[Congressional Record Volume 148, Number 137 (Thursday, October 17, 2002)]
[Senate]
[Pages S10696-S10699]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself, Mr. Crapo, and Mr Craig):
  S. 3134. A bill to amend titles 23 and 49, United States Code, to 
encourage economic growth in the United States by increasing 
transportation investments in rural areas, and for other purposes; to 
the Committee on Environment and Public Works.
  Mr. BAUCUS. Mr. President I rise today to introduce a bill to help 
rural America. Now I am always trying to help Montana, but this bill 
will help every State. Today I introduce the MEGA RURAL ACT, Maximum 
Economic Growth for America Through Rural Transportation Investment.
  Quite simply, there are rural transportation needs not being met 
nationwide. This bill addresses those needs.
  This is the eighth bill in a series of bills that Senator Crapo and I 
are introducing to highlight our proposals on reauthorization of TEA 
21--the Transportation Equity Act for the 21st Century.
  So far we've introduced a series of MEGA ACTs, Maximum Economic 
Growth for America Through different types of investments and policy 
changes. In the past 6 months I have introduced MEGA TRUST, MEGA RED 
TRANS, MEGA FUND, Parts I and II, MEGA SAFE, MEGA STREAM and MEGA 
INNOVATE. Today it's the MEGA RURAL ACT.
  The first provision in the MEGA RURAL Act will help states overcome 
certain rural hardships. In the same manner as the MEGA FUND ACT 
addresses this, the MEGA RURAL ACT would create a new program, at $2 
billion annually, to assist States in dealing with certain economic and 
demographic barriers.
  This would be a new type of program, not subject to the minimum 
guarantee, that is not keyed to specific project types but to types of 
problems facing States. States with low population density, or low per 
capita incomes, for example, face real challenges. While the provision 
also addresses some problems faced by non-rural States, this new 
section will give real help to rural States.
  The different approach of this program lets States facing those 
problems receive funds and pick the projects. Every one of the 50 
States would receive significant funding under this program every year.
  The second issue that the MEGA RURAL ACT addresses is that of rural 
roads. I've been hearing from County Commissioners from Montana as well 
as other States, about how much they need direct funding for local 
roads.
  These localities are hard pressed for funds and many of these roads 
are unsafe. This bill, just as the MEGA SAFE ACT does, would establish 
a pilot program, at $200 million annually from FY 2004-2009, to address 
safety on rural local roads. Funds could be used only on local roads 
and rural minor collectors, roads that are not Federal-aid highways.
  The program does not affect distribution of funds among States, as 
funds will be distributed to each of the 50 States in accord with their 
relative formula share under 23 U.S.C. 105. Funds could be used only 
for projects or activities that have a safety benefit. By January 1, 
2009 the Secretary of Transportation is to report on progress under the 
provision and whether any modifications are recommended.
  Finally, just as the MEGA RED TRANS ACT does, the MEGA RURAL ACT 
would ensure that, as Federal transit programs are reauthorized, 
increased funding is provided to meet the needs of the elderly and 
disabled and of rural and small urban areas.
  There is no question that our nation's large metropolitan areas have 
substantial transit needs that will receive attention as transit 
reauthorization legislation is developed. But the transit needs of 
rural and smaller areas, and of our elderly and disabled citizens, also 
require additional attention and funding.
  The bill would provide that additional funding in a way that does not 
impact other portions of the transit program. For example, while the 
bill would at least double every State's funding for the elderly and 
disabled transit program by FY 2004, nothing in the bill would reduce 
funding for any portion of the transit program or for any State.
  To the contrary, the bill would help strengthen the transit program 
as a whole by providing that the Mass Transit Account of the Highway 
Trust Fund is credited with the interest on its balance. This is a key 
provision in the MEGA TRUST Act the MEGA RED TRANS Act, and now the 
MEGA RURAL ACT.
  Specifically, the bill would set modest minimum annual 
apportionments, by State, for the elderly and disabled transit program, 
the rural transit program, and for States that have urbanized areas 
with a population of less than 200,000.
  It would ensure that each State that has a small urbanized area 
receives a minimum of $11 million for these three programs.
  It is not a large amount of money but, for my State of Montana it is 
double what we get for those programs currently. For some other States 
it is more than four times what they receive.
  The bill would also establish a $30 million program for essential bus 
service, to help connect citizens in rural communities to the rest of 
the world by facilitating transportation between rural areas and 
airports and passenger rail stations.
  I am very aware of the role that public transit plays in the lives of 
rural citizens and the elderly and disabled.

