Hours of Operation:

Mon. - Fri.: 9:00AM - 5:00PM ET


Funding Considerations

Funding Considerations

The requirements of the ADA apply regardless of whether a particular entity or activity uses federal funding. Vehicles, services, buildings, and facilities must all comply whether they are federally-funded or not. Complying with the ADA requirements and providing services that are accessible to everyone is part of the business of providing public transportation and is a condition of eligibility for federal funding.


This section of the Toolkit provides information on funding that can be used to comply with ADA requirements and enhance the accessibility of rural transit services. Although the Federal Transit Administration (FTA) does not provide funding dedicated to meeting ADA requirements, many FTA grant programs can be used to support ADA-related expenses. Transit agencies can often use FTA grants to fund ADA-required equipment, services, training, and other transit program elements. State Departments of Transportation (DOTs) may also provide state funding for ADA-related expenses. Many rural transit agencies have contracts to operate human services transportation in coordination with public transportation, and this can be an important way to fund transportation for people with disabilities. Medicaid funding for non-emergency medical transportation (NEMT) may cover a portion of the cost to provide ADA complementary paratransit to and from medical appointments for individuals who are eligible for both ADA complementary paratransit and Medicaid. Transit agencies can make more efficient and effective use of resources by coordinating with other organizations. Transit agencies that operate fixed route service can reduce the need to provide ADA complementary paratransit by making the fixed route service as accessible and user-friendly as possible.


This section of the ADA Toolkit covers:



FTA Funding that Can Support ADA-Related Expenses

The following programs are commonly used to support accessible rural public transportation and specialized transportation services. For more information about these and other potential funding sources, see the Budgeting and Finance 101 section of the Transit Manager’s Toolkit, under Potential Funding Sources for Rural Public Transportation. 



In 2024, the FTA updated its program guidance for several program circulars. These include the Grants for Buses and Bus Facilities Program (5339(a)); Formula Grants for Rural Areas Program (5311); the Tribal Transit Program (5311(c)); and the Enhanced Mobility of Seniors and Individuals with Disabilities Program (5310)


Readers are advised to review the FTA 2024 Circular Update, the FTA’s Dear Colleague Letter, September 27, 2024,  and the FTA’s Training and Informational Presentations to learn more about the updates contained in the following program circulars: 


Section 5311—Formula Grants for Rural Areas

Section 5311—Formula Grants for Rural Areas is the FTA program specifically intended for rural public transportation, providing funding for operating, administrative, planning, and capital projects. 


Operating projects can include provision of ADA complementary paratransit, with a maximum federal share of 50 percent of net operating deficit.

Capital projects that are allowable under federal program include (but are not limited to): 


  • Purchase of accessible vehicles 
  • Accessibility equipment on vehicles 
  • Construction or rehabilitation of transit facilities (including accessibility improvements) 
  • Mobility management projects (which can include travel training and coordination projects) 
  • Preventive maintenance (which can include maintenance of lifts and ramps) 


The federal Section 5311 program also allows for up to 10 percent of a recipient’s (state’s) annual Section 5311 apportionment to be spent on ADA complementary paratransit, but only for programs which are in full compliance with the ADA requirements. The maximum federal share for Section 5311 capital projects is generally 80 percent. The maximum federal share for vehicles that comply with 49 CFR Part 38 is 85 percent, and 90 percent for project costs for acquiring vehicle-related equipment (on or attached to the vehicle) or facilities that are required by the ADA. 


For more information about project eligibility, review Chapter III of FTA Circular 9040.1H, Rural Areas Formula Grant Programs Guidance: General Program Information. (Section 5311), and check with the State DOT about eligible projects and funding matching ratios in that state’s Section 5311 program. State RTAP Managers can also provide technical assistance. National RTAP provides a Directory of State RTAP Managers.

Section 5310—Enhanced Mobility of Seniors and Individuals with Disabilities

Section 5310—Enhanced Mobility of Seniors and Individuals with Disabilities provides funding to assist in meeting the transportation needs of older adults and people with disabilities. Rural public transit systems may be eligible for Section 5310 funding through the State DOT depending upon the state program specifics and the types of organizations the state funds under its Section 5310 program. Projects funded under the Section 5310 program must be included within a locally-developed, coordinated public transit-human services transportation plan.


