There are other options for federal assistance to deal with the Metropolitan Transportation Authority’s request for a second CARE COVID-19 $12 billion bailout from Washington by using already available Federal Transit Administration funding. The same is true for U.S. Sen. Chuck Schumer’s request for a second reduced $4 billion CARE COVID-19 bailout he announced at his most Sunday press conference.
On Dec. 11, the Federal Transit Administration extended the eligibility for formula funding under the Emergency Relief Program to be used to pay for operating expenses. Funding may now cover operating expenses related to COVID-19 recovery through Jan. 20, 2022 at 100 percent federal share. This could result in an additional $1.5 billion in federal fiscal year 2022 funds that could also be programmed toward capital improvements and operating deficits as a result of COVID-19.
The Federal Transit Administration previously issued guidance on March 13 that gave all transit agencies, including the MTA, permission to reallocate federal funding from capital projects in existing grants. These funds could go toward COVID-19 capital and operating expenses. This applied retroactively to $1.4 billion in federal fiscal year 2018 and $1.4 billion more in federal fiscal year 2019 funds in grants that have not yet been spent. Expansion of the permissible uses of federal funds allowed transit providers the flexibility they need to deal with the virus. Invoking the eligibility of the Emergency Relief Program also provide funds at a higher federal share within approved grants.
The FTA made available $1.4 billion worth of annual formula funding in 2020. There is no indication that the MTA ever programmed any of these funds or available balances from 2018 or 2019 toward COVID-19 capital and operating expenses. The MTA has never conducted a forensic audit of the $12 billion in active open FTA grants to see what might be available to use toward COVID-19 expenses. The MTA previously received and spent $3.9 billion in CARE COVID-19 funding earlier this year.
Upon adoption of a budget for the full federal fiscal year 2021 (Oct. 1, 2020 – Sept. 30, 2021), an additional $1.5 billion in 2021 FTA funds will become available. The MTA can also program these funds toward covering capital improvements and operating deficits as a result of COVID-19.
Since March, it appears that the MTA has not taken advantage of this funding flexibility from Washington.
Larry Penner
Great Neck
(Larry Penner is a transportation advocate, historian and writer who previously worked 31 years for the Federal Transit Administration Region 2 NY Office. This included the development, review, approval and oversight for billions of dollars in grants which provided funding for capital projects and programs to the MTA, LIRR, New Jersey Transit and over 30 transit agencies within New York State) .