[[Page S10697]]

When most people hear the word ``transit'' they think of a light rail 
system. But in rural areas transit translates to buses and vanpools.
  Its about time that these issues are being addressed for rural 
America. Thank You.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 3134

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Maximum Economic Growth for 
     America Through Rural Transportation Investment Act'' or the 
     ``MEGA Rural Act''.

     SEC. 2. ASSISTANCE IN OVERCOMING ECONOMIC AND DEMOGRAPHIC 
                   BARRIERS.

       (a) In General.--Title 23, United States Code, is amended 
     by inserting after section 138 the following:

     ``Sec. 139. Assistance in overcoming economic and demographic 
       barriers

       ``(a) Definitions.--In this section:
       ``(1) High-growth state.--The term `high-growth State' 
     means a State that has a population according to the 2000 
     Census that is at least 25 percent greater than the 
     population for the State according to the 1990 Census.
       ``(2) High-population-density state.--The term `high-
     population-density State' means a State in which the number 
     of individuals per principal arterial mile is greater than 75 
     percent of the number of individuals per principal arterial 
     mile in the 50 States and the District of Columbia, as 
     determined using population according to the 2000 Census.
       ``(3) Highway statistics.--
       ``(A) In general.--The term `Highway Statistics' means the 
     Highway Statistics published by the Federal Highway 
     Administration for the most recent calendar or fiscal year 
     for which data are available, which most recent calendar or 
     fiscal year shall be determined as of the first day of the 
     fiscal year for which any calculation using the Highway 
     Statistics is made.
       ``(B) Terms.--Any reference to a term that is used in the 
     Highway Statistics is a reference to the term as used in the 
     Highway Statistics as of September 30, 2002.
       ``(4) Low-income state.--The term `low-income State' means 
     a State that, according to Table PS-1 of the Highway 
     Statistics, has a per capita income that is less than the 
     national average per capita income.
       ``(5) Low-population-density state.--The term `low-
     population-density State' means a State in which the number 
     of individuals per principal arterial mile is less than 75 
     percent of the number of individuals per principal arterial 
     mile in the 50 States and the District of Columbia, as 
     determined using population according to the 2000 Census.
       ``(6) National average per capita income.--The term 
     `national average per capita income' means the average per 
     capita income for the 50 States and the District of Columbia, 
     as specified in the Highway Statistics.
       ``(7) Principal arterial miles.--The term `principal 
     arterial miles', with respect to a State, means the principal 
     arterial miles (including Interstate and other expressway or 
     freeway system miles) in the State, as specified in Table HM-
     20 of the Highway Statistics.
       ``(8) State.--The term `State' means each of the 50 States.
       ``(9) State with extensive road ownership.--The term `State 
     with extensive road ownership' means a State that owns more 
     than 80 percent of the total Federal-aid and non-Federal-aid 
     mileage in the State according to Table HM-14 of the Highway 
     Statistics.
       ``(b) Establishment.--There is established a program to 
     assist States that face certain economic and demographic 
     barriers in meeting transportation needs.
       ``(c) Allocation of Funds.--For each of fiscal years 2004 
     through 2009, funds made available to carry out this section 
     shall be allocated as follows:
       ``(1) Low-income states.--For each fiscal year, each low-
     income State shall receive an allocation under this paragraph 
     that is equal to the product obtained by multiplying--
       ``(A) $600,000,000; and
       ``(B) the ratio that--
       ``(i) the difference between--

       ``(I) the national average per capita income; and
       ``(II) the per capita income of the low-income State; bears 
     to

       ``(ii) the sum of the differences determined under clause 
     (i) for all low-income States.
       ``(2) High-growth states.--For each fiscal year, each high-
     growth State shall receive an allocation under this paragraph 
     that is equal to the product obtained by multiplying--
       ``(A) $75,000,000; and
       ``(B) the ratio that--
       ``(i) the percentage by which the population of the high-
     growth State according to the 2000 Census exceeds the 
     population of the high-growth State according to the 1990 
     Census; bears to
       ``(ii) the sum of the percentages determined under clause 
     (i) for all high-growth States.
       ``(3) Low-population-density states.--
       ``(A) In general.--Subject to subparagraph (B), for each 
     fiscal year, each low-population-density State shall receive 
     an allocation under this paragraph that is equal to the 
     product obtained by multiplying--
       ``(i) $625,000,000; and
       ``(ii) the ratio that--

       ``(I) the quotient obtained by dividing--

       ``(aa) the number of principal arterial miles in the State; 
     by
       ``(bb) the population of the low-population-density State 
     according to the 2000 Census; bears to

       ``(II) the sum of the quotients determined under subclause 
     (I) for all low-population-density States.

