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United States Government Accountability Office: 
GAO: 

Report to the Committee on Banking, Housing, and Urban Affairs, U.S. 
Senate: 

February 2008: 

Emergency Transit Assistance: 
Federal Funding for Recent Disasters, and Options for the Future: 

GAO-08-243: 

GAO Highlights: 

Highlights of GAO-08-243, a report to the Committee on Banking, 
Housing, and Urban Affairs, U.S. Senate. 

Why GAO Did This Study: 

Major disasters can disrupt transit operations, destroy vehicles and 
facilities, and impede the ability of people to reach essential relief 
and medical services and return to their homes and jobs. GAO determined 
(1) the federal role in assisting transit agencies after a major 
disaster; (2) the amounts, sources, and uses of federal disaster 
assistance for transit since 1998; (3) the factors that affected the 
timeliness and effectiveness of transit assistance after the 2005 Gulf 
Coast hurricanes; and (4) additional options for providing assistance 
to transit after a major disaster. GAO reviewed laws, regulations, and 
guidance; analyzed DOT and FEMA data; and interviewed officials with 
FEMA, DOT, state and local agencies, and others. 

What GAO Found: 

The federal government provides transit services and assists transit 
agencies after a major disaster, primarily through two federal 
agencies—the Department of Homeland Security’s Federal Emergency 
Management Agency (FEMA) and the Department of Transportation’s (DOT) 
Federal Transit Administration (FTA). FEMA is authorized to provide 
emergency transportation services under the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (the Stafford Act). FTA administers 
federal support for transit but does not have a specific ongoing 
program or funding to help restore transit after disasters. 

FEMA and FTA have provided approximately $5.0 billion in disaster 
assistance to fund transit services and assist transit agencies since 
1998, primarily through supplemental appropriations. The agencies 
provided nearly $4.7 billion to New York City after the terrorist 
attacks of September 11, 2001, primarily to rebuild destroyed transit 
infrastructure, and another $232 million after the 2005 Gulf Coast 
hurricanes, largely to provide transit services for displaced 
populations. FEMA and FTA have also provided at least $51 million for 
other disasters since 1998. FEMA’s database for its Public Assistance 
program does not have the capability to sort transit projects from 
other projects. GAO took steps to identify this funding, but the 
information presented should be considered minimum amounts. Additional 
funds may have been dedicated for transit purposes. GAO believes the 
magnitude of uncertainty is small compared with the $5.0 billion in 
assistance for transit. 

After the 2005 Gulf Coast hurricanes, FEMA and FTA faced challenges 
that impeded both the timeliness and effectiveness of their assistance 
to transit. Although the Stafford Act authorizes federal assistance to 
meet emergency needs, neither FEMA nor FTA had mechanisms to provide 
transit funding immediately after the disasters. FEMA also lacked 
guidance on the types of transit services it would fund and criteria 
for determining the duration of funding. As a result, funding approvals 
after the 2005 Gulf Coast hurricanes took from 1 month to as long as 4 
months, and FEMA ended funding even though transit agencies in 
Louisiana and Mississippi believed that they had continuing needs. 

Additional options exist—at the state, local, and federal levels—for 
providing assistance to transit after a major disaster. At the state 
and local levels, mutual aid agreements between states and others can 
direct needed resources to transit agencies following a disaster. 
Existing programs and temporary authorities that Congress had provided 
to DOT also suggest options, including giving FTA permanent authority 
to allow transit agencies to use existing grant funds for disaster 
recovery. As another option, Congress could establish an emergency 
relief program for FTA, similar to the DOT program for highways, or 
expand the scope of the highway program to include transit. Such a 
program could include “quick release”—a mechanism used to approve and 
release emergency highway funds within 1 to 2 days. Each of these 
options has advantages, such as expedited release and better targeting 
of funds, and consequences, such as potentially increased costs to the 
federal government. 

What GAO Recommends: 

To promote timely and effective assistance to transit, FEMA should 
develop guidance on the types of transit services that it will fund 
after a disaster and criteria for the duration of funding. DOT should 
evaluate the feasibility of options to increase FTA’s authority to 
provide financial disaster assistance to transit, and seek legislative 
authority as appropriate. DHS and DOT generally agreed with the facts 
presented, and DHS stated it would take the recommendations under 
advisement. DOT agreed with the recommendations and said these options 
would be considered by FTA in developing DOT’s legislative proposal for 
reauthorizing surface transportation programs. 

To view the full product, including the scope and methodology, click on 
[hyperlink, http://www.GAO-08-243]. For more information, contact 
Katherine Siggerud at (202) 512-2834 or siggerudk@gao.gov. 

[End of section] 

Contents: 

Letter: 

Results in Brief: 

Background: 

FEMA and FTA Share Responsibility for Helping Transit Recover after a 
Disaster, but Funding Comes Primarily from FEMA: 

Federal Disaster Assistance for Transit Services Has Totaled about $5 
Billion since 1998: 

Lack of an Immediate Funding Mechanism and Funding Guidance and 
Criteria Affected Federal Transit Assistance after the 2005 Gulf Coast 
Hurricanes: 

Additional Options Exist for Providing Assistance for Transit after a 
Major Disaster: 

Conclusions: 

Recommendations for Executive Action: 

Agency Comments: 

Appendix I: Objectives, Scope, and Methodology: 

Appendix II: GAO Contact and Staff Acknowledgments: 

Tables: 

Table 1: Funding Amounts, Sources, and Uses of Federal Assistance 
Committed to State Transportation Departments and Transit Agencies for 
Major Disasters, since 1998: 

Table 2: Initial FEMA and FTA Emergency Public Transportation Projects 
in Lower Manhattan: 

Table 3: Transit Infrastructure Projects in Lower Manhattan: 

Table 4: Amounts and Uses of Mission Assignment Funding That DOT 
Awarded to Transit Agencies and State Transportation Departments: 

Table 5: Amounts and Uses of FTA's $35 Million Supplemental 
Appropriation for Hurricanes Katrina and Rita Transit Relief, by State: 

Table 6: Waivers and Conversions of Capital Grants to Operating Uses in 
Louisiana and Mississippi: 

Abbreviations: 

APTA: American Public Transportation Association: 

CTA: Coast Transit Authority: 

DHS: Department of Homeland Security: 

DOT: Department of Transportation: 

EMAC: Emergency Management Assistance Compact: 

ESF: Emergency Support Function: 

FEMA: Federal Emergency Management Agency: 

FHWA: Federal Highway Administration: 

FTA: Federal Transit Administration: 

MTA: Metropolitan Transit Authority: 

NEMIS: National Emergency Management Information System: 

NORTA: New Orleans Regional Transit Authority: 

PATH: Port Authority Trans-Hudson: 

SAFETEA-LU: Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users: 

[End of section] 

United States Government Accountability Office:
Washington, DC 20548: 

February 15, 2008: 

The Honorable Christopher J. Dodd: 
Chairman: 
The Honorable Richard C. Shelby: 
Ranking Member: 
Committee on Banking, Housing, and Urban Affairs: 
United States Senate: 

Major disasters or acts of terrorism can disrupt transit operations and 
destroy transit agencies' vehicles and facilities. The loss of transit 
can worsen the impact of a disaster by impeding a community's access to 
relief services, medical care, and jobs. For example, when multiple 
hurricanes struck the Gulf Coast in August and September, 2005, many 
thousands of residents left their homes and resettled in group sites 
established by FEMA that had no access to transit services. Tens of 
thousands more residents relocated to Baton Rouge, where the existing 
transit services were insufficient to meet the needs of the expanded 
population. Major disasters may exhaust the available financial 
capacity of transit agencies and state governments, precluding them 
from restoring or providing essential services on their own. Yet, the 
restoration or provision of transit services after a disaster can be 
crucial to recovery, allowing people to reach essential relief and 
medical services and return to their homes and jobs. 

Federal funding to help restore transit services after a disaster comes 
primarily from the Federal Emergency Management Agency (FEMA), within 
the Department of Homeland Security (DHS). FEMA was established to 
respond to disasters and emergencies. In carrying out its mission, FEMA 
supports emergency activities, including preparedness, response, 
recovery, and hazard mitigation. FEMA's authority to provide major 
disaster and emergency assistance to state and local governments and 
others was established by the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (the Stafford Act),[Footnote 1] which includes 
the authority to provide temporary public transportation services to 
meet emergency needs and to help communities resume their normal 
pattern of life as soon as possible.[Footnote 2] The Federal Transit 
Administration (FTA), within the Department of Transportation (DOT), 
administers federal programs that support public transit and may make 
funding available for transit services after a disaster. 

You asked us to evaluate the federal government's provision of 
assistance to transit operations in the wake of a major disaster, 
particularly after the 2005 Gulf Coast hurricanes. To do so, we 
determined (1) the role of the federal government in providing transit 
services and assisting transit agencies after a major disaster; (2) the 
amounts, sources, and uses of federal disaster assistance provided for 
transit since 1998; (3) factors that affected the timeliness and 
effectiveness of federal assistance for transit after the 2005 Gulf 
Coast hurricanes; and (4) additional options for providing transit 
services and assistance for transit after a major disaster. 

To address these objectives, we reviewed and analyzed relevant laws, 
regulations, and guidance on FEMA's and FTA's authorities and 
responsibilities in responding to disasters affecting transit, and we 
interviewed FEMA and FTA officials. In addition, to determine the 
amounts, sources, and uses of federal financial disaster assistance 
provided to transit agencies since 1998--the earliest date for which 
FEMA data were available--we reviewed and analyzed data from FEMA and 
FTA to quantify the agencies' disaster assistance funding. We were 
unable to reliably determine the total amounts provided for transit 
from FEMA's Public Assistance program because FEMA's database for this 
program information does not have the capability of sorting transit 
projects from other projects. The information we present in this report 
should be considered minimum amounts--additional funds may have been 
dedicated for transit purposes--and the steps we took to identify this 
funding are presented in appendix I. To identify factors that affected 
the timeliness and effectiveness of the assistance that was provided to 
transit agencies after the 2005 Gulf Coast hurricanes, we identified 
the procedures that FEMA and FTA used to provide disaster assistance 
for transit. We discussed these procedures with FEMA and FTA officials 
and with representatives from two state transportation departments, and 
selected major transit agencies affected by the hurricanes in Louisiana 
and Mississippi. We assessed FEMA's and FTA's performance and reviewed 
other documentation. To identify additional options for providing 
services and assistance to transit after a major disaster, we reviewed 
documents and interviewed selected officials from FTA, the American 
Public Transportation Association (APTA), the Community Transportation 
Association of America, and the Florida Department of Transportation. A 
more detailed discussion of our scope and methodology appears in 
appendix I. We conducted this performance audit from March 2007 through 
February 2008 in accordance with generally accepted government auditing 
standards. Those standards require that we plan and perform the audit 
to obtain sufficient, appropriate evidence to provide a reasonable 
basis for our findings and conclusions based on our audit objectives. 
We believe that the evidence obtained provides a reasonable basis for 
our findings and conclusions based on our audit objectives. 

