A purpose of the program  was to improve low-income individuals’ ability to access jobs and job- related needs by providing grants to states and localities for the provision  of additional or expanded transportation services. FTA apportioned dedicated program funds to states for  projects in small urbanized and rural areas, and to large urbanized areas,  based on a statutory formula. Specifically, the statute consolidated  eligible JARC activities into the existing Urbanized Area Formula Program  (urban transit program) and Formula Grants for Rural Areas Program  (rural transit program). FTA Issued Guidance and Conducted Outreach to Communicate That JARC Activities Remain Eligible for Federal Funding

FTA communicated changes that MAP-21 made to public transportation  programs, including the JARC program, to designated recipients through  program guidance and outreach. Initially, FTA issued a Federal Register  notice regarding FTA transit program changes in October 2012. The  notice provided interim guidance and emphasized that under MAP-21,  activities that were funded through the former JARC program are eligible  under the urban transit program and the rural transit program. After the 2012 consolidation, DOT applied all of the JARC eligibility  requirements and existing activities in the urban transit program and rural  transit program. FTA issued circulars with the  final MAP-21 program guidance in 2014. Additionally, FTA  officials stated that headquarters and regional FTA officials made  themselves available through conferences, or other means such as  telephone calls or e-mail, to answer questions or concerns regarding the  consolidation and its potential impacts on JARC activities. In Arizona, an official with a  selected subrecipient said he learned about the JARC program  changes through its metropolitan planning organization’s committee  meeting. Of the 34 total selected recipients we interviewed, 22 stated they found  the guidance provided to them, either from FTA directly or through their  respective designated recipients, to be sufficient and effective in  communicating program changes. Selected Recipients Continue to Provide JARC Activities, but the Full Impact of Statutory Changes Is Unclear

Almost all (30 of 34) selected recipients reported that they have continued  providing JARC activities, such as transportation services, that were  started prior to the 2012 MAP-21 consolidation. Selected Recipients Stated That to Date, They Have Continued Funding and Providing JARC Activities

Of the 34 selected recipients we interviewed, 30 had continued JARC  activities, such as ongoing transit service, started prior to the MAP-21  changes. Overall federal transit formula funding amounts were  unchanged: None of the 19 selected designated recipients we  interviewed reported a significant overall change to their annual FTA  formula funding allocations attributable to the statutory changes. JARC activities integrated into existing transit services: Half of  selected recipients (17 of 34) reported that their JARC program  funded activities fulfilled a variety of citizens’ transportation needs,  encouraging the providers to continue those JARC activities using  alternate funding sources after the 2012 statutory changes. Selected JARC Recipients Identified Some Ongoing Funding and Service Challenges, as well as Possible Methods for Addressing Challenges

Selected recipients reported facing service and funding challenges in  continuing JARC activities after the statutory changes in 2012. For example, many  noted that they have had difficulty competing for funds against other  public services. It Is Too Soon to Determine the Full Impact of Statutory Changes on JARC Activities

A substantial amount of dedicated JARC funds apportioned in 2012 and  earlier under SAFETEA-LU remains unspent. According to FTA data, as  of February 2017, there are approximately 265 federally funded JARC  program grants accounting for about $147.9 million still open with funds to  expend. For  those with dedicated funding still available, they may not yet have faced  the decision of whether to continue to fund—or at what level to fund— eligible JARC activities under the urban or rural transit program, whether  to fund other eligible activities under those programs, or whether to seek  additional nonfederal funds to continue their eligible JARC activities. Officials from 7 of the 17 selected recipients that have already expended  all of their dedicated funds stated that they are uncertain whether they will  be able to obtain long-term funding to continue to support JARC activities  into future years. Agency Comments

We provided a draft of this report to DOT for comment. DOT had no  comments on this report.
Why GAO Did This Study

Established in 1998, the JARC program, which was administered by FTA, provided grants to states and localities for improving the mobility of low-income individuals to and from jobs and employment-related activities. In 2005, statute changed JARC into a formula program with dedicated funds apportioned by FTA. Then in 2012, MAP-21 repealed and consolidated the JARC program. However, activities previously funded through the JARC program are still eligible for funding through other programs administered by FTA.
The Fixing America's Surface Transportation Act included a provision for GAO to examine the impact of changes that MAP-21 had on public transportation. This report examines: (1) how FTA communicated the 2012 statutory changes to JARC activities to transit providers and (2) whether and how selected states and transit providers have continued to fund and provide JARC activities since the 2012 statutory changes. GAO reviewed FTA program guidance. GAO interviewed FTA officials and 34 selected recipients of JARC funding, including transportation officials and transit providers, from six states (Arizona, Michigan, Mississippi, Oregon, Texas, and Virginia). GAO judgmentally selected these JARC recipients for interviews to represent diverse geographic locations, including large-urban, small-urban, and rural funding areas within each state, among other factors.
GAO provided a draft of this report to DOT for comment. DOT had no comment on this report.

What GAO Found

The Federal Transit Administration (FTA) communicated changes that Moving Ahead for Progress in the 21st Century Act (MAP-21) made to public transportation programs, including the Job Access and Reverse Commute (JARC) program, to designated recipients through program guidance and outreach. For example, in an October 2012 Federal Register notice, FTA addressed the consolidation of the JARC program and its eligible activities (JARC activities) into the existing Urbanized Area Formula Program (urban transit program) and the Formula Grants for Rural Areas Program (rural transit program). Additionally, in 2014, FTA issued final guidance on JARC activities allowed under the urban and rural transit programs. In addition to written guidance, FTA officials offered webinars and made staff available via in-person meetings, calls, and e-mail messages to answer any questions or concerns about the 2012 program change. Of the 34 selected JARC recipients (selected recipients) GAO interviewed, most (22) stated that they found the guidance provided to them, either by FTA directly or by other means, to be sufficient and effective in communicating program changes.
Most of the selected recipients we interviewed (30 of 34) said that they have continued to provide some level of JARC activities after the 2012 statutory changes. Selected recipients cited several reasons why they continue—or plan to continue—providing JARC activities, including:
recipients still have remaining dedicated JARC funds,
overall federal transit formula amounts were unchanged, and
JARC activities have already been integrated into existing transit services.
The 34 selected recipients GAO interviewed also identified an array of challenges in continuing their JARC activities. All but one of the selected recipients specified funding challenges related to MAP-21 changes. In particular, 21 selected recipients reported JARC activities had difficulty competing against other public services, including transit services, for funds, and 17 reported year-to-year funding allocations for continued JARC activities could change. In addition, 25 selected recipients specified service challenges linked to the location of low-income housing and employment centers. GAO found that it is too soon to determine the full impact of the statutory changes on JARC activities. This finding is in part due to the number of grant recipients and subrecipients still spending dedicated funds apportioned before the 2012 statutory changes. Half of the 34 selected recipients GAO interviewed reported that they were still spending dedicated JARC funds, and recent FTA data indicate that as of February 2017, there were approximately 265 active program grants funding JARC activities. Officials from 7 of the 17 selected recipients that have already expended all of their JARC program funding stated that they are uncertain whether or not they will be able to obtain long-term funding to continue to support JARC activities into future years.