Federal Funding Helps Transit Agencies Do More with Less. Here's How.

Recap of Caren Lee’s Presentation at the 2025 FPTA Annual Conference 

Every year, billions of federal dollars are made available to transit agencies across the country, yet much of this funding remains underutilized. These resources offer long-term, stable investments which are crucial for expanding and maintaining infrastructure, supporting economic growth, reducing congestion and emissions, and improving the quality of life for riders. 

Federal funding empowers communities to build and upgrade transit systems, and while many agencies focus on physical assets like vehicles and facilities, this funding stream can also be used to invest in software and technology. This helps agencies better understand their data on ridership, emissions, accessibility, and more, ultimately leading to smarter decisions and better service. 

At the 2025 FPTA Annual Conference, Caren Lee, Customer Service & Training Manager at TransTrack Solutions Group, delivered a session titled “How to Use Federal Funding to Improve Your Agency Efficiencies & Deliverables.” Her presentation offered practical strategies for tapping into these funding opportunities and using them to drive meaningful improvements. 

Continue reading to learn the key takeaways from Caren’s presentation and how you can apply these strategies to benefit your transit agency.  

Why Grants Matter 

Agencies are constantly striving to improve efficiency while working within tight budgets. Federal and state grants, especially those from the Federal Transit Administration (FTA), can be powerful tools for funding software and technology solutions that enhance operations. 

Even if your existing formula grants are already allocated, there are still ways to incorporate technology purchases into your budget. For example, software purchases can be combined to meet the $10,000 capital threshold, providing an 80/20 match from FTA grants.  Software purchases can also be bundled with capital purchases and improvements, such as buses or facility upgrades.  

Types of Grants Available 

FTA Formula Grants 

These are apportioned based on data from National Transit Database (NTD) reports and include: 

• 5307: Urbanized Area Formula Grants 
• 5311: Rural Transportation Assistance 
• 5337: State of Good Repair Grants 

Each of these can support software purchases that align with the grants purpose, such as asset management or operational improvements. 

FTA Competitive Grants 

FTA will add competitive grants as funding is approved.  Currently, there are several competitive grant programs agencies can explore: 

• Accelerating Innovative Mobility – Supports software development or purchase for new mobility models 
• Advanced Digital Construction Management Systems – Funds technology that improves project execution and safety 

These grants require applications, but resources are available to help agencies navigate the process. 

U.S. Department of Transportation Grants 

The U.S. Department of Transportation (DOT) is another resource for grant funding.  Often times, DOT grants are funneled through your State DOT and not passed directly to the transit agency. These funds are accessible to your agency as a subrecipient to your State DOT. These grants can include things like: 

• Public transit (buses, trains, subways) 
• Roads and highways 
• Bridges and tunnels 
• Safety improvements 
• Bike and pedestrian projects 

In short: your agency can get financial support from the federal government to states, cities, or agencies to build, improve, or maintain transportation systems. 

Real-World Examples 

At TransTrack, we've helped various transit agencies successfully use grant funding to purchase software: 

• Antelope Valley Transit Authority (AVTA) purchased TransTrack software using 5307 capital funds. 
• Southwest Regional Transit District (SWART) used TxDOT funding to fully cover their TransTrack Manager implementation. 
• TriMet funded their Viewpoint system through a grant. 

These examples demonstrate the impact of strategic grant use and underscore the importance of exploring all available options. 

Resources for Grant Assistance 

To support your agency on your funding journey, here is a list of helpful resources:

• Your State Councils of Government: Acts as a bridge between local governments and the state
  
• National & State RTAP Programs: Offer funding directories and grant writing consultant lists
• Community Organizations: United Way, faith-based groups, and others may offer support and/or funding
• Consultants & Training Materials: Available to help agencies write grants and improve mobility
  
• Texas: The Texas Association of Regional Councils 
• California: The California Association of Councils of Governments 
• Florida: The Florida Regional State Councils Association 

Final Thoughts 

Federal funding isn’t just a budget line, it’s a catalyst for transformation.  

When agencies tap into these resources, they unlock the ability to modernize operations, invest in smarter technologies, and deliver more responsive, equitable service to the communities they serve. Whether it’s through formula grants, competitive programs, or state-level initiatives, the opportunity is there to build systems that are not only efficient, but visionary. 

By investing in software and data tools, agencies can better understand their riders, optimize routes, reduce emissions, and plan for the future with confidence. The funding exists and the need is clear. Now is the time to act. Let’s make sure these dollars go to work building the transit systems our communities deserve. 

“Even if you feel like your grants are already spoken for, there are ways to combine purchases, seek alternate sources, and tap into competitive programs. Help is out there—you just need to know where to look.” - Caren Lee  

If you want to know how your agency can benefit from federal grants, please reach out to us by filling out the form below: