Funding
Overview
In Los Angeles county, independent municipalities are primarily responsible for funding bus stop upgrades and maintaining bus stop amenities and furniture. Funding for bus stop improvements and maintenance can come from a variety of local, state and federal sources. Improved regional coordination around bus stop improvements can mean more funding for Los Angeles county.
- Municipal transit agencies can explore opportunities to collaborate regionally, with nearby transit operators or with a Council of Government, to reduce purchasing, installation and maintenance costs.
- Municipalities may also consider opportunities to streamline the permitting process for bus stop improvements to reduce the level of effort involved in planning and implementation.
- Municipalities or regional groups may also provide incentives for projects that include bus stop installation as part of their project applications.
- Maintenance and public works agencies should be involved in the design process to help reduce unexpected and long-term maintenance issues.
Metro encourages municipalities to seek funding from a variety of sources as planning for bus stop improvements commences. The below funding opportunities highlight primary sources of formula and competitive funding which may be used for bus stop improvements.
Local Return
Is your city accessing your local return funds for bus stop improvements? See how much you have available.
Content
Local Funding
Sales Tax (“Local Return” from Measures M and R, Propositions A and C)
Award Type: Regular distribution (per capita)
Link: https://www.metro.net/about/local_return_pgm/
Eligibility/Purpose:
- Measure M: Passed in 2016 by LA County, this no sunset half-cent sales tax funds projects to ease vehicular congestion, repair local streets and sidewalks, expand public transportation, seismically retrofit bridges and subsidize transit fares for students, older adults and persons with mobility limitations. The Expenditure Plan identifies funding allocated for transit projects from 2018-2057 and defines project requirements and eligibility. 17% is allocated for a Local Return program to local jurisdictions which may fund bus stop improvements.
- Measure R: Approved by LA County in 2008, Measure R is a half-cent sales tax that finances new transportation projects and programs and accelerates funding for projects in the pipeline. 15% is allocated to local jurisdictions through a Local Return, which may fund bus stop improvements.
- Proposition A: Approved in 1980, Proposition A is a half-cent sales tax: 25% is designated to a Local Return program, 35% is designated to rail development and 40% is designated for discretionary funding.
- Proposition C: Approved in 1990, Proposition C is a half-cent sales tax: 20% is designated for a Local Return; 5% is designated for rail and bus security; 10% is designated for commuter rail, transit centers and park-and-ride facilities; 25% is designated for transit-related highway improvements; and 40% is designated as discretionary funding.
Metro ExpressLanes Net Toll Revenue Re-Investment Grant
Award Type: Grant
Link: https://www.metro.net/about/exl-grant-application/
Eligibility/Purpose: Metro ExpressLanes reinvests leftover toll revenue from the I-110 and I-10 freeways back into the corridors from which it was generated, augmenting transit services within the corridor. Project categories recommended for the allocation of net toll revenues include (1) transit uses and (2) system connectivity/active transportation, which may include bus stop improvements. In order to be eligible, the project, program, or enhanced transit service must operate along or within three miles of either the I-110 Corridor or the I-10 Corridor, or provide regionally significant improvements to the Corridors.
State Funding
SB-1 Solutions for Congested Corridors Program
Award Type: Grant
Link: https://catc.ca.gov/programs/sb1/solutions-for-congested-corridors-program
Eligibility/Purpose: Projects that implement specific transportation performance improvements and are part of a comprehensive corridor plan by providing more transportation choices while preserving the character of local communities and creating opportunities for neighborhood enhancement. Regional transportation planning agencies, county transportation commissions and the California Department of Transportation (Caltrans) are eligible to apply.
SB-1 Local Partnership Program
Award Type: Grant /Formula
Link: https://catc.ca.gov/programs/sb1/local-partnership-program
Eligibility/Purpose: Distributed through a 40% statewide competitive component and a 60% formula component. Competitive grants include highway and transit projects. Eligible applicants are agencies who have sought and received voter approval or imposed taxes, fees or tolls that are dedicated to transportation.
California Strategic Growth Council Affordable Housing and Sustainable Communities Program
Award Type: Grant (funded by California’s Cap-and-Trade Program)
Link: https://sgc.ca.gov/grant-programs/ahsc/
Eligibility/Purpose: Funds sustainable transportation infrastructure, such as new transit vehicles, sidewalks and bike lanes; transportation-related amenities, such as bus shelters, benches or trees; and other programs that encourage residents to walk, bike and use public transit.
CalSTA Transit and Intercity Rail Capital Program (TIRCP)
Award Type: Grant (funded by the Greenhouse Gas Reduction Fund and California’s Cap-and-Trade Program)
Link: https://calsta.ca.gov/subject-areas/transit-intercity-rail-capital-prog
Eligibility/Purpose: Caltrans administers the TIRCP, which focuses funding statewide on transformative capital rail, bus and ferry transit projects that reduce greenhouse gas emissions, expand transit service to increase ridership and improve transit safety. Eligible projects will help achieve the following objectives: reduction in greenhouse gas emissions; expand and improve transit service to increase ridership; integrate the rail service of the state’s various rail operations, including integration with the high-speed rail system; and improve transit safety.