       ``(B) Maximum allocation.--
       ``(i) In general.--If the allocation for a low-population-
     density State under subparagraph (A) is greater than 
     $35,000,000, the allocation of the low-population-density 
     State shall be reduced to $35,000,000.
       ``(ii) Use of excess allocations.--

       ``(I) Reallocation.--Subject to subclause (II), the funds 
     in addition to the $35,000,000 that would have been allocated 
     to a low-population-density State but for clause (i) shall be 
     reallocated among the low-population-density States that were 
     allocated less than $35,000,000 under subparagraph (A) in 
     accordance with the proportionate shares of those low-
     population-density States under subparagraph (A).
       ``(II) Additional reallocations.--If a reallocation under 
     subclause (I) would result in the receipt by any low-
     population-density State of an amount greater than 
     $35,000,000 under this paragraph--

       ``(aa) the allocation for the low-population-density State 
     shall be reduced to $35,000,000; and
       ``(bb) the amounts in excess of $35,000,000 shall be 
     subject to 1 or more further reallocations in accordance with 
     that subclause so that no low-population-density State is 
     allocated more than $35,000,000 under this paragraph.
       ``(4) High-population-density states.--
       ``(A) In general.--Subject to subparagraph (B), for each 
     fiscal year, each high-population-density State shall receive 
     an allocation under this paragraph that is equal to the 
     product obtained by multiplying--
       ``(i) $625,000,000; and
       ``(ii) the ratio that--

       ``(I) the quotient obtained by dividing--

       ``(aa) the population of the high-population-density State 
     according to the 2000 Census; by
       ``(bb) the number of principal arterial miles in the State; 
     bears to

       ``(II) the sum of the quotients determined under subclause 
     (I) for all high-population-density States.

       ``(B) Maximum allocation.--
       ``(i) In general.--If the allocation for a high-population-
     density State under subparagraph (A) is greater than 
     $35,000,000, the allocation of the high-population-density 
     State shall be reduced to $35,000,000.
       ``(ii) Use of excess allocations.--

       ``(I) Reallocation.--Subject to subclause (II), the funds 
     in addition to the $35,000,000 that would have been allocated 
     to a high-population-density State but for clause (i) shall 
     be reallocated among the high-population-density States that 
     were allocated less than $35,000,000 under subparagraph (A) 
     in accordance with the proportionate shares of those high-
     population-density States under subparagraph (A).
       ``(II) Additional reallocations.--If a reallocation under 
     subclause (I) would result in the receipt by any high-
     population-density State of an amount greater than 
     $35,000,000 under this paragraph--

       ``(aa) the allocation for the high-population-density State 
     shall be reduced to $35,000,000; and
       ``(bb) the amounts in excess of $35,000,000 shall be 
     subject to 1 or more further reallocations in accordance with 
     that subclause so that no high-population-density State is 
     allocated more than $35,000,000 under this paragraph.
       ``(5) States with extensive road ownership.--For each 
     fiscal year, each State with extensive road ownership shall 
     receive an allocation under this paragraph that is equal to 
     the product obtained by multiplying--
       ``(A) $75,000,000; and
       ``(B) the ratio that--
       ``(i) the total Federal-aid and non-Federal-aid mileage 
     owned by each State with extensive road ownership according 
     to Table HM-14 of the Highway Statistics; bears to
       ``(ii) the sum of the mileages determined under clause (i) 
     for all States with extensive road ownership.
       ``(d) Treatment of Allocated Funds.--
       ``(1) In general.--Subject to paragraph (2), funds 
     allocated to a State under this section for a fiscal year 
     shall be treated for program administrative purposes as if 
     the funds--
       ``(A) were funds apportioned to the State under sections 
     104(b)(1), 104(b)(2), 104(b)(3), 104(b)(4), and 144; and
       ``(B) were apportioned to the State in the same ratio that 
     the State is apportioned funds under the sections specified 
     in paragraph (1) for the fiscal year.
       ``(2) Program administrative purposes.--Program 
     administrative purposes referred to in paragraph (1)--
       ``(A) include--
       ``(i) the Federal share;
       ``(ii) availability for obligation; and
       ``(iii) except as provided in subparagraph (B), 
     applicability of deductions; and