Results in Brief: 

The federal government provides transit services and assists transit 
agencies after a major disaster, primarily through two federal 
agencies--FEMA and FTA. FEMA is the federal government's primary agency 
for disaster response. FEMA is also specifically authorized to provide 
public transportation services in areas affected by a major disaster as 
part of its authority under the Stafford Act. After the September 11, 
2001, terrorist attacks, FEMA received supplemental appropriations to 
the Disaster Relief Fund, which initially funded temporary facilities 
and services for the resumption of services after the attacks and, 
later, the construction of permanent subway and ferry terminals and 
other facilities. After the 2005 Gulf Coast hurricanes, FEMA provided 
financial disaster assistance to transit, primarily through (1) mission 
assignments (i.e., requests to another federal agency for specific 
services within that agency's functions) to fund transit operations in 
New Orleans and the Mississippi Gulf Coast, including supplemental 
transit services to temporary FEMA group sites and other places where 
displaced populations were living in Louisiana and Mississippi, and (2) 
Public Assistance program grants to transit agencies to repair or 
replace damaged equipment or facilities, such as maintenance facilities 
and passenger shelters. FTA administers a variety of grant programs to 
support urban and rural transit operations throughout the United 
States. FTA programs fund planning, vehicle purchases, facility 
construction, and other transit needs. However, FTA has no specific 
program or funding dedicated to disaster response or recovery. Instead, 
Congress has provided FTA with supplemental appropriations and other 
temporary authority to aid transit, as FTA did after the September 11 
terrorist attacks and after the 2005 Gulf Coast hurricanes. 

Since 1998, congressional appropriations to FEMA and FTA have provided 
approximately $5 billion for emergency transit services, rebuilding 
transit infrastructure, and assisting transit agencies in repairing 
facilities and replacing buses after disasters. About $4.7 billion of 
the $5 billion was provided in response to the September 11 terrorist 
attacks in New York City, and $232 million was provided in response to 
the 2005 Gulf Coast hurricanes. The differences in these two disasters 
also required different responses by FEMA and FTA--financial assistance 
in response to the September 11 attacks was mainly for funding new 
infrastructure, such as the commuter facilities at the World Trade 
Center site, while financial assistance after the 2005 Gulf Coast 
hurricanes was mainly for transit services for residents and evacuees. 
Funding for these two events came from supplemental appropriations to 
the Disaster Relief Fund--which supports FEMA's disaster relief 
programs, including programs FEMA used to fund transportation recovery-
-and to FTA for emergency transit needs. In addition to the funding 
provided in response to the September 11 terrorist attacks and the 2005 
Gulf Coast hurricanes, FTA provided $5 million in discretionary program 
funding to support expanded transit services in the Minneapolis area 
following the August 1, 2007, collapse of the I-35 bridge. FEMA has 
also provided at least $46 million, through its Public Assistance 
program to restore transit after other disasters since 1998. Table 1 
shows the amounts, sources, and uses of federal assistance provided to 
transit agencies for major disasters, since 1998. 

Table 1: Funding Amounts, Sources, and Uses of Federal Assistance 
Committed to State Transportation Departments and Transit Agencies for 
Major Disasters, since 1998 (Dollars in millions): 

Major disaster: September 11, 2001, terrorist attacks on the World 
Trade Center; 
Amount: $4,676[A]; 
Funding source: Supplemental appropriations to FTA and FEMA Public 
Assistance grants; 
Uses: To fund the reconstruction of transit and related infrastructure 
in New York. 

Major disaster: 2005 Gulf Coast hurricanes; 
Amount: $88; 
Funding source: FEMA Disaster Relief Fund[B] mission assignments to 
DOT; 
Uses: To fund emergency public transportation service in Louisiana and 
Mississippi. 

Major disaster: 2005 Gulf Coast hurricanes; 
Amount: $70; 
Funding source: FEMA Disaster Relief Fund[B]--Public Assistance grants; 
Uses: To fund bus and bus facilities repair and replacement in 
Louisiana and Mississippi. 

Major disaster: 2005 Gulf Coast hurricanes; 
Amount: $35; 
Funding source: Supplemental appropriation to FTA; 
Uses: To provide operating and capital assistance for 19 transit 
agencies in Alabama, Florida, Louisiana, Mississippi, and Texas that 
were directly impacted by Hurricanes Katrina and Rita. 

Major disaster: 2005 Gulf Coast hurricanes; 
Amount: $39; 
Funding source: FTA authorizing transit agencies to waive matching fund 
requirements, and use other program funds for disaster recovery; 
Uses: To provide financial support to state transportation departments 
and transit agencies in Louisiana and Mississippi that were affected by 
Hurricane Katrina. 

Major disaster: Other disasters (since 1998); 
Amount: $51[A]; 
Funding source: FEMA Public Assistance grants and FTA discretionary 
program funds; 
Uses: To support transit operations and the repair and replacement of 
transit facilities and equipment after other disasters. 

Major disaster: Total; 
Amount: $4,959. 

Source: GAO analysis of FEMA and FTA information. 

[A] FEMA's database that tracks Public Assistance program funding does 
not have the capability of sorting transit projects from other 
projects. Therefore, the information we present in this report should 
be considered minimum amounts--other funds might have been dedicated 
for transit purposes. 

[B] The Disaster Relief Fund is funded through both annual and 
supplemental appropriations. 

[End of table] 

Several factors affected the timeliness and effectiveness of FEMA's and 
FTA's assistance to transit after the 2005 Gulf Coast hurricanes, 
including a lack of mechanisms to provide immediate funding for transit 
services and FEMA's lack of guidance and criteria for the types and 
duration of transit services it would fund. Although the Stafford Act 
authorizes federal assistance to meet emergency needs and help affected 
communities to resume their normal pattern of life as soon as possible, 
neither FEMA nor FTA had mechanisms in place to provide funding to 
transit providers immediately after the 2005 Gulf Coast hurricanes. 
FEMA provided funding as reimbursement, requiring recipients to spend 
money from other sources first,[Footnote 3] and FTA had no program for 
emergency assistance to transit. However, transit providers had little 
money to spend from other sources before being reimbursed. According to 
officials from the two major transit agencies affected by the 2005 Gulf 
Coast hurricanes, transit operations shut down after the disasters, and 
the agencies' revenues from fare collections and other sources were 
curtailed, limiting their ability to begin restoring transit services 
on their own. Furthermore, FEMA's timeliness and effectiveness in 
providing assistance for transit after the hurricanes were limited by 
the agency's lack of guidance on the types of services it could fund, 
and lack of criteria for the duration of the funding. Without such 
guidance and criteria, funding approvals took from 1 month to as long 
as 4 months, and officials from the two major transit agencies affected 
by the hurricanes contended that FEMA mission assignments ended before 
some emergency needs were met. DHS and FEMA addressed a number of 
issues raised by their response to the 2005 Gulf Coast hurricanes in 
DHS's National Response Framework, issued in January 2008, which 
replaced DHS's National Response Plan.[Footnote 4] However, the 
Framework does little to help clarify the agencies' roles in responding 
to a disaster affecting transit. FEMA has also begun drafting 
"prescripted" mission assignments to facilitate common language between 
FEMA, other federal agencies, and state and local organizations and, 
thus, to expedite the issuance of mission assignments after a disaster. 
However, a FEMA official indicated the agency does not plan to draft a 
prescripted mission assignment for transit operations because FEMA will 
assume parts of DOT's emergency response functions for transportation 
under a memorandum of understanding signed by the two agencies in 
October 2007. However, this memorandum states that DOT will continue to 
be responsible for "alternative transportation services" after a 
disaster. According to DOT officials, "alternative transportation 
services" could include such things as transit services or ferry 
services when a bridge has been damaged or destroyed. We are 
recommending that FEMA develop guidance or regulations identifying the 
types of transit services that FEMA will or will not fund after a 
disaster, and criteria for determining the duration of funding for 
those services to facilitate timely decision making following future 
disasters--especially catastrophic disasters that affect multiple 
states. We are also recommending that FEMA draft prescripted mission 
assignments for public transportation services, which could reduce 
ambiguity and expedite the issuance of mission assignments for these 
services when time is critical in the aftermath of a future disaster. 
In commenting on a draft of this report, DHS stated that it would take 
these recommendations under advisement. 

Additional options exist for providing transit services and assistance 
for transit after a disaster. At the state and local levels, mutual aid 
agreements can support transit recovery after a disaster by providing 
transit agencies with needed resources and personnel from agencies 
outside of the disaster area. For example, the Emergency Management 
Assistance Compact (EMAC) provides for assistance between member states 
when a disaster transcends state borders, and APTA has developed a 
program that allows transit systems across the country to volunteer 
their resources, including buses and drivers, for temporary emergency 
transit needs. The Florida Department of Transportation has a similar 
mutual aid agreement between transit systems in the state. At the 
federal level, existing authorities and programs that Congress has 
provided to DOT suggest additional potential options. One option would 
be to give FTA permanent authority to waive certain grant fund 
requirements in response to disasters. After the Gulf Coast hurricanes, 
Congress gave FTA temporary authority (for 2 years) to allow transit 
agencies directly affected by the hurricanes to use FTA grant funds-- 
generally intended for capital uses--for transit operations. If given 
this authority permanently, FTA could quickly make grant funds 
available to affected transit agencies for operations during disasters. 
A second option would be to provide a disaster relief program for 
transit similar to the Federal Highway Administration's (FHWA) program 
for federal highways. FHWA's Emergency Relief program provides funds 
for both emergency and permanent repairs of highways that have suffered 
serious disaster damage. The program also provides a "quick release" 
funding option that can be used when disaster damage is readily 
evident, to begin the flow of funds to a state within 1 to 2 days. A 
separate FTA program could be established to provide disaster relief 
for transit, or transit disaster relief could be incorporated as an 
eligible activity under FHWA's Emergency Relief program. Establishing 
or expanding emergency relief for transit, however, could significantly 
expand the scope and cost of emergency relief for DOT at a time when, 
as we have reported,[Footnote 5] there are increasing demands placed on 
the Emergency Relief program, while the purchasing power of the 
principal revenues to its funding source, the Highway Trust Fund, is 
eroding. We recommend that DOT evaluate the feasibility of options to 
increase FTA's authority to provide immediate financial assistance, and 
seek legislative authority as appropriate. DOT agreed with this 
recommendation and stated that these options would be considered by an 
FTA policy working group that is developing portions of the 
department's legislative proposal for reauthorizing surface 
transportation programs. 

In commenting on a draft of this report, DHS and DOT also generally 
agreed with the facts presented and provided technical comments, which 
we incorporated into this report as appropriate. 

Background: 

In recent years, the United States has experienced two of the most 
severe disasters in its history--the September 11, 2001, terrorist 
attacks and the 2005 Gulf Coast hurricanes. These disasters claimed 
several thousand lives and resulted in billions of dollars in damage. 
In addition, there have been over 500 declared disasters and 
emergencies of smaller magnitude since 1998. 

