Planning Assistance
The Iowa DOT also distributes federal transit planning assistance funds to all agencies with the exception of those using a portion of Section 5307 capital for planning purposes. These funds, along with local matching funds, support the preparation of regional transit development plans in rural areas, or transit improvement programs in urbanized areas.

Training Assistance
The Iowa DOT administers a multifaceted training program to develop the skills of local transit personnel. This includes conducting statewide seminars on topics of general interest, funding local training sessions conducted by the transit systems for their employees, and offering training fellowships which help to underwrite the cost for individuals to attend training sessions available from other sources.

Procurement Assistance
The Iowa DOT has the responsibility to oversee local transit-related procurements involving federal funds. Procurement assistance is provided to transit systems for preparation of specifications and analysis of proposals. Local agencies are also provided the option of state-conducted procurements; access to open state procurement contracts for vans, automobiles, fuel, computers, etc.; or consortium purchases among local systems.

Department Information and Services
Financial assistance applications are distributed to the 35 designated public transit systems each year by the Modal Division. Requests for technical assistance should be addressed to the Iowa Department of Transportation, Office of Public Transit, 800 Lincoln Way, Ames, IA, 50010, telephone 515-239-1875.

The Federal Transit Administration (FTA) of the U.S. Department of Transportation administers a number of programs offering financial support for local public transportation. Some are funded through the federal motor fuel tax (1.5 cents is dedicated to transit), while others are funded from the general fund.

Section 5303 “Metropolitan Planning Program” - These funds come to the state on the basis of urbanized area population and are dedicated to support the transportation planning process in urbanized areas over 50,000 population. They must be matched with non-federal funds on a 80 percent federal-20 percent non-federal basis.

Section 5304 “Statewide Planning Program” - These funds come to the state on the basis of population and are used to support transportation planning in non-urbanized areas on an 80 percent federal-20 percent non-federal basis.

Section 5307 “Urbanized Area Formula Program” - These funds come to the state on the basis of population and population densities in urbanized areas with populations between 50,000 and 200,000 to support public transit activities. They go directly to areas over 200,000 population. Transit systems may use up to 10 percent of these funds to pay for some of their ADA paratransit costs on an 80 percent federal-20 percent non-federal basis. In urbanized areas with populations greater than 200,000, at least 1 percent of these funds must be set aside for transit enhancement activities. In areas under 200,000 population the funding can be used to support operating deficit. Funds used in this manner must be matched by non-federal funds (other than passenger revenues) on a dollar-for-dollar basis. The remainder can be used to fund capital improvements (including preventative maintenance activities) or planning activities on an 80 percent federal-20 percent non-federal basis. (Purchase of vehicles equipped for access by persons with disabilities can be funded at 83 percent federal participation, and purchase of special equipment required under the Clean Air Act Amendments can be funded at 90 percent federal participation.)

Section 5309 “Capital Investment Grants and Loans Program” - These funds are available to Iowa based on Congressional earmarks. They may be used only for transit capital improvements on an 80 percent federal-20 percent non-federal basis. (Again, 83 percent federal participation is allowed on vehicles designed for access by persons with disabilities and 90 percent on special equipment to meet clean air regulations.)

Section 5310 and 5311 “Transportation for Elderly Persons and Persons with Disabilities” and “Nonurbanized Area Formula Program” - These funds come to Iowa on the basis of the number of persons who are elderly, have disabilities, or live outside urbanized areas within the state. The funds may be used to support the cost of transit operations (contracted operations for 5310) with dollar-for-dollar non-federal match or these funds are allowed to fund capital improvements on an 80 percent federal-20 percent non-federal basis. (Again allowing this to go to an 83 percent federal share on vehicles designed for access by persons with disabilities and 90 percent for clean air equipment.)

Transit systems may use up to 10 percent of their annual Section 5311 apportion-ment of formula funds to pay for some of their ADA paratransit costs on an 80 percent federal-20 percent non-federal basis. Fifteen percent of the 5311 funds are reserved by law for intercity bus projects. The 5311 funds are also used for support of transportation planning in non-urbanized areas on an 80 percent federal-20 percent non-federal basis.

Section 5316 "Job Access Reverse Commute Program" (JARC) JARC funds are available on a competitive basis. These funds may be used to provide transportation services in urban, suburban and rural areas to assist welfare recipients and low income individuals access to employment opportunities, and to increase collaboration among the transportation providers, human services agencies, employers, metropolitan planning organizations (MPOs), and affected communities and individuals. A 50 percent non-DOT match is required for the program.  An 80% federal-20% non-federal match is required for capital improvements.  (An 83% federal-17% non-federal match is allowed on capital projects designed for access by persons with disabilities).

Section 5317 "New Freedom" - This program encourages services and facility improvement to address the transportation needs of persons with disabilities that go beyond those required by the Americans with Disabilities Act.  A 50 percent non-DOT match is required for this program for operating assistance.  An 80% federal-20% non-federal match is required for capital improvements.  (An 83% federal-17% non-federal match is allowed on capital projects designed for access by persons with disabilities).

Section 5312 “Research, Development, Demonstration, and Deployment Projects Program” – This program is for public transportation service planning, and research, development, demonstration, and deployment projects.  This is the program that FTA has used to administer ITS integrations funds transferred from FHWA .  Federal share for this program is 50 percent. 

Surface Transportation Program (STP)
These funds come to the state on the basis of TEA-21 legislation, and can be used for roadway or transit capital projects on an 80 percent federal-20 percent local basis. In Iowa a portion of these funds are programmed by local governments, acting through metropolitan or regional planning agencies. When programmed for transit projects, these funds are also administered by the Federal Transit Administration.

Iowa Clean Air Attainment Program
Iowa does not have any areas in violation of transportation-related federal clean air standards, the state receives a minimum allocation of Congestion Mitigation/Air Quality (CMAQ) funding which can be used for any purpose for which STP funds can be used and on the same 80 percent federal-20 percent non-federal basis. In Iowa funds are programmed for highways or transit projects through a statewide application process which selects projects based on their anticipated air quality or congestion relief benefits. The Iowa program is entitled “ICAAP” for Iowa's Clean Air Attainment Program.

State Transit Assistance (STA)
Iowa devotes 1/20 of the first four cents of the sales tax collected on sales of motor vehicles and accessory equipment to support of public transportation. Most of this money is distributed by a formula which is based on each transit system's performance during the previous year in terms of rides, miles, and local funding support. These formula funds are usable for support of any operating, capital or planning expenses related to the provision of public passenger transportation. Up to $300,000 of the total STA funds are available for technical training and other projects to improve public transit in Iowa.

Local Funding
Local funding is not directly shown in this document, but actually represents the largest source of support for the Iowa transit program. Local support includes fares or contributions received from riders, revenues from contracts with social service agencies, student fees, and taxes levied by local cities and counties. Cities are allowed under the Iowa Code to levy a dedicated property tax for transit of $0.95 per $1,000 assessed valuation. Other local tax funding comes from General Fund levies, and sometimes from “trust and agency” levies.