[[Page S10698]]

       ``(B) exclude--
       ``(i) calculation of the minimum guarantee under section 
     105; and
       ``(ii) applicability of the deduction for the future 
     strategic highway research program under section 104(m).''.
       (b) Assistance in Overcoming Economic and Demographic 
     Barriers.--For the program to provide assistance in 
     overcoming economic and demographic barriers under section 
     139 of title 23, United States Code, there is authorized to 
     be appropriated out of the Highway Trust Fund (other than the 
     Mass Transit Account) $2,000,000,000 for each of fiscal years 
     2004 through 2009.
       (c) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code, is amended by 
     inserting after the item relating to section 138 the 
     following:

``139. Assistance in overcoming economic and demographic barriers.''.

     SEC. 3. RURAL LOCAL ROADS SAFETY PILOT PROGRAM.

       (a) Definitions.--In this section:
       (1) In general.--
       (A) Eligible activity.--
       (i) In general.--The term ``eligible activity'' means a 
     project or activity that--

       (I) is carried out only on public roads that are 
     functionally classified as rural local roads or rural minor 
     collectors (and is not carried out on a Federal-aid highway); 
     and
       (II) provides a safety benefit.

       (ii) Inclusions.--The term ``eligible activity'' includes--

       (I) a project or program such as those described in section 
     133(d)(1) of title 23, United States Code;
       (II) road surfacing or resurfacing;
       (III) improvement or maintenance of local bridges;
       (IV) road reconstruction or improvement;
       (V) installation or improvement of signage, signals, or 
     lighting;
       (VI) a maintenance activity that provides a safety benefit 
     (including repair work, striping, surface marking, or a 
     similar safety precaution); or
       (VII) acquisition of materials for use in projects 
     described in any of subclauses (I) through (VI).

       (B) Program.--The term ``program'' means the rural local 
     roads safety pilot program established under subsection (b).
       (C) State.--The term ``State'' does not include the 
     District of Columbia or Puerto Rico.
       (2) Other terms.--Except as otherwise provided, terms used 
     in this section have the meanings given those terms in title 
     23, United States Code.
       (b) Establishment.--The Secretary shall establish a rural 
     local roads safety pilot program to carry out eligible 
     activities.
       (c) Allocation of Funds With Respect to States.--For each 
     fiscal year, funds made available to carry out this section 
     shall be allocated by the Secretary to the State 
     transportation department in each of the States in the ratio 
     that--
       (1) the relative share of the State under section 105 of 
     title 23, United States Code, for a fiscal year; bears to
       (2) the total shares of all 50 States under that section 
     for the fiscal year.
       (d) Allocation of Funds Within States.--Each State that 
     receives funds under subsection (c) shall allocate those 
     funds within the State as follows:
       (1) Counties.--Except as provided in paragraph (2) and 
     subject to paragraph (3), a State shall allocate to each 
     county in the State an amount in the ratio that--
       (A) the public road miles within the county that are 
     functionally classified as rural local roads or rural minor 
     collectors; bears to
       (B) the total of all public road miles within all counties 
     in the State that are functionally classified as rural local 
     roads or rural minor collectors.
       (2) Alternative formula for allocation.--Paragraph (1) 
     shall not apply to a State if the State transportation 
     department certifies to the Secretary that the State has in 
     effect an alternative formula or system for allocation of 
     funds received under subsection (c) (including an alternative 
     formula or system that permits allocations to political 
     subdivisions or groups of political subdivisions, in addition 
     to individual counties, in the State) that--
       (A) was developed under the authority of State law; and
       (B) provides that funds allocated to the State 
     transportation department under this section will be 
     allocated within the State in accordance with a program that 
     includes selection by local governments of eligible 
     activities funded under this section.
       (3) Administrative expenses.--Before allocating amounts 
     under paragraph (1) or (2), as applicable, a State 
     transportation department may retain not more than 10 percent 
     of an amount allocated to the State transportation department 
     under subsection (c) for administrative costs incurred in 
     carrying out this section.
       (e) Project Selection.--
       (1) By county.--If an allocation of funds within a State is 
     made under subsection (d)(1), counties within the State to 
     which the funds are allocated shall select eligible 
     activities to be carried out using the funds.
       (2) By state alternative.--If an allocation of funds within 
     a State is made under subsection (d)(2), eligible activities 
     to be carried out using the funds shall be selected in 
     accordance with the State alternative.
       (f) Federal Share.--The Federal share of the cost of an 
     eligible activity carried out under this section shall be 100 
     percent.
       (g) Report.--Not later than January 1, 2009, after 
     providing States, local governments, and other interested 
     parties an opportunity for comment, the Secretary shall 
     submit to the Committee on Environment and Public Works of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives a report 
     that--
       (1) describes progress made in carrying out the program; 
     and
       (2) includes recommendations as to whether the program 
     should be continued or modified.
       (h) Contract Authority.--Funds made available to carry out 
     this section shall be available for obligation in the same 
     manner as if the funds were apportioned under chapter 1 of 
     title 23, United States Code, except that the Federal share 
     of the cost of an eligible activity under this section shall 
     be determined in accordance with this section.
       (i) Authorization of Appropriations.--There is authorized 
     to be appropriated out of the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this section 
     $200,000,000 for each of fiscal years 2004 through 2009.

