Sources that are available to transit agencies to fund operations and/or capital purchases. These funding sources include, but are not limited to:

• Government funds – funds provided by federal, state, and/or local governments that can include directly generated taxes, tolls, fees, and other imposed funding sources.
• Federal funds – financial assistance from the federal government to assist in paying the operating costs and or capital expenses related to providing transit services. View a complete listing and description of all the FTA grant programs.
• State Government funds – financial assistance obtained from the state government to assist with paying the costs of providing transit services. These funds are usually controlled by the state legislature. This money can be used to match federal funds.
• Local Government funds – financial assistance from local governments (anything below the state level, such as counties, cities, municipalities, etc.) to help cover the operating costs of providing transit services. This funding can be used to match federal funds.
• Directly Generated funds – any funds where revenues are generated by or donated directly to the transit agency, including passenger fare revenues, advertising revenues, bond proceeds and taxes imposed by the transit agency, etc. Fares and bus advertising revenues must be used to offset operating expenses. All other directly generated funds can be used as the transit agency deems appropriate or necessary.
• Non-Transportation Revenue – funds earned from activities not associated with the provision of transit services. These funds include investment earnings; rentals of revenue vehicles to other operators; rentals of transit agency buildings and property to other organizations; parking fees generated from parking lots not normally used as park-and-ride locations; donations; grants from private foundations; etc.