At least 55 percent of a State DOT’s Section 5310 program must be for “traditional” Section 5310 projects, defined as public transportation capital projects planned, designed, and carried out to meet the specific needs of seniors and individuals with disabilities when public transportation is insufficient, unavailable, or inappropriate. 


Included among the eligible projects under this category are: 


  • Purchase of vehicles 
  • Purchase of service operations
  • Preventive maintenance 
  • Vehicle wheelchair lifts, ramps, and securement devices 
  • Purchase and installation of passenger amenities such as benches and shelters 
  • Dispatch technology 
  • Mobility management and coordination programs 
  • The capital cost of contracting for the provision of transit services for seniors and individuals with disabilities and other specialized shared-ride transportation services 
  • Up to 45 percent of each state’s Section 5310 program may be used for additional public transportation projects that:
  • Exceed the ADA minimum requirements,
  • Improve access to existing fixed route service and decrease reliance by individuals with disabilities on ADA-complementary paratransit service, or
  • Provide alternatives to public transportation that assist seniors and individuals with disabilities with transportation.


These projects must be designed to meet the transportation needs of seniors and individuals with disabilities. They may, however, be used by the general public, and FTA encourages projects that are open to the public as a means of avoiding unnecessary segregation of services.


Examples of public transportation projects that exceed the requirements of the ADA include:

  • Enhancing paratransit beyond minimum ADA requirements, such as: 
  • going beyond the minimum geographic area or days and hours of service 
  • providing same day service 
  • providing door-to-door service to all riders 
  • providing a higher level of rider assistance than required (such as escort service) 
  • purchasing vehicles that accommodate larger and heavier mobility devices or with additional securement locations than the minimum specifications under 49 CFR Part 38
  • Providing accessible “feeder” transit service to commuter rail, commuter bus, intercity rail, and intercity bus stations, for which complementary paratransit service is not required under the ADA


Examples of public transportation projects that improve fixed route accessibility include:


  • Making accessibility improvements to transit and intermodal stations not designated as “key stations.” For rural transit agencies, this could include building an accessible path to a bus stop that is currently inaccessible, improving signage or wayfinding technology, or technology improvements to enhance accessibility for people with disabilities.
  • Travel training programs to help individuals learn to ride fixed route and increase their awareness of transportation options. 


Examples of public transportation alternatives that assist seniors and individuals with disabilities with transportation include:


  • Purchasing vehicles to support accessible taxi, ride-sharing, and/or vanpooling programs
  • Supporting the administration and expenses related to voucher programs for transportation services offered by human service providers
  • Supporting volunteer driver and aide programs


Maximum federal match levels for Section 5310 are comparable to those under Section 5311. For more information about eligible projects under Section 5310, see Chapter IV, Eligible Projects and Requirements of FTA Circular 9070.1H and ask the State DOT.

Section 5339 - Bus and Bus Facilities Infrastructure Investment Program

The Section 5339(a) - Grants for Buses and Bus Facilities Formula Program provides funding for capital bus and bus-related projects that will support the continuation and expansion of public transportation services. States determine how Section 5339(a) funds are distributed among rural subrecipients. Eligible projects that could support ADA compliance include vehicles (including paratransit vehicles), facilities, passenger amenities, technology, and capital cost of contracting.


Maximum federal match levels for Section 5339 are comparable to those under Section 5311. For more information about eligible projects under Section 5339(a), see Chapter III, General Program Information (Section 5339(a)) of FTA Circular 9040.1H Rural Areas Formula Grant Programs Guidance and ask the State DOT.

Tribes as Direct Recipients

For more information about FTA apportions or awards to Tribes for eligible projects under Formula Grants for Rural Areas (Section 5311) and Grants for Buses and Bus Facilities Formula Program (Section 5339(a)), see FTA Circular 9040.1H Rural Areas Formula Grant Programs Guidance Chapter III, General Program Information (Tribes as Direct Recipients) and Chapter XI, Public Transportation on Indian Reservations and ask the State DOT.

