Emergency Transit Assistance: Federal Funding for Recent	 
Disasters, and Options for the Future (15-FEB-08, GAO-08-243).	 
                                                                 
Major disasters can disrupt transit operations, destroy vehicles 
and facilities, and impede the ability of people to reach	 
essential relief and medical services and return to their homes  
and jobs. GAO determined (1) the federal role in assisting	 
transit agencies after a major disaster; (2) the amounts,	 
sources, and uses of federal disaster assistance for transit	 
since 1998; (3) the factors that affected the timeliness and	 
effectiveness of transit assistance after the 2005 Gulf Coast	 
hurricanes; and (4) additional options for providing assistance  
to transit after a major disaster. GAO reviewed laws,		 
regulations, and guidance; analyzed DOT and FEMA data; and	 
interviewed officials with FEMA, DOT, state and local agencies,  
and others.							 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-08-243 					        
    ACCNO:   A80854						        
  TITLE:     Emergency Transit Assistance: Federal Funding for Recent 
Disasters, and Options for the Future				 
     DATE:   02/15/2008 
  SUBJECT:   Disaster planning					 
	     Disaster recovery plans				 
	     Emergency response plans				 
	     Emergency response procedures			 
	     Federal aid for transportation			 
	     Federal funds					 
	     Federal/state relations				 
	     Funds management					 
	     Hurricanes 					 
	     Interagency relations				 
	     Mass transit					 
	     Program management 				 
	     Transportation costs				 
	     Transportation planning				 
	     Timeliness 					 

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GAO-08-243

   

     * [1]Results in Brief
     * [2]Background
     * [3]FEMA and FTA Share Responsibility for Helping Transit Recove

          * [4]FEMA Provides Emergency Transportation Services through Its
          * [5]FTA Administers Federal Transit Programs but Has Limited Abi

     * [6]Federal Disaster Assistance for Transit Services Has Totaled

          * [7]Congress Provided about $4.7 Billion for Transit Recovery in
          * [8]The Federal Government Provided about $232 Million to Suppor

               * [9]FEMA Provided $158 Million through Mission Assignments
                 and I
               * [10]FTA Provided $35 Million to Transit Providers from a
                 Supplem
               * [11]FTA Allowed Transit Agencies to Redirect over $39
                 Million fr
               * [12]Another $65 Million in Contracts Was Awarded for
                 Transportat

          * [13]FEMA and FTA Have Provided at least $51 million of Other Dis

     * [14]Lack of an Immediate Funding Mechanism and Funding Guidance

          * [15]FEMA and FTA Lacked a Mechanism to Provide Financial Assista
          * [16]FEMA's Timeliness and Effectiveness in Providing Assistance
          * [17]FEMA Changes after the 2005 Gulf Coast Hurricanes Are Not Ad

     * [18]Additional Options Exist for Providing Assistance for Transi

          * [19]Mutual Aid Agreements Can Support Recovery at the State and
          * [20]Modifying Existing Federal Authorities and Programs Could En

     * [21]Conclusions
     * [22]Recommendations for Executive Action
     * [23]Agency Comments
     * [24]Appendix I: Objectives, Scope, and Methodology
     * [25]Appendix II: GAO Contact and Staff Acknowledgments

          * [26]GAO Contact
          * [27]Staff Acknowledgments

               * [28]Order by Mail or Phone

Report to the Committee on Banking, Housing, and Urban Affairs, U.S.
Senate

United States Government Accountability Office

GAO

February 2008

EMERGENCY TRANSIT ASSISTANCE

Federal Funding for Recent Disasters, and Options for the Future

GAO-08-243

Contents

Letter 1

Results in Brief 3
Background 8
FEMA and FTA Share Responsibility for Helping Transit Recover after a
Disaster, but Funding Comes Primarily from FEMA 10
Federal Disaster Assistance for Transit Services Has Totaled about $5
Billion since 1998 13
Lack of an Immediate Funding Mechanism and Funding Guidance and Criteria
Affected Federal Transit Assistance after the 2005 Gulf Coast Hurricanes
22
Additional Options Exist for Providing Assistance for Transit after a
Major Disaster 27
Conclusions 32
Recommendations for Executive Action 33
Agency Comments 33
Appendix I Objectives, Scope, and Methodology 35
Appendix II GAO Contact and Staff Acknowledgments 38

Tables

Table 1: Funding Amounts, Sources, and Uses of Federal Assistance
Committed to State Transportation Departments and Transit Agencies for
Major Disasters, since 1998 5
Table 2: Initial FEMA and FTA Emergency Public Transportation Projects in
Lower Manhattan 14
Table 3: Transit Infrastructure Projects in Lower Manhattan 16
Table 4: Amounts and Uses of Mission Assignment Funding That DOT Awarded
to Transit Agencies and State Transportation Departments 18
Table 5: Amounts and Uses of FTA's $35 Million Supplemental Appropriation
for Hurricanes Katrina and Rita Transit Relief, by State 19
Table 6: Waivers and Conversions of Capital Grants to Operating Uses in
Louisiana and Mississippi 20

Abbreviations

APTA American Public Transportation Association
CTA Coast Transit Authority
DHS Department of Homeland Security
DOT Department of Transportation
EMAC Emergency Management Assistance Compact
ESF Emergency Support Function
FEMA Federal Emergency Management Agency
FHWA Federal Highway Administration
FTA Federal Transit Administration
MTA Metropolitan Transit Authority
NEMIS National Emergency Management Information System
NORTA New Orleans Regional Transit Authority
PATH Port Authority Trans-Hudson
SAFETEA-LU Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users

This is a work of the U.S. government and is not subject to copyright
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United States Government Accountability Office
Washington, DC 20548

February 15, 2008

The Honorable Christopher J. Dodd: 
Chairman: 
The Honorable Richard C. Shelby: 
Ranking Member: 
Committee on Banking, Housing, and Urban Affairs: 
United States Senate: 

Major disasters or acts of terrorism can disrupt transit operations and
destroy transit agencies' vehicles and facilities. The loss of transit can
worsen the impact of a disaster by impeding a community's access to relief
services, medical care, and jobs. For example, when multiple hurricanes
struck the Gulf Coast in August and September, 2005, many thousands of
residents left their homes and resettled in group sites established by
FEMA that had no access to transit services. Tens of thousands more
residents relocated to Baton Rouge, where the existing transit services
were insufficient to meet the needs of the expanded population. Major
disasters may exhaust the available financial capacity of transit agencies
and state governments, precluding them from restoring or providing
essential services on their own. Yet, the restoration or provision of
transit services after a disaster can be crucial to recovery, allowing
people to reach essential relief and medical services and return to their
homes and jobs.

Federal funding to help restore transit services after a disaster comes
primarily from the Federal Emergency Management Agency (FEMA), within the
Department of Homeland Security (DHS). FEMA was established to respond to
disasters and emergencies. In carrying out its mission, FEMA supports
emergency activities, including preparedness, response, recovery, and
hazard mitigation. FEMA's authority to provide major disaster and
emergency assistance to state and local governments and others was
established by the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (the Stafford Act),^1 which includes the authority to
provide temporary public transportation services to meet emergency needs
and to help communities resume their normal pattern of life as soon as
possible.^2 The Federal Transit Administration (FTA), within the
Department of Transportation (DOT), administers federal programs that
support public transit and may make funding available for transit services
after a disaster.

^1 Robert T. Stafford Disaster Relief and Emergency Assistance Act, Pub. L.
No. 93-288; codified at 42 U.S.C. ch. 68.

You asked us to evaluate the federal government's provision of assistance
to transit operations in the wake of a major disaster, particularly after
the 2005 Gulf Coast hurricanes. To do so, we determined (1) the role of
the federal government in providing transit services and assisting transit
agencies after a major disaster; (2) the amounts, sources, and uses of
federal disaster assistance provided for transit since 1998; (3) factors
that affected the timeliness and effectiveness of federal assistance for
transit after the 2005 Gulf Coast hurricanes; and (4) additional options
for providing transit services and assistance for transit after a major
disaster.

To address these objectives, we reviewed and analyzed relevant laws,
regulations, and guidance on FEMA's and FTA's authorities and
responsibilities in responding to disasters affecting transit, and we
interviewed FEMA and FTA officials. In addition, to determine the amounts,
sources, and uses of federal financial disaster assistance provided to
transit agencies since 1998--the earliest date for which FEMA data were
available--we reviewed and analyzed data from FEMA and FTA to quantify the
agencies' disaster assistance funding. We were unable to reliably
determine the total amounts provided for transit from FEMA's Public
Assistance program because FEMA's database for this program information
does not have the capability of sorting transit projects from other
projects. The information we present in this report should be considered
minimum amounts--additional funds may have been dedicated for transit
purposes--and the steps we took to identify this funding are presented in
appendix I. To identify factors that affected the timeliness and
effectiveness of the assistance that was provided to transit agencies
after the 2005 Gulf Coast hurricanes, we identified the procedures that
FEMA and FTA used to provide disaster assistance for transit. We discussed
these procedures with FEMA and FTA officials and with representatives from
two state transportation departments, and selected major transit agencies
affected by the hurricanes in Louisiana and Mississippi. We assessed
FEMA's and FTA's performance and reviewed other documentation. To identify
additional options for providing services and assistance to transit after
a major disaster, we reviewed documents and interviewed selected officials
from FTA, the American Public Transportation Association (APTA), the
Community Transportation Association of America, and the Florida
Department of Transportation. A more detailed discussion of our scope and
methodology appears in appendix I. We conducted this performance audit
from March 2007 through February 2008 in accordance with generally
accepted government auditing standards. Those standards require that we
plan and perform the audit to obtain sufficient, appropriate evidence to
provide a reasonable basis for our findings and conclusions based on our
audit objectives. We believe that the evidence obtained provides a
reasonable basis for our findings and conclusions based on our audit
objectives.

^2 42 U.S.C. S 5186.

Results in Brief

The federal government provides transit services and assists transit
agencies after a major disaster, primarily through two federal
agencies--FEMA and FTA. FEMA is the federal government's primary agency
for disaster response. FEMA is also specifically authorized to provide
public transportation services in areas affected by a major disaster as
part of its authority under the Stafford Act. After the September 11,
2001, terrorist attacks, FEMA received supplemental appropriations to the
Disaster Relief Fund, which initially funded temporary facilities and
services for the resumption of services after the attacks and, later, the
construction of permanent subway and ferry terminals and other facilities.
After the 2005 Gulf Coast hurricanes, FEMA provided financial disaster
assistance to transit, primarily through (1) mission assignments (i.e.,
requests to another federal agency for specific services within that
agency's functions) to fund transit operations in New Orleans and the
Mississippi Gulf Coast, including supplemental transit services to
temporary FEMA group sites and other places where displaced populations
were living in Louisiana and Mississippi, and (2) Public Assistance
program grants to transit agencies to repair or replace damaged equipment
or facilities, such as maintenance facilities and passenger shelters. FTA
administers a variety of grant programs to support urban and rural transit
operations throughout the United States. FTA programs fund planning,
vehicle purchases, facility construction, and other transit needs.
However, FTA has no specific program or funding dedicated to disaster
response or recovery. Instead, Congress has provided FTA with supplemental
appropriations and other temporary authority to aid transit, as FTA did
after the September 11 terrorist attacks and after the 2005 Gulf Coast
hurricanes.

