A section of the Federal Transit Act which authorizes discretionary grants to public transit agencies for capital projects such as buses, bus facilities and rail projects. Recipients are state or local public bodies and agencies. Funds are allocated on a discretionary basis. Roughly twenty percent of these funds nationally are for bus and bus related capital purchases such as the acquisition of buses for fleet and service expansion, bus maintenance and administrative facilities, transfer facilities, bus malls, transportation centers, intermodal terminals part-and-ride stations, acquisition of replacement vehicles, bus rebuilds, bus preventive maintenance, passenger amenities such as passenger shelters and bus stop signs, accessory and miscellaneous equipment such as mobile radio units, supervisory vehicles, fareboxes, computers, shop and garage equipment, and costs incurred in arranging innovative financing for eligible projects. The rest is allocated to New Starts and Rail Modernization. These funds are allocated by a statutory formula to urbanized areas with fixed guideway systems. Typically these funds are provided through a grant agreement which stipulates the multi-year federal commitment to the project. The match is 80% federal/20% local.