To our Oregon transit partners,
This email provides an important update on the timing and availability of federal grant funding for the 2025-2027 biennium, information about when to expect Statewide Transportation Improvement Fund (STIF) funding, as well as essential information for guidance on National Environmental Policy Act (NEPA) requirements for all recipients of FTA funds.
We have shared updates with you in August 2024 and January 2025 about ODOT’s policies and practices with our federal funding process. We shared that we have been working through a backlog of federal grants with the Federal Transit Administration (FTA) and making progress. We have been working hard to best meet transit riders’ and providers’ needs while we work through funding backlogs and process improvements. As we finalize this grant award and subgrant process, we appreciate and thank you for the information providers have shared with us to ensure program eligibility and compliance.
Timing of federal transit funding in Oregon
For the 2025-2027 biennium, Oregon’s federal formula transit funding, set by Congress for federal fiscal years 2025 and 2026, totaled $29.8 million for 5311 Formula Grants for Rural Areas and $2.6 million in 5310 Enhanced Mobility for Seniors and Individuals with Disabilities. However, Congress has only funded federal fiscal year 2025, providing about $14 million for 5311 and about $1.2M for 5310 small urban formula funds. Additionally, Oregon will provide $12.5 million for 5310 from Surface Transportation Block Grant (STBG) Program funding.
For the 2025-2027 biennium, ODOT will provide the first year of formula funding only, as approved by Congress, and not funds that have not been authorized yet. Federal fiscal year 2026 funding will be distributed once Congress passes a budget for 2026 and ODOT executes the grant agreements with FTA.
Subgrant agreements for federal 5311 and 5310 formula funding will include a July 1, 2025 start date. This will be the date when agencies can begin incurring eligible expenses, however, we strongly encourage providers to wait until the statement of work is finalized to ensure alignment with FTA requirements for eligible expenses. Reimbursements will be available after the grants have been executed with FTA and federal funds are available to ODOT. At this point, we cannot confirm a grant execution date given the uncertainty at the federal level, but with normal processing times, we estimate the following:
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For 5311, we expect FTA grant execution in late 2025.
- For 5310 small urban formula funding, we expect FTA grant execution by late 2025.
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For 5310 STBG funding, we expect FTA grant execution by summer 2026.
We will provide more information to providers as we learn more about timing.
The Oregon Transportation Commission has historically increased 5310 Enhanced Mobility for Seniors and Individuals with Disabilities with STBG funding, which comes from the Federal Highway Administration and is then transferred to the FTA. Please be aware that in late 2024, the Commission decided to reduce the STBG funds designated for 5310 (Elderly and Disabled) transit to $5 million total from 2028-2030. This is due to the increased costs for ADA compliance and the expiration of the Infrastructure Investment and Jobs Act (IIJA).
We are working hard to balance competing needs, including ensuring that critical transit service is not interrupted to the extent possible, while minimizing the financial risks to ODOT and transit agencies. We encourage agencies to plan for uncertainties ahead.
Statewide Transportation Improvement Fund Formula, Discretionary & Intercommunity Funding Update
The Oregon Transportation Commission will review 2025-27 STIF Formula Plans from the 42 Qualified Entities for adoption at the upcoming meeting on May 8, 2025. On April 8, 2025, the Public Transportation Advisory Committee recommended approval of each plan.
Next, ODOT will develop grant agreements for STIF Plan formula funding by July 1, 2025. These grant agreements must be executed prior to fund disbursements. This is a new step this biennium that is intended to increase ODOT oversight abilities on STIF funds.
On March 13, 2025, the Commission also approved $22,160,000 for the 2025-2027 STIF Discretionary and Intercommunity Grant Solicitation to support 46 projects for agencies across the state. Congratulations to these agencies for their successful transit projects!
See the full grant award lists here:
NEPA requirements for federally funded transit projects
We also wanted to share a reminder of the National Environmental Policy Act (NEPA) requirements that apply to all projects that receive FTA funds (directly or through the state). The process of complying with NEPA and all other applicable federal environmental laws (e.g., the Endangered Species Act, the Clean Water Act, the National Historic Preservation Act) is referred to as the environmental review process. The consequences of grant recipients not complying with NEPA requirements can be significant, including risking project eligibility and federal reimbursement.
Please see this document about completing the environmental review process and paperwork in a timely manner, project scope evaluation under NEPA and obtaining written concurrence for NEPA from the FTA. If you have any specific project questions, please reach out to your Regional Transit Coordinator and they will connect you with ODOT’s NEPA team. ODOT is planning a NEPA training for FTA grant recipients on May 21, 2025. Details will be posted to the Public Transit Provider Trainings site.
