A section of the Federal Transit Act which authorizes grants to public transit systems in all urban areas. Funds authorized through Section 5307 are awarded to states to provide capital and operating assistance to transit systems in urban areas with populations between 50,000 and 200,000 and are disbursed through a formula based on population and population density. Transit systems in urban areas with populations greater than 200,000 receive their funds directly from FTA, and the formula is based on a combination of bus revenue vehicle miles, bus passenger miles, fixed guideway revenue vehicle miles, and fixed guideway route miles, as well as population and population density. Funds for urbanized areas under 200,000 are distributed by FTA to state Governors. Eligible capital expenditures include: acquisition of public transportation vehicles, construction of facilities, purchase of equipment, rehabilitation of buses, preventive maintenance, up to 10% of the apportioned amount for non-fixed-route ADA paratransit service, and operating expenditures. The match is 50% federal/50%local for operating and 80/20 for capital expenses.