Over the past 10  fiscal years, FTA has provided states, cities, and other localities with  almost $18 billion in federal funding to plan and build new projects  through this program. Within the Capital Investment  Grant program, project sponsors have typically applied for funding as  either a New Starts or a Small Starts project. For example, MAP-21 reduced the number of phases in the  process that projects must follow to be eligible for and receive federal  funding. In addition, MAP-21 created a  new category of eligible projects called Core Capacity Improvement  projects, which are substantial corridor-based capital investments in  existing fixed-guideway systems that increase the capacity of a corridor  by at least 10 percent in a corridor that is at or above capacity today or is  expected to be within 5 years. Small Starts projects. As shown in table 1, FTA  has issued policy guidance outlining the new review and evaluation  process and criteria for New Starts, Small Starts, and Core Capacity  Improvement projects and also provided project sponsors with  instructions on how they can request to pre-qualify for a satisfactory rating  based on the characteristics of their project, otherwise known as  warrants. Issuing Rules for Evaluating and Rating Projects

FTA has promulgated new rules for the Capital Investment Grant program  but plans to initiate the rulemaking necessary to fully implement the  changes MAP-21 made to the program in the future. FTA officials told us they plan to address the  remaining requirements of MAP-21 and now the Fast Act in future  rulemaking. Selected Project Sponsors Expressed Support for MAP-21 Changes to the Capital Investment Grant Program and FTA’s Implementation of Those Changes

The selected project sponsors we contacted were generally supportive of  the changes MAP-21 made to the Capital Investment Grant program and  of FTA’s implementation of the changes. In addition, while the number of projects in the Capital  Investment Grant program has increased by about 70 percent since 2012,  project sponsors also told us it was too early to tell the extent to which the  MAP-21 changes will help expedite projects through the program. Project Sponsors Generally Support the MAP-21 Changes but Are Concerned about Some Changes’ Potential Effects

A prevalent theme from our discussions with representatives from 13  project sponsors was that they generally support changes—such as: (1)  streamlining the project development process, (2) establishing Core  Capacity Improvement projects as a new category of eligible projects, (3)  instituting a 2-year requirement for New Starts and Core Capacity  Improvement projects to complete Project Development, and (4) revising  the evaluation and rating process, that MAP-21 made to the Capital  Investment Grant program. Representatives from 9 of the 13 project  sponsors we interviewed told us that the changes streamlined the project  development process by decreasing the number of time-consuming  reviews FTA undertakes or by eliminating what these representatives  considered to be burdensome requirements, such as the alternatives  analysis requirement under SAFETEA-LU. Representatives from one project sponsor said the addition of these  projects is a positive development because these projects give project  sponsors options to increase the capacity of a system as ridership  increases, while two others noted that the addition of Core Capacity  Improvement projects expands project eligibility for projects that would  likely not have rated favorably under New Starts criteria. Selected Project Sponsors Generally Support FTA’s Efforts in Implementing the MAP-21 Changes

Representatives from 11 of 13 project sponsors indicated that they were  generally satisfied with FTA’s implementation of the MAP-21 changes. For example, representatives from four project sponsors said that FTA  has made a good effort to listen to and incorporate many of the  recommendations offered by project sponsors. Although project sponsors were generally satisfied with FTA’s efforts thus  far, they pointed out that not all MAP-21 changes, such as the programs  of interrelated projects provisions, have been implemented yet. Appendix I: Objectives, Scope, and Methodology

This report discusses: (1) the Federal Transit Administration’s (FTA)  progress in implementing changes the Moving Ahead for Progress in the  21st Century Act (MAP-21) made to the Capital Investment Grant  program and (2) how selected project sponsors view the MAP-21  changes and FTA’s implementation of those changes. These project sponsors represent 7 New  Starts projects, 8 Small Starts projects, and 2 Core Capacity  Improvement projects, as well as different rail modes (heavy rail, light rail,   commuter rail) and both bus rapid transit and streetcar projects, as shown  in table 2. GAO-13-40. Public Transportation: Preliminary Information on FTA’s Implementation  of SAFETEA-LU Changes.
Why GAO Did This Study

FTA's Capital Investment Grant program provides roughly $2 billion in appropriated funds each year to help states, cities, and localities plan and build new or extensions to existing fixed-guideway transit systems. Under this program, project sponsors—usually local transit agencies—have typically applied for their projects to receive federal funding as either a New Starts or a Small Starts project. In 2012, MAP-21 created a new category of eligible projects called Core Capacity Improvement projects and also revised the process proposed projects must follow to be eligible for and receive federal funding.
MAP-21 included a provision for GAO to biennially review FTA's and the Department of Transportation's implementation of this program. This report discusses: (1) FTA's progress in implementing changes to the program required by MAP-21 and (2) how selected project sponsors view the MAP-21 changes and FTA's implementation of those changes. To conduct this review, GAO reviewed the relevant provisions of pertinent laws and FTA's policy guidance, interviewed FTA officials and representatives from 13 project sponsors representing 17 of 52 projects participating in the program, and visited the sites of two Core Capacity Improvement projects. Project sponsors and locations visited were selected based on previous experience in the program, among other things.
In written comments, DOT emphasized its commitment to improve and streamline the Capital Investment Grant program.

What GAO Found

The Federal Transit Administration (FTA) has implemented most of the key changes the Moving Ahead for Progress in the 21st Act (MAP-21) made to the Capital Investment Grant program, which helps fund investments in new public transit systems or extensions to existing systems. Projects funded under this program fall into different categories, depending on the total project's cost and the amount of federal funding requested. For example, under MAP-21, New Starts projects had capital costs that were $250 million or greater while Small Starts projects had capital costs that were less than $250 million. As required by MAP-21, FTA has issued guidance outlining the new review and evaluation process for New Starts and Small Starts projects—as well as Core Capacity Improvement projects, which is a new category of eligible projects MAP-21 created and which are designed to increase the capacity of an existing system. In addition, FTA has informed project sponsors how they can pre-qualify for a satisfactory rating based on the characteristics of their projects. FTA officials said they plan to address the remaining requirements, such as completing the rulemaking to fully implement the MAP-21 provisions, over the next 2 years.
The 13 project sponsors GAO contacted—representing 7 New Starts projects, 8 Small Starts projects, and 2 Core Capacity Improvement projects—were generally supportive of the changes MAP-21 made to the Capital Investment Grant program, as well as FTA's implementation of the changes.
Representatives from 9 of 13 project sponsors indicated that the MAP-21 changes streamlined the Capital Investment Grant program's project development process, such as by reducing the number of time-consuming FTA reviews.
Of the three project sponsors that indicated they had an opinion on the addition of Core Capacity Improvement projects as a new category of projects, all were supportive, with representatives from one noting, for example, that this change gives them options to increase the capacity of existing systems as ridership increases. Such projects could include lengthening rail platforms to accommodate additional train cars or to reduce platform overcrowding.
Also, representatives from 11 of 13 project sponsors supported FTA's implementation efforts, noting, for example, that FTA has taken steps to listen to and incorporate many of the recommendations offered by project sponsors in implementing the MAP-21 changes.
While project sponsors raised some concerns about the potential impact certain changes—such as limiting the amount of time New Starts and Core Capacity Improvement projects can spend in Project Development—might have on project sponsors in the future, they also acknowledged that not all the MAP-21 changes have been implemented yet. While participation in the program has increased substantially—by 70 percent—since the enactment of MAP-21, both project sponsors and FTA officials pointed out that it is too early to tell what impact the changes will ultimately have on the Capital Investment Grant program—including if the changes will help expedite projects through the program.