Since 1998, congressional appropriations to FEMA and FTA have provided
approximately $5 billion for emergency transit services, rebuilding
transit infrastructure, and assisting transit agencies in repairing
facilities and replacing buses after disasters. About $4.7 billion of the
$5 billion was provided in response to the September 11 terrorist attacks
in New York City, and $232 million was provided in response to the 2005
Gulf Coast hurricanes. The differences in these two disasters also
required different responses by FEMA and FTA--financial assistance in
response to the September 11 attacks was mainly for funding new
infrastructure, such as the commuter facilities at the World Trade Center
site, while financial assistance after the 2005 Gulf Coast hurricanes was
mainly for transit services for residents and evacuees. Funding for these
two events came from supplemental appropriations to the Disaster Relief
Fund--which supports FEMA's disaster relief programs, including programs
FEMA used to fund transportation recovery--and to FTA for emergency
transit needs. In addition to the funding provided in response to the
September 11 terrorist attacks and the 2005 Gulf Coast hurricanes, FTA
provided $5 million in discretionary program funding to support expanded
transit services in the Minneapolis area following the August 1, 2007,
collapse of the I-35 bridge. FEMA has also provided at least $46 million,
through its Public Assistance program to restore transit after other
disasters since 1998. Table 1 shows the amounts, sources, and uses of
federal assistance provided to transit agencies for major disasters, since
1998.

Table 1: Funding Amounts, Sources, and Uses of Federal Assistance
Committed to State Transportation Departments and Transit Agencies for
Major Disasters, since 1998

Major disaster: September 11, 2001, terrorist attacks on the World 
Trade Center; 
Amount: $4,676[A]; 
Funding source: Supplemental appropriations to FTA and FEMA Public 
Assistance grants; 
Uses: To fund the reconstruction of transit and related infrastructure 
in New York. 

Major disaster: 2005 Gulf Coast hurricanes; 
Amount: $88; 
Funding source: FEMA Disaster Relief Fund[B] mission assignments to 
DOT; 
Uses: To fund emergency public transportation service in Louisiana and 
Mississippi. 

Major disaster: 2005 Gulf Coast hurricanes; 
Amount: $70; 
Funding source: FEMA Disaster Relief Fund[B]--Public Assistance grants; 
Uses: To fund bus and bus facilities repair and replacement in 
Louisiana and Mississippi. 

Major disaster: 2005 Gulf Coast hurricanes; 
Amount: $35; 
Funding source: Supplemental appropriation to FTA; 
Uses: To provide operating and capital assistance for 19 transit 
agencies in Alabama, Florida, Louisiana, Mississippi, and Texas that 
were directly impacted by Hurricanes Katrina and Rita. 

Major disaster: 2005 Gulf Coast hurricanes; 
Amount: $39; 
Funding source: FTA authorizing transit agencies to waive matching fund 
requirements, and use other program funds for disaster recovery; 
Uses: To provide financial support to state transportation departments 
and transit agencies in Louisiana and Mississippi that were affected by 
Hurricane Katrina. 

Major disaster: Other disasters (since 1998); 
Amount: $51[A]; 
Funding source: FEMA Public Assistance grants and FTA discretionary 
program funds; 
Uses: To support transit operations and the repair and replacement of 
transit facilities and equipment after other disasters. 

Major disaster: Total; 
Amount: $4,959. 

Source: GAO analysis of FEMA and FTA information.

a FEMA's database that tracks Public Assistance program funding does not
have the capability of sorting transit projects from other projects.
Therefore, the information we present in this report should be considered
minimum amounts--other funds might have been dedicated for transit
purposes.

bThe Disaster Relief Fund is funded through both annual and supplemental
appropriations.

Several factors affected the timeliness and effectiveness of FEMA's and
FTA's assistance to transit after the 2005 Gulf Coast hurricanes,
including a lack of mechanisms to provide immediate funding for transit
services and FEMA's lack of guidance and criteria for the types and
duration of transit services it would fund. Although the Stafford Act
authorizes federal assistance to meet emergency needs and help affected
communities to resume their normal pattern of life as soon as possible,
neither FEMA nor FTA had mechanisms in place to provide funding to transit
providers immediately after the 2005 Gulf Coast hurricanes. FEMA provided
funding as reimbursement, requiring recipients to spend money from other
sources first,^3 and FTA had no program for emergency assistance to
transit. However, transit providers had little money to spend from other
sources before being reimbursed. According to officials from the two major
transit agencies affected by the 2005 Gulf Coast hurricanes, transit
operations shut down after the disasters, and the agencies' revenues from
fare collections and other sources were curtailed, limiting their ability
to begin restoring transit services on their own. Furthermore, FEMA's
timeliness and effectiveness in providing assistance for transit after the
hurricanes were limited by the agency's lack of guidance on the types of
services it could fund, and lack of criteria for the duration of the
funding. Without such guidance and criteria, funding approvals took from 1
month to as long as 4 months, and officials from the two major transit
agencies affected by the hurricanes contended that FEMA mission
assignments ended before some emergency needs were met. DHS and FEMA
addressed a number of issues raised by their response to the 2005 Gulf
Coast hurricanes in DHS's National Response Framework, issued in January
2008, which replaced DHS's National Response Plan.^4 However, the
Framework does little to help clarify the agencies' roles in responding to
a disaster affecting transit. FEMA has also begun drafting "prescripted"
mission assignments to facilitate common language between FEMA, other
federal agencies, and state and local organizations and, thus, to expedite
the issuance of mission assignments after a disaster. However, a FEMA
official indicated the agency does not plan to draft a prescripted mission
assignment for transit operations because FEMA will assume parts of DOT's
emergency response functions for transportation under a memorandum of
understanding signed by the two agencies in October 2007. However, this
memorandum states that DOT will continue to be responsible for
"alternative transportation services" after a disaster. According to DOT
officials, "alternative transportation services" could include such things
as transit services or ferry services when a bridge has been damaged or
destroyed. We are recommending that FEMA develop guidance or regulations
identifying the types of transit services that FEMA will or will not fund
after a disaster, and criteria for determining the duration of funding for
those services to facilitate timely decision making following future
disasters--especially catastrophic disasters that affect multiple states.
We are also recommending that FEMA draft prescripted mission assignments
for public transportation services, which could reduce ambiguity and
expedite the issuance of mission assignments for these services when time
is critical in the aftermath of a future disaster. In commenting on a
draft of this report, DHS stated that it would take these recommendations
under advisement.

^3 FEMA can provide partial "immediate needs funding" under its Public
Assistance program, for debris removal and emergency protective measures
within the first 60 days after a disaster, but this funding would not be
available for transit operations.

^4 DHS's National Response Plan, issued in 2004, described how the federal
government coordinates with state, local, and tribal governments and the
private sector in responding to disasters. The plan's Emergency Support
Function annexes detailed specific federal agencies' responsibilities.

Additional options exist for providing transit services and assistance for
transit after a disaster. At the state and local levels, mutual aid
agreements can support transit recovery after a disaster by providing
transit agencies with needed resources and personnel from agencies outside
of the disaster area. For example, the Emergency Management Assistance
Compact (EMAC) provides for assistance between member states when a
disaster transcends state borders, and APTA has developed a program that
allows transit systems across the country to volunteer their resources,
including buses and drivers, for temporary emergency transit needs. The
Florida Department of Transportation has a similar mutual aid agreement
between transit systems in the state. At the federal level, existing
authorities and programs that Congress has provided to DOT suggest
additional potential options. One option would be to give FTA permanent
authority to waive certain grant fund requirements in response to
disasters. After the Gulf Coast hurricanes, Congress gave FTA temporary
authority (for 2 years) to allow transit agencies directly affected by the
hurricanes to use FTA grant funds--generally intended for capital
uses--for transit operations. If given this authority permanently, FTA
could quickly make grant funds available to affected transit agencies for
operations during disasters. A second option would be to provide a
disaster relief program for transit similar to the Federal Highway
Administration's (FHWA) program for federal highways. FHWA's Emergency
Relief program provides funds for both emergency and permanent repairs of
highways that have suffered serious disaster damage. The program also
provides a "quick release" funding option that can be used when disaster
damage is readily evident, to begin the flow of funds to a state within 1
to 2 days. A separate FTA program could be established to provide disaster
relief for transit, or transit disaster relief could be incorporated as an
eligible activity under FHWA's Emergency Relief program. Establishing or
expanding emergency relief for transit, however, could significantly
expand the scope and cost of emergency relief for DOT at a time when, as
we have reported,^5 there are increasing demands placed on the Emergency
Relief program, while the purchasing power of the principal revenues to
its funding source, the Highway Trust Fund, is eroding. We recommend that
DOT evaluate the feasibility of options to increase FTA's authority to
provide immediate financial assistance, and seek legislative authority as
appropriate. DOT agreed with this recommendation and stated that these
options would be considered by an FTA policy working group that is
developing portions of the department's legislative proposal for
reauthorizing surface transportation programs.

^5 GAO, Highway Emergency Relief: Reexamination Needed to Address Fiscal
Imbalance and Long-term Sustainability, [29]GAO-07-245 (Washington, D.C.:
Feb. 23, 2007).

In commenting on a draft of this report, DHS and DOT also generally agreed
with the facts presented and provided technical comments, which we
incorporated into this report as appropriate.

Background

In recent years, the United States has experienced two of the most severe
disasters in its history--the September 11, 2001, terrorist attacks and
the 2005 Gulf Coast hurricanes. These disasters claimed several thousand
lives and resulted in billions of dollars in damage. In addition, there
have been over 500 declared disasters and emergencies of smaller magnitude
since 1998.

Catastrophic disasters, such as the terrorist attacks and Gulf Coast
hurricanes, place particularly wideranging demands on emergency response
capabilities. By their very nature, catastrophic disasters involve high
levels of casualties, damages, and disruptions that are likely to
immediately overwhelm state and local responders. Historically, the
federal role in disaster response has been to support and assist states
and localities, providing resources and other assistance when the demands
of the situation exceed their combined capabilities. However, when a
catastrophic disaster overwhelms the ability of state, local, and
voluntary agencies to adequately provide essential services, the federal
government generally plays a more central role--providing selected
resources where they are needed.

The Stafford Act authorizes the federal government to respond to
disasters, and to assist state and local governments and others in saving
lives, reducing human suffering, mitigating the effects of lost income,
and repairing or rebuilding damaged facilities. FEMA leads the nation's
efforts to prepare for, protect against, respond to, recover from, and
mitigate the risk of natural disasters, acts of terrorism, and other
man-made disasters. The Disaster Relief Fund, which supports a wide range
of the agency's disaster response programs, is funded through both regular
and supplemental appropriations. Before FEMA can respond to a catastrophic
disaster, the President has to declare that a major disaster or emergency
exists. This declaration is typically made at the request of the governor
of the affected state. A disaster declaration activates an array of
federal programs to assist in the recovery effort. FEMA's response to a
disaster begins with the appointment of a Federal Coordinating Officer by
the Director of FEMA. The Federal Coordinating Officer manages and
coordinates the application of programs and funds under the Stafford Act.
FEMA then staffs the core management and administrative functions to
respond to the disaster, including a Joint Field Office, Regional Response
Coordination Center, and Emergency Response Teams.

