7 billion in FY2014, with the extension continuing the FY2014 level of funding for eight months. About 80% of the funding for the federal public transportation program comes from the mass transit account of the highway trust fund and about 20% from the general fund of the U.S. Treasury, although the mass transit account, itself, has received transfers from the general fund, including $4.8 billion in FY2010 and another $4.0 billion in FY2014.
MAP-21 simplified the structure of the public transit program by eliminating some programs and consolidating others. The law also recast some discretionary programs as formula programs, strengthened FTA's role in safety oversight, and introduced performance management into the planning process. FTA's six major funding programs and their authorized funding shares are (1) Urbanized Area Formula, 42%; (2) State of Good Repair (SGR), 20%; (3) New Starts, 18%; (4) Rural Area Formula, 6%; (5) Bus and Bus Facilities Formula, 4%; and (6) Enhanced Mobility of Seniors and Individuals with Disabilities, 2%.
The authorization of the public transportation program expires May 31, 2015. Extension or reauthorization legislation will be considered in the context of a federal budget deficit that has put pressure on many areas of federal spending, including public transportation assistance. Some Members of Congress have urged that transit spending be supported mostly at the local level. Others argue for higher federal spending to address a backlog of capital expenditures, growing transit and paratransit ridership, and the desirability of encouraging use of public transportation. There has also been pressure to increase federal support of operating expenditures due to budget problems at the local level.
An obstacle to greater federal spending, however, is the condition of the highway trust fund. Over the past few years the revenue flowing to the mass transit account has been less than its outlays, a situation that is expected to continue under current law. The primary revenue source for the highway trust fund, the fuels tax, was last raised in 1993. The precarious situation of the mass transit account may require some action before the end of FY2015, depending on the actual amounts of revenue and outlays, but action will almost certainly be needed in FY2016 and beyond. This might involve a cut in program spending, an increase in revenues paid in to the account, or another transfer from the general fund.
Other issues that may come up in the debate are privatization and the operation of the New Starts program. Privatization, such as competitive contracting, is frequently touted as a means of controlling costs and improving quality in public transportation. Consequently there have been proposals in Congress for the federal government to promote greater private-sector involvement, and these might come up again in reauthorization. MAP-21 made several changes to the New Starts program to speed project delivery and to allow spending on expanding existing transit rail and other fixed guideway systems. How well these changes work may be an issue in reauthorization, as might the types of projects funded, particularly streetcar and bus rapid transit projects.