FTA Section 5339(a) –Bus and Bus Facilities (State Discretionary)
Award Type: Grant (Transit agencies apply through Caltrans’ Preliminary Consolidated Application)
Link: https://www.transit.dot.gov/bus-program
Eligibility/Purpose: The Bus and Bus Facilities Program provides funding to states and transit agencies through a statutory formula to replace, rehabilitate and purchase buses and related equipment and to construct bus-related facilities; $4 million was apportioned for California in FY 2022. In addition to the formula allocation, the Bus and Bus Facilities Program includes two discretionary components: the Bus and Bus Facilities Discretionary Program and the Low- or No- Emissions Bus Discretionary Program; shelters are not eligible for funding via the Low- or No- Emissions Bus Discretionary Program. Local transit agencies and jurisdictions are eligible to apply to these funding sources directly.
Federal Funding
USDOT Surface Transportation Block Grant Program (STBG)
Award Type: Formula-based distribution
Link: https://www.fhwa.dot.gov/specialfunding/stp/
Eligibility/Purpose: The STBG Program provides flexible funding to states and municipalities for transit projects to preserve and improve the condition and performance of Federal-aid highways, bridge and tunnel projects (public roads), pedestrian and bicycle infrastructure and transit capital projects–including intercity bus terminals. Project sponsor eligibility and funding is limited.
FTA Section 5307–Urbanized Area Grants
Award Type: Formula-based distribution to urbanized areas
Link: https://www.transit.dot.gov/funding/grants/urbanized-area-formula-grants-5307
Eligibility/Purpose: Eligible activities under Section 5307 include planning, engineering, design and evaluation of transit projects and other technical transportation-related studies; capital investments in bus and bus-related activities such as replacement, overhaul and rehabilitation of buses, crime prevention and electronic monitoring equipment, construction of maintenance and passenger facilities; and capital investments in new and existing fixed guideway systems including rolling stock, overhaul and rehabilitation of vehicles, track, signals, communications and computer hardware and software. The funding formula is based on bus revenue miles, bus passenger miles and population and population density. Eligibility is limited to Metro and 16 municipal transit agencies.
Grants for Buses and Bus Facilities – 5339 (a)
Award Type: Formula-based distribution
Link: Grants for Buses and Bus Facilities Formula Program – 5339(a) | FTA (dot.gov)
Eligibility/Purpose: Provides federal funding to states and transit agencies for the replacement, rehabilitation and purchase of buses and equipment and construct bus-associated facilities. The program also includes two competitive components: Bus and Bus Facilities Competitive program and the Low or No Emissions Bus Vehicle Program. Eligible recipients are those operating fixed route bus services or that allocate funding to fixed route bus operators; state and local governmental entities operating fixed route bus services are eligible to receive direct grants under 5307 and 5311. Eligible recipients receiving a grant under this formula, or competitive programs may allocate amounts from the grant to subrecipients that are private nonprofit organizations or public agencies engaged in public transportation.
Maintenance Funding
It is critical that jurisdictions and transit agencies proactively plan and allocate funds for ongoing bus stop maintenance. Bus stop maintenance can take on a variety of forms, from low-/no-cost community-driven solutions to formalized public/private partnership arrangements.
Adopt-A-Stop Programs
Municipalities throughout the country have developed Adopt-A-Stop Programs to facilitate bus stop improvements. Through these programs, individuals, schools and community organizations “adopt” select stops in their neighborhoods. They collaborate with transit employees to make sure their adopted stop is clean, functional and without damage. Metro Transit in Minneapolis/St. Paul operates an Adopt-A-Stop Program, where in exchange for adopting a stop, the agency promotes the adopting organization through signage at the adopted stop. Bus stop adopters also receive free rides every month. Adopt-A-Stop Programs represent a low-cost, mutually beneficial mechanism for both bus stops and the community members who interact with them most.
Public/Private Partnerships
Bus stops also present an opportunity for digital advertising revenue. These agreements are generally formed by a coalition of public-private partners and provide a source of ongoing funding for bus stops.
In 2023, the City of Los Angeles, for example, began partnering with advertising contractor Tranzito-Vector to build and maintain the bus shelters, in coordination with StreetsLA and the Department of Public Works. Tranzito-Vector is responsible for building and maintaining the bus shelters and returns a percentage of advertising revenue to the city. Under their contract with Tranzito-Vector, StreetsLA paid for the procurement and development of 3,000 bus shelters and 450 shade structures. This arrangement allowed StreetsLA to increase its share of advertising revenue from Tranzito-Vector, with projected earnings of $350 million from 2023-2033.
As another example, the Los Angeles County Department of Public Works operates advertising programs for bus stop shelters and bus stop benches. Both programs are operated by third-party advertising contractors, with 270 bus shelters and up to 800 bus benches in LA County maintained and improved via this partnership. The advertising contractors are responsible for cleaning the shelters and benches weekly, provide twice weekly trash collection and perform as-needed repairs.