Until 2008, the National Response Plan, issued by DHS in December 2004,
outlined the principal roles and responsibilities of federal agencies in a
major disaster. The plan has been superseded by DHS's National Response
Framework, which was issued in January 2008. The Framework, like the
National Response Plan before it, identifies Emergency Support Functions
(ESF), which provide the structure for coordinating federal interagency
support during declared disasters and emergencies. Whenever there is a
major incident, DOT must provide support under the Framework through the
department's role as primary agency for ESF-1 for Transportation. This
function is responsible for, among other things, transportation safety and
restoration of transportation infrastructure.

FTA administers federal funding to support a variety of local public
transportation systems throughout the United States, including bus,
subway, light rail, commuter rail, streetcar, passenger ferryboat, and
other transportation systems. FTA funds public transportation through a
number of grant programs; grant recipients include states, local
governments, transit authorities, and others. FTA programs fund planning,
vehicle purchases, facility construction, and other needs. The Safe,
Accountable, Flexible, Efficient, Transportation Equity Act: A Legacy for
Users (SAFETEA-LU)^6 authorized funding levels for each program, and
Congress provides an annual appropriation to fund them. FTA's funding
comes, in part, from the general fund, but its grant programs are
primarily funded through the Mass Transit Account of the Highway Trust
Fund, which is funded partly by federal fuel taxes.

^6 The Safe, Accountable, Flexible, Efficient, Transportation Equity Act: A
Legacy for Users, Pub. L. No. 109-59.

The September 11 terrorist attacks in New York City and the 2005 Gulf
Coast hurricanes caused severe damage to transit services in both areas.
The transit authority in New York City, the Metropolitan Transportation
Authority (MTA), provides New Yorkers with 2.4 billion trips each year
through bus, subway, and rail services. This transportation network serves
14.6 million people in the New York City area, including Long Island,
southeastern New York State, and Connecticut. The Port Authority
Trans-Hudson Corporation (PATH) operates a heavy rail transit system
between Manhattan and neighboring New Jersey communities that serves
approximately 227,000 passengers each weekday. As a result of the attacks
on the World Trade Center, subway stations and the PATH commuter rail
terminal were destroyed, sections of local roads became impassable due to
damage or recovery efforts, and the remaining transportation options were
overcrowded as commuters returned to work using different routes or means
of transportation. On the Gulf Coast, public transit consists of bus,
streetcar, and paratransit service--which is service for disabled persons
that complements bus or rail service--to a widely dispersed population.
The New Orleans Regional Transit Authority (NORTA) provides approximately
30 bus routes, 3 streetcar lines, and paratransit service for passengers
with disabilities, and it carries more than 2 million passengers each
year. The transit provider on Mississippi's Gulf Coast, Coast Transit
Authority (CTA), serving Gulfport and Biloxi, offers fixed-route bus
service and demand-response service for seniors and passengers with
disabilities over a three-county area. According to local transit agency
officials in Louisiana and Mississippi, the 2005 Gulf Coast hurricanes
flooded buses, administration buildings, and roads; destroyed bridges, bus
stop signs, and shelters; and forced tens of thousands to evacuate. As a
result, according to transit and FEMA officials, transit agencies had to
find working vehicles and create new routes that allowed the dispersed
population to reach disaster relief centers and essential services.

FEMA and FTA Share Responsibility for Helping Transit Recover after a Disaster,
but Funding Comes Primarily from FEMA

The federal government, through FEMA and FTA, provides transit services
and assists transit agencies after a major disaster. FEMA, the federal
government's primary agency for disaster response, is authorized to
provide emergency transportation services as part of its authority under
the Stafford Act. FTA administers federal programs and funding that
support transit operations across the United States, but it does not have
a specific program or designated funding to help transit agencies recover
from a disaster.

FEMA Provides Emergency Transportation Services through Its Authority under the
Stafford Act

FEMA is the federal government's primary agency for disaster response. In
carrying out its mission, FEMA (1) funds and coordinates emergency
preparedness activities, (2) provides and coordinates the immediate
federal response to save lives and property, (3) funds the reconstruction
of damaged infrastructure to help stricken families and communities
recover, and (4) supports hazard mitigation activities to lessen the
destructive impact of future disasters. FEMA is authorized to provide
temporary public transportation service to meet emergency needs and to
provide transportation to governmental offices, supply centers, stores,
post offices, schools, major employment centers, and other places that may
be necessary for a community to resume its normal pattern of life as soon
as possible.^7 Funding for FEMA's disaster response programs comes from
the Disaster Relief Fund. Supplemental funding is requested when funds
provided through the regular appropriations to the fund are insufficient
to respond to certain disasters. The Disaster Relief Fund received
supplemental appropriations following both the terrorist attacks on New
York City and the 2005 Gulf Coast hurricanes.

Following the 2005 Gulf Coast hurricanes, FEMA provided financial disaster
assistance to transit providers, primarily in two ways--through mission
assignments to DOT during the response phase and through its Public
Assistance program during the recovery phase. Mission assignments are
FEMA's requests to federal agencies to complete specified disaster
response tasks that are within that agency's functions. Mission
assignments can also authorize a dollar amount of FEMA funding for the
specified tasks. Because mission assignments are used during the initial
response to a disaster, they are intended for immediate and short-term
assistance that is essential to save lives, protect property and public
health and safety, and lessen or avert the threat of a catastrophe. FEMA
officials involved in providing transit aid to the Gulf Coast after the
hurricanes told us they did not have transit expertise and largely relied
on FTA, the states, and transit agencies to define what was needed. FTA
worked with the state transportation departments and transit agencies to
develop proposals that identified needed transit services, indicated how
and by whom those services would be provided, and estimated the cost of
the services. Proposals for mission assignments were then negotiated with
FEMA, which subsequently issued mission assignments to DOT that described
the services to be provided, authorized funding from FEMA to DOT, and set
the start date and end date of the mission assignment. DOT then contracted
with the state transportation departments or transit agencies that would
receive the reimbursement funds from DOT. These contracts further detailed
the services to be provided.

^7 42 U.S.C. S 5186.

A second type of financial assistance is available to states and transit
agencies through FEMA's Public Assistance program. As mission assignments
are concluded, the recovery phase begins, and transit agencies and others
can apply for additional financial assistance through the Public
Assistance program. This program provides grants to state and local
governments and some nonprofit organizations for recovery needs, including
debris removal, emergency protective measures, and the repair or
replacement of damaged equipment or facilities. Many of the Public
Assistance program grants awarded to transit agencies after the 2005 Gulf
Coast hurricanes were for bus replacement and for the repair or
replacement of structures, such as maintenance facilities and passenger
shelters. For example, the CTA used public assistance funding to replace
bus stop shelters that were destroyed during the storm.

FTA Administers Federal Transit Programs but Has Limited Ability to Directly
Assist Transit Agencies after a Disaster

FTA administers a number of programs to support urban and rural transit in
the United States. FTA programs provide funding to support transportation
planning, capital investments, operating assistance in rural and nonurban
areas, and efforts to meet the transportation needs of persons with
disabilities and the elderly. FTA's Urbanized Area Formula Program, for
example, provides funding to transit authorities and state governments to
support planning; engineering; crime prevention and security; the
construction of passenger facilities; and the replacement, overhaul, or
rebuilding of buses. Generally, program funds may not be used to pay
operating expenses in urbanized areas exceeding 200,000 in population.

Although FTA administers a variety of grant programs to serve local
communities throughout the United States, it does not have a specific
program or dedicated funding to help transit agencies recover from a
disaster. FTA will, on a case-by-case basis, allow transit agencies
impacted by a disaster to defer their matching local share contribution
required to receive FTA grants. In addition, transit agencies that serve
fewer than 200,000 people can also use FTA capital grant program funds for
operations, including operations in response to a disaster. FTA has also
provided emergency assistance when it has received supplemental
appropriations from Congress for that purpose, as it did after the
September 11, 2001, terrorist attacks and the 2005 Gulf Coast hurricanes.
In addition, Congress has granted FTA other specific authority. For
example, a 2006 supplemental appropriation act gave the Secretary of
Transportation authority, until June 15, 2008, to waive (as opposed to
defer) matching share requirements for transit assistance program grants
to agencies directly affected by Hurricane Katrina and to allow these
affected agencies to use certain capital grant funds for disaster
recovery.^8

Federal Disaster Assistance for Transit Services Has Totaled about $5 Billion
since 1998

Since 1998, the federal government has provided approximately $5 billion
through FEMA and FTA to assist transit agencies and provide transit
services after disasters, with most of this assistance following the
September 11, 2001, terrorist attacks on New York City and the 2005 Gulf
Coast hurricanes. Both of these disasters devastated transit where they
occurred, but they resulted in different needs for transit recovery and
different responses by FEMA and FTA--primarily rebuilding infrastructure
in New York, and funding transit operations on the Gulf Coast. Of the $5
billion, about $4.7 billion was for transit services and reconstruction
after the September 11 terrorist attacks, $232 million was for transit
recovery after the 2005 Gulf Coast hurricanes, and at least $51 million
was for transit services following other disasters. This $51 million
included $5 million in funding from FTA for transit services after the
August 2007 I-35 bridge collapse in Minneapolis, Minnesota. It also
includes at least $46 million of FEMA Public Assistance grants to support
transit recovery since 1998. FEMA's database that tracks Public Assistance
program funding does not have the capability to sort transit projects from
other projects. Therefore, we needed to identify transit grants by
searching the database records for key transit-related terms as discussed
in appendix I. Because there may be additional funding for transit that we
did not identify, the $46 million should be considered a minimum amount.

Congress Provided about $4.7 Billion for Transit Recovery in New York after
September 11, 2001

The September 11, 2001, terrorist attacks on the World Trade Center
severely damaged the public transportation system that was used by more
than a quarter-million daily commuters to Lower Manhattan. The PATH
commuter station beneath the World Trade Center was destroyed, and subway
stations serving the area were rendered unusable. In addition, many
streets were closed because of debris, and some tunnels were temporarily
closed. FEMA and FTA have committed about $4.7 billion to fund emergency
transit services and the reconstruction of transit and related
infrastructure in New York after the September 11 terrorist attacks. This
funding was provided through supplemental appropriations following the
attacks and includes (1) $200 million in FTA funding and $176 million in
FEMA Public Assistance grants to fund the resumption of public
transportation service after the attacks and (2) $4.3 billion of FEMA and
FTA funding committed to the permanent reconstruction of the subway system
and terminals at and near the World Trade Center site.

^8 Emergency Supplemental Appropriations Act for Defense, the Global War on
Terror, and Hurricane Recovery, 2006, Pub. L. No. 109-234 S 7025.

FEMA and FTA committed a combined $376 million to help restore
transportation operations in the initial response phase after the attacks,
as summarized in table 2.

Table 2: Initial FEMA and FTA Emergency Public Transportation Projects in
Lower Manhattan

Dollars in millions                                                        
 
Project: Temporary Port Authority Trans-Hudson Terminal; 
Project description: Temporary terminal to replace the destroyed 
transit terminal under the World Trade Center; 
Agency: FEMA; 
Funding obligated: $140.0. 

