KCATA is the designated recipient of federal Urbanized Area Formula Funds allocated to the Kansas City region for transit (Section 5307 funds). In response to the COVID-19 pandemic, Congress passed the $1.9 trillion American Rescue Plan (ARP) Act which was signed into law which included funding of $30.5 billion for public transportation. The federal method for allocation of ARP Transportation Assistance funding follows the same statutory requirements as Section 5307 funds, therefore KCATA is responsible for management, allocation, and distribution of the funds in the region.
The purpose of the funding is to supplement lost revenues including sales tax, passenger fares and local support along with increased operating and capital expenses, including additional expenses specifically related to COVID-19, for transit agencies throughout the region.
In 2021, the KCATA Board approved the regional sub-allocation for ARP Transportation Assistance funds to support regional transit operations. As part of this funding allocation, the City will receive $1,749,322 funding for our transit services (i.e., intra-city fixed route, inter-city fixed route, and paratransit services). These funds will be used to cover the City’s transit operating expenses between now and December 2023.
The sub-awardee agreement allows the City to utilize the Transit ARP funds.