Frequently Asked Questions: State Safety Oversight Formula Grant Program
Grant Requirements and Eligibility
- How does FTA announce the annual SSO apportionment of funding?
- Which States are eligible to receive grant funding?
- Do we have to be certified by FTA before we can receive grant funds?
Funding Availability
- How long will funds be available for award?
- When will States receive SSO Formula Grant Program funds?
- Once the grant is awarded, how long do States have to spend the funding?
- What are the reporting requirements for this grant program?
Local Match
- How does the 20% match work? Is it 20% of the amount of grant funding FTA apportioned, or 20% of the total combined funding level?
- What types of funding are eligible for the local match?
- Can a State choose to use a portion of the funding available?
- My State is working to obtain an independent 20% match. Can my State receive funding from the rail transit agency and participate in this grant program?
- Can my State wait to file a grant application until the new fiscal year begins, when the independent local match is available?
Eligible Expenses
- How can States use SSO Formula Grant Program funding?
- Can States use grant funds for other safety initiatives?
- Can States use SSO Formula Grant Program funds for rail transit systems that are not Federally funded?
- Can States pay wages with SSO Formula Grant Program funds?
- Can States pay contractors with SSO Formula Grant Program funds?
- Can States buy equipment with SSO Formula Grant Program funds?
- Can States purchase and operate vehicles with SSO Formula Grant Program funds?
- Can States use SSO Formula Grant Program funds for construction or building improvements?
- Can States use SSO Formula Grant Program funds to develop a web-based information management system?
- What types of training activities can be funded under this program?
- Can States pay for in-State and out-of-State training, meetings and conferences, and travel expenses under this grant program?
- Can States pay for memberships, subscriptions, and professional activity costs under this grant program?
- Can States use SSO Formula Grant Program funds to attend training at a rail transit system it oversees?
- What other activities are eligible under this grant program?
Grant Requirements and Eligibility
How does FTA announce the annual SSO apportionment of funding?
The SSO annual funding apportionment is provided via Table 13, which can be located on FTA’s apportionments webpage. Additionally, FTA will also publish an apportionment notice for the agency, which describes the final formula used to apportion funds and identifies grant requirements and next steps to apply for this grant program.
Which States are eligible to receive grant funding?
States with a rail fixed guideway public transportation system (rail transit system) that is not regulated by the FRA, or any such system in the engineering or construction phase of development, are eligible to receive funding.
Do we have to be certified by FTA before we can receive grant funds?
No. A State does not need to be certified to receive the apportioned funding. However, if a State is not certified, the State must submit a CWP and have it approved by FTA before applying for and receiving grant funds. FTA developed a recommended CWP template to support this process.
Funding Availability
How long will funds be available for award?
SSO Formula Grant Program funds are available for the year of apportionment plus two additional years.
When will States receive SSO Formula Grant Program funds?
A State is apportioned/allocated funding each year when made available by Congress. A State can receive funding for reimbursement once the funding is awarded/obligated in a grant.
Once the grant is awarded, how long do States have to spend the funding?
States will submit a schedule and budget as part of the grant application. In order for the grant to remain active, States must demonstrate adequate progress toward their objectives, based on the schedule and budget submitted.
What are the reporting requirements for this grant program?
Once the SSO Formula Grant is active, States must submit several types of reports, including a Federal Financial Report and Milestone Progress Report. Please see the most recent version of FTA Circular 5010.1 or contact your regional office for details.
States should note that all project expenditures, whether paid for with Federal award money or local matching funds, must comply with Federal requirements, including Buy America, civil rights, economic development, etc.
Local Match
How does the 20% match work? Is it 20% of the amount of grant funding FTA apportioned, or 20% of the total combined funding level?
Match can be calculated by using the Federal Share (award) divided by the percentage of Total Project Cost minus Federal Share. A sample is as follows:
With a match of 20%, and Federal share of 80%, $250,000 of Federal funding would require:
$250,000 divided by 80% = $312,500
$312,500 minus $250,000 = $62,500
The 20% local share is $62,500.
What types of funding are eligible for the local match?
State funds or in-kind contributions from the State can count toward the State’s local match. At the time of application, you must certify that your State has funds or approved in-kind resources to serve as the local match. See FTA’s Annual Certifications and Assurances and the FTA Master Agreement that all applicants for grant funds must submit for details.
For States that oversee multi-State rail transit systems, funds spent by partner States may be used as part of the local share as long as those funds meet all requirements of the grant program. As part of the grant application and award process, these States will need to show evidence of agreement regarding how the local share will be met amongst the States.
Additionally, SSO Programs must be financially independent from the rail transit systems they oversee and restricts the type of funding that can be used as the State’s local match. As such, States that currently rely upon fees, assessments, or funding from rail transit systems in their jurisdictions will be unable to use those funds for any SSO Formula Grant Program activities. In addition, the State may not use other Federal funds as all or a part of its local match. FTA will work with each State on an individual basis to identify permissible local share sources.
Can a State choose to use a portion of the funding available?
States may apply for an amount that is less than what is available under the SSO Formula Grant Program. States may ask FTA to later amend the grant to add all or a portion of the remaining available funds until the end of the period of availability, which is one year from the end of the fiscal year that the grant funds are apportioned.
My State is working to obtain an independent 20% match. Can my State receive funding from the rail transit agency and participate in this grant program?
No.