Project: Emergency Ferry Service; 
Project description: Additional ferry service to support commuter 
capacity diverted by the loss of subway service as well as vehicle 
restrictions; 
Agency: FEMA; 
Funding obligated: $36.0[A]. 

Project: FEMA subtotal; 
Funding obligated: $176.0. 

Project: Ferry Facilities; 
Project description: Eight projects to operate and construct ferry 
facilities in New York and New Jersey; 
Agency: FTA; 
Funding obligated: $100.0[B]. 

Project: Meadows Maintenance Complex; 
Project description: Accelerated modifications to New Jersey transit 
system maintenance facility due to increased transit traffic on system; 
Agency: FTA; 
Funding obligated: $56.2[C]. 

Project: Penn Station; 
Project description: Passenger connection improvements; 
Agency: FTA; 
Funding obligated: $4.6. 

Project: Lincoln Tunnel Feasibility Study; 
Project description: Feasibility study for a second exclusive bus lane 
in the Lincoln Tunnel; 
Agency: FTA; 
Funding obligated: $1.1. 

Project: Other; 
Project description: Various projects to increase capacity, improve 
travel conditions, enhance system safety, and oversight and 
administration; 
Agency: FTA; 
Funding obligated: $38.2. 

Project: FTA subtotal; 
Funding obligated: $200.1. 

Project: Total; 
Funding obligated: $376.1. 

Source: GAO analysis of FEMA and FTA information.

a FEMA calculated this amount by searching its database of Public
Assistance grants for ferry funding in New York after the terrorist
attacks. This approach does not ensure that all funding for ferry service
was identified, and there may be other funding not included. Therefore,
the $36 million should be considered a minimum amount.

b FTA and FHWA jointly administered these projects.

c An additional $8.9 million in Department of Defense supplemental grant
funds, previously awarded to reconfigure track near Newark Penn Station,
was reallocated to the Meadows Maintenance Complex project.

FEMA funding came from the Disaster Relief Fund, which received about $8.0
billion in supplemental appropriations for all response and recovery
purposes, including transit, after the terrorist attacks. DOT funding
included a $100 million supplemental appropriation to FTA for various
transit projects and a second $100 million appropriation from the Highway
Trust Fund for the operation and construction of ferries and ferry
facilities.

The next phase of the federal government's action to restore transit
services in New York after the terrorist attacks was the reconstruction of
transit facilities at and near the World Trade Center site. An August 2002
memorandum of understanding between FEMA and FTA identified FTA as the
lead federal agency for the administration of the $2.75 billion committed
by FEMA and the $1.8 billion appropriated to FTA--a total of $4.55
billion--to replace public transportation facilities in Lower Manhattan
that had been damaged or destroyed by the terrorist attacks. FEMA funding
came from supplemental appropriations to the Disaster Relief Fund. FTA
funding for these projects came from an August 2002 supplemental
appropriation to FTA for emergency expenses to replace, rebuild, or
enhance the public transportation systems serving Manhattan.^9 Part of the
FEMA funding has been made available to FHWA for a highway project^10
leaving approximately $4.3 billion of the $4.55 billion to fund transit
projects. Four major transit projects were identified. As of October 2007,
the estimated cost of these projects, including the costs of a
construction command center and of oversight and administration, was over
$4.0 billion. Table 3 summarizes these projects, their estimated cost, and
their scheduled completion dates.

^9 The 2002 Supplemental Appropriations Act for further Recovery from and
Response to Terrorist Attacks on the United States, Pub. L. No. 107-206,
ch. 11.

^10 In addition to funding transit projects, a portion of FEMA funds went
toward the restoration of Route 9A and the establishment of a promenade
adjacent to the World Trade Center site. The Route 9A and promenade
project is estimated to cost $287.3 million.

Table 3: Transit Infrastructure Projects in Lower Manhattan

Dollars in millions                                                                   

Project: The World Trade Center Permanent PATH Terminal; 
Project description: Builds a new terminal that serves the subway 
system that provided service to commuters between New York and New 
Jersey; 
Agency: FEMA and FTA; 
Current estimated cost (as of October 2007): $2,201.0; 
Scheduled completion date: July 2013. 

Project: Fulton Street Transit Center; 
Project description: Builds a new center that will serve 12 different 
subway lines and over 275,000 daily commuters; 
Agency: FTA; 
Current estimated cost (as of October 2007): $847.0; 
Scheduled completion date: April 2012. 

Project: South Ferry Terminal Station; 
Project description: Replaces the obsolete station that serves Staten 
Island ferry riders; 
Agency: FTA; 
Current estimated cost (as of October 2007): $420.0; 
Scheduled completion date: November 2008. 

Project: WTC Vehicle Security Center; 
Project description: Screens all vehicles for security threats; 
Agency: FEMA; 
Current estimated cost (as of October 2007): $478.0; 
Scheduled completion date: August 2012. 

Project: Lower Manhattan Construction Command Center; 
Project description: Coordinates and oversees the large number of 
construction projects planned for Lower Manhattan; 
Agency: FEMA; 
Current estimated cost (as of October 2007): $12.4; 
Scheduled completion date: Operational. 

Project: Oversight and administration; 
Project description: FEMA and FTA Project Oversight and Administration; 
Agency: FEMA and FTA; 
Current estimated cost (as of October 2007): $86.7; 
Scheduled completion date: Ongoing. 

Project: Total; 
Current estimated cost (as of October 2007): $4,045.1. 

Source: GAO analysis of FEMA and FTA information.

According to an FTA official, the difference between the current estimated
project costs and the total FTA and FEMA funds committed consists of
designated reserves for each project, plus an unassigned reserve of $47.5
million that, by an agreement between FTA and the state of New York, is
available for use at the governor's discretion.

Responding to the scale of damage caused by the September 11 terrorist
attacks in New York, Congress expanded FEMA's and FTA's authority to fund
recovery efforts. After most disasters, assistance is available only to
rebuild or restore damaged infrastructure to its predisaster condition.
However, because the extensive destruction required large-scale rebuilding
of transit facilities at the World Trade Center site, DOT was authorized
to rebuild and improve the New York transportation system substantially
beyond its predisaster condition.^11 Similarly, in 2003, Congress
authorized FEMA to go beyond the assistance it typically would provide by
permitting it to rebuild and enhance infrastructure to substantially
improve commuter mobility.^12

11 Pub. L. No. 107-206, ch. 13.

The Federal Government Provided about $232 Million to Support Transit Providers
and State Agencies after the 2005 Gulf Coast Hurricanes

The 2005 Gulf Coast hurricanes caused heavy flooding in the Louisiana and
Mississippi Gulf Coast, bringing public transportation to a standstill,
with tens of thousands of Gulf Coast residents being forced to relocate to
Baton Rouge and other cities or to FEMA group sites. The hurricanes
created a need for assistance to fund transit operations, including
restoring transit in the devastated areas to connect residents with relief
services, providing new services to those who evacuated to FEMA group
sites, and expanding existing services in Baton Rouge. The hurricanes also
damaged and destroyed transit property and equipment--administration and
maintenance facilities were flooded and their contents destroyed, and
buses and other vehicles were damaged or destroyed.

FEMA and FTA have provided a total of about $232 million in financial
assistance to support transit providers and state transportation
departments after the 2005 Gulf Coast hurricanes. Of this amount, $158
million was provided by FEMA through mission assignments and Public
Assistance funding, while FTA provided $35 million from a fiscal year 2007
supplemental appropriation to assist transit agencies directly affected by
Hurricanes Katrina and Rita. FTA also assisted transit agencies by
allowing them to use an additional $39 million in existing funds from
other FTA grant programs for disaster recovery. Finally, in addition to
the funds provided to transit agencies and state transportation
departments, FEMA and FTA awarded a total of $65 million in contracts for
other transit services and support functions.

  FEMA Provided $158 Million through Mission Assignments and Its Public
  Assistance Program

FEMA has provided approximately $158 million to support transit after the
2005 Gulf Coast hurricanes, including about $88 million awarded to DOT
from the Disaster Relief Fund for mission assignments and $70 million from
the Public Assistance program. FEMA mission assignments to DOT were used
to fund transit operations in New Orleans and the Mississippi Gulf Coast,
such as supplemental transit service for residents of temporary FEMA group
sites and other displaced populations. See table 4 for the amounts and
uses of mission assignment funding that DOT awarded to transit agencies
and state transportation departments.

^12 Consolidated Appropriations Resolution, 2003, Pub. L. No. 108-7.

Table 4: Amounts and Uses of Mission Assignment Funding That DOT 
Awarded to Transit Agencies and State Transportation Departments: 

DOT awardee: Louisiana; New Orleans Regional Transit Authority; 
Contract amount: $67,343,537; 
Uses: To provide supplemental emergency public transportation services 
to Baton Rouge following the influx of displaced persons from New 
Orleans. The services were intended to eliminate traffic congestion, 
expand the service area, extend service hours and provide more frequent 
service, and transport people from temporary FEMA trailers. The funding 
also helped reestablish transit service in New Orleans. 

DOT awardee: Louisiana; Louisiana Department of Transportation and 
Development; 
Contract amount: $19,043,538; 
Uses: To provide supplemental emergency public transportation service 
to 62 parishes in Louisiana (excluding Baton Rouge and New Orleans). 
Services included new routes and destinations, new service to temporary 
FEMA trailers, paratransit service for the displaced disabled 
population, and new routes to feed into the LA Swift emergency bus 
service (a service that transports displaced people between Baton Rouge 
and New Orleans). 

DOT awardee: Mississippi; Coast Transit Authority; 
Contract amount: $1,420,546; 
Uses: To provide supplemental emergency public transportation service 
to three Gulf Coast counties--Hancock, Harrison, and Jackson. The 
service included both fixed-route and demand-response transit service 
to housing and temporary shelters, medical transportation, and 
transportation service for disaster recovery in support of the Red 
Cross and essential government services as necessary. 

DOT awardee: Mississippi; Mississippi Department of Transportation; 
Contract amount: $316,710; 
Uses: To provide supplemental emergency public transportation service 
to three other counties located north of the Gulf Coast--Pearl River, 
Stone, and George. This service included demand-response transit 
service to local residents and evacuees to access essential government 
and life-sustaining support services. Transit service provided access 
to housing and temporary shelters, medical transportation, and 
transportation for disaster recovery in support of the Red Cross. 

DOT awardee: Total; 
Contract amount: $88,124,331. 

Source: GAO analysis of FEMA information. 

[End of table] 

These four mission assignments have been concluded--the mission assignment
to the Louisiana Department of Transportation and Development was the last
to end, on April 30, 2007.

As of September 2007, FEMA had committed $70 million to the 2 primary Gulf
Coast transit agencies through its existing Public Assistance program, and
these funds are primarily being used to repair and replace buses and bus
facilities. The 2 agencies provided us with information on the funding
they received. NORTA had over $66.4 million approved for 117 projects that
include replacing buses, repairing streetcar lines, and repairing and
reequipping maintenance facilities. The CTA in Mississippi had more than
$3.2 million approved for 11 projects, including a transit center, new
vehicles and equipment, bus shelters, and repairs and furnishings for its
administrative building. Most of the 2 transit agencies' Public Assistance
projects are ongoing, and the 2 agencies have received only limited
reimbursement to date.

