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Michigan Passenger Transportation Programs
Programs are paid from Michigan's Comprehensive Transportation Fund (CTF), which is derived from a portion of state motor fuel taxes, vehicle registration fees, and state sales taxes on automobiles and other auto-related products.
Act 51 of the Public Acts of 1951, as amended, and departmental policy.
Intercity Bus Program
Program Description:
MDOT's Intercity Terminal Development Program is responsible for the construction or rehabilitation of intercity passenger terminals in over 20 communities throughout Michigan, including 4 MDOT owned facilities in Benton Harbor, Detroit, Pontiac, and Southfield. Intercity Terminal funds are used to ensure the passenger terminals remain attractive, passenger friendly, and safe.
MDOT's Intercity Service Program funds are used to bid out 5 routes in Northern Michigan every three years. These contracted routes provide service that would not otherwise exist (i.e., service that would not be provided by a carrier absent a state subsidy) and provide invaluable connections for Michigan's rural population to urban centers and the national transportation network.
MDOT's Intercity Bus Capital Program utilizes state and federal dollars to fund buses used along Michigan's intercity bus routes. Buses are replaced when the federal useful life criteria has been met, ensuring safe and modern vehicles within Michigan's intercity bus program.
See Michigan's Intercity Bus System Map
Eligible Applicants:
A private, for-profit intercity carrier or provider; a private, nonprofit intercity carrier or provider; a local public transit provider providing, or proposing to provide, feeder service to intercity carriers; or federally recognized Native American tribal governments in Michigan.
Local Bus Capital and Operating Assistance Programs
Local Bus Operating Assistance Program - AKA State Operating Assistance Program, and/or Formula
Program Description:
This program is an operating assistance program used to provide state funding to assist transportation services in both urbanized and rural areas, including ferry services to marine passengers. Program funds may be used for operating and administrative assistance. The State Operating Assistance funds are distributed to eligible public transit agencies according to Act 51 and the R&E Manual of the current application year. Nonurbanized areas and urbanized areas under 100,000 population will receive state operating assistance for up to 60 percent of eligible expenses. Urbanized areas over 100,000 population will receive state operating assistance for up to 50 percent of eligible expenses.
Eligible Applicants:
Eligible authorities and eligible governmental agencies as defined in Act 51.
Local Bus Capital Assistance Program
Program Description:
This program provides state share to match federal funds under various federal programs such as Section 5307, Section 5339, Small Urban, 5311(f), STGB, and CMAQ.
Eligible Applicants:
Eligible authorities and eligible governmental agencies as defined in Act 51.
Marine Passenger Program
Program Description:
The Marine Passenger Program is implemented under Act 51 to provide passenger ferry assistance. The program provides funding for capital improvements for publicly operated or owned ferry services that provide essential transportation services linking island communities to the mainland. The operating support is provided from the State Operating Assistance Program.
Funding is provided to the Beaver Island Transportation Authority (BITA), Charlevoix County Transportation Authority (Ironton Ferry), and Eastern Upper Peninsula Transportation Authority (EUPTA) for capital improvements and operating assistance to support their ferry services.
EUPTA provides ferry services linking Drummond, Neebish, and Sugar islands with the Chippewa County mainland. The residents on the islands rely on this only means of transport service for employment, medical, school, shopping, food and fuel supplies.
BITA provides ferry services between the City of Charlevoix and St. James Township on Beaver Island. Island residents rely on this service for essential transportation and commodities.
Ironton Ferry transports passengers and vehicles across Lake Charlevoix between Boyne City and Charlevoix.
The operating support is provided from the Local Bus Operating Assistance Program.
Eligible Applicants:
Eligible authorities and eligible governmental agencies as defined in Public Act 51.
Service Initiatives Program
Program Description:
This is state funding program that provides funds to advance and improve mobility such as demonstration and implementation of new technology, innovative service models, regional services, research, training, planning and coordination. Ad hoc applications may be submitted at any time during the year. MDOT may also issue calls for proposals or challenge grants seeking applications for projects to address specific state goals and objectives; those solicitations may have different requirements than what is outlined in these instructions.
Eligible Applicants:
Eligible authorities and eligible governmental agencies as defined in Act 51; private entities in partnership/coordination with eligible authorities or governmental agencies.
Specialized Services Program
Program Description:
The Specialized Services program was developed to improve Michigan's public transportation services by providing operating assistance for transportation services primarily for seniors and individuals with disabilities. Funds may be used to provide or purchase service and/or lease vehicles to provide service. The program is funded with 100 percent state funds.
Eligible Applicants:
Eligible authorities and eligible governmental agencies as defined in Act 51. Private, nonprofit corporations and associations that provide transportation services meeting the special needs of seniors and individuals with disabilities are also eligible.
State Infrastructure Bank (SIB)
Program Description:
The Michigan SIB loan program is available to any Act 51 public entity (county road commissions, cities, villages, or MDOT) for eligible transportation projects. The SIB complements traditional funding sources and serves as a tool to meet urgent project financing demands. For further information, go to State Infrastructure Bank.
Eligible Applicants:
Qualified borrowers include any Act 51-eligible public entity (county road commissions, cities, villages, or MDOT). Although other public and private entities are not eligible to apply, they may be able to enter into agreements with eligible borrowers to finance eligible transportation projects.