The Capital Bus Program is authorized by 49 U.S.C. § 5309. The program provides grants to assist in financing capital projects that will benefit the State's transit systems in both urban and nonurbanized areas. There are three (3) categories of projects: 1. Bus and bus-related facilities; 2. Modernization of fixed gudeway systems; and, 3. Construction of new fixed guideway systems and extensions. The Capital Bus Program is a discretionary program, i.e., Kentucky's projects compete with projects nationwide for Federal approval. Kentucky's large and small urban systems have been fortunate to receive this funding for many years. Kentucky's nonurbanized and rural systems have been receiving funds from the Capital Bus Program for the last few years to help replace high-mileage vehicles and improve facilities.

The Elderly and Persons with Disabilities Formula Program is authorized by 49 U.S.C. § 5310. The program makes funds available to private, nonprofit organizations and associations and designated public entities for the purchase of capital equipment for use in transporting the elderly and persons with disabilities, where existing services are unavailable, insufficient, or inappropriate. Eligible capital items include buses, vans, vehicle rehabilitation, initial installation costs, vehicle procurement, testing, inspection, and acceptance costs, preventive maintenance, bus shelters, radio equipment, wheelchair lifts, lease of equipment when lease is more effective, and acquisition of transportation services under a contract, lease or other agreement. At present, no operating funds are available. The Section 5310 program is designed to supplement FTA's other capital assistance programs by funding transportation projects for the elderly and persons with disabilities in all areas--urbanized, small urban, and rural.

The nonurbanized area formula program for public transportation is authorized by 49 U.S.C. § 5311. Section 5311 provides funds for capital and operating assistance to state agencies, local public bodies, nonprofit organizations, and operators of public transportation services. The goals of the program are: to enhance the access of people in nonurbanized areas, especially elderly persons, persons with disabilities, and economically disadvantaged persons, to health care, shopping, education, employment, public services and recreation; to assist in the maintenance, development, improvement, and use of public transportation systems in rural and small urban areas; to encourage and facilitate the most efficient use of all Federal funds used to provide passenger transportation in nonurbanized areas through the coordination of programs and services; to assist in the development and support of intercity bus transportation; and to provide for the participation of private transportation providers in nonurbanized transportation.