  FTA Provided $35 Million to Transit Providers from a Supplemental
  Appropriation

In May 2007, Congress enacted a $35 million supplemental appropriation for
FTA to provide services to transit agencies directly affected by
Hurricanes Katrina and Rita.^13 In August 2007, FTA awarded the $35
million to 19 transit agencies in Alabama, Florida, Louisiana,
Mississippi, and Texas to fund operating and capital costs incurred from
the hurricanes. See table 5 for the amounts and uses of FTA's $35 million
supplemental appropriation.

Table 5: Amounts and Uses of FTA's $35 Million Supplemental 
Appropriation for Hurricanes Katrina and Rita Transit Relief, by State: 

State: Alabama; 
Number of agencies receiving grants: 2; 
Amount: $646,064; 
Uses: For facility and vehicle repairs. 

State: Florida; 
Number of agencies receiving grants: 1; 
Amount: $475,476; 
Uses: For facility repairs, operating assistance, and replacement of 
signs for bus stations and shelters. 

State: Louisiana; 
Number of agencies receiving grants: 13; 
Amount: $20,453,154; 
Uses: For facility repairs, operating assistance, replacement buses and 
shelters, and other uses. 

State: Mississippi; 
Number of agencies receiving grants: 1; 
Amount: $12,704,800; 
Uses: For bus replacement and operating assistance. 

State: Texas; 
Number of agencies receiving grants: 2; 
Amount: $720,506; 
Uses: For replacement buses, satellite telephones, and transport of 
vehicles. 

State: Total; 
Number of agencies receiving grants: 19; 
Amount: $35,000,000. 

Source: Information provided by FTA. 

[End of table] 

  FTA Allowed Transit Agencies to Redirect over $39 Million from Other Programs
  to Disaster Recovery

In addition to the $35 million from supplemental appropriations, transit
providers have access to an additional $39.5 million in funds obtained
through other FTA programs that FTA has allowed them to redirect to
support disaster recovery. The supplemental appropriation in June 2006
gave the Secretary of Transportation authority--until June 15, 2008--to
waive matching share requirements for transit assistance program grants to
agencies directly affected by Hurricane Katrina and to allow these
affected agencies to use certain grant funds for disaster recovery.^14 FTA
grants are usually allocated by formula and can be used for capital
projects such as purchases of new buses, passenger shelters, bus stop
signs, and some other purposes. Although this authority did not provide
the transit agencies with new funding, it enabled them to use funding that
had been designated for other purposes for disaster recovery. As of
October 2007, these affected entities were allowed to waive requirements
for about $24.9 million in matching funds, and to convert over $14.6
million in grant funds from capital uses to operating uses. See table 6
for the amounts waived or converted to disaster recovery and their uses.

^13 U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq
Accountability Appropriations Act, 2007, Pub. L. No. 110-28, title IV, ch.
8.

Table 6: Waivers and Conversions of Capital Grants to Operating Uses in 
Louisiana and Mississippi: 

Transit agency: Louisiana; Shreveport Transit Management; 
Amount: Waived share: $138,252; 
Amount: Converted grant assistance: [Empty]; 
Uses: For the purchase of two new buses, one for the expansion of night 
service and the other to add to its fleet to accommodate the influx of 
new transit riders. 

Transit agency: Louisiana; Houma Terrebonne Parish Consolidated 
Government; 
Amount: Waived share: $848,856; 
Amount: Converted grant assistance: [Empty]; 
Uses: For the purchase of eight new buses to replace buses currently in 
its fleet. 

Transit agency: Louisiana; Louisiana Department of Transportation and 
Development; 
Amount: Waived share: $4,166,758; 
Amount: Converted grant assistance: [Empty]; 
Uses: For repairing damage to the facility where the New Orleans 
Regional Planning Commission performs its regional planning duties; and 
for the administration of the LA Swift emergency bus service. 

Transit agency: Louisiana; New Orleans Regional Transit Authority; 
Amount: Waived share: $15,859,854; 
Amount: Converted grant assistance: $14,410,590; 
Uses: For operating assistance, and for repairing damage to 
infrastructure and equipment that resulted in substantial loss of 
riders and economic hardship. 

Transit agency: Louisiana; St. Bernard Parish Government; 
Amount: Waived share: $40,000; 
Amount: Converted grant assistance: $40,000; 
Uses: For operating assistance. 

Transit agency: Louisiana; City of Monroe; 
Amount: Waived share: $190,358; 
Amount: Converted grant assistance: [Empty]; 
Uses: For the purchase of three buses. 

Transit agency: Louisiana; Baton Rouge Capital Area Transit System; 
Amount: Waived share: $50,312; 
Amount: Converted grant assistance: $214,801; 
Uses: For operating assistance. 

Transit agency: Subtotal; 
Amount: Waived share: $21,294,390; 
Amount: Converted grant assistance: $14,665,391. 

Transit agency: Mississippi; Coast Transit Authority; 
Amount: Waived share: $3,586,132; 
Amount: Converted grant assistance: [Empty]; 
Uses: For repairing damage to the multimodal bus transportation 
facility, and other operating, capital, and preventive maintenance 
costs. 

Transit agency: Mississippi; Subtotal; 
Amount: Waived share: $3,586,132; 
Amount: Converted grant assistance: [Empty]. 

Transit agency: Total; 
Amount: Waived share: $24,880,522; 
Amount: Converted grant assistance: $14,665,391. 

Source: GAO analysis of FTA information. 

[End of table] 

^14 Emergency Supplemental Appropriations Act for Defense, the Global War
on Terror, and Hurricane Recovery, 2006, Pub. L. No. 109-234, S 7025.

  Another $65 Million in Contracts Was Awarded for Transportation Services and
  Other Disaster Recovery Needs

In addition to the funding provided to state transportation departments
and transit agencies, FEMA and FTA awarded over $65 million to contractors
and other entities to support transit recovery in the Gulf Coast. FEMA
issued an $8.5 million mission assignment to DOT for a contract for bus
service, known as LA Swift, between Baton Rouge and New Orleans for 10
months, ending November 30, 2006. NORTA then provided this service from
December 2006 through June 2007 under contract with the Louisiana
Department of Transportation and Development, using FTA-approved grant
funds and waivers of local matching fund requirements. Effective July 1,
2007, the service was extended for 1 year, under a contract with and
funded by Louisiana. In December 2006, FEMA also awarded a $55 million
contract to Global Charter Services, Ltd.,^15 to provide essential transit
services for individuals residing in temporary FEMA housing and to provide
for the emergency evacuation of those residents if needed. FTA also
awarded about $1.6 million in contracts for technical assistance to
support transit agencies in preparing damage assessment reports and
estimates of costs to repair and replace assets. For example, FTA awarded
a contract for $350,000 for technical assistance to Gulf Coast transit
agencies for posthurricane transit service recovery.

FEMA and FTA Have Provided at least $51 million of Other Disaster Assistance for
Transit since 1998

Congress responded to the August 1, 2007, collapse of the I-35 bridge in
Minneapolis by authorizing the Secretary of Transportation to provide up
to $5 million of discretionary Bus and Bus Facility program funds,
normally used for capital expenditures, for the operation of transit
services to substitute for the highway capacity lost with the bridge
collapse. The Minneapolis city and suburban transit agencies are using
this funding to cover the cost of drivers, mechanics, fuel, and other
operating costs associated with operating additional buses and running
longer trips needed to avoid closed roads.

^15 Global Charter Services, Ltd., operating under the name "The BusBank,"
provides charter bus services.

In addition to the Public Assistance program funding provided for transit
in response to the September 11, 2001, terrorist attacks and 2005 Gulf
Coast hurricanes, FEMA has provided Public Assistance grants to repair,
restore, reconstruct, or replace transit equipment and facilities after
other disasters. However, we were unable to reliably determine the total
amounts provided for transit from the Public Assistance program. FEMA's
Public Assistance program records are in its National Emergency Management
Information System (NEMIS) database, but NEMIS does not have the
capability to sort Public Assistance grants that supported transit out of
the total database. Therefore, we searched Public Assistance records in
the database for transit-related key words, as described in appendix I. As
a result of this search, we identified at least $46.7 million in Public
Assistance grants for transit from 1998 through August 2007. The $46.7
million figure should be considered a minimum level of Public Assistance
funding for transit because we cannot ensure that we were able to identify
all Public Assistance funding for transit.

Lack of an Immediate Funding Mechanism and Funding Guidance and Criteria
Affected Federal Transit Assistance after the 2005 Gulf Coast Hurricanes

Several factors affected the timeliness and effectiveness of FEMA's and
FTA's assistance to transit after the 2005 Gulf Coast hurricanes,
including the lack of mechanisms to provide immediate funding for transit
services and FEMA's lack of guidance and criteria for the types and
duration of services it would fund. Although the Stafford Act authorized
transportation assistance to enable communities to resume their normal
pattern of life as soon as possible, neither FEMA nor FTA had a mechanism
in place to get funding to transit providers immediately after the 2005
Gulf Coast hurricanes. Furthermore, FEMA's effectiveness in responding to
the disaster was limited by the agency's lack of guidance on the types of
transit services it can fund and criteria for the duration of funding.
These factors contributed to delays in getting funding approved and,
according to some funding recipients, led to ending mission assignment
funding before some transit needs were met. Although DHS and FEMA are
taking actions to address a number of issues raised by the response to the
2005 Gulf Coast hurricanes, these actions largely have not addressed
FEMA's response to providing transit services after a disaster.

FEMA and FTA Lacked a Mechanism to Provide Financial Assistance Immediately
after the Hurricanes, and Existing Funding Mechanisms Took Time

Both of FEMA's main means of providing disaster funding for
transit--mission assignments and its Public Assistance program--provide
reimbursement funding, requiring transit agencies to have other funding to
pay for their recovery efforts before they get FEMA funding. In a recent
report, we noted that FEMA, following the 2004 hurricanes in Florida, had
developed a process for applying for limited, expedited Public Assistance
funding for emergency work to be carried out within 60 days after a
disaster.^16 However, a FEMA official indicated that this expedited
funding would be available only for debris removal and emergency
protective measures within the first 60 days after a disaster. Therefore,
this process would not have been a funding option for funding transit
operations. FTA does not have a program to provide financial assistance to
transit agencies after a disaster. FTA can allow its grant recipients to
defer their matching share of program funding, and an official of one
transit agency we contacted said that FTA's deferral of local matching
requirements for its grant funds after Hurricane Katrina was important in
allowing the agency to resume very limited operations, even though the
deferral was not an infusion of new funds. However, such a deferral of
matching requirements may not provide sufficient help for a transit system
recovering from a major disaster.

