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INDOT > Doing Business with INDOT > Modes of Transportation > Transit > Rural Transit Programs Rural Transit Programs

The Federal Section 5311 Program was created via the Federal Transit Act of 1964 to provide public transportation in non-urbanized areas (population of 50,000 or less). The goal of the program is to provide transportation to people living in rural areas where mobility is limited because of access to public transportation. The program uses federal and state funds to support the operation of rural transportation systems. Eligible systems annually apply and are awarded funding for operating and capital costs. 

Eligible applicants for Section 5311 funding include counties, cities, public transportation corporations, or regional transportation authorities. The applicant may either directly provide transit service or purchase service from an eligible provider. Eligible providers include local public bodies, private for-profit and non-profit agencies that will provide services to the general public. (Private non-profit and for-profit providers cannot apply for assistance directly and must work through a designated public entity.)

The Section 5311 State Management Plan is designed to assist current and potential grant recipients in fulfilling the various requirements of receiving federal financial assistance in accordance with the Federal Transit Administration (FTA) Circular 9040.1F. The FTA provides limited federal financial assistance to support the operation and capital investment needs of public transportation systems in rural and small urban areas. Its purpose is to outline the Indiana Department of Transportation's (INDOT's) plan for administering the Section 5311 program and as a source of guidance to current grantees and interested parties.

Eligible Grant Categories

  • Feasibility Study Grants
    First-time applicants must demonstrate the feasibility of initiating public transit service. These grants are available to assist grantees in determining demand for public transit service, the level of local support and projected operating and capital costs. Section 5311 may fund up to 80% of the total feasibility study costs.

  • Operating Project Grants
    Operating Grants provide assistance for driver and mechanic salaries, fringe benefits, fuel, oil, tires, parts and casualty insurance. Section 5311 may fund up to 50% of the net operating costs.

  • Capital Project Grants
    Capital projects generally include expenses for purchasing vehicles, communication equipment, fareboxes, passenger shelters, and construction of and rehabilitation of transit facilities. Section 5311 capital assistance may fund up to 80% of the total capital costs.

  • Intercity Projects
    Section 5311(f) also funds capital, operating, planning and marketing projects for intercity transportation projects. An intercity project is defined as public transit service with limited stops over fixed routes connecting two or more urban areas. Projects may also include the transportation of residents of non-urbanized areas to and from urbanized areas.

Contact Information

James English
Public Transit Program Manager
Indiana Department of Transportation
100 N. Senate Ave., Room N-955
Indianapolis, IN 46204
317-232-1483
jenglish@indot.in.gov

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