     SEC. 4. MINIMUM LEVEL OF FUNDING FOR ELDERLY AND DISABLED 
                   PROGRAM.

       Section 5310 of title 49, United States Code, is amended--
       (1) in subsection (b), in the first sentence, by striking 
     the period at the end and inserting the following: ``, 
     provided that, for fiscal years 2004, 2005, and 2006, each 
     State shall receive annually, of the amounts apportioned 
     under this section, a minimum of double the amount 
     apportioned to the State in fiscal year 2003 or $1,000,000, 
     whichever is greater, and that for fiscal years 2007, 2008, 
     and 2009, each State shall receive annually, of the amounts 
     apportioned under this section, a minimum equal to the 
     minimum required to be apportioned to the State for fiscal 
     year 2006 plus $500,000.''; and
       (2) by adding at the end the following:
       ``(k) Amounts for Operating Assistance.--Amounts made 
     available under this section may be used for operating 
     assistance.
       ``(l) Available Funds.--Notwithstanding any other provision 
     of law, of the aggregate amounts made available by and 
     appropriated under this chapter, the amount made available to 
     provide transportation services to elderly individuals and 
     individuals with disabilities under this section in each of 
     fiscal years 2004 through 2009, shall be not less than the 
     amount necessary to match the minimum apportionment levels 
     required by subsection (b).''.

     SEC. 5. MINIMUM LEVEL OF FUNDING FOR RURAL PROGRAM.

       Section 5311 of title 49, United States Code, is amended--
       (1) in subsection (c), in the first sentence, by striking 
     the period at the end and inserting the following: ``, 
     provided that none of the 50 States shall receive, from the 
     amounts annually apportioned under this section, an 
     apportionment of less than $5,000,000 for each of fiscal 
     years 2004, 2005, and 2006, and $5,500,000 for each of fiscal 
     years 2007, 2008, and 2009.''; and
       (2) by adding at the end the following:
       ``(k) Amounts.--Notwithstanding any other provision of law, 
     of the aggregate amounts made available by and appropriated 
     under this chapter, the amount made available for the program 
     established by this section in each of fiscal years 2004 
     through 2009 shall be not less than the sum of--
       ``(1) the amount made available for all States for such 
     purpose for fiscal year 2003; and
       ``(2)(A) for each of fiscal years 2004, 2005, and 2006, the 
     amount equal to the difference between $5,000,000 and the 
     apportionment for fiscal year 2003, for each of those 
     individual States that were apportioned less than $5,000,000 
     under this section for fiscal year 2003; or
       ``(B) for each of fiscal years 2007, 2008, and 2009, the 
     amount equal to the difference between $5,500,000 and the 
     apportionment for fiscal year 2003, for each of those 
     individual States that were apportioned less than $5,500,000 
     under this section for fiscal year 2003.''.

     SEC. 6. ESSENTIAL BUS SERVICE.

