	Introduction

The Capital Investment Grant (CIG) program, often referred to as New Starts, provides federal funds to public transportation agencies on a competitive basis for the construction of new fixed-guideway transit systems and the expansion of existing systems (49 U.S.C. Most CIG funding has gone for subway/elevated rail (heavy rail), light rail, or commuter rail projects. Many bus rapid transit projects are inexpensive enough to qualify as Small Starts projects. A third type of CIG project, eligible for funding since FY2013, involves expanding an existing fixed-guideway corridor to increase capacity by 10% or more. The CIG program is administered by the Federal Transit Administration (FTA) within the Department of Transportation (DOT). In December 2015, the program was reauthorized from FY2016 through FY2020 in the Fixing America's Surface Transportation (FAST) Act ( P.L. 114-94 ). Program Funding

The CIG program is one of six major funding programs administered by FTA, accounting for about 19% of FTA's budget ( Figure 1 ). Unlike FTA's other major programs, funding for CIG comes from the general fund of the U.S. Treasury, not the mass transit account of the Highway Trust Fund. For this reason, CIG funding is subject to appropriation each year. Moreover, the CIG program allocates discretionary grants to local transit agencies, whereas the other major programs apportion funding by formula. Program Characteristics

		Types of Eligible Projects

Four types of projects are eligible for CIG funding:
New Starts p rojects , involving construction of an operable segment of a new fixed-guideway system or an extension of an existing system that costs $300 million or more and receives $100 million or more in CIG funding. Small Starts p rojects , defined as a new fixed guideway project or a corridor-based BRT project that costs less than $300 million and receives less than $100 million of CIG funding. Program of Interrelated p rojects , the simultaneous development of two or more New Starts, Small Starts, or Core Capacity projects, or a combination thereof. Key Policy Issues

		Federal Role in Funding Major Capital Projects

The CIG program has not been without controversy. No comprehensive benefit-cost studies of completed CIG projects have been conducted to evaluate the relative success of the CIG program as federal policy. (See Appendix for more details of the legislative and regulatory changes in the CIG program.) Legislative changes in MAP-21 and the FAST Act have sought to speed the development of CIG projects. The final interim policy guidance addressed four topics not previously addressed in the regulations or policy guidance: 
(1) the measures and breakpoints for the congestion relief criterion applicable to New Starts and Small Starts projects; (2) the evaluation and rating process for Core Capacity Improvement projects, including the measures and breakpoints for all the project justification and local financial commitment criteria applicable to those projects; (3) the prerequisites for entry into each phase of the CIG process for each type of project in the CIG program, and the requirements for completing each phase of that process; and (4) ways in which certain New Starts, Small Starts, and Core Capacity Improvement projects can qualify for ''warrants'' entitling them to automatic ratings on some of the evaluation criteria.
The Capital Investment Grant (CIG) program, often called New Starts, is a discretionary funding program for the construction of new fixed-guideway public transportation systems and the expansion of existing systems. Eligible projects include transit rail, including subway/elevated rail (heavy rail), light rail, and commuter rail, as well as bus rapid transit (BRT) and ferries.
The CIG program is one element of the federal public transportation program that is administered by the Federal Transit Administration (FTA) within the Department of Transportation (DOT). In December 2015, the CIG program was reauthorized from FY2016 through FY2020 as part of the Fixing America's Surface Transportation (FAST) Act (P.L. 114-94). Funding is authorized at $2.3 billion per year, or about 19% of the overall federal public transportation program budget. Unlike FTA's other major programs, funding for the CIG program comes from the general fund of the U.S. Treasury, not the mass transit account of the Highway Trust Fund. CIG funding, therefore, is subject to appropriation each year. The CIG program allocates discretionary grants, whereas the other major programs apportion funds by formula.
There are four types of CIG projects:
New Starts, an operable segment of a new fixed-guideway system or an extension of an existing system that costs $300 million or more and receives $100 million or more in CIG funding. Small Starts, a new fixed-guideway project or a corridor-based BRT that costs less than $300 million and receives less than $100 million of CIG funding. Core Capacity, expansion of an existing fixed-guideway corridor to increase capacity by 10% or more. Program of Interrelated Projects, the simultaneous development of two or more New Starts, Small Starts, or Core Capacity projects, or a combination thereof.
The five key policy issues with the CIG program are the federal role in funding major transit projects, program funding, the types of projects supported, project delivery speed, and private involvement in project delivery. Although disagreements exist about federal involvement in major public transportation capital projects through the CIG program, and the appropriate level of CIG funding, no comprehensive benefit-cost studies are available on completed CIG projects to evaluate the relative success of the CIG program as federal policy.
Legislative and regulatory changes to the CIG program over the past decade have led to federal support of more BRT and streetcar projects. Critics have questioned whether some of these projects, particularly streetcars, provide enough transportation benefits to justify the costs. Legislative changes have also sought to reduce the time it takes for projects to be developed and constructed. Little is known about whether these changes have been effective. Private involvement in CIG projects through public-private partnerships (P3s) has been encouraged in federal law for many years, including changes introduced in the FAST Act. To date, however, only a few public transportation P3s involving private-sector funding have been formed.