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Small transit agencies fight law restricting fed grant use

Posted on December 6, 2011

LANCASTER, Pa. — Transit agencies in small- and medium-sized cities are lobbying federal lawmakers to change a quirk in the law that puts greater restrictions on how they can use federal grants if they grow too large, according to a Governing.com report.

Opponents of the policy — which states that federal transit dollars can no longer be used for operating costs, only capital costs, when an "urbanized area" grows past the 200,000 population threshold — say it’s an arbitrary cap, and those restrictions will force some communities to reduce service by 15 to 30 percent.

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