       (a) In General.--Chapter 53 of title 49, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 5339. Essential bus service

       ``(a) In General.--The Secretary shall establish a program 
     under which States shall provide essential bus service 
     between rural areas and primary airports, as defined in 
     section 47102, and between rural areas and stations for 
     intercity passenger rail service, and appropriate 
     intermediate or nearby points.
       ``(b) Eligible Activities.--Eligible activities under the 
     program established by this section shall include--
       ``(1) planning and marketing for intercity bus 
     transportation;
       ``(2) capital grants for intercity bus shelters, park and 
     ride facilities, and joint use facilities;
       ``(3) operating grants, including direct assistance, 
     purchase of service agreements, user-side subsidies, 
     demonstration projects, and other means; and
       ``(4) enhancement of connections between bus service and 
     commercial air passenger service and intercity passenger rail 
     service.
       ``(c) Availability of Funds.--Amounts made available 
     pursuant to this section shall remain available until 
     expended.
       ``(d) Relationship to Section 5311.--Amounts for the 
     program established by this

[[Page S10699]]

     section shall be apportioned to the States in the same 
     proportion as amounts apportioned to the States under section 
     5311. Section 5311(j) applies to this section.
       ``(e) Funds.--Notwithstanding any other provision of law, 
     of the aggregate amounts made available by and appropriated 
     under this chapter--
       ``(1) for fiscal years 2004, 2005, and 2006, $30,000,000 of 
     the total for each fiscal year shall be for the 
     implementation of this section; and
       ``(2) for fiscal years 2007, 2008, and 2009, $35,000,000 of 
     the total for each fiscal year shall be for the 
     implementation of this section.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 53 of title 49, United States Code, is 
     amended by adding at the end the following:

``5339. Essential bus service.''.

     SEC. 7. MINIMUM LEVEL OF FUNDING FOR URBANIZED AREAS WITH A 
                   POPULATION OF LESS THAN 200,000.

       (a) Minimum Apportionment.--Section 5336(a)(1) of title 49, 
     United States Code, is amended by striking ``mile; and'' and 
     inserting the following: ``mile,

     provided that the apportionments under this paragraph shall 
     be modified to the extent required so that urbanized areas 
     that are eligible under this paragraph and are located in a 
     State in which all urbanized areas in the State eligible 
     under this paragraph collectively receive apportionments 
     totaling less than $5,000,000 in any of fiscal years 2004, 
     2005, or 2006, or less than $5,500,000 in any of fiscal years 
     2007, 2008, or 2009, shall each have their apportionments 
     increased, proportionately, to the extent that, collectively, 
     all of the urbanized areas in the State that are eligible 
     under this paragraph receive, of the amounts apportioned 
     annually under this paragraph, $5,000,000 for each of fiscal 
     years 2004, 2005, and 2006, and $5,500,000 for each of fiscal 
     years 2007, 2008, and 2009; and''.
       (b) Funds.--Section 5307 of title 49, United States Code, 
     is amended by adding at the end the following:
       ``(o) Funds.--Notwithstanding any other provision of law, 
     of the aggregate amounts made available by and appropriated 
     under this chapter, in each of fiscal years 2004 through 
     2009, the amount made available for the program established 
     by this section shall be not less than the sum of--
       ``(1) the amount made available for such purpose for fiscal 
     year 2003; and
       ``(2) the amount equal to the sum of the increase in 
     apportionments for that fiscal year over fiscal year 2003, to 
     urbanized areas with a population of less than 200,000, in 
     affected States, attributable to the operation of section 
     5336(a)(1).''.

     SEC. 8. LEVEL PLAYING FIELD FOR GOVERNMENT SHARE.

       (a) In General.--Chapter 53 of title 49, United States Code 
     (as amended by section 6) is amended by adding at the end the 
     following:

     ``Sec. 5340. Government share

       ``With respect to amounts apportioned or otherwise 
     distributed for fiscal year 2004 and each subsequent fiscal 
     year, the Government share of eligible transit project costs 
     or eligible operating costs, shall be the greater of--
       ``(1) the share applicable under other provisions of this 
     chapter; or
       ``(2) the share that would apply, in the State in which the 
     transit project or operation is located, to a highway project 
     under section 133 of title 23.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 53 of title 49, United States Code, is 
     amended by adding at the end the following:

``5340. Government share.''.

     SEC. 9. INTEREST CREDITED TO MASS TRANSIT ACCOUNT.

       Section 9503(f)(2) of the Internal Revenue Code of 1986 
     (relating to the Highway Trust Fund) is amended by striking 
     the period at the end and inserting the following: ``, 
     provided that after September 30, 2003, interest accruing on 
     the balance in the Mass Transit Account shall be credited to 
     such account.''.
                                 ______