Catastrophic disasters, such as the terrorist attacks and Gulf Coast 
hurricanes, place particularly wideranging demands on emergency 
response capabilities. By their very nature, catastrophic disasters 
involve high levels of casualties, damages, and disruptions that are 
likely to immediately overwhelm state and local responders. 
Historically, the federal role in disaster response has been to support 
and assist states and localities, providing resources and other 
assistance when the demands of the situation exceed their combined 
capabilities. However, when a catastrophic disaster overwhelms the 
ability of state, local, and voluntary agencies to adequately provide 
essential services, the federal government generally plays a more 
central role--providing selected resources where they are needed. 

The Stafford Act authorizes the federal government to respond to 
disasters, and to assist state and local governments and others in 
saving lives, reducing human suffering, mitigating the effects of lost 
income, and repairing or rebuilding damaged facilities. FEMA leads the 
nation's efforts to prepare for, protect against, respond to, recover 
from, and mitigate the risk of natural disasters, acts of terrorism, 
and other man-made disasters. The Disaster Relief Fund, which supports 
a wide range of the agency's disaster response programs, is funded 
through both regular and supplemental appropriations. Before FEMA can 
respond to a catastrophic disaster, the President has to declare that a 
major disaster or emergency exists. This declaration is typically made 
at the request of the governor of the affected state. A disaster 
declaration activates an array of federal programs to assist in the 
recovery effort. FEMA's response to a disaster begins with the 
appointment of a Federal Coordinating Officer by the Director of FEMA. 
The Federal Coordinating Officer manages and coordinates the 
application of programs and funds under the Stafford Act. FEMA then 
staffs the core management and administrative functions to respond to 
the disaster, including a Joint Field Office, Regional Response 
Coordination Center, and Emergency Response Teams. 

Until 2008, the National Response Plan, issued by DHS in December 2004, 
outlined the principal roles and responsibilities of federal agencies 
in a major disaster. The plan has been superseded by DHS's National 
Response Framework, which was issued in January 2008. The Framework, 
like the National Response Plan before it, identifies Emergency Support 
Functions (ESF), which provide the structure for coordinating federal 
interagency support during declared disasters and emergencies. Whenever 
there is a major incident, DOT must provide support under the Framework 
through the department's role as primary agency for ESF-1 for 
Transportation. This function is responsible for, among other things, 
transportation safety and restoration of transportation infrastructure. 

FTA administers federal funding to support a variety of local public 
transportation systems throughout the United States, including bus, 
subway, light rail, commuter rail, streetcar, passenger ferryboat, and 
other transportation systems. FTA funds public transportation through a 
number of grant programs; grant recipients include states, local 
governments, transit authorities, and others. FTA programs fund 
planning, vehicle purchases, facility construction, and other needs. 
The Safe, Accountable, Flexible, Efficient, Transportation Equity Act: 
A Legacy for Users (SAFETEA-LU)[Footnote 6] authorized funding levels 
for each program, and Congress provides an annual appropriation to fund 
them. FTA's funding comes, in part, from the general fund, but its 
grant programs are primarily funded through the Mass Transit Account of 
the Highway Trust Fund, which is funded partly by federal fuel taxes. 

The September 11 terrorist attacks in New York City and the 2005 Gulf 
Coast hurricanes caused severe damage to transit services in both 
areas. The transit authority in New York City, the Metropolitan 
Transportation Authority (MTA), provides New Yorkers with 2.4 billion 
trips each year through bus, subway, and rail services. This 
transportation network serves 14.6 million people in the New York City 
area, including Long Island, southeastern New York State, and 
Connecticut. The Port Authority Trans-Hudson Corporation (PATH) 
operates a heavy rail transit system between Manhattan and neighboring 
New Jersey communities that serves approximately 227,000 passengers 
each weekday. As a result of the attacks on the World Trade Center, 
subway stations and the PATH commuter rail terminal were destroyed, 
sections of local roads became impassable due to damage or recovery 
efforts, and the remaining transportation options were overcrowded as 
commuters returned to work using different routes or means of 
transportation. On the Gulf Coast, public transit consists of bus, 
streetcar, and paratransit service--which is service for disabled 
persons that complements bus or rail service--to a widely dispersed 
population. The New Orleans Regional Transit Authority (NORTA) provides 
approximately 30 bus routes, 3 streetcar lines, and paratransit service 
for passengers with disabilities, and it carries more than 2 million 
passengers each year. The transit provider on Mississippi's Gulf Coast, 
Coast Transit Authority (CTA), serving Gulfport and Biloxi, offers 
fixed-route bus service and demand-response service for seniors and 
passengers with disabilities over a three-county area. According to 
local transit agency officials in Louisiana and Mississippi, the 2005 
Gulf Coast hurricanes flooded buses, administration buildings, and 
roads; destroyed bridges, bus stop signs, and shelters; and forced tens 
of thousands to evacuate. As a result, according to transit and FEMA 
officials, transit agencies had to find working vehicles and create new 
routes that allowed the dispersed population to reach disaster relief 
centers and essential services. 

FEMA and FTA Share Responsibility for Helping Transit Recover after a 
Disaster, but Funding Comes Primarily from FEMA: 

The federal government, through FEMA and FTA, provides transit services 
and assists transit agencies after a major disaster. FEMA, the federal 
government's primary agency for disaster response, is authorized to 
provide emergency transportation services as part of its authority 
under the Stafford Act. FTA administers federal programs and funding 
that support transit operations across the United States, but it does 
not have a specific program or designated funding to help transit 
agencies recover from a disaster. 

FEMA Provides Emergency Transportation Services through Its Authority 
under the Stafford Act: 

FEMA is the federal government's primary agency for disaster response. 
In carrying out its mission, FEMA (1) funds and coordinates emergency 
preparedness activities, (2) provides and coordinates the immediate 
federal response to save lives and property, (3) funds the 
reconstruction of damaged infrastructure to help stricken families and 
communities recover, and (4) supports hazard mitigation activities to 
lessen the destructive impact of future disasters. FEMA is authorized 
to provide temporary public transportation service to meet emergency 
needs and to provide transportation to governmental offices, supply 
centers, stores, post offices, schools, major employment centers, and 
other places that may be necessary for a community to resume its normal 
pattern of life as soon as possible.[Footnote 7] Funding for FEMA's 
disaster response programs comes from the Disaster Relief Fund. 
Supplemental funding is requested when funds provided through the 
regular appropriations to the fund are insufficient to respond to 
certain disasters. The Disaster Relief Fund received supplemental 
appropriations following both the terrorist attacks on New York City 
and the 2005 Gulf Coast hurricanes. 

Following the 2005 Gulf Coast hurricanes, FEMA provided financial 
disaster assistance to transit providers, primarily in two ways-- 
through mission assignments to DOT during the response phase and 
through its Public Assistance program during the recovery phase. 
Mission assignments are FEMA's requests to federal agencies to complete 
specified disaster response tasks that are within that agency's 
functions. Mission assignments can also authorize a dollar amount of 
FEMA funding for the specified tasks. Because mission assignments are 
used during the initial response to a disaster, they are intended for 
immediate and short-term assistance that is essential to save lives, 
protect property and public health and safety, and lessen or avert the 
threat of a catastrophe. FEMA officials involved in providing transit 
aid to the Gulf Coast after the hurricanes told us they did not have 
transit expertise and largely relied on FTA, the states, and transit 
agencies to define what was needed. FTA worked with the state 
transportation departments and transit agencies to develop proposals 
that identified needed transit services, indicated how and by whom 
those services would be provided, and estimated the cost of the 
services. Proposals for mission assignments were then negotiated with 
FEMA, which subsequently issued mission assignments to DOT that 
described the services to be provided, authorized funding from FEMA to 
DOT, and set the start date and end date of the mission assignment. DOT 
then contracted with the state transportation departments or transit 
agencies that would receive the reimbursement funds from DOT. These 
contracts further detailed the services to be provided. 

A second type of financial assistance is available to states and 
transit agencies through FEMA's Public Assistance program. As mission 
assignments are concluded, the recovery phase begins, and transit 
agencies and others can apply for additional financial assistance 
through the Public Assistance program. This program provides grants to 
state and local governments and some nonprofit organizations for 
recovery needs, including debris removal, emergency protective 
measures, and the repair or replacement of damaged equipment or 
facilities. Many of the Public Assistance program grants awarded to 
transit agencies after the 2005 Gulf Coast hurricanes were for bus 
replacement and for the repair or replacement of structures, such as 
maintenance facilities and passenger shelters. For example, the CTA 
used public assistance funding to replace bus stop shelters that were 
destroyed during the storm. 

FTA Administers Federal Transit Programs but Has Limited Ability to 
Directly Assist Transit Agencies after a Disaster: 

FTA administers a number of programs to support urban and rural transit 
in the United States. FTA programs provide funding to support 
transportation planning, capital investments, operating assistance in 
rural and nonurban areas, and efforts to meet the transportation needs 
of persons with disabilities and the elderly. FTA's Urbanized Area 
Formula Program, for example, provides funding to transit authorities 
and state governments to support planning; engineering; crime 
prevention and security; the construction of passenger facilities; and 
the replacement, overhaul, or rebuilding of buses. Generally, program 
funds may not be used to pay operating expenses in urbanized areas 
exceeding 200,000 in population. 

Although FTA administers a variety of grant programs to serve local 
communities throughout the United States, it does not have a specific 
program or dedicated funding to help transit agencies recover from a 
disaster. FTA will, on a case-by-case basis, allow transit agencies 
impacted by a disaster to defer their matching local share contribution 
required to receive FTA grants. In addition, transit agencies that 
serve fewer than 200,000 people can also use FTA capital grant program 
funds for operations, including operations in response to a disaster. 
FTA has also provided emergency assistance when it has received 
supplemental appropriations from Congress for that purpose, as it did 
after the September 11, 2001, terrorist attacks and the 2005 Gulf Coast 
hurricanes. In addition, Congress has granted FTA other specific 
authority. For example, a 2006 supplemental appropriation act gave the 
Secretary of Transportation authority, until June 15, 2008, to waive 
(as opposed to defer) matching share requirements for transit 
assistance program grants to agencies directly affected by Hurricane 
Katrina and to allow these affected agencies to use certain capital 
grant funds for disaster recovery.[Footnote 8] 

Federal Disaster Assistance for Transit Services Has Totaled about $5 
Billion since 1998: 

Since 1998, the federal government has provided approximately $5 
billion through FEMA and FTA to assist transit agencies and provide 
transit services after disasters, with most of this assistance 
following the September 11, 2001, terrorist attacks on New York City 
and the 2005 Gulf Coast hurricanes. Both of these disasters devastated 
transit where they occurred, but they resulted in different needs for 
transit recovery and different responses by FEMA and FTA--primarily 
rebuilding infrastructure in New York, and funding transit operations 
on the Gulf Coast. Of the $5 billion, about $4.7 billion was for 
transit services and reconstruction after the September 11 terrorist 
attacks, $232 million was for transit recovery after the 2005 Gulf 
Coast hurricanes, and at least $51 million was for transit services 
following other disasters. This $51 million included $5 million in 
funding from FTA for transit services after the August 2007 I-35 bridge 
collapse in Minneapolis, Minnesota. It also includes at least $46 
million of FEMA Public Assistance grants to support transit recovery 
since 1998. FEMA's database that tracks Public Assistance program 
funding does not have the capability to sort transit projects from 
other projects. Therefore, we needed to identify transit grants by 
searching the database records for key transit-related terms as 
discussed in appendix I. Because there may be additional funding for 
transit that we did not identify, the $46 million should be considered 
a minimum amount. 