Can my State wait to file a grant application until the new fiscal year begins, when the independent local match is available?
Yes, as long as the period of availability for the fiscal year of the apportioned funds has not lapsed.
Eligible Expenses
How can States use SSO Formula Grant Program funding?
SSO Formula Grant Program funds may be used to develop or carry out SSO programs. Funds may be used for operational and administrative expenses, including training, travel and equipment. While the responses below are intended to clarify common questions about eligible activities, FTA will review each proposed grant activity during the grant application process and will make specific eligibility determinations at that time.
States must adhere to the Uniform Cost Principles for Federal awards, at 2 CFR Part 200 Subpart E. Note that the Uniform Cost Principles require Federal agency pre-approval for certain costs.
Can States use grant funds for other safety initiatives?
No. These funds may only be used to support State Safety Oversight Program activities.
Can States use SSO Formula Grant Program funds for rail transit systems that are not Federally funded?
Yes. A rail transit system does not need to receive Federal funds to qualify for this program. Eligible rail transit systems must report to the NTD in order to be included in the apportionment, and grant funding may only be used for those systems that report to the NTD or intend to report to the NTD. The applicant or the rail transit system that is currently not reporting to the NTD, e.g., those rail transit systems in the engineering or construction phase of development, should submit a letter of intent that the rail transit system at issue will report to NTD and comply with all applicable Federal requirements.
Can States pay wages with SSO Formula Grant Program funds?
Yes. States may use SSO Formula Grant Program funds to pay reasonable compensation to employees who are working on the SSO program. All labor must be identified in a staffing plan shared with FTA. You may pay the following types of employees, as identified in the staffing plan:
- Full or partial wages for all SSO personnel.
- Overtime wages for SSO employees who perform activities such as accident investigation or corrective plan verification.
- Partial wages for State employees who support the SSO program.
Again, refer to the Uniform Cost Principles at 2 CFR Part 200 Subpart E for specific information, and speak to your Regional Office for additional assistance.
Can States pay contractors with SSO Formula Grant Program funds?
Yes. The services paid for must be to develop or carry out SSO programs.
Can States buy equipment with SSO Formula Grant Program funds?
Yes. Expenditures for equipment that is directly related to the SSO program are allowable. Such equipment may include, for example, two-way radios, cellular phones, digital cameras, accident investigation kits, electronic tablets, personal protective equipment, as well as office equipment, including computers, servers, printers, and other durable goods or equipment. Items with a unit cost of $10,000 or more must have prior FTA approval.
Can States purchase and operate vehicles with SSO Formula Grant Program funds?
Yes. Vehicles purchases and vehicle operating costs to develop or carry out the SSO program are eligible, but may require prior FTA approval.
Can States use SSO Formula Grant Program funds for construction or building improvements?
Construction or building improvements to develop or carry out the SSO program may be allowed. As with all proposed activities, grant applications will need to fully address how the activity supports the SSO program.
Can States use SSO Formula Grant Program funds to develop a web-based information management system?
Yes. Web-based information management systems used to develop or carry out the SSO program are allowable expenses.
What types of training activities can be funded under this program?
All training supported by the FTA grant must be related to developing or carrying out a State’s SSO program, and each State should clearly demonstrate how each training course proposed in its grant does this. FTA will approve the training activities through the grant application process.
FTA encourages each SSO Agency (SSOA) to develop and implement a training plan that identifies skill gaps and appropriate training to fill those gaps. In particular, FTA encourages States to focus training activities on Safety Management System (SMS) training, which will be offered by FTA, and technical training related to the operating conditions of the rail transit systems the State oversees.
Eligible training may be offered by the US Department of Transportation’s Transportation Safety Institute, the National Transit Institute, post-secondary institutions, non-profit organizations, industry organizations, or other third-party providers. The training program does not have a post-secondary degree-seeking purpose, and as noted above, all training funded through this grant must be related to developing or carrying out a State’s SSO program. Thus, FTA does not anticipate that such degrees will be a typical result of training funded by the grant.
Can States pay for in-State and out-of-State training, meetings and conferences, and travel expenses under this grant program?
Yes. States may use such grant funds for in-State or out-of-State travel or training under this program. Meetings and conferences are eligible if the primary purpose is the dissemination of technical information. For more information, see the Uniform Cost Principles at 2 CFR Part 200 Subpart E.
Can States pay for memberships, subscriptions, and professional activity costs under this grant program?
Yes. Costs associated with membership in business, technical and professional organizations directly incurred as a result of one’s SSO job functions are allowable. Note that membership in organizations substantially engaged in lobbying are unallowable. Please see the Uniform Cost Principles at 2 CFR Part 200 Subpart E.
Can States use SSO Formula Grant Program funds to attend training at a rail transit system it oversees?
Yes. FTA encourages SSOA personnel to take training at the rail transit systems they oversee in order to improve their knowledge of specific practices and technical systems. SSO grant funds cannot be used to benefit the rail transit agency directly. You cannot provide training or anything else exclusively for the benefit of rail transit agency personnel.
What other activities are eligible under this grant program?
Other eligible activities may include office supplies; personal protective equipment; technical engineering and inspection tools; uniforms; vehicle operational expenses; furniture; course registration and fees; conferences, workshops, and seminars; and travel, per diem, mileage, and lodging. Please see the Uniform Cost Principles at 2 CFR Part 200 Subpart E and consult with your FTA regional office.