H.R. 5024 — Transit Funding Flexibility Act

This section expands eligibility for operating cost grants under the urbanized area formula grants program (49 U.S.C. 5307)—previously limited to urbanized areas with populations under 200,000 or, in areas of 200,000 or more, to systems operating 75 or fewer buses (up to 75% of apportionment share by vehicle revenue hours) or 76-100 buses (up to 50%)—to all urbanized areas by removing population and bus number restrictions. The section further requires grant recipients, beginning in the first full fiscal year after initially receiving funds and annually thereafter, to certify maintenance of effort (i.e., no reduction in local operating funding) for grant-funded costs; establishes a penalty reducing the subsequent fiscal year's grant by one-third for noncompliance found in a review, audit, or evaluation; and makes conforming changes to certification procedures.