According to NORTA, the primary transit agency for New Orleans, a lack of
financial resources immediately after Hurricane Katrina delayed its
response to the disaster. NORTA officials told us that their agency
depends on fare box revenues and a sales tax for operating support. After
Hurricane Katrina struck, funding from these sources stopped, and the
agency had no financial resources other than its bank balances and was
unable to pay its employees. On September 5, 2005, NORTA requested
financial assistance from FTA. Because of the extensive flooding in New
Orleans, the general public was evacuated from New Orleans, and regular
transit service could not be restored there immediately after the
disaster. However, Baton Rouge had absorbed tens of thousands of residents
and needed additional transit support. Immediately after the evacuation of
New Orleans, NORTA began contacting employees and locating equipment that
could be used to restore transit services. NORTA told us it had vehicles
and operators that could have supported service in Baton Rouge if funding
had been available. It took just over 1 month after the hurricane to
develop a FEMA mission assignment to DOT for NORTA, and for DOT to award a
contract to NORTA to implement the mission assignment. In the interim,
NORTA provided no services. NORTA officials also stated that, before the
mission assignment was approved, they had considered obtaining a line of
credit through their bank, but decided against borrowing money to pay for
their operations until funding from FEMA to repay the borrowed funds was
assured. FTA staff assisted NORTA in its recovery, including assisting in
establishing a maintenance facility and defining NORTA's needs to support
the proposal for the mission assignment, and the DOT contract to implement
the mission assignment was drafted at the same time. The contract
implementing NORTA's mission assignment was signed on October 1, 2005.
According to NORTA officials, the day after reimbursement was assured, and
days after the general public was allowed to return to New Orleans, NORTA
began to provide limited service in New Orleans, and 2 weeks later, the
transit agency began to provide service in Baton Rouge and to nearby
communities.

^16 GAO, Emergency Management Assistance Compact: Enhancing EMAC's
Collaborative and Administrative Capacity Should Improve National Disaster
Response, [30]GAO-07-854 (Washington, D.C.: June 29, 2007).

FEMA's Timeliness and Effectiveness in Providing Assistance for Transit Was
Further Limited by a Lack of Guidance and Criteria

FEMA had not developed any guidance to define the types of transit
assistance it could provide. According to some FEMA officials, this lack
of guidance provides the agency with flexibility in responding to
unpredictable situations and finding ways to save lives immediately after
a disaster. On the other hand, the experience following the 2005 Gulf
Coast hurricanes suggests that this lack of guidance could also delay
decisions about funding transit services following a catastrophic
disaster. A FEMA official involved in developing mission assignments for
transit after the Gulf Coast hurricanes indicated that mission assignments
are ordinarily used to meet emergency response needs for up to 60 days
after a disaster. However, the scope of the damage left by the hurricanes
required long-term recovery assistance beyond what FEMA typically provides
through mission assignments, and deciding what services could be funded
without violating the Stafford Act was a constant concern for FEMA staff
who needed to consult FEMA's General Counsel on all mission assignments.
For their part, the transit agencies and state transportation departments
with whom we spoke generally said that the DOT contracts in support of the
mission assignments were difficult and time-consuming to negotiate,
requiring multiple discussions to resolve a variety of issues, including
types of service, service routes, hours of service, and reimbursement
rates for services. This process added to the time needed to finalize the
four contracts in support of the mission assignments issued for emergency
public transportation services in Louisiana and Mississippi after the Gulf
Coast hurricanes. Finalizing these mission assignments, and the contracts
to implement them, took from just over 1 month to more than 4 months after
the hurricane.

FEMA's lack of criteria for determining the duration of disaster
assistance for transit resulted in FEMA's ending funding while transit
agencies believed they had continuing needs. FEMA officials with whom we
spoke said that decisions to conclude the mission assignments for transit
reflected factors such as declines in ridership or the availability of
other funding. However, some transit and state agency officials with whom
we spoke indicated that transit services were curtailed when the mission
assignment funding ended. NORTA officials said that when their mission
assignment funding ended, they discontinued their support for paratransit
service in Baton Rouge as well as for service on 12 routes that served
Baton Rouge and nearby trailer sites. In addition, NORTA officials told us
they had to lay off some employees.^17 An official of the CTA in
Mississippi also indicated that his agency could not continue the services
FEMA had funded after the agency's mission assignment ended in February
2006, and service reverted to the reduced levels provided before the
mission assignment began. The official also said that as of September
2007, 2 years after the hurricane, some FEMA group sites in Mississippi
still had no transit service.

According to the state transportation department and transit agency
officials with whom we spoke, FEMA decided when to let mission assignments
end and did not always consider the communities' need for the funded
services or the transit agency's ability to continue the services on its
own. For example, the Mississippi Department of Transportation received
funding through a FEMA mission assignment to provide demand-response
service in three rural counties. A department official stated that FEMA's
reason for allowing the mission assignment funding to end was the low
level of demand for the service. The official acknowledged that demand for
the service was less than initially expected, but he stated that a real
need for the service for the elderly and other public
transportation-dependent individuals continued after the funding ended. He
said that community organizations were able to provide some of this
service, but not at the levels provided under FEMA funding.

^17 However, NORTA, through a contract with the Louisiana Department of
Transportation and Development, was able to begin operating the LA Swift
service between New Orleans and Baton Rouge in December 2006 with
FTA-approved funding from other grants and waived local matching funds.

The problems that arose in connection with providing disaster assistance
for transit after the 2005 Gulf Coast hurricanes are not unique to the
transit sector. In our earlier report on the response to Hurricane
Katrina,^18 we identified three basic elements necessary to prepare for
and respond to a major disaster--including clearly defined leadership
roles and responsibilities, the capability to fulfill those roles and
responsibilities, and balance between the need to respond quickly and to
maintain accountability for the use of resources. Both FEMA and FTA lacked
the capability to provide funding to transit agencies quickly after the
disaster, and FEMA's lack of guidance on its role in and responsibility
for assisting transit was a factor that FEMA had to resolve in deciding on
the types and duration of services it would support.

FEMA Changes after the 2005 Gulf Coast Hurricanes Are Not Addressing Issues
Raised by the Agency's Experience with Transit

FEMA has begun to make a number of changes in response to lessons learned
from the 2005 Gulf Coast hurricanes. Thus far, however, none of these
changes directly addresses FEMA's assistance for public transportation.
DHS's National Response Framework reflects key lessons learned from the
2005 Gulf Coast hurricanes, focusing particularly on how the federal
government is organized to support communities and states after a
catastrophic incident. Recognizing the need to issue mission assignments
quickly, FEMA is also developing prescripted mission assignments to
simplify and expedite the mission assignment process.

According to DHS, the Framework is intended to accelerate and make more
disciplined the federal government's capacity to rapidly assess and
respond to an incident that will need federal assistance. The Framework
also identifies ESFs, which designate federal agencies' roles for
different aspects of disaster response. DOT remains the lead agency for
ESF 1 for transportation, with responsibility for assessing and reporting
on damage to the transportation system in a disaster and for coordinating
its restoration and recovery. However, a memorandum of understanding
signed by DHS and DOT in October 2007 shifts responsibility for
coordinating all emergency transportation services, including the movement
of commodities, goods, equipment, and emergency response personnel, from
DOT to FEMA. Neither the Framework nor the memorandum of understanding
helps clarify the federal government's response to a disaster's impact on
transit. For example, ESF-1 under the Framework includes new wording,
stating that FEMA should provide timely funding to activate transportation
activities that are eligible for funding under the Stafford Act. However,
this wording does not help to clarify FEMA's or FTA's roles or to
establish any new direction that would result in more timely assistance to
restore transit services. In addition, under the memorandum of
understanding, DOT will continue to be responsible for "alternative
transportation services" after a disaster. According to DOT officials,
"alternative transportation services" could include providing ferry
service when a bridge has been damaged or destroyed, but could also
include transit services.

^18 GAO, Catastrophic Disasters: Enhanced Leadership, Capabilities, and
Accountability Controls Will Improve the Effectiveness of the Nation's
Preparedness, Response, and Recovery System, [31]GAO-06-618 (Washington,
D.C.: Sept. 6, 2006).

In addition to issuing the Framework, to date FEMA has developed over 180
prescripted mission assignments for various agencies for disaster response
functions. The purpose of prescripted mission assignments is to facilitate
common language between FEMA, other federal agencies, and state and local
organizations to expedite their issuance, because mission assignments are
intended to be FEMA's mechanism for quickly directing other federal agency
actions. The use of prescripted mission assignments could also promote
consistency in an agency's response when a major disaster affects multiple
states. While some prescripted mission assignments address DOT's role in
evacuation and transporting first responders--by, for example, identifying
the personnel responsible for aiding in an evacuation--FEMA has not yet
drafted any prescripted mission assignments for operating or restoring
transit services. According to a FEMA official, the agency does not plan
to draft a prescripted mission assignment for transit operations, because
under the memorandum of understanding between DHS and DOT, FEMA is to
assume parts of DOT's emergency response functions for transportation,
and, therefore, prescripted mission assignments are not necessary.

Additional Options Exist for Providing Assistance for Transit after a Major
Disaster

Additional options exist at the state, local, and federal levels for
providing transit services and assistance for transit after a major
disaster. At the state and local levels, mutual aid agreements can support
transit recovery after a disaster by allowing transit agencies to obtain
resources and personnel from agencies outside of the disaster area. At the
federal level, existing DOT authorities and programs suggest potential
additional options of (1) making permanent the temporary authorities that
FTA has been given to respond to the 2005 Gulf Coast hurricanes and (2)
adopting the existing DOT emergency program for highway repairs
administered by FHWA, either by establishing a comparable program for FTA
and transit or incorporating transit assistance as an eligible activity
within FHWA's program. Despite potential advantages, both options at the
federal level face certain challenges and consequences, including funding
the expanded scope and cost of an emergency relief program.

Mutual Aid Agreements Can Support Recovery at the State and Local Levels

Existing mutual aid agreement programs can also support transit recovery
after a disaster. Such agreements can allow transit agencies to network
across state and local jurisdictions to obtain needed transit resources
after a disaster. We recently reported on an interstate mutual aid
program, EMAC.^19 This program establishes a structure for states to
collectively address issues that transcend state borders by allowing
member states to, among other things, request assistance, reimburse
assisting states, and be covered by liability and workers' compensation
protection. Representatives from the affected state inform EMAC leadership
that interstate assistance may be needed. The assisting states work with
the requesting state to identify required resources and other details.
Once the missions have been completed and resources have returned home,
the assisting states prepare formal requests for reimbursement, which are
then sent to, and processed by, the requesting state. While EMAC
reimbursement is intended to be independent of any federal assistance,
impacted states can request funding from FEMA's Public Assistance program
to help cover eligible costs for missions under EMAC.

APTA has recently developed an Emergency Response and Preparedness Program
that allows transit systems to volunteer their resources--including buses,
fueling systems, trailer trucks, generators, drivers and mechanics--for
temporary emergency transit needs. APTA maintains information on the
resources of each member agency, and it gives members' access to the
national Emergency Response and Preparedness Program resource so that
transit agencies can locate needed resources in an emergency. As of
September 2007, no transit agencies had yet made use of APTA's program.

Mutual aid agreements can also work within states. For example, the
Florida Department of Transportation established a mutual aid agreement
between all of the transit systems in the state, agreeing that they would
assist each other in times of disaster by providing transit resources,
such as buses, temporary facilities, and personnel, that can be loaned
immediately to meet the needs of agencies affected by a disaster.
According to Florida Department of Transportation officials, public
transportation agencies must become actively involved with others in their
communities in planning for emergencies. To this end, the department also
works with local transit agencies to support disaster planning and
response.

^19 [32]GAO-07-854 .