Congress Provided about $4.7 Billion for Transit Recovery in New York 
after September 11, 2001: 

The September 11, 2001, terrorist attacks on the World Trade Center 
severely damaged the public transportation system that was used by more 
than a quarter-million daily commuters to Lower Manhattan. The PATH 
commuter station beneath the World Trade Center was destroyed, and 
subway stations serving the area were rendered unusable. In addition, 
many streets were closed because of debris, and some tunnels were 
temporarily closed. FEMA and FTA have committed about $4.7 billion to 
fund emergency transit services and the reconstruction of transit and 
related infrastructure in New York after the September 11 terrorist 
attacks. This funding was provided through supplemental appropriations 
following the attacks and includes (1) $200 million in FTA funding and 
$176 million in FEMA Public Assistance grants to fund the resumption of 
public transportation service after the attacks and (2) $4.3 billion of 
FEMA and FTA funding committed to the permanent reconstruction of the 
subway system and terminals at and near the World Trade Center site. 

FEMA and FTA committed a combined $376 million to help restore 
transportation operations in the initial response phase after the 
attacks, as summarized in table 2. 

Table 2: Initial FEMA and FTA Emergency Public Transportation Projects 
in Lower Manhattan (Dollars in millions): 

Project: Temporary Port Authority Trans-Hudson Terminal; 
Project description: Temporary terminal to replace the destroyed 
transit terminal under the World Trade Center; 
Agency: FEMA; 
Funding obligated: $140.0. 

Project: Emergency Ferry Service; 
Project description: Additional ferry service to support commuter 
capacity diverted by the loss of subway service as well as vehicle 
restrictions; 
Agency: FEMA; 
Funding obligated: $36.0[A]. 

Project: FEMA subtotal; 
Funding obligated: $176.0. 

Project: Ferry Facilities; 
Project description: Eight projects to operate and construct ferry 
facilities in New York and New Jersey; 
Agency: FTA; 
Funding obligated: $100.0[B]. 

Project: Meadows Maintenance Complex; 
Project description: Accelerated modifications to New Jersey transit 
system maintenance facility due to increased transit traffic on system; 
Agency: FTA; 
Funding obligated: $56.2[C]. 

Project: Penn Station; 
Project description: Passenger connection improvements; 
Agency: FTA; 
Funding obligated: $4.6. 

Project: Lincoln Tunnel Feasibility Study; 
Project description: Feasibility study for a second exclusive bus lane 
in the Lincoln Tunnel; 
Agency: FTA; 
Funding obligated: $1.1. 

Project: Other; 
Project description: Various projects to increase capacity, improve 
travel conditions, enhance system safety, and oversight and 
administration; 
Agency: FTA; 
Funding obligated: $38.2. 

Project: FTA subtotal; 
Funding obligated: $200.1. 

Project: Total; 
Funding obligated: $376.1. 

Source: GAO analysis of FEMA and FTA information. 

[A] FEMA calculated this amount by searching its database of Public 
Assistance grants for ferry funding in New York after the terrorist 
attacks. This approach does not ensure that all funding for ferry 
service was identified, and there may be other funding not included. 
Therefore, the $36 million should be considered a minimum amount. 

[B] FTA and FHWA jointly administered these projects. 

[C] An additional $8.9 million in Department of Defense supplemental 
grant funds, previously awarded to reconfigure track near Newark Penn 
Station, was reallocated to the Meadows Maintenance Complex project. 

[End of table] 

FEMA funding came from the Disaster Relief Fund, which received about 
$8.0 billion in supplemental appropriations for all response and 
recovery purposes, including transit, after the terrorist attacks. DOT 
funding included a $100 million supplemental appropriation to FTA for 
various transit projects and a second $100 million appropriation from 
the Highway Trust Fund for the operation and construction of ferries 
and ferry facilities. 

The next phase of the federal government's action to restore transit 
services in New York after the terrorist attacks was the reconstruction 
of transit facilities at and near the World Trade Center site. An 
August 2002 memorandum of understanding between FEMA and FTA identified 
FTA as the lead federal agency for the administration of the $2.75 
billion committed by FEMA and the $1.8 billion appropriated to FTA--a 
total of $4.55 billion--to replace public transportation facilities in 
Lower Manhattan that had been damaged or destroyed by the terrorist 
attacks. FEMA funding came from supplemental appropriations to the 
Disaster Relief Fund. FTA funding for these projects came from an 
August 2002 supplemental appropriation to FTA for emergency expenses to 
replace, rebuild, or enhance the public transportation systems serving 
Manhattan.[Footnote 9] Part of the FEMA funding has been made available 
to FHWA for a highway project[Footnote 10] leaving approximately $4.3 
billion of the $4.55 billion to fund transit projects. Four major 
transit projects were identified. As of October 2007, the estimated 
cost of these projects, including the costs of a construction command 
center and of oversight and administration, was over $4.0 billion. 
Table 3 summarizes these projects, their estimated cost, and their 
scheduled completion dates. 

Table 3: Transit Infrastructure Projects in Lower Manhattan (Dollars in 
millions): 

Project: The World Trade Center Permanent PATH Terminal; 
Project description: Builds a new terminal that serves the subway 
system that provided service to commuters between New York and New 
Jersey; 
Agency: FEMA and FTA; 
Current estimated cost (as of October 2007): $2,201.0; 
Scheduled completion date: July 2013. 

Project: Fulton Street Transit Center; 
Project description: Builds a new center that will serve 12 different 
subway lines and over 275,000 daily commuters; 
Agency: FTA; 
Current estimated cost (as of October 2007): $847.0; 
Scheduled completion date: April 2012. 

Project: South Ferry Terminal Station; 
Project description: Replaces the obsolete station that serves Staten 
Island ferry riders; 
Agency: FTA; 
Current estimated cost (as of October 2007): $420.0; 
Scheduled completion date: November 2008. 

Project: WTC Vehicle Security Center; 
Project description: Screens all vehicles for security threats; 
Agency: FEMA; 
Current estimated cost (as of October 2007): $478.0; 
Scheduled completion date: August 2012. 

Project: Lower Manhattan Construction Command Center; 
Project description: Coordinates and oversees the large number of 
construction projects planned for Lower Manhattan; 
Agency: FEMA; 
Current estimated cost (as of October 2007): $12.4; 
Scheduled completion date: Operational. 

Project: Oversight and administration; 
Project description: FEMA and FTA Project Oversight and Administration; 
Agency: FEMA and FTA; 
Current estimated cost (as of October 2007): $86.7; 
Scheduled completion date: Ongoing. 

Project: Total; 
Current estimated cost (as of October 2007): $4,045.1. 

Source: GAO analysis of FEMA and FTA information. 

[End of table] 

According to an FTA official, the difference between the current 
estimated project costs and the total FTA and FEMA funds committed 
consists of designated reserves for each project, plus an unassigned 
reserve of $47.5 million that, by an agreement between FTA and the 
state of New York, is available for use at the governor's discretion. 

Responding to the scale of damage caused by the September 11 terrorist 
attacks in New York, Congress expanded FEMA's and FTA's authority to 
fund recovery efforts. After most disasters, assistance is available 
only to rebuild or restore damaged infrastructure to its predisaster 
condition. However, because the extensive destruction required large- 
scale rebuilding of transit facilities at the World Trade Center site, 
DOT was authorized to rebuild and improve the New York transportation 
system substantially beyond its predisaster condition.[Footnote 11] 
Similarly, in 2003, Congress authorized FEMA to go beyond the 
assistance it typically would provide by permitting it to rebuild and 
enhance infrastructure to substantially improve commuter 
mobility.[Footnote 12] 

The Federal Government Provided about $232 Million to Support Transit 
Providers and State Agencies after the 2005 Gulf Coast Hurricanes: 

The 2005 Gulf Coast hurricanes caused heavy flooding in the Louisiana 
and Mississippi Gulf Coast, bringing public transportation to a 
standstill, with tens of thousands of Gulf Coast residents being forced 
to relocate to Baton Rouge and other cities or to FEMA group sites. The 
hurricanes created a need for assistance to fund transit operations, 
including restoring transit in the devastated areas to connect 
residents with relief services, providing new services to those who 
evacuated to FEMA group sites, and expanding existing services in Baton 
Rouge. The hurricanes also damaged and destroyed transit property and 
equipment--administration and maintenance facilities were flooded and 
their contents destroyed, and buses and other vehicles were damaged or 
destroyed. 

FEMA and FTA have provided a total of about $232 million in financial 
assistance to support transit providers and state transportation 
departments after the 2005 Gulf Coast hurricanes. Of this amount, $158 
million was provided by FEMA through mission assignments and Public 
Assistance funding, while FTA provided $35 million from a fiscal year 
2007 supplemental appropriation to assist transit agencies directly 
affected by Hurricanes Katrina and Rita. FTA also assisted transit 
agencies by allowing them to use an additional $39 million in existing 
funds from other FTA grant programs for disaster recovery. Finally, in 
addition to the funds provided to transit agencies and state 
transportation departments, FEMA and FTA awarded a total of $65 million 
in contracts for other transit services and support functions. 

FEMA Provided $158 Million through Mission Assignments and Its Public 
Assistance Program: 

FEMA has provided approximately $158 million to support transit after 
the 2005 Gulf Coast hurricanes, including about $88 million awarded to 
DOT from the Disaster Relief Fund for mission assignments and $70 
million from the Public Assistance program. FEMA mission assignments to 
DOT were used to fund transit operations in New Orleans and the 
Mississippi Gulf Coast, such as supplemental transit service for 
residents of temporary FEMA group sites and other displaced 
populations. See table 4 for the amounts and uses of mission assignment 
funding that DOT awarded to transit agencies and state transportation 
departments. 

Table 4: Amounts and Uses of Mission Assignment Funding That DOT 
Awarded to Transit Agencies and State Transportation Departments: 

DOT awardee: Louisiana; New Orleans Regional Transit Authority; 
Contract amount: $67,343,537; 
Uses: To provide supplemental emergency public transportation services 
to Baton Rouge following the influx of displaced persons from New 
Orleans. The services were intended to eliminate traffic congestion, 
expand the service area, extend service hours and provide more frequent 
service, and transport people from temporary FEMA trailers. The funding 
also helped reestablish transit service in New Orleans. 

DOT awardee: Louisiana; Louisiana Department of Transportation and 
Development; 
Contract amount: $19,043,538; 
Uses: To provide supplemental emergency public transportation service 
to 62 parishes in Louisiana (excluding Baton Rouge and New Orleans). 
Services included new routes and destinations, new service to temporary 
FEMA trailers, paratransit service for the displaced disabled 
population, and new routes to feed into the LA Swift emergency bus 
service (a service that transports displaced people between Baton Rouge 
and New Orleans). 

