FTA Proposes Faster Rules for Big Transit Project Funding
Published Date: 10/1/2026
Notice
Summary
The Federal Transit Administration is updating the rules for its Capital Investment Grants program, which helps fund big public transit projects. These changes aim to make the process faster, clearer, and hold project sponsors more accountable. If you’re involved in transit projects, get ready—comments are open until November 16, 2026, and the new rules will apply right away with no exceptions.
Analyzed Economic Effects
15 provisions identified: 3 benefits, 6 costs, 6 mixed.
Higher Local Funding Required Before Engineering
For New Starts and Core Capacity projects, sponsors must obtain commitments of at least 50% of all non-CIG (local/non-Federal) funds prior to applying for entry into the Engineering phase. This raises the prior requirement from 30% to 50% for those project types; Small Starts already require 50% but on a three-year timeline.
Formal Method to Calculate Federal CIG Share
FTA will adopt a formal methodology to calculate and lock in a project's Federal CIG percentage share at entry into Engineering. All New Starts and Core Capacity projects with an overall rating of 'Medium' or higher start at a 40% CIG share, with upward or downward adjustments tied to ratings on six Project Justification criteria (e.g., cost-effectiveness). The calculated share is capped at the statutory maximum and is locked at Engineering.
Demographic Boosts Can Increase CIG Share
FTA proposes additional boosts to a project's CIG percentage share based on corridor birth and marriage rates: +5 percentage points if the corridor birth (or marriage) rate is more than 1% above the national average; +3 points if equal to or up to 1% higher; +1 point if within 1% below the national average. Birth and marriage boosts can add up to 10 percentage points total.
Final Guidance Will Apply Immediately
FTA says the final Capital Investment Grants (CIG) Policy Guidance will be effective immediately when published on the FTA website and there will be no grandfathering for projects already in the CIG pipeline. Comments on the proposed guidance must be received by November 16, 2026.
New Early Project Development Deadlines
Within three months of entering Project Development, sponsors must submit FTA's documented NEPA class of action and a ridership data collection/on-board survey plan (required for New Starts and Core Capacity; encouraged for Small Starts). Within one year, sponsors must update project cost/scope/schedule, complete at least 15% design, and list needed third-party agreements with schedules.
Allow Non-CIG Federal Funds and Expanded Pre-Award Work
FTA will allow project sponsors to use non-CIG Federal funds (subject to their program rules) for pre-award authority activities (previously only local funds were allowed). FTA also proposes expanded full pre-award authority including construction under certain conditions for projects seeking a total Federal share of less than or equal to 25% and meeting project-justification thresholds. Letters of No Prejudice (LONPs) would be limited to five years unless extended.
Annual Engineering Progress Updates Required
During the Engineering phase, project sponsors must submit an annual update to FTA Headquarters including refined scope, schedule, total cost estimates, status of non-CIG funding commitments, and critical third-party agreements. If sufficient progress is not demonstrated annually, FTA may remove the project from the CIG program; sponsors may reapply after addressing deficiencies.
Unified Cost-Effectiveness Metric and Breakpoints
FTA will standardize the cost-effectiveness metric for New Starts, Core Capacity, and Small Starts to 'annual capital and operating & maintenance (O&M) cost per linked transit trip.' New unified breakpoints would apply: High < $8.00 per trip; Medium-High $8.00–$9.99; Medium $10.00–$12.99; Medium-Low $13.00–$19.99; Low > $20.00.
Enrichments Narrowed, Safety Added, Applicability Expanded
FTA proposes to remove current enrichments except Joint Development, add transit safety and security as a new enrichment category, and allow enrichments to be used by New Starts, Small Starts, and Core Capacity projects. Previously some enrichments applied only to New Starts.
Warrants Expanded to All Project Types
FTA proposes to allow Project Justification warrants (pre-qualification that yields automatic Medium ratings on certain criteria) to be available to New Starts, Small Starts, and Core Capacity projects if they meet defined cost and ridership thresholds. Projects with total capital cost of $600 million or higher would continue to be ineligible for warrants.
Must Start NEPA Before Project Development Entry
Project sponsors will be required to include documentation showing they initiated the National Environmental Policy Act (NEPA) review before requesting entry into Project Development. NEPA initiation may include early scoping, environmental linkages, or formal NEPA initiation.
30-Day Deadline for Entry Request Completeness
When a sponsor requests entry into Project Development, they must provide all listed required information within 30 days of submitting the initial request. If the request is still incomplete after 30 days, FTA will no longer consider it and the sponsor must submit a new complete request.
