Each year the City of Billings MET Transit Division applies for a Federal Transit Administration (FTA) Section 5307 formula grant through the U.S. Department of Transportation (USDOT) Federal Transit Act. The grant funds can be used for operating costs and capital assistance. For FY 20/21,  MET Transit is intending to utilize this grant for operating costs as it has in past years. The FTA will reimburse the City up to the apportioned allocation for the year, which will be $1,891,355. This is a matching grant with 50% Federal and 50% local dollars.

On Friday, March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law.  Operating expenses incurred beginning on January 20, 2020 that are COVID-19 related are eligible for reimbursement at 80% Federal and 20% local dollars.  Those expenses could include operating expenses to maintain Transit services, as well as paying for administrative leave for Transit personnel due to reduced operations during the COVID-19 emergency.

This grant application requires a public hearing. Public hearing notices were published in the Yellowstone County News on April 10, 17, and 24, 2020.

City Council may:

• Approve the Section 5307 grant application in the amount of $1,891,355 for operating assistance; or
• Disapprove the filing of the Section 5307 grant application. This would reduce MET Transit annual operating revenue by about 35%.

For FY 20/21, the Section 5307 Federal grant application for operating assistance is $1,891,355, which represents approximately 35% of MET Transit's operating revenue.

Staff recommends that the City Council conduct a Public Hearing, approve the submittal of an application for the Section 5307 grant, and authorize the Mayor to execute all subsequent Section 5307 grant offer documents with the USDOT, FTA.