Need for Controls by the Urban Mass Transportation Administration Over No-Prejudice Authorizations

The Urban Mass Transportation Administration (UMTA) is authorizing local transit authorities to incur cost on a "no-prejudice" basis. These authorizations permit local authorities to use local funds for a variety of purposes, such as project development and the purchase of buses, with the understanding that such costs may be reimbursed if future grants are approved. However, UMTA does not guarantee that future grants will be made or that any of the incurred costs will be eligible for reimbursement if a grant is approved.