DOT awardee: Mississippi; Coast Transit Authority; 
Contract amount: $1,420,546; 
Uses: To provide supplemental emergency public transportation service 
to three Gulf Coast counties--Hancock, Harrison, and Jackson. The 
service included both fixed-route and demand-response transit service 
to housing and temporary shelters, medical transportation, and 
transportation service for disaster recovery in support of the Red 
Cross and essential government services as necessary. 

DOT awardee: Mississippi; Mississippi Department of Transportation; 
Contract amount: $316,710; 
Uses: To provide supplemental emergency public transportation service 
to three other counties located north of the Gulf Coast--Pearl River, 
Stone, and George. This service included demand-response transit 
service to local residents and evacuees to access essential government 
and life-sustaining support services. Transit service provided access 
to housing and temporary shelters, medical transportation, and 
transportation for disaster recovery in support of the Red Cross. 

DOT awardee: Total; 
Contract amount: $88,124,331. 

Source: GAO analysis of FEMA information. 

[End of table] 

These four mission assignments have been concluded--the mission 
assignment to the Louisiana Department of Transportation and 
Development was the last to end, on April 30, 2007. 

As of September 2007, FEMA had committed $70 million to the 2 primary 
Gulf Coast transit agencies through its existing Public Assistance 
program, and these funds are primarily being used to repair and replace 
buses and bus facilities. The 2 agencies provided us with information 
on the funding they received. NORTA had over $66.4 million approved for 
117 projects that include replacing buses, repairing streetcar lines, 
and repairing and reequipping maintenance facilities. The CTA in 
Mississippi had more than $3.2 million approved for 11 projects, 
including a transit center, new vehicles and equipment, bus shelters, 
and repairs and furnishings for its administrative building. Most of 
the 2 transit agencies' Public Assistance projects are ongoing, and the 
2 agencies have received only limited reimbursement to date. 

FTA Provided $35 Million to Transit Providers from a Supplemental 
Appropriation: 

In May 2007, Congress enacted a $35 million supplemental appropriation 
for FTA to provide services to transit agencies directly affected by 
Hurricanes Katrina and Rita.[Footnote 13] In August 2007, FTA awarded 
the $35 million to 19 transit agencies in Alabama, Florida, Louisiana, 
Mississippi, and Texas to fund operating and capital costs incurred 
from the hurricanes. See table 5 for the amounts and uses of FTA's $35 
million supplemental appropriation. 

Table 5: Amounts and Uses of FTA's $35 Million Supplemental 
Appropriation for Hurricanes Katrina and Rita Transit Relief, by State: 

State: Alabama; 
Number of agencies receiving grants: 2; 
Amount: $646,064; 
Uses: For facility and vehicle repairs. 

State: Florida; 
Number of agencies receiving grants: 1; 
Amount: $475,476; 
Uses: For facility repairs, operating assistance, and replacement of 
signs for bus stations and shelters. 

State: Louisiana; 
Number of agencies receiving grants: 13; 
Amount: $20,453,154; 
Uses: For facility repairs, operating assistance, replacement buses and 
shelters, and other uses. 

State: Mississippi; 
Number of agencies receiving grants: 1; 
Amount: $12,704,800; 
Uses: For bus replacement and operating assistance. 

State: Texas; 
Number of agencies receiving grants: 2; 
Amount: $720,506; 
Uses: For replacement buses, satellite telephones, and transport of 
vehicles. 

State: Total; 
Number of agencies receiving grants: 19; 
Amount: $35,000,000. 

Source: Information provided by FTA. 

[End of table] 

FTA Allowed Transit Agencies to Redirect over $39 Million from Other 
Programs to Disaster Recovery: 

In addition to the $35 million from supplemental appropriations, 
transit providers have access to an additional $39.5 million in funds 
obtained through other FTA programs that FTA has allowed them to 
redirect to support disaster recovery. The supplemental appropriation 
in June 2006 gave the Secretary of Transportation authority--until June 
15, 2008--to waive matching share requirements for transit assistance 
program grants to agencies directly affected by Hurricane Katrina and 
to allow these affected agencies to use certain grant funds for 
disaster recovery.[Footnote 14] FTA grants are usually allocated by 
formula and can be used for capital projects such as purchases of new 
buses, passenger shelters, bus stop signs, and some other purposes. 
Although this authority did not provide the transit agencies with new 
funding, it enabled them to use funding that had been designated for 
other purposes for disaster recovery. As of October 2007, these 
affected entities were allowed to waive requirements for about $24.9 
million in matching funds, and to convert over $14.6 million in grant 
funds from capital uses to operating uses. See table 6 for the amounts 
waived or converted to disaster recovery and their uses. 

Table 6: Waivers and Conversions of Capital Grants to Operating Uses in 
Louisiana and Mississippi: 

Transit agency: Louisiana; Shreveport Transit Management; 
Amount: Waived share: $138,252; 
Amount: Converted grant assistance: [Empty]; 
Uses: For the purchase of two new buses, one for the expansion of night 
service and the other to add to its fleet to accommodate the influx of 
new transit riders. 

Transit agency: Louisiana; Houma Terrebonne Parish Consolidated 
Government; 
Amount: Waived share: $848,856; 
Amount: Converted grant assistance: [Empty]; 
Uses: For the purchase of eight new buses to replace buses currently in 
its fleet. 

Transit agency: Louisiana; Louisiana Department of Transportation and 
Development; 
Amount: Waived share: $4,166,758; 
Amount: Converted grant assistance: [Empty]; 
Uses: For repairing damage to the facility where the New Orleans 
Regional Planning Commission performs its regional planning duties; and 
for the administration of the LA Swift emergency bus service. 

Transit agency: Louisiana; New Orleans Regional Transit Authority; 
Amount: Waived share: $15,859,854; 
Amount: Converted grant assistance: $14,410,590; 
Uses: For operating assistance, and for repairing damage to 
infrastructure and equipment that resulted in substantial loss of 
riders and economic hardship. 

Transit agency: Louisiana; St. Bernard Parish Government; 
Amount: Waived share: $40,000; 
Amount: Converted grant assistance: $40,000; 
Uses: For operating assistance. 

Transit agency: Louisiana; City of Monroe; 
Amount: Waived share: $190,358; 
Amount: Converted grant assistance: [Empty]; 
Uses: For the purchase of three buses. 

Transit agency: Louisiana; Baton Rouge Capital Area Transit System; 
Amount: Waived share: $50,312; 
Amount: Converted grant assistance: $214,801; 
Uses: For operating assistance. 

Transit agency: Subtotal; 
Amount: Waived share: $21,294,390; 
Amount: Converted grant assistance: $14,665,391. 

Transit agency: Mississippi; Coast Transit Authority; 
Amount: Waived share: $3,586,132; 
Amount: Converted grant assistance: [Empty]; 
Uses: For repairing damage to the multimodal bus transportation 
facility, and other operating, capital, and preventive maintenance 
costs. 

Transit agency: Mississippi; Subtotal; 
Amount: Waived share: $3,586,132; 
Amount: Converted grant assistance: [Empty]. 

Transit agency: Total; 
Amount: Waived share: $24,880,522; 
Amount: Converted grant assistance: $14,665,391. 

Source: GAO analysis of FTA information. 

[End of table] 

Another $65 Million in Contracts Was Awarded for Transportation 
Services and Other Disaster Recovery Needs: 

In addition to the funding provided to state transportation departments 
and transit agencies, FEMA and FTA awarded over $65 million to 
contractors and other entities to support transit recovery in the Gulf 
Coast. FEMA issued an $8.5 million mission assignment to DOT for a 
contract for bus service, known as LA Swift, between Baton Rouge and 
New Orleans for 10 months, ending November 30, 2006. NORTA then 
provided this service from December 2006 through June 2007 under 
contract with the Louisiana Department of Transportation and 
Development, using FTA-approved grant funds and waivers of local 
matching fund requirements. Effective July 1, 2007, the service was 
extended for 1 year, under a contract with and funded by Louisiana. In 
December 2006, FEMA also awarded a $55 million contract to Global 
Charter Services, Ltd.,[Footnote 15] to provide essential transit 
services for individuals residing in temporary FEMA housing and to 
provide for the emergency evacuation of those residents if needed. FTA 
also awarded about $1.6 million in contracts for technical assistance 
to support transit agencies in preparing damage assessment reports and 
estimates of costs to repair and replace assets. For example, FTA 
awarded a contract for $350,000 for technical assistance to Gulf Coast 
transit agencies for posthurricane transit service recovery. 

FEMA and FTA Have Provided at least $51 million of Other Disaster 
Assistance for Transit since 1998: 

Congress responded to the August 1, 2007, collapse of the I-35 bridge 
in Minneapolis by authorizing the Secretary of Transportation to 
provide up to $5 million of discretionary Bus and Bus Facility program 
funds, normally used for capital expenditures, for the operation of 
transit services to substitute for the highway capacity lost with the 
bridge collapse. The Minneapolis city and suburban transit agencies are 
using this funding to cover the cost of drivers, mechanics, fuel, and 
other operating costs associated with operating additional buses and 
running longer trips needed to avoid closed roads. 

In addition to the Public Assistance program funding provided for 
transit in response to the September 11, 2001, terrorist attacks and 
2005 Gulf Coast hurricanes, FEMA has provided Public Assistance grants 
to repair, restore, reconstruct, or replace transit equipment and 
facilities after other disasters. However, we were unable to reliably 
determine the total amounts provided for transit from the Public 
Assistance program. FEMA's Public Assistance program records are in its 
National Emergency Management Information System (NEMIS) database, but 
NEMIS does not have the capability to sort Public Assistance grants 
that supported transit out of the total database. Therefore, we 
searched Public Assistance records in the database for transit-related 
key words, as described in appendix I. As a result of this search, we 
identified at least $46.7 million in Public Assistance grants for 
transit from 1998 through August 2007. The $46.7 million figure should 
be considered a minimum level of Public Assistance funding for transit 
because we cannot ensure that we were able to identify all Public 
Assistance funding for transit. 

Lack of an Immediate Funding Mechanism and Funding Guidance and 
Criteria Affected Federal Transit Assistance after the 2005 Gulf Coast 
Hurricanes: 

Several factors affected the timeliness and effectiveness of FEMA's and 
FTA's assistance to transit after the 2005 Gulf Coast hurricanes, 
including the lack of mechanisms to provide immediate funding for 
transit services and FEMA's lack of guidance and criteria for the types 
and duration of services it would fund. Although the Stafford Act 
authorized transportation assistance to enable communities to resume 
their normal pattern of life as soon as possible, neither FEMA nor FTA 
had a mechanism in place to get funding to transit providers 
immediately after the 2005 Gulf Coast hurricanes. Furthermore, FEMA's 
effectiveness in responding to the disaster was limited by the agency's 
lack of guidance on the types of transit services it can fund and 
criteria for the duration of funding. These factors contributed to 
delays in getting funding approved and, according to some funding 
recipients, led to ending mission assignment funding before some 
transit needs were met. Although DHS and FEMA are taking actions to 
address a number of issues raised by the response to the 2005 Gulf 
Coast hurricanes, these actions largely have not addressed FEMA's 
response to providing transit services after a disaster. 

