METRO Magazine Logo
MenuMENU
SearchSEARCH

FTA changes New Starts/Small Starts approach

The program, one of the largest competitive grant programs in the U.S. government, funds roughly one-half the cost of new and extended light rail, commuter rail, bus rapid transit and ferry systems built in the U.S.

January 9, 2013
4 min to read


The Federal Transit Administration (FTA) unveiled a streamlined approach for administering its primary capital public transportation program for expanding transit systems. The New Starts/Small Starts program, one of the largest competitive grant programs in the U.S. government, funds roughly one-half the cost of new and extended light rail, commuter rail, bus rapid transit and ferry systems built in the U.S.

“Now more than ever, Americans need quality transportation choices that improve mobility, enhance access to jobs and encourage sustainable communities,” said Transportation Secretary Ray LaHood. “These changes, years in the making, reflect the Obama Administration’s commitment to strengthening public transportation across the United States as efficiently, effectively and fairly as possible.”

Ad Loading...

The work is the product of more than two years of public outreach to identify ways to cut red tape, reduce regulations for communities seeking federal funds and help get critical transit projects under construction more quickly without compromising a stringent project review process. The changes are estimated to save taxpayers almost $500,000 annually by requiring less time-consuming paperwork and allowing communities to pre-qualify for certain projects. Additional savings may result from accelerating project delivery.

“The changes we’re making to the New Starts capital investment program are a huge win for communities that want to see more of their local transportation priorities become reality,” said FTA Administrator Peter Rogoff. “We’ll be in a position to save federal and local taxpayers’ money and put more Americans to work by allowing good projects to begin construction more quickly.”

Four key changes are being made to the New Starts/Small Starts program:

  • FTA is adopting a simpler, more straightforward approach for measuring a proposed project’s cost-effectiveness. FTA will no longer require communities to compare a proposed project’s travel time savings against a hypothetical alternative project. Instead, FTA will look at the estimated cost to construct the project communities intend to build compared against a rigorously analyzed estimate for the number of passengers the project will serve.

  • FTA is expanding the range of environmental benefits used to evaluate proposed projects. In addition to taking into account the Environmental Protection Agency’s regional air quality designations, FTA will also look at the dollar value of the anticipated benefits to human health, energy use, air quality (such as changes in total greenhouse gas emissions and other pollutants) and safety (such as reductions in accidents and fatalities).

Ad Loading...
  • FTA is adding new economic development factors to its ratings process. FTA currently looks at local plans and policies already in place to encourage economic development and how well they’re working in a given area. Going forward, a broader set of economic impacts will be included, such as whether local plans and policies maintain or increase affordable housing.

  • FTA is streamlining the project evaluation process by reducing regulations and red tape. FTA will allow project sponsors to forgo a detailed analysis of benefits that are unnecessary to justify a project. For example, projects that receive a sufficient rating on benefits calculations will not be required to do an analysis to forecast benefits out to some future year. Similarly, FTA is developing methods that can be used to estimate benefits using simple approaches.

FTA received approximately 1,000 comments on the proposed changes from a wide range of stakeholders and individuals. The agency also conducted extensive outreach, holding a webinar and public meetings in Atlanta, Dallas and San Diego. Additional interim guidance on New Starts/Small Starts will be forthcoming to address provisions affected by the enactment of the legislation on Moving Ahead for Progress in the 21st Century (MAP-21).

The changes are consistent with Executive Order 13563 issued by President Obama in January 2011, calling on Federal agencies to “modify, streamline, expand, or repeal” rules that may be “outmoded, ineffective, insufficient, or excessively burdensome.”

In FY2012, FTA’s New Starts/Small Starts program provided more than $2 billion for capital projects to help build light rail, commuter rail, and bus rapid transit projects. In FY2011 and FY2012 alone, FTA signed more capital construction agreements for transit projects than in any two-year period in the agency’s history.

Ad Loading...

To view the new approach, click here.

More Paratransit

BusJanuary 22, 2026

Biz Briefs: BART, Uber Launch Partnership and More

Stay informed with these quick takes on the projects and companies driving progress across the transportation landscape.

Read More →
SponsoredJanuary 19, 2026

3 New Ways Fleet Software Pays: ROI opportunities for modern fleet managers

Transit agencies depend on safe, reliable vehicles to deliver consistent service. This eBook examines how next-generation fleet software helps agencies move from reactive processes to proactive operations through automated maintenance, real-time safety insights, and integrated data. Learn how fleets are improving uptime, safety outcomes, and operational efficiency.

Read More →
RailJanuary 15, 2026

Biz Briefs: Alstom Supplying TTC Subways, SilverRide Lands California Contracts, and More

Stay informed with these quick takes on the projects and companies driving progress across the transportation landscape.

Read More →
Ad Loading...
New Mobilityby Alex RomanJanuary 5, 2026

Forest River Working to Redefine Reliability, Responsibility in the Bus Industry

As the transportation landscape continues to evolve in the wake of the pandemic, few manufacturers have faced, or embraced, change as decisively as Forest River Bus.

Read More →
Managementby StaffJanuary 5, 2026

New York MTA Marks Record Year for Ridership, Performance in 2025

The subway, Long Island Rail Road, and Metro-North Railroad all recorded record-highs for on-time performance in 2025.

Read More →
A white and blue graphic with text reading "Milwaukee County Transit Plus Riders Join WisGo in 2026."
Paratransitby StaffJanuary 5, 2026

Milwaukee County Transit Plus Riders Join WisGo in 2026

Transit Plus riders gain access to WisGo cards and mobile fare payment through the Umo app in 2026.

Read More →
Ad Loading...
Technologyby StaffJanuary 5, 2026

Vancouver's TransLink Taps Spare to Improve Paratransit Service

Starting next week, HandyDART will also extend its hours to 2 a.m., improving service availability for customers and aligning more closely with SkyTrain operating hours.

Read More →
New Mobilityby Staff and News ReportsDecember 19, 2025

Biz Briefs: Spare, Nova Bus, and More!

Biz Briefs covers the latest supplier news in the motorcoach and public transit industries.

Read More →
New Mobilityby StaffDecember 15, 2025

Florida's JTA Greenlights Major Fare Cuts for Bus, Paratransit Services

The JTA board also approved making Neighborhood Autonomous Vehicle Innovation service complimentary, effective December 15.

Read More →
Ad Loading...
New Mobilityby Staff and News ReportsDecember 12, 2025

Biz Briefs: Fare Collection, Motorcoach Orders, and More

Biz Briefs covers the latest supplier news in the motorcoach and public transit industries.

Read More →