No CEO Signature on TAM Progress Statement
FTA will no longer require a signed statement from the agency CEO (Accountable Executive) describing progress toward Transit Asset Management (TAM) performance targets. Sponsors still must provide an up-to-date TAM plan and narrative report from the National Transit Database.
Economic Development Subfactors Reweighted
FTA will change economic development weighting: supportive zoning and performance/impact of transit-supportive plans each increase to 40% of the economic development rating, while tools to maintain or increase affordable housing share in station areas drop to 20%.
Remove 'Access to Essential Services' Land Use Subfactor
FTA proposes to remove the 'access to essential services' subfactor from the land use criterion because the Department of Homeland Security's HIFLD data source was discontinued. The other four land use subfactors remain and will keep equal weighting at 25% each.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-17904, National Environmental Policy Act Regulations
FHWA, FRA, and FTA (collectively referred to as the "Agencies") are finalizing the interim final rule (IFR) published on July 3, 2025, which revised the Agencies' National Environmental Policy Act (NEPA) of 1969 implementing regulations in light of the removal of the Council on Environmental Quality (CEQ) regulations, the amendments to NEPA included in the section of the Fiscal Responsibility Act (FR Act) of 2023, known as the Building United States Infrastructure through Limited Delays and Efficient Reviews (BUILDER) Act of 2023, amendments regarding efficient environmental reviews included in the Infrastructure Investment and Jobs Act (IIJA) of 2021, and the Supreme Court decision in Seven County Infrastructure Coalition. The Agencies provided a 30-day comment period for the public to review and comment on the IFR. This final rule addresses public comments received and finalizes the IFR with minor technical changes.
2026-08144, Administrative Rulemaking, Guidance, and Enforcement Procedures
The Department of Transportation is bringing back and improving its rules for making new policies, giving guidance, and enforcing laws. This affects anyone involved in transportation regulations, making the process clearer and more consistent. These changes kick in on May 27, 2026, aiming to save time and avoid confusion without adding extra costs.
2026-16812, Supplemental Notice of Partial Buy America Waiver for Minibuses
On December 20, 2024, the Federal Transit Administration (FTA) published a notice of proposed Buy America waiver for certain battery- electric minibuses. FTA has not made a final decision on the proposal. FTA is seeking supplemental comment as to whether FTA should remove the proposed requirement that the minibuses be battery-electric propulsion.
2026-15316, Fiscal Year (FY) 2026 Bus Safety, Accessibility, and Innovation Research Program
The Federal Transit Administration (FTA) announces the opportunity to apply for $10 million in competitive funds for the Fiscal Year (FY) 2026 Bus Safety, Accessibility, and Innovation Research Program.
2026-15090, FY 2026 Competitive Funding Opportunity: Grants for Buses and Bus Facilities Infrastructure Programs
The Federal Transit Administration (FTA) announces the opportunity to apply for $610 million in competitive grants for the Fiscal Year (FY) 2026 Grants for Buses and Bus Facilities Program and Low or No Emission Grant Program; jointly referred to as the Grants for Buses and Bus Facilities Infrastructure Programs.
2026-13907, FY 2026 Competitive Funding Opportunity: Innovative Coordinated Access and Mobility
The Federal Transit Administration is offering about $12 million in grants for 2026 to help communities create smarter, easier ways for people to get around. If you’re part of a local transit group or organization, you can apply by September 9, 2026. This funding aims to boost innovative projects that connect different types of transportation and make travel smoother for everyone.
Previous / Next Documents
Previous: 2026-20176, Information Collection Requirement; Defense Federal Acquisition Regulation Supplement; Covered Defense Telecommunications Equipment or Services
The Department of Defense is updating how businesses report on certain telecom gear to keep our military communications safe from foreign threats. If you sell or provide services to the DoD, you’ll need to keep sharing info about covered equipment to help protect national security. This update extends current rules with no new costs but keeps the paperwork flowing smoothly through 2026.
Next: 2026-20185, Certain DHS Immigration-Related Fees Required by HR-1: Fiscal Year 2027 Adjustments for Inflation
Starting October 16, 2026, some immigration fees will go up a bit to keep up with inflation. This affects people using parole into the U.S., travel authorizations (ESTA), and visa updates (EVUS). The fee for the I-94 Arrival/Departure Record stays the same this year, so no surprises there!