Modifying Existing Federal Authorities and Programs Could Enhance Recovery
Capabilities but Would Also Impose Costs

At the federal level, existing DOT authorities and programs suggest
further potential options, including giving FTA permanent authority to
waive certain grant fund requirements and creating a disaster relief
program for transit similar to an FHWA program for federal highways. In
June 2006, Congress gave FTA temporary authority, for 2 years, to allow
transit agencies directly affected by Hurricane Katrina to use grant
funds--generally for capital expenditures--for operating expenses. FTA was
also authorized to waive the requirement for transit agencies to provide
matching funds in order to receive federal funds. If made permanent, this
authority would enable FTA to make an existing source of funds immediately
available for transit agencies to begin restoring transit services after a
disaster. Transit agencies in Louisiana and Mississippi told us that
immediate funding was one of their most urgent needs after Hurricane
Katrina, once regular revenue sources, such as fare receipts, ceased.
Under this option, however, funding would be limited to the amount that
the affected transit agency had received from FTA through its regular
grant programs, rather than being based on specific needs. This amount
might support only limited service. In addition, the projects that the
grant money was intended to fund would be delayed or not done at all.

FHWA's Emergency Relief program could also serve as a model for providing
assistance for transit. This program makes funds available for the repair
or reconstruction of roadways on the federal-aid highway system and on
federal lands that have suffered serious damage as a result of a natural
disaster or catastrophic failure from an external cause.^20 Assistance for
the repair or reconstruction of roadways that are not on the federal
system remains the responsibility of FEMA. FHWA regulations and guidance
provide detailed standards for the nature and type of work that is
eligible for federal funding and criteria for the duration of assistance
in the two major categories--emergency repairs and permanent repairs.
Emergency repairs are those accomplished during and immediately following
a disaster to restore essential traffic, minimize damage, and protect
remaining facilities. Such assistance is generally limited to 180 days
following a disaster and includes activities such as removing debris and
constructing detours, but specifically prohibits other work such as
repairing roadway surfaces damaged by traffic. Permanent repairs are those
done to restore the highway to its predisaster condition. Again, FHWA
regulations and guidance provide eligibility parameters, including
prohibiting "betterments" that increase capacity, correct
nondisaster-related deficiencies, or otherwise improve highway facilities.
For both emergency repairs and permanent repairs, FHWA regulations and
guidance specify maximum percentages of project funding that the program
will provide and set a cap on the total program funding that can be
provided within a state for any disaster.

^20Federal-aid highway systems means the National Highway System, the
Dwight D. Eisenhower National System of Interstate and Defense Highways,
and all other public roads not classified as local roads or rural minor
collectors.

The Emergency Relief program also provides for a "quick release" of
funding in some cases. According to FHWA's guidance, the quick release
method is not appropriate for all disasters, but is generally used for
larger disasters where extensive damage is readily evident and where there
is a desire at the state and federal levels to have funds flowing quickly
to the state. No on-site damage surveys or formal disaster assessments are
required, as they normally are for the program; instead, the assessment
may be based on other readily available information, such as credible
media reports or aerial surveys done by the state. The goal of the quick
release method is to begin the flow of funds to the state within 1 to 2
days.

FHWA's Emergency Relief program could be adapted for transit through
either of two approaches:

           o First, Congress could establish a comparable emergency relief
           program for FTA and transit. Under this approach, FTA could
           provide either limited, short-term funding for transit operations
           after a disaster or longer-term funding for the repair and
           replacement of facilities and equipment. This approach would
           provide specific funding for FTA to meet transit needs after a
           disaster; however, establishing such a program would require
           defining criteria for transit disasters that would qualify for
           assistance, setting limits on the amount or duration of financial
           assistance, and ensuring accountability for the use of funds. In
           addition, this approach would enable FTA to target funding to the
           transit providers with the greatest needs, as opposed to allowing
           transit agencies to use whatever grant funding they had already
           received. Such a program could reduce or eliminate the need for
           FEMA mission assignments and reduce the delays and uncertainty
           that characterized the provision of assistance to Gulf Coast
           transit agencies. Moreover, such a program, if modeled along the
           lines of the FHWA program, could also include a quick release
           method of funding.
           o Second, Congress could incorporate transit assistance as an
           eligible activity within FHWA's Emergency Relief program. This
           approach would have the advantage of using the existing FHWA
           processes for administering the program, and it could support
           greater coordination between the highway and transit communities
           in disaster recovery. Some of the current program's eligibility
           criteria for disaster assistance--such as the thresholds for the
           minimum damage amounts that qualify for program assistance---could
           be applicable to transit. Other criteria, such as the types of
           work eligible for funding, would need to be developed.

           Despite potential advantages, both approaches to implementing a
           disaster relief program for transit pose challenges and
           consequences. For example, it would be necessary to determine the
           extent to which any new or expanded DOT program would assume
           responsibility for assistance formerly provided by FEMA.
           Developing consistent eligibility standards for transit operations
           would also be daunting, given the diversity of providers and
           differences in the size of transit operations and in the scope of
           services that transit systems provide.

           The most important challenge under either approach would be a
           significant expansion of the scope and cost of DOT's Emergency
           Relief program. As we have recently reported, this program already
           faces a fiscal imbalance and its long-term sustainability is a
           concern.^21 Although funding for the program is provided annually
           from the Highway Trust Fund, since 1990, 86 percent of the
           program's costs have been funded through supplemental
           appropriations because the program's annual demands have greatly
           exceeded the funding provided. Contributing to these additional
           demands has been the gradual expansion of eligibility criteria for
           disaster relief--for example, projects have grown in scope and
           costs because of environmental and community concerns, and
           Congress and FHWA have expanded the definition of eligible
           disasters and added to the types of work that could be funded.
           Identifying funding for an expanded or new emergency relief
           program would be problematic. Revenues supporting the Highway
           Trust Fund--the major source of federal highway and transit
           funding--are eroding and may not be sufficient to support existing
           programs in the coming years. According to a recent Congressional
           Budget Office estimate, expenditures from the Mass Transit Account
           within the Trust Fund will exceed revenues by 2012. Furthermore,
           as entitlement programs grow and consume increasing shares of
           federal spending, the funding for all discretionary federal
           programs will be constrained.
			  
			  ^21 [42]GAO-07-245 .
			  
			  Conclusions

           The restoration of transit facilities and services after major
           disasters has taken different forms since 1998, and each disaster
           has posed unique challenges. The September 11, 2001, terrorist
           attacks on New York City caused massive destruction of transit
           infrastructure at the World Trade Center site, requiring over $4
           billion in federal assistance to rebuild the destroyed
           infrastructure. By comparison, the 2005 Gulf Coast hurricanes
           caused far less destruction to transit infrastructure, but created
           a need to provide continuing transit services for displaced
           populations.

           Although the Stafford Act authorizes public transportation
           services to meet emergency needs and to help communities resume
           their normal pattern of life as soon as possible, FEMA's
           experiences after the 2005 Gulf Coast hurricanes illustrate the
           many hurdles that may be involved in providing such services.
           Already burdened with a massive response and recovery effort, FEMA
           had to make some difficult decisions about the extent of its
           authority to fund transit operations. Without guidance on the
           types of public transportation services that could be funded and
           criteria for determining the duration of that funding, FEMA took
           up to 4 months to make funding decisions. Such guidance and
           criteria would provide a frame of reference for all parties
           involved in responding to future disasters and could expedite
           future funding decisions. Moreover, with such guidance, FEMA could
           develop prescripted mission assignments for public transportation,
           as it has done for other response and recovery activities, which
           could reduce ambiguity and further expedite the mission assignment
           process when time is critical following a disaster. Although FEMA
           officials do not believe it is necessary to develop prescripted
           mission assignments for transportation, because FEMA will be
           assuming parts of DOT's responsibility for emergency response, DOT
           can still be tasked with providing alternative transportation
           services that can be carried out by others, and prescripted
           mission assignments could expedite its provision of those
           services.

           Additional options for increasing FTA's authority and capacity to
           respond to disasters affecting transit require congressional
           action. A careful examination of the advantages, consequences, and
           feasibility of these options could help enhance the limited
           ability of the federal government to provide immediate financial
           assistance to transit agencies in response to a disaster, to fund
           emergency services and to enable communities to quickly resume a
           normal pattern of life.
			  
			  Recommendations for Executive Action

           To promote timely and effective disaster assistance for public
           transit, we recommend that the Secretary of Homeland Security
           direct the Administrator of FEMA to take the following two
           actions:

           o Develop guidance or regulations outlining the types of operating
           assistance for transit that FEMA will or will not fund following a
           disaster and criteria for determining the duration of funding for
           these services.
           o Draft prescripted mission assignments for public transportation
           services to provide a frame of reference for FEMA, FTA, and state
           transportation departments in developing mission assignments after
           future disasters. The prescripted mission assignments could
           reflect FEMA's guidance and criteria for funding public
           transportation services, reduce ambiguity, and potentially
           expedite their issuance so that agencies that are relying on FEMA
           funding could begin their disaster recovery.

           To enable FTA to provide more direct and timely assistance to
           transit agencies following a disaster, we recommend that the
           Secretary of Transportation evaluate the feasibility of options to
           increase FTA's authority to provide immediate financial
           assistance, and seek legislative authority as appropriate.
			  
			  Agency Comments

           We provided DHS and DOT with copies of this report for their
           review and comment. DOT provided oral comments on January 17,
           2008. DOT generally agreed with the facts presented and with our
           recommendation that it evaluate the feasibility of options to
           increase FTA's authority to provide immediate financial
           assistance, and seek legislative authority as appropriate. FTA
           stated that these options would be considered by its policy
           working group that is developing portions of the department's
           legislative proposal for reauthorizing surface transportation
           programs. On January 22, 2008, DHS responded by e-mail that it
           would take our two recommendations under advisement. DHS and DOT
           also provided technical comments, which we incorporated into this
           report as appropriate.

           We will send copies of this report to interested congressional
           committees, the Secretary of Homeland Security, the Secretary of
           Transportation, and other interested parties. We will make copies
           available to others upon request. In addition, the report will be
           available at no charge on GAO's Web site at [33]http://www.gao.gov
           .

           Please contact Katherine Siggerud at (202) 512-2834 or
           [34][email protected] if you or your staffs have any questions
           about this report. Contact points for our Offices of Congressional
           Relations and Public Affairs may be found on the last page of this
           report. GAO staff who made key contributions to this report are
           listed in appendix II.

           Katherine Siggerud
           Director, Physical Infrastructure Issues
			  
			  Appendix I: Objectives, Scope, and Methodology

           The objectives of this report were to determine (1) the role of
           the federal government in providing transit services and assisting
           transit agencies after a major disaster; (2) the amounts, sources,
           and uses of federal disaster assistance provided for transit since
           1998; (3) factors that affected the timeliness and effectiveness
           of federal assistance for transit services after the 2005 Gulf
           Coast hurricanes; and (4) additional options for providing transit
           services and assistance for transit after a major disaster.