FEMA and FTA Lacked a Mechanism to Provide Financial Assistance 
Immediately after the Hurricanes, and Existing Funding Mechanisms Took 
Time: 

Both of FEMA's main means of providing disaster funding for transit-- 
mission assignments and its Public Assistance program--provide 
reimbursement funding, requiring transit agencies to have other funding 
to pay for their recovery efforts before they get FEMA funding. In a 
recent report, we noted that FEMA, following the 2004 hurricanes in 
Florida, had developed a process for applying for limited, expedited 
Public Assistance funding for emergency work to be carried out within 
60 days after a disaster.[Footnote 16] However, a FEMA official 
indicated that this expedited funding would be available only for 
debris removal and emergency protective measures within the first 60 
days after a disaster. Therefore, this process would not have been a 
funding option for funding transit operations. FTA does not have a 
program to provide financial assistance to transit agencies after a 
disaster. FTA can allow its grant recipients to defer their matching 
share of program funding, and an official of one transit agency we 
contacted said that FTA's deferral of local matching requirements for 
its grant funds after Hurricane Katrina was important in allowing the 
agency to resume very limited operations, even though the deferral was 
not an infusion of new funds. However, such a deferral of matching 
requirements may not provide sufficient help for a transit system 
recovering from a major disaster. 

According to NORTA, the primary transit agency for New Orleans, a lack 
of financial resources immediately after Hurricane Katrina delayed its 
response to the disaster. NORTA officials told us that their agency 
depends on fare box revenues and a sales tax for operating support. 
After Hurricane Katrina struck, funding from these sources stopped, and 
the agency had no financial resources other than its bank balances and 
was unable to pay its employees. On September 5, 2005, NORTA requested 
financial assistance from FTA. Because of the extensive flooding in New 
Orleans, the general public was evacuated from New Orleans, and regular 
transit service could not be restored there immediately after the 
disaster. However, Baton Rouge had absorbed tens of thousands of 
residents and needed additional transit support. Immediately after the 
evacuation of New Orleans, NORTA began contacting employees and 
locating equipment that could be used to restore transit services. 
NORTA told us it had vehicles and operators that could have supported 
service in Baton Rouge if funding had been available. It took just over 
1 month after the hurricane to develop a FEMA mission assignment to DOT 
for NORTA, and for DOT to award a contract to NORTA to implement the 
mission assignment. In the interim, NORTA provided no services. NORTA 
officials also stated that, before the mission assignment was approved, 
they had considered obtaining a line of credit through their bank, but 
decided against borrowing money to pay for their operations until 
funding from FEMA to repay the borrowed funds was assured. FTA staff 
assisted NORTA in its recovery, including assisting in establishing a 
maintenance facility and defining NORTA's needs to support the proposal 
for the mission assignment, and the DOT contract to implement the 
mission assignment was drafted at the same time. The contract 
implementing NORTA's mission assignment was signed on October 1, 2005. 
According to NORTA officials, the day after reimbursement was assured, 
and days after the general public was allowed to return to New Orleans, 
NORTA began to provide limited service in New Orleans, and 2 weeks 
later, the transit agency began to provide service in Baton Rouge and 
to nearby communities. 

FEMA's Timeliness and Effectiveness in Providing Assistance for Transit 
Was Further Limited by a Lack of Guidance and Criteria: 

FEMA had not developed any guidance to define the types of transit 
assistance it could provide. According to some FEMA officials, this 
lack of guidance provides the agency with flexibility in responding to 
unpredictable situations and finding ways to save lives immediately 
after a disaster. On the other hand, the experience following the 2005 
Gulf Coast hurricanes suggests that this lack of guidance could also 
delay decisions about funding transit services following a catastrophic 
disaster. A FEMA official involved in developing mission assignments 
for transit after the Gulf Coast hurricanes indicated that mission 
assignments are ordinarily used to meet emergency response needs for up 
to 60 days after a disaster. However, the scope of the damage left by 
the hurricanes required long-term recovery assistance beyond what FEMA 
typically provides through mission assignments, and deciding what 
services could be funded without violating the Stafford Act was a 
constant concern for FEMA staff who needed to consult FEMA's General 
Counsel on all mission assignments. For their part, the transit 
agencies and state transportation departments with whom we spoke 
generally said that the DOT contracts in support of the mission 
assignments were difficult and time-consuming to negotiate, requiring 
multiple discussions to resolve a variety of issues, including types of 
service, service routes, hours of service, and reimbursement rates for 
services. This process added to the time needed to finalize the four 
contracts in support of the mission assignments issued for emergency 
public transportation services in Louisiana and Mississippi after the 
Gulf Coast hurricanes. Finalizing these mission assignments, and the 
contracts to implement them, took from just over 1 month to more than 4 
months after the hurricane. 

FEMA's lack of criteria for determining the duration of disaster 
assistance for transit resulted in FEMA's ending funding while transit 
agencies believed they had continuing needs. FEMA officials with whom 
we spoke said that decisions to conclude the mission assignments for 
transit reflected factors such as declines in ridership or the 
availability of other funding. However, some transit and state agency 
officials with whom we spoke indicated that transit services were 
curtailed when the mission assignment funding ended. NORTA officials 
said that when their mission assignment funding ended, they 
discontinued their support for paratransit service in Baton Rouge as 
well as for service on 12 routes that served Baton Rouge and nearby 
trailer sites. In addition, NORTA officials told us they had to lay off 
some employees.[Footnote 17] An official of the CTA in Mississippi also 
indicated that his agency could not continue the services FEMA had 
funded after the agency's mission assignment ended in February 2006, 
and service reverted to the reduced levels provided before the mission 
assignment began. The official also said that as of September 2007, 2 
years after the hurricane, some FEMA group sites in Mississippi still 
had no transit service. 

According to the state transportation department and transit agency 
officials with whom we spoke, FEMA decided when to let mission 
assignments end and did not always consider the communities' need for 
the funded services or the transit agency's ability to continue the 
services on its own. For example, the Mississippi Department of 
Transportation received funding through a FEMA mission assignment to 
provide demand-response service in three rural counties. A department 
official stated that FEMA's reason for allowing the mission assignment 
funding to end was the low level of demand for the service. The 
official acknowledged that demand for the service was less than 
initially expected, but he stated that a real need for the service for 
the elderly and other public transportation-dependent individuals 
continued after the funding ended. He said that community organizations 
were able to provide some of this service, but not at the levels 
provided under FEMA funding. 

The problems that arose in connection with providing disaster 
assistance for transit after the 2005 Gulf Coast hurricanes are not 
unique to the transit sector. In our earlier report on the response to 
Hurricane Katrina,[Footnote 18] we identified three basic elements 
necessary to prepare for and respond to a major disaster--including 
clearly defined leadership roles and responsibilities, the capability 
to fulfill those roles and responsibilities, and balance between the 
need to respond quickly and to maintain accountability for the use of 
resources. Both FEMA and FTA lacked the capability to provide funding 
to transit agencies quickly after the disaster, and FEMA's lack of 
guidance on its role in and responsibility for assisting transit was a 
factor that FEMA had to resolve in deciding on the types and duration 
of services it would support. 

FEMA Changes after the 2005 Gulf Coast Hurricanes Are Not Addressing 
Issues Raised by the Agency's Experience with Transit: 

FEMA has begun to make a number of changes in response to lessons 
learned from the 2005 Gulf Coast hurricanes. Thus far, however, none of 
these changes directly addresses FEMA's assistance for public 
transportation. DHS's National Response Framework reflects key lessons 
learned from the 2005 Gulf Coast hurricanes, focusing particularly on 
how the federal government is organized to support communities and 
states after a catastrophic incident. Recognizing the need to issue 
mission assignments quickly, FEMA is also developing prescripted 
mission assignments to simplify and expedite the mission assignment 
process. 

According to DHS, the Framework is intended to accelerate and make more 
disciplined the federal government's capacity to rapidly assess and 
respond to an incident that will need federal assistance. The Framework 
also identifies ESFs, which designate federal agencies' roles for 
different aspects of disaster response. DOT remains the lead agency for 
ESF 1 for transportation, with responsibility for assessing and 
reporting on damage to the transportation system in a disaster and for 
coordinating its restoration and recovery. However, a memorandum of 
understanding signed by DHS and DOT in October 2007 shifts 
responsibility for coordinating all emergency transportation services, 
including the movement of commodities, goods, equipment, and emergency 
response personnel, from DOT to FEMA. Neither the Framework nor the 
memorandum of understanding helps clarify the federal government's 
response to a disaster's impact on transit. For example, ESF-1 under 
the Framework includes new wording, stating that FEMA should provide 
timely funding to activate transportation activities that are eligible 
for funding under the Stafford Act. However, this wording does not help 
to clarify FEMA's or FTA's roles or to establish any new direction that 
would result in more timely assistance to restore transit services. In 
addition, under the memorandum of understanding, DOT will continue to 
be responsible for "alternative transportation services" after a 
disaster. According to DOT officials, "alternative transportation 
services" could include providing ferry service when a bridge has been 
damaged or destroyed, but could also include transit services. 

In addition to issuing the Framework, to date FEMA has developed over 
180 prescripted mission assignments for various agencies for disaster 
response functions. The purpose of prescripted mission assignments is 
to facilitate common language between FEMA, other federal agencies, and 
state and local organizations to expedite their issuance, because 
mission assignments are intended to be FEMA's mechanism for quickly 
directing other federal agency actions. The use of prescripted mission 
assignments could also promote consistency in an agency's response when 
a major disaster affects multiple states. While some prescripted 
mission assignments address DOT's role in evacuation and transporting 
first responders--by, for example, identifying the personnel 
responsible for aiding in an evacuation--FEMA has not yet drafted any 
prescripted mission assignments for operating or restoring transit 
services. According to a FEMA official, the agency does not plan to 
draft a prescripted mission assignment for transit operations, because 
under the memorandum of understanding between DHS and DOT, FEMA is to 
assume parts of DOT's emergency response functions for transportation, 
and, therefore, prescripted mission assignments are not necessary. 

Additional Options Exist for Providing Assistance for Transit after a 
Major Disaster: 

Additional options exist at the state, local, and federal levels for 
providing transit services and assistance for transit after a major 
disaster. At the state and local levels, mutual aid agreements can 
support transit recovery after a disaster by allowing transit agencies 
to obtain resources and personnel from agencies outside of the disaster 
area. At the federal level, existing DOT authorities and programs 
suggest potential additional options of (1) making permanent the 
temporary authorities that FTA has been given to respond to the 2005 
Gulf Coast hurricanes and (2) adopting the existing DOT emergency 
program for highway repairs administered by FHWA, either by 
establishing a comparable program for FTA and transit or incorporating 
transit assistance as an eligible activity within FHWA's program. 
Despite potential advantages, both options at the federal level face 
certain challenges and consequences, including funding the expanded 
scope and cost of an emergency relief program. 