Other FTA Funding Programs that Can Be Used in Rural Areas

FTA periodically provides other types of grants that could be used to help enhance or expand transportation for individuals with disabilities, often through mobility management and coordination initiatives. As discussed in the Coordination and Mobility Management section of the Transit Manager’s Toolkit under FTA Funding for Mobility Management, recent grant opportunities have included Access and Mobility Partnership Grants, the Mobility on Demand (MOD) Sandbox Program, the Integrated Mobility Innovation (IMI) Demonstration Program, the Mobility for All Pilot Program, and more. A good source of information about future grant opportunities is the National Center for Mobility Management (NCMM).

FTA Funding and ADA Requirements

The U.S. DOT ADA requirements are not limited to FTA funding recipients. There are requirements that apply to all public entities as well as requirements that apply to private entities. However, it should be emphasized that compliance with ADA requirements is a condition of eligibility for receipt of federal funding.


Importantly, FTA-funded public transportation services are subject to the ADA requirements for public entities, even if the organization operating the service is private. As explained in Appendix D to 49 CFR Part 37, under Section 37.23, private entities are considered to be “standing in the shoes” of a public entity that contracts for the service. Additionally, as stated in Section 1.3.2 of FTA ADA Circular 4710.1, the stand-in-the shoes requirements apply to private entities that receive Section 5311 funding through subgrant agreements directly with state agencies, or through subrecipients who then enter into agreements with private contractors for service. 


FTA grant funds affect the ADA requirements that apply to a private non-profit organization that provides public transportation services under a contract that is funded by an FTA grant. While a private entity does not become subject to the requirements for public entities because it receives an operating subsidy from, is regulated by, or is granted a franchise or permit to operate by a public entity, when a public entity enters into a contractual or other arrangement (such as a grant, subgrant, or cooperative agreement) or relationship with a public entity, the private entity “stands in the shoes” of the public entity. If the transportation provider is under contract to a public entity such as a local or state government, or if a grant from the state or federal government funds the service provided under contract, the requirements that apply to a public entity apply to this service.


Section 1.3.2 of FTA ADA Circular 4710.1 (page 1-7, under “Private Entities Receiving Section 5310 Funding”) also notes that Section 5310-funded service that is open to the public is subject to the requirements for public entities. However, private nonprofit organizations that receive Section 5310 funding and provide closed-door service to their own clientele (i.e., not open to the general public) do not stand in the shoes of the public entity for the closed-door service. Instead, these organizations are subject to the ADA requirements that apply to private entities (which are beyond the scope of this Toolkit). See the General Requirements for All Service Types Section of this Toolkit


Recipients and subrecipients of FTA funding that do not comply with ADA requirements could jeopardize their FTA funding. Under 49 CFR Section 37.11(a) and Subpart C (Enforcement) of 49 CFR Part 27, FTA is charged with ensuring FTA grantees do not discriminate against individuals with disabilities, and each grantee agrees to comply with federal law when signing the FTA Master Agreement as well as the certifications and assurances submitted with each grant application (discussed in the Grant Compliance Requirements section of the Transit Manager’s Toolkit under Introduction). 


FTA conducts ADA specialized reviews and triennial reviews of its direct recipients (including State DOTs). States are responsible for conducting oversight of their FTA subrecipients, including rural Section 5311 subrecipients. FTA conducts oversight of state programs and may also review rural transit agencies as part of State Management Reviews.


FTA requires that State DOTs conduct oversight of their subrecipients on numerous compliance requirements, including ADA. Each State DOT determines its own approach to subrecipient oversight. FTA conducts oversight of the state’s approach as part of the State Management Review. The requirements that apply to states and their oversight efforts are described in the FTA’s Comprehensive Review Guide. The most recent Comprehensive Review Guide can be found on the FTA web site. There is nothing stated in the ADA about reporting requirements, but there may be requirements as part of the National Transit Database (NTD), or for funding purposes, such as a state’s subrecipient reporting requirements tied to a specific grant. See the Grant Compliance Requirements section of the Transit Manager’s Toolkit under Ensuring Compliance for more information on this topic. 


FTA also conducts specialized reviews of selected recipients to verify their compliance with ADA requirements for fixed route and paratransit requirements. 



