Section 5311 provides funding for public transportation in non-urbanized areas. Funds are apportioned to the states according to a statutory formula based on each state's population in rural and small urban areas (under 50,000 population).
Capital and administrative expenses are funded at up to 80% of net project costs, while operating expenses are funded at up to 50% of net project costs. Eligible recipients include public bodies and private nonprofit organizations. Each state must spend 15% of its appropriation for the support of intercity bus transportation, unless the governor certifies that the intercity bus transportation needs of the state are adequately met.
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