Mutual Aid Agreements Can Support Recovery at the State and Local 
Levels: 

Existing mutual aid agreement programs can also support transit 
recovery after a disaster. Such agreements can allow transit agencies 
to network across state and local jurisdictions to obtain needed 
transit resources after a disaster. We recently reported on an 
interstate mutual aid program, EMAC.[Footnote 19] This program 
establishes a structure for states to collectively address issues that 
transcend state borders by allowing member states to, among other 
things, request assistance, reimburse assisting states, and be covered 
by liability and workers' compensation protection. Representatives from 
the affected state inform EMAC leadership that interstate assistance 
may be needed. The assisting states work with the requesting state to 
identify required resources and other details. Once the missions have 
been completed and resources have returned home, the assisting states 
prepare formal requests for reimbursement, which are then sent to, and 
processed by, the requesting state. While EMAC reimbursement is 
intended to be independent of any federal assistance, impacted states 
can request funding from FEMA's Public Assistance program to help cover 
eligible costs for missions under EMAC. 

APTA has recently developed an Emergency Response and Preparedness 
Program that allows transit systems to volunteer their resources-- 
including buses, fueling systems, trailer trucks, generators, drivers 
and mechanics--for temporary emergency transit needs. APTA maintains 
information on the resources of each member agency, and it gives 
members' access to the national Emergency Response and Preparedness 
Program resource so that transit agencies can locate needed resources 
in an emergency. As of September 2007, no transit agencies had yet made 
use of APTA's program. 

Mutual aid agreements can also work within states. For example, the 
Florida Department of Transportation established a mutual aid agreement 
between all of the transit systems in the state, agreeing that they 
would assist each other in times of disaster by providing transit 
resources, such as buses, temporary facilities, and personnel, that can 
be loaned immediately to meet the needs of agencies affected by a 
disaster. According to Florida Department of Transportation officials, 
public transportation agencies must become actively involved with 
others in their communities in planning for emergencies. To this end, 
the department also works with local transit agencies to support 
disaster planning and response. 

Modifying Existing Federal Authorities and Programs Could Enhance 
Recovery Capabilities but Would Also Impose Costs: 

At the federal level, existing DOT authorities and programs suggest 
further potential options, including giving FTA permanent authority to 
waive certain grant fund requirements and creating a disaster relief 
program for transit similar to an FHWA program for federal highways. In 
June 2006, Congress gave FTA temporary authority, for 2 years, to allow 
transit agencies directly affected by Hurricane Katrina to use grant 
funds--generally for capital expenditures--for operating expenses. FTA 
was also authorized to waive the requirement for transit agencies to 
provide matching funds in order to receive federal funds. If made 
permanent, this authority would enable FTA to make an existing source 
of funds immediately available for transit agencies to begin restoring 
transit services after a disaster. Transit agencies in Louisiana and 
Mississippi told us that immediate funding was one of their most urgent 
needs after Hurricane Katrina, once regular revenue sources, such as 
fare receipts, ceased. Under this option, however, funding would be 
limited to the amount that the affected transit agency had received 
from FTA through its regular grant programs, rather than being based on 
specific needs. This amount might support only limited service. In 
addition, the projects that the grant money was intended to fund would 
be delayed or not done at all. 

FHWA's Emergency Relief program could also serve as a model for 
providing assistance for transit. This program makes funds available 
for the repair or reconstruction of roadways on the federal-aid highway 
system and on federal lands that have suffered serious damage as a 
result of a natural disaster or catastrophic failure from an external 
cause.[Footnote 20] Assistance for the repair or reconstruction of 
roadways that are not on the federal system remains the responsibility 
of FEMA. FHWA regulations and guidance provide detailed standards for 
the nature and type of work that is eligible for federal funding and 
criteria for the duration of assistance in the two major categories-- 
emergency repairs and permanent repairs. Emergency repairs are those 
accomplished during and immediately following a disaster to restore 
essential traffic, minimize damage, and protect remaining facilities. 
Such assistance is generally limited to 180 days following a disaster 
and includes activities such as removing debris and constructing 
detours, but specifically prohibits other work such as repairing 
roadway surfaces damaged by traffic. Permanent repairs are those done 
to restore the highway to its predisaster condition. Again, FHWA 
regulations and guidance provide eligibility parameters, including 
prohibiting "betterments" that increase capacity, correct nondisaster- 
related deficiencies, or otherwise improve highway facilities. For both 
emergency repairs and permanent repairs, FHWA regulations and guidance 
specify maximum percentages of project funding that the program will 
provide and set a cap on the total program funding that can be provided 
within a state for any disaster. 

The Emergency Relief program also provides for a "quick release" of 
funding in some cases. According to FHWA's guidance, the quick release 
method is not appropriate for all disasters, but is generally used for 
larger disasters where extensive damage is readily evident and where 
there is a desire at the state and federal levels to have funds flowing 
quickly to the state. No on-site damage surveys or formal disaster 
assessments are required, as they normally are for the program; 
instead, the assessment may be based on other readily available 
information, such as credible media reports or aerial surveys done by 
the state. The goal of the quick release method is to begin the flow of 
funds to the state within 1 to 2 days. 

FHWA's Emergency Relief program could be adapted for transit through 
either of two approaches: 

* First, Congress could establish a comparable emergency relief program 
for FTA and transit. Under this approach, FTA could provide either 
limited, short-term funding for transit operations after a disaster or 
longer-term funding for the repair and replacement of facilities and 
equipment. This approach would provide specific funding for FTA to meet 
transit needs after a disaster; however, establishing such a program 
would require defining criteria for transit disasters that would 
qualify for assistance, setting limits on the amount or duration of 
financial assistance, and ensuring accountability for the use of funds. 
In addition, this approach would enable FTA to target funding to the 
transit providers with the greatest needs, as opposed to allowing 
transit agencies to use whatever grant funding they had already 
received. Such a program could reduce or eliminate the need for FEMA 
mission assignments and reduce the delays and uncertainty that 
characterized the provision of assistance to Gulf Coast transit 
agencies. Moreover, such a program, if modeled along the lines of the 
FHWA program, could also include a quick release method of funding. 

* Second, Congress could incorporate transit assistance as an eligible 
activity within FHWA's Emergency Relief program. This approach would 
have the advantage of using the existing FHWA processes for 
administering the program, and it could support greater coordination 
between the highway and transit communities in disaster recovery. Some 
of the current program's eligibility criteria for disaster assistance-
-such as the thresholds for the minimum damage amounts that qualify for 
program assistance---could be applicable to transit. Other criteria, 
such as the types of work eligible for funding, would need to be 
developed. 

Despite potential advantages, both approaches to implementing a 
disaster relief program for transit pose challenges and consequences. 
For example, it would be necessary to determine the extent to which any 
new or expanded DOT program would assume responsibility for assistance 
formerly provided by FEMA. Developing consistent eligibility standards 
for transit operations would also be daunting, given the diversity of 
providers and differences in the size of transit operations and in the 
scope of services that transit systems provide. 

The most important challenge under either approach would be a 
significant expansion of the scope and cost of DOT's Emergency Relief 
program. As we have recently reported, this program already faces a 
fiscal imbalance and its long-term sustainability is a 
concern.[Footnote 21] Although funding for the program is provided 
annually from the Highway Trust Fund, since 1990, 86 percent of the 
program's costs have been funded through supplemental appropriations 
because the program's annual demands have greatly exceeded the funding 
provided. Contributing to these additional demands has been the gradual 
expansion of eligibility criteria for disaster relief--for example, 
projects have grown in scope and costs because of environmental and 
community concerns, and Congress and FHWA have expanded the definition 
of eligible disasters and added to the types of work that could be 
funded. Identifying funding for an expanded or new emergency relief 
program would be problematic. Revenues supporting the Highway Trust 
Fund--the major source of federal highway and transit funding--are 
eroding and may not be sufficient to support existing programs in the 
coming years. According to a recent Congressional Budget Office 
estimate, expenditures from the Mass Transit Account within the Trust 
Fund will exceed revenues by 2012. Furthermore, as entitlement programs 
grow and consume increasing shares of federal spending, the funding for 
all discretionary federal programs will be constrained. 

Conclusions: 

The restoration of transit facilities and services after major 
disasters has taken different forms since 1998, and each disaster has 
posed unique challenges. The September 11, 2001, terrorist attacks on 
New York City caused massive destruction of transit infrastructure at 
the World Trade Center site, requiring over $4 billion in federal 
assistance to rebuild the destroyed infrastructure. By comparison, the 
2005 Gulf Coast hurricanes caused far less destruction to transit 
infrastructure, but created a need to provide continuing transit 
services for displaced populations. 

Although the Stafford Act authorizes public transportation services to 
meet emergency needs and to help communities resume their normal 
pattern of life as soon as possible, FEMA's experiences after the 2005 
Gulf Coast hurricanes illustrate the many hurdles that may be involved 
in providing such services. Already burdened with a massive response 
and recovery effort, FEMA had to make some difficult decisions about 
the extent of its authority to fund transit operations. Without 
guidance on the types of public transportation services that could be 
funded and criteria for determining the duration of that funding, FEMA 
took up to 4 months to make funding decisions. Such guidance and 
criteria would provide a frame of reference for all parties involved in 
responding to future disasters and could expedite future funding 
decisions. Moreover, with such guidance, FEMA could develop prescripted 
mission assignments for public transportation, as it has done for other 
response and recovery activities, which could reduce ambiguity and 
further expedite the mission assignment process when time is critical 
following a disaster. Although FEMA officials do not believe it is 
necessary to develop prescripted mission assignments for 
transportation, because FEMA will be assuming parts of DOT's 
responsibility for emergency response, DOT can still be tasked with 
providing alternative transportation services that can be carried out 
by others, and prescripted mission assignments could expedite its 
provision of those services. 

Additional options for increasing FTA's authority and capacity to 
respond to disasters affecting transit require congressional action. A 
careful examination of the advantages, consequences, and feasibility of 
these options could help enhance the limited ability of the federal 
government to provide immediate financial assistance to transit 
agencies in response to a disaster, to fund emergency services and to 
enable communities to quickly resume a normal pattern of life. 

Recommendations for Executive Action: 

To promote timely and effective disaster assistance for public transit, 
we recommend that the Secretary of Homeland Security direct the 
Administrator of FEMA to take the following two actions: 

* Develop guidance or regulations outlining the types of operating 
assistance for transit that FEMA will or will not fund following a 
disaster and criteria for determining the duration of funding for these 
services. 

* Draft prescripted mission assignments for public transportation 
services to provide a frame of reference for FEMA, FTA, and state 
transportation departments in developing mission assignments after 
future disasters. The prescripted mission assignments could reflect 
FEMA's guidance and criteria for funding public transportation 
services, reduce ambiguity, and potentially expedite their issuance so 
that agencies that are relying on FEMA funding could begin their 
disaster recovery. 

To enable FTA to provide more direct and timely assistance to transit 
agencies following a disaster, we recommend that the Secretary of 
Transportation evaluate the feasibility of options to increase FTA's 
authority to provide immediate financial assistance, and seek 
legislative authority as appropriate. 

Agency Comments: 

We provided DHS and DOT with copies of this report for their review and 
comment. DOT provided oral comments on January 17, 2008. DOT generally 
agreed with the facts presented and with our recommendation that it 
evaluate the feasibility of options to increase FTA's authority to 
provide immediate financial assistance, and seek legislative authority 
as appropriate. FTA stated that these options would be considered by 
its policy working group that is developing portions of the 
department's legislative proposal for reauthorizing surface 
transportation programs. On January 22, 2008, DHS responded by e-mail 
that it would take our two recommendations under advisement. DHS and 
DOT also provided technical comments, which we incorporated into this 
report as appropriate. 

