U. S. Transportation Secretary Elaine Chao said the U. S. Department of Transportation’s Federal Transit Administration will allocate a total of $25 billion in federal funding to help the public transportation system respond to COVID-19.
The funding, provided through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, would provide grants to recipients of urbanized area and rural area formula funds to be used for capital, operating and other expenses the recipients may need them form.
“This historic $25 billion in grant funding will ensure our nation’s public transportation systems can continue to provide services to the millions of Americans who depend on them,” Chao said.
Urban areas would be allocated $22.7 billion, while rural areas would be allocated $2.2 billion. The money could be used to cover operating expenses incurred since January 20, 2020. Recipients could also use the money to pay for maintaining transit services, or for administrative leave for transit personnel forced to take time off because of reduced operations during an emergency.
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