           To determine the role of the federal government in providing
           transit services and assisting transit agencies after a major
           disaster, we reviewed and analyzed relevant laws, regulations, and
           guidance on the Federal Emergency Management Agency's (FEMA) and
           the Federal Transit Administration's (FTA) authorities and
           responsibilities in responding to disasters affecting transit. We
           interviewed FEMA and FTA officials to determine their roles in
           providing disaster assistance to transit agencies. We also
           reviewed applicable legal materials. In addition, we reviewed
           emergency supplemental appropriations related to the terrorist
           attacks of September 11, 2001; the 2005 Gulf Coast hurricanes; and
           the Minneapolis, Minnesota, I-35 bridge collapse of August 2007 to
           identify appropriations designated for emergency transit. We
           analyzed regulations and guidance--including FEMA's National
           Response Plan and National Response Framework, FEMA Mission
           Assignment Standard Operating Procedures, and FEMA Public
           Assistance guidance--to gain an understanding of FEMA's role in
           disaster assistance to transit. We also visited FEMA headquarters
           in Washington, D.C.; FEMA Region VI in Denton, Texas; FTA
           headquarters in Washington, D.C.; FTA Region IV in Atlanta,
           Georgia; and FTA Region VI in Fort Worth, Texas. During these
           visits, we talked with agency officials about the role of the
           federal government during recent disasters. Furthermore, to better
           understand the federal response to disasters, we reviewed
           information included in several GAO and Congressional Research
           Service products.

           To determine the amounts, sources, and uses of federal disaster
           assistance provided for transit since 1998, we reviewed and
           analyzed, among other materials, supplemental appropriations
           funding designated for transit recovery after September 11, 2001;
           the 2005 Gulf Coast hurricanes; and any other disaster since 1998.
           Through interviews and documentation obtained from FTA officials,
           we quantified FTA indirect financial support to transit provided
           through waivers of local matching funds and conversions of capital
           grant funds to disaster recovery uses. We also reviewed and
           analyzed FEMA and FTA financial assistance for transit after
           recent disasters--specifically, the September 11 terrorist attacks
           on New York and the 2005 Gulf Coast hurricanes. FEMA provided data
           on Public Assistance program funding for response actions after
           the September 11 terrorist attacks, and two Gulf Coast transit
           agencies provided data on funding they received from FEMA's Public
           assistance program after the Gulf Coast hurricanes. Finally, we
           discussed the uses of this federal assistance with officials from
           the New Orleans Regional Transit Authority, the Coast Transit
           Authority, the Capital Area Transit System, the Louisiana
           Department of Transportation and Development, and the Mississippi
           Department of Transportation. On the basis of interviews with
           knowledgeable agency officials and checks of the reasonableness of
           the information, we determined that these data were sufficiently
           reliable for our purposes. In addition to information developed
           for the September 11 terrorist attacks and the 2005 Gulf Coast
           hurricanes, we also attempted to quantify FEMA Public Assistance
           disaster funding to transit providers over time. FEMA officials
           indicated they did not have information on Public Assistance
           grants that supported transit; developing this information would
           require a search of Public Assistance grant information in their
           National Emergency Management Information System (NEMIS) database.
           We limited the scope of our analysis to disasters occurring from
           1998 to August 2007 because FEMA officials indicated that NEMIS
           data prior to 1998 were incomplete. The NEMIS system is not able
           to sort transit grants from grants for other purposes. As an
           alternative approach, we searched grant applicant names and scope
           of work descriptions for any of several key words, such as
           "transit," "bus," or "rail," to identify Public Assistance grants
           that supported transit. We then reviewed individual Public
           Assistance grants identified by this process to select those that
           related to transit. Because our methodology for searching the
           database did not ensure that we identified all Public Assistance
           grants to transit for the time period we searched, the amount we
           report for FEMA Pubic Assistance grants for transit should be
           viewed as a minimum figure. There may have been other funds
           provided for transit purposes that we did not identify. In
           addition, FEMA staff used a similar approach to determine the
           amount of Public Assistance program funding for emergency ferry
           service in New York after the terrorist attacks, which resulted in
           the same uncertainty about identifying all funding. Although the
           reliability of these dollar amounts is undetermined, we believe
           their magnitude of uncertainty is relatively small compared with
           the nearly $5 billion in federal spending for emergency transit
           purposes. Therefore, we found these data to be sufficiently
           reliable for our purposes. Also, the inclusion of these data does
           not affect our conclusions or recommendations.

           To determine the factors that affected the timeliness and
           effectiveness of federal assistance for transit after the 2005
           Gulf Coast hurricanes, we identified and analyzed the criteria and
           guidance that FEMA and FTA use in providing disaster assistance
           for transit. We assessed FEMA's and FTA's guidance and criteria
           related to the timeliness and duration of assistance to transit
           agencies and discussed the implementation of the guidance and
           criteria with FEMA and FTA officials. To evaluate the timeliness
           of assistance, we reviewed mission assignment documentation and
           determined the period between the date of the disaster and the
           date of issuance for each mission assignment. To evaluate the
           duration of assistance, we reviewed mission assignment
           documentation and determined the period from the issuance date to
           the end date for each mission assignment. To obtain transit
           agencies' perspectives on the timeliness and effectiveness of
           federal assistance, we interviewed officials from the New Orleans
           Regional Transit Authority, the Coast Transit Authority, the
           Capital Area Transit System, the Louisiana Department of
           Transportation and Development, and the Mississippi Department of
           Transportation.

           To identify additional options for providing transit services and
           assistance for transit after a major disaster, we reviewed and
           analyzed, among other materials, the Federal Highway
           Administration's Emergency Relief program guidance; the American
           Public Transit Association's Emergency Response and Preparedness
           Program guidance; the Community Transportation Association of
           America's documents related to lessons learned from Hurricane
           Katrina, including what is needed for future disasters; the
           Florida Department of Transportation's Transit Emergency Planning
           and Response Assessment Initiative; and our report on the National
           Emergency Management Association's Emergency Assistance Compact.
           We discussed alternative options for providing assistance for
           transit after a catastrophic disaster with officials from FTA and
           the American Public Transit Association, the Community
           Transportation Association of America, and the Florida Department
           of Transportation and determined whether these options were
           feasible for providing or improving federal assistance for transit
           after a catastrophic disaster.
			  
			  Appendix II: GAO Contact and Staff Acknowledgments
			  
			  GAO Contact
			  
           Katherine Siggerud, (202) 512-2834 or [35][email protected]
			  
			  Staff Acknowledgments

           In addition to the contact named above, Steve Cohen, Assistant
           Director; Dwayne Curry; Elizabeth Eisenstadt; Cynthia Grant;
           Kristin Hughes; Bert Japikse; and Donald Kittler made key
           contributions to this report.
			  
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(542110)

To view the full product, including the scope
and methodology, click on [43]GAO-08-243 .

For more information, contact Katherine Siggerud at (202) 512-2834 or
[email protected].

Highlights of [44]GAO-08-243 , a report to the Committee on Banking,
Housing, and Urban Affairs, U.S. Senate

February 2008

EMERGENCY TRANSIT ASSISTANCE

Federal Funding for Recent Disasters, and Options for the Future

Major disasters can disrupt transit operations, destroy vehicles and
facilities, and impede the ability of people to reach essential relief and
medical services and return to their homes and jobs. GAO determined (1)
the federal role in assisting transit agencies after a major disaster; (2)
the amounts, sources, and uses of federal disaster assistance for transit
since 1998; (3) the factors that affected the timeliness and effectiveness
of transit assistance after the 2005 Gulf Coast hurricanes; and (4)
additional options for providing assistance to transit after a major
disaster. GAO reviewed laws, regulations, and guidance; analyzed DOT and
FEMA data; and interviewed officials with FEMA, DOT, state and local
agencies, and others.

[45]What GAO Recommends

To promote timely and effective assistance to transit, FEMA should develop
guidance on the types of transit services that it will fund after a
disaster and criteria for the duration of funding. DOT should evaluate the
feasibility of options to increase FTA's authority to provide financial
disaster assistance to transit, and seek legislative authority as
appropriate. DHS and DOT generally agreed with the facts presented, and
DHS stated it would take the recommendations under advisement. DOT agreed
with the recommendations and said these options would be considered by FTA
in developing DOT's legislative proposal for reauthorizing surface
transportation programs.

The federal government provides transit services and assists transit
agencies after a major disaster, primarily through two federal
agencies--the Department of Homeland Security's Federal Emergency
Management Agency (FEMA) and the Department of Transportation's (DOT)
Federal Transit Administration (FTA). FEMA is authorized to provide
emergency transportation services under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (the Stafford Act). FTA administers
federal support for transit but does not have a specific ongoing program
or funding to help restore transit after disasters.

FEMA and FTA have provided approximately $5.0 billion in disaster
assistance to fund transit services and assist transit agencies since
1998, primarily through supplemental appropriations. The agencies provided
nearly $4.7 billion to New York City after the terrorist attacks of
September 11, 2001, primarily to rebuild destroyed transit infrastructure,
and another $232 million after the 2005 Gulf Coast hurricanes, largely to
provide transit services for displaced populations. FEMA and FTA have also
provided at least $51 million for other disasters since 1998. FEMA's
database for its Public Assistance program does not have the capability to
sort transit projects from other projects. GAO took steps to identify this
funding, but the information presented should be considered minimum
amounts. Additional funds may have been dedicated for transit purposes.
GAO believes the magnitude of uncertainty is small compared with the $5.0
billion in assistance for transit.

After the 2005 Gulf Coast hurricanes, FEMA and FTA faced challenges that
impeded both the timeliness and effectiveness of their assistance to
transit. Although the Stafford Act authorizes federal assistance to meet
emergency needs, neither FEMA nor FTA had mechanisms to provide transit
funding immediately after the disasters. FEMA also lacked guidance on the
types of transit services it would fund and criteria for determining the
duration of funding. As a result, funding approvals after the 2005 Gulf
Coast hurricanes took from 1 month to as long as 4 months, and FEMA ended
funding even though transit agencies in Louisiana and Mississippi believed
that they had continuing needs.

Additional options exist--at the state, local, and federal levels--for
providing assistance to transit after a major disaster. At the state and
local levels, mutual aid agreements between states and others can direct
needed resources to transit agencies following a disaster. Existing
programs and temporary authorities that Congress had provided to DOT also
suggest options, including giving FTA permanent authority to allow transit
agencies to use existing grant funds for disaster recovery. As another
option, Congress could establish an emergency relief program for FTA,
similar to the DOT program for highways, or expand the scope of the
highway program to include transit. Such a program could include "quick
release"--a mechanism used to approve and release emergency highway funds
within 1 to 2 days. Each of these options has advantages, such as
expedited release and better targeting of funds, and consequences, such as
potentially increased costs to the federal government.

References

Visible links
  29. http://www.gao.gov/cgi-bin/getrpt?GAO-07-245
  30. http://www.gao.gov/cgi-bin/getrpt?GAO-07-854
  31. http://www.gao.gov/cgi-bin/getrpt?GAO-06-618
  32. http://www.gao.gov/cgi-bin/getrpt?GAO-07-854
  33. http://www.gao.gov
  34. mailto:[email protected]
  35. mailto:[email protected]
  36. http://www.gao.gov/
  37. http://www.gao.gov/
  38. http://www.gao.gov/fraudnet/fraudnet.htm
  39. mailto:[email protected]
  40. mailto:[email protected]
  41. mailto:[email protected]
  42. http://www.gao.gov/cgi-bin/getrpt?GAO-07-245
  43. http://www.gao.gov/cgi-bin/getrpt?GAO-08-243
  44. http://www.gao.gov/cgi-bin/getrpt?GAO-08-243
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