As discussed in FTA ADA Circular 4710.1, FTA processes ADA complaints filed against transit providers by members of the public alleging noncompliance. FTA’s process includes an investigation with an opportunity for the transit provider to respond. If the transit provider is found noncompliant, FTA advises them of corrective actions needed. 


FTA also takes rider complaints through its website. If FTA determines that there is an ADA violation, staff will work with the transit agency to correct the deficiency. Because compliance with ADA requirements is part of the grant agreement, FTA or a State DOT may also withhold grant funding for unresponsive transit agencies. As a civil rights law, the ADA also provides aggrieved individuals with the right to seek legal action through the courts; it is therefore possible that an individual or an advocacy organization may file a lawsuit against a transit agency for an ADA violation. Complaints about transit agency ADA compliance can also be filed with the U.S. Department of Justice (DOJ).


If FTA cannot work with an agency to resolve apparent ADA violations by voluntary means, enforcement provisions can include referral to U.S. DOJ for enforcement or suspension or termination of grant funding.


Coordination with Other Sources of Transportation Support for People with Disabilities

Coordinated Funding

Many rural transit agencies have contracts to operate human services transportation in coordination with public transportation, and this can be an important way to fund transportation for people with disabilities. For example, Medicaid funding for non-emergency medical transportation (NEMT) may cover a portion of the cost to provide ADA complementary paratransit to and from medical appointments for individuals who are eligible for both ADA complementary paratransit and Medicaid. Medicaid is required to make certain that every beneficiary who has no other means of transportation has access to transportation needed to receive covered medical care. (42 C.F.R. Section 431.53 Assurance of Transportation) On September 28, 2023, the Centers for Medicare and Medicaid Services/Center for Medicaid and CHIP Services (CMS) issued guidance for the provision of Medicaid transportation. The stated purpose of the guidance, Assurance of Transportation: A Medicaid Transportation Coverage Guide, is to provide “a one stop source of federal requirements and state flexibilities.” Assurance of Transportation: A Medicaid Transportation Coverage Guide



The extent to which such costs can be funded by Medicaid varies in each state, depending on the state’s approach to administering Medicaid non-emergency medical transportation (NEMT) and the specific contract with each transportation provider. Under the federal Medicaid regulations in 42 CFR Part 440 [specifically in Section 440.170(a)(4)(ii)(B)(4)(iii)], under specific circumstances in states that have established NEMT brokerages, the NEMT brokers are permitted to pay for public paratransit services for as much as (but no more than) the rate charged to other state human services agencies for comparable services.


Other funding programs that support individuals with disabilities may also be used to cover ADA complementary paratransit costs or to provide other transportation support.

Coordinated Services

Transit agencies can make more efficient and effective use of resources by coordinating public transit and specialized transportation services and by coordinating with other organizations to address different types of needs. For example, coordinated dispatching and scheduling can increase productivity on demand response and paratransit services. Productivity is key to making the most efficient use of operating funding and reducing the average cost per passenger trip. Mobility management programs help match consumers to the services that can meet their needs, and can also provide other functions, such as eligibility determination for ADA complementary paratransit and other transportation programs.

Private Sector Partner Sponsorships

Transit agencies may be able to garner financial support from the private sector for ADA complementary paratransit. The Paris Metro system in the rural city of Paris, Texas is an example. Historically, Paris was served by general public demand response transit service, provided by the Ark-Tex Council of Governments Rural Transit District (TRAX) as part of its regional rural transit service. In 2016, to more effectively serve city residents, TRAX replaced the Paris demand response service with fixed route transit together with ADA complementary paratransit. TRAX used the assistance of a consultant to develop a sponsorship program to generate revenue for the service prior to implementing this change. United Way of Lamar County was the first sponsorship partner. Soon after, the Paris Regional Medical Center, Texas Oncology-Paris, the City of Paris, and other stakeholders were also on board. In return for financial support, the sponsoring businesses get advertising space on the Paris Metro buses and other promotional opportunities. An article in the Business Section of Texas Monthly (November 2023), What Can Public Transit Deserts Learn From Paris, Texas?, describes how the Paris Metro system continues to have community support as it continues to serve the area’s most vulnerable populations. For more information, see the (TRAX) ADA Complementary Paratransit Service Plan (2017).


Section Sources

Suggest A Topic

Updated February 3, 2025

Share by: