Why Urban System Funds Were Seldom Used for Mass Transit

CED-77-49: Published: Mar 18, 1977. Publicly Released: Mar 18, 1977.

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Since 1973, few communities have used Highway Trust Fund monies made available by Congress for mass transit under the Urban System Program.

Only 13 urban areas in 8 states used the program for mass transit projects such as buying buses and rail passenger cars. Most communities continued using Urban System funds for local roads because Urban Mass Transportation Administration grants were available for mass transit projects and because highways needed work. Other reasons Urban System funds were not used for mass transit included the fact that less matching shares were required for federal mass transit than for highway programs; federal regulations for implementing mass transit projects were not issued; and some smaller communities experienced delays or confusion in obtaining project approval.

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