Section 4: Funding Opportunities

Funds in Your Area

Funds from both of these programs are usually managed by each State’s Department of Transportation (DOT), which then distributes funds to sub-recipients. Contacting your State DOT is the best way to learn about 5310 and 5311 funds in your area. The National Rural Transit Assistance Program (RTAP) has put together lists of 5310 programs and 5311 programs in each state. These webpages are excellent starting points for learning about ways to fund your voucher program. Each DOT website includes information about the application requirements and deadlines. Some DOTs may also have additional funding opportunities specific to your state.

Fund Distribution

State DOTs distribute federal funds in a variety of ways, and this will differ by state. Typically, 5310 funds are more competitive than 5311 funds. When applying, you should be prepared to submit a detailed explanation of the transportation voucher program you intend to establish, evidence of your ability to achieve those goals, and specific steps you have already taken. For example, you can strengthen your application by detailing how staff time would be allocated, demonstrating consumers’ need, or providing letters of support from potential volunteer drivers and potential transportation providers.

A strong application will:

• Demonstrate need: Demonstrate that public transportation is lacking in your area and show how this impacts your consumers.

• Set clear goals: A strong application will clearly outline your voucher program goals, implementation plan, and budget.

• Demonstrate capacity: Show that your CIL has the fiscal and managerial capability to implement and manage the program successfully.

• Align with local plans: Your voucher program should align with local transportation plans.

• Align with funding priorities: Review any criteria that will be used to select recipients and tailor your application to these criteria.

Matching Funds

A local match is required for both 5310 and 5311 applications. A local match is a condition attached to grants that requires an organization to provide a certain percentage of the total funding amount. For example, if an organization is awarded $10,000 but the funds have a 20% match, the organization would have to contribute $2,000 in matching funds. There are many different and innovative ways to meet this match requirement. Two common strategies are through braiding and in-kind donations.

1. Braided Funding: Braided funding is when federal funds from one program are used to meet the match requirements of another. Braiding refers to different funding sources being woven together to fund a single project. The rules for how funds can be braided together vary significantly, and it will require some research to determine which funds you can put together. To learn more, check out this federal fund braiding guide from the Coordinating Council on Access and Mobility.

2. In-Kind Donations: An in-kind donation is when someone donates goods, services, or discounts with monetary value. For example, if a transportation provider charges less than their usual rate, or if a volunteer driver accepts mileage reimbursement that is lower than the federal rate, the difference counts as an in-kind donation. In-kind donations can also include things like donated office space, volunteer time, or vehicle use. The monetary value of each of these donations can count towards the match requirement. If your voucher program has a very tight budget or if you can’t find other ways to meet matching requirements, you can arrange a “partial buy-in” program with riders. Here, riders contribute to the cost of the ride by paying a set or sliding scale fee. While not ideal, this stretches your program budget and can meet match requirements.

Coordination Plans

The distribution of federal transit funds often depends on public transportation plans. These plans can exist at a state level and a local level. Your state’s plan should already exist, but local plans may not, especially if transportation is lacking in your area. It’s a good idea to review existing transportation plans before you begin applying for funds. 

Some funding applications, such as 5310, require a very specific type of plan called a Coordinated Public Transit Human Services Transportation Plan. This is a local-level plan that creates a systematic way for communities to improve collaboration and communication across human service organizations and transportation providers. If your community doesn’t already have a coordinated transportation plan, this should be one of your early goals before applying for federal funding.

Federal Funding Resources

Applying for 5310 or 5311 funds can be confusing, challenging, and time-consuming. But there are resources dedicated to helping potential applicants navigate this process. Try not to be discouraged if your first attempt is not successful. It may take multiple applications to secure funding. But once you do, it’s usually easier to attract more funding.

• National Rural Transit Assistance Program (RTAP)

  • Funding Guide

  • Intro to Braided Funding

• National Aging and Disability Transportation Center (NADTC)

  • Federal Funding Resource Guide

  • 5310 Resource Hub

  • Writing a Coordinated Public Transit Human Services Transportation Plan

• Coordinating Council on Access and Mobility (CCAM-TAC)

  • Ask for help

  • Technical Assistance

  • CCAM-TAC Grants