Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Explained
Information for Grantees and Subgrantees to Prepare for COVID-19 Relief
Transit providers across the United States are reducing service, eliminating routes, and, in some cases, closing their doors during this pandemic. Government funding assistance to continue service and to recover in the following months is essential. The recently enacted “Coronavirus Aid, Relief, and Economic Security Act”, or CARES Act as it is generally referred, was passed by Congress with overwhelming, bipartisan support and signed into law by President Trump on March 27, 2020, providing a vital line of support through its $2 trillion stimulus package. The CARES Act includes provisions for $25 billion in new transit funding to assist providers during the COVID-19 pandemic.
The $25 billion is available for:
- Operating expenses of transit agencies related to coronavirus going back to January 20, 2020.
- Reimbursement for operating costs to maintain service and lost revenue including the purchase of personal protective equipment (PPE), preventive maintenance, rolling stock, etc.
- Administrative leave of operations personnel due to reductions in service.
The Federal Transit Administration (FTA), has also stated that although the priority for the funding is operational expenses, the FTA will generally consider all expenses normally eligible under the Section 5311 (rural area formula grants) program that are incurred on or after January 20, 2020, to be in response to economic or other conditions caused by COVID-19 and thus eligible under the CARES Act.
The FTA is providing the funds as if provided under Section 5307 (urbanized area formula grants) and Section 5311 programs. The funding is split $22.7 billion for 5307 and 2.2 billion for 5311, respectively.
As we continue to navigate through these difficult times caused by the COVID-19 Pandemic, BraunAbility along with our commercial dealer and bus OEM partners, are ready to meet the transportation needs of older adults and people with disabilities by providing quality products and service. While we will do our best to remain appraised of what is happening at both the federal and state level, we encourage all agencies and school districts to be in communication with their respective state and local authorities for additional clarity on transportation guidelines.
For more information, refer to the Frequently Asked Questions around the CARES Act on the Department of Transportation's site.
BraunAbility is committed to our mission; Devoted to making life a moving experience for all. We will navigate this changing landscape today, tomorrow, and together.
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