We will send copies of this report to interested congressional 
committees, the Secretary of Homeland Security, the Secretary of 
Transportation, and other interested parties. We will make copies 
available to others upon request. In addition, the report will be 
available at no charge on GAO's Web site at [hyperlink, 
http://www.gao.gov]. 

Please contact Katherine Siggerud at (202) 512-2834 or 
siggerudk@gao.gov if you or your staffs have any questions about this 
report. Contact points for our Offices of Congressional Relations and 
Public Affairs may be found on the last page of this report. GAO staff 
who made key contributions to this report are listed in appendix II. 

Signed by: 

Katherine Siggerud: 
Director, Physical Infrastructure Issues: 

[End of section] 

Appendix I: Objectives, Scope, and Methodology: 

The objectives of this report were to determine (1) the role of the 
federal government in providing transit services and assisting transit 
agencies after a major disaster; (2) the amounts, sources, and uses of 
federal disaster assistance provided for transit since 1998; (3) 
factors that affected the timeliness and effectiveness of federal 
assistance for transit services after the 2005 Gulf Coast hurricanes; 
and (4) additional options for providing transit services and 
assistance for transit after a major disaster. 

To determine the role of the federal government in providing transit 
services and assisting transit agencies after a major disaster, we 
reviewed and analyzed relevant laws, regulations, and guidance on the 
Federal Emergency Management Agency's (FEMA) and the Federal Transit 
Administration's (FTA) authorities and responsibilities in responding 
to disasters affecting transit. We interviewed FEMA and FTA officials 
to determine their roles in providing disaster assistance to transit 
agencies. We also reviewed applicable legal materials. In addition, we 
reviewed emergency supplemental appropriations related to the terrorist 
attacks of September 11, 2001; the 2005 Gulf Coast hurricanes; and the 
Minneapolis, Minnesota, I-35 bridge collapse of August 2007 to identify 
appropriations designated for emergency transit. We analyzed 
regulations and guidance--including FEMA's National Response Plan and 
National Response Framework, FEMA Mission Assignment Standard Operating 
Procedures, and FEMA Public Assistance guidance--to gain an 
understanding of FEMA's role in disaster assistance to transit. We also 
visited FEMA headquarters in Washington, D.C.; FEMA Region VI in 
Denton, Texas; FTA headquarters in Washington, D.C.; FTA Region IV in 
Atlanta, Georgia; and FTA Region VI in Fort Worth, Texas. During these 
visits, we talked with agency officials about the role of the federal 
government during recent disasters. Furthermore, to better understand 
the federal response to disasters, we reviewed information included in 
several GAO and Congressional Research Service products. 

To determine the amounts, sources, and uses of federal disaster 
assistance provided for transit since 1998, we reviewed and analyzed, 
among other materials, supplemental appropriations funding designated 
for transit recovery after September 11, 2001; the 2005 Gulf Coast 
hurricanes; and any other disaster since 1998. Through interviews and 
documentation obtained from FTA officials, we quantified FTA indirect 
financial support to transit provided through waivers of local matching 
funds and conversions of capital grant funds to disaster recovery uses. 
We also reviewed and analyzed FEMA and FTA financial assistance for 
transit after recent disasters--specifically, the September 11 
terrorist attacks on New York and the 2005 Gulf Coast hurricanes. FEMA 
provided data on Public Assistance program funding for response actions 
after the September 11 terrorist attacks, and two Gulf Coast transit 
agencies provided data on funding they received from FEMA's Public 
assistance program after the Gulf Coast hurricanes. Finally, we 
discussed the uses of this federal assistance with officials from the 
New Orleans Regional Transit Authority, the Coast Transit Authority, 
the Capital Area Transit System, the Louisiana Department of 
Transportation and Development, and the Mississippi Department of 
Transportation. On the basis of interviews with knowledgeable agency 
officials and checks of the reasonableness of the information, we 
determined that these data were sufficiently reliable for our purposes. 
In addition to information developed for the September 11 terrorist 
attacks and the 2005 Gulf Coast hurricanes, we also attempted to 
quantify FEMA Public Assistance disaster funding to transit providers 
over time. FEMA officials indicated they did not have information on 
Public Assistance grants that supported transit; developing this 
information would require a search of Public Assistance grant 
information in their National Emergency Management Information System 
(NEMIS) database. We limited the scope of our analysis to disasters 
occurring from 1998 to August 2007 because FEMA officials indicated 
that NEMIS data prior to 1998 were incomplete. The NEMIS system is not 
able to sort transit grants from grants for other purposes. As an 
alternative approach, we searched grant applicant names and scope of 
work descriptions for any of several key words, such as "transit," 
"bus," or "rail," to identify Public Assistance grants that supported 
transit. We then reviewed individual Public Assistance grants 
identified by this process to select those that related to transit. 
Because our methodology for searching the database did not ensure that 
we identified all Public Assistance grants to transit for the time 
period we searched, the amount we report for FEMA Pubic Assistance 
grants for transit should be viewed as a minimum figure. There may have 
been other funds provided for transit purposes that we did not 
identify. In addition, FEMA staff used a similar approach to determine 
the amount of Public Assistance program funding for emergency ferry 
service in New York after the terrorist attacks, which resulted in the 
same uncertainty about identifying all funding. Although the 
reliability of these dollar amounts is undetermined, we believe their 
magnitude of uncertainty is relatively small compared with the nearly 
$5 billion in federal spending for emergency transit purposes. 
Therefore, we found these data to be sufficiently reliable for our 
purposes. Also, the inclusion of these data does not affect our 
conclusions or recommendations. 

To determine the factors that affected the timeliness and effectiveness 
of federal assistance for transit after the 2005 Gulf Coast hurricanes, 
we identified and analyzed the criteria and guidance that FEMA and FTA 
use in providing disaster assistance for transit. We assessed FEMA's 
and FTA's guidance and criteria related to the timeliness and duration 
of assistance to transit agencies and discussed the implementation of 
the guidance and criteria with FEMA and FTA officials. To evaluate the 
timeliness of assistance, we reviewed mission assignment documentation 
and determined the period between the date of the disaster and the date 
of issuance for each mission assignment. To evaluate the duration of 
assistance, we reviewed mission assignment documentation and determined 
the period from the issuance date to the end date for each mission 
assignment. To obtain transit agencies' perspectives on the timeliness 
and effectiveness of federal assistance, we interviewed officials from 
the New Orleans Regional Transit Authority, the Coast Transit 
Authority, the Capital Area Transit System, the Louisiana Department of 
Transportation and Development, and the Mississippi Department of 
Transportation. 

To identify additional options for providing transit services and 
assistance for transit after a major disaster, we reviewed and 
analyzed, among other materials, the Federal Highway Administration's 
Emergency Relief program guidance; the American Public Transit 
Association's Emergency Response and Preparedness Program guidance; the 
Community Transportation Association of America's documents related to 
lessons learned from Hurricane Katrina, including what is needed for 
future disasters; the Florida Department of Transportation's Transit 
Emergency Planning and Response Assessment Initiative; and our report 
on the National Emergency Management Association's Emergency Assistance 
Compact. We discussed alternative options for providing assistance for 
transit after a catastrophic disaster with officials from FTA and the 
American Public Transit Association, the Community Transportation 
Association of America, and the Florida Department of Transportation 
and determined whether these options were feasible for providing or 
improving federal assistance for transit after a catastrophic disaster. 

[End of section] 

Appendix II: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

Katherine Siggerud, (202) 512-2834 or siggerudk@gao.gov: 

Staff Acknowledgments: 

In addition to the contact named above, Steve Cohen, Assistant 
Director; Dwayne Curry; Elizabeth Eisenstadt; Cynthia Grant; Kristin 
Hughes; Bert Japikse; and Donald Kittler made key contributions to this 
report. 

[End of section] 

Footnotes: 

[1] Robert T. Stafford Disaster Relief and Emergency Assistance Act, 
Pub. L. No. 93-288; codified at 42 U.S.C. ch. 68. 

[2] 42 U.S.C. § 5186. 

[3] FEMA can provide partial "immediate needs funding" under its Public 
Assistance program, for debris removal and emergency protective 
measures within the first 60 days after a disaster, but this funding 
would not be available for transit operations. 

[4] DHS's National Response Plan, issued in 2004, described how the 
federal government coordinates with state, local, and tribal 
governments and the private sector in responding to disasters. The 
plan's Emergency Support Function annexes detailed specific federal 
agencies' responsibilities. 

[5] GAO, Highway Emergency Relief: Reexamination Needed to Address 
Fiscal Imbalance and Long-term Sustainability, GAO-07-245 (Washington, 
D.C.: Feb. 23, 2007). 

[6] The Safe, Accountable, Flexible, Efficient, Transportation Equity 
Act: A Legacy for Users, Pub. L. No. 109-59. 

[7] 42 U.S.C. § 5186. 

[8] Emergency Supplemental Appropriations Act for Defense, the Global 
War on Terror, and Hurricane Recovery, 2006, Pub. L. No. 109-234 § 
7025. 

[9] The 2002 Supplemental Appropriations Act for further Recovery from 
and Response to Terrorist Attacks on the United States, Pub. L. No. 107-
206, ch. 11. 

[10] In addition to funding transit projects, a portion of FEMA funds 
went toward the restoration of Route 9A and the establishment of a 
promenade adjacent to the World Trade Center site. The Route 9A and 
promenade project is estimated to cost $287.3 million. 

[11] Pub. L. No. 107-206, ch. 13. 

[12] Consolidated Appropriations Resolution, 2003, Pub. L. No. 108-7. 

[13] U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq 
Accountability Appropriations Act, 2007, Pub. L. No. 110-28, title IV, 
ch. 8. 

[14] Emergency Supplemental Appropriations Act for Defense, the Global 
War on Terror, and Hurricane Recovery, 2006, Pub. L. No. 109-234, § 
7025. 

[15] Global Charter Services, Ltd., operating under the name "The 
BusBank," provides charter bus services. 

[16] GAO, Emergency Management Assistance Compact: Enhancing EMAC's 
Collaborative and Administrative Capacity Should Improve National 
Disaster Response, GAO-07-854 (Washington, D.C.: June 29, 2007). 

[17] However, NORTA, through a contract with the Louisiana Department 
of Transportation and Development, was able to begin operating the LA 
Swift service between New Orleans and Baton Rouge in December 2006 with 
FTA-approved funding from other grants and waived local matching funds. 

[18] GAO, Catastrophic Disasters: Enhanced Leadership, Capabilities, 
and Accountability Controls Will Improve the Effectiveness of the 
Nation's Preparedness, Response, and Recovery System, GAO-06-618 
(Washington, D.C.: Sept. 6, 2006). 

[19] GAO-07-854. 

[20] Federal-aid highway systems means the National Highway System, the 
Dwight D. Eisenhower National System of Interstate and Defense 
Highways, and all other public roads not classified as local roads or 
rural minor collectors. 

[21] GAO-07-245. 

[End of section] 

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