On June 11, U.S. Transportation Secretary Pete Buttigieg announced a total of $250 million in federal funding allocations to 22 transit projects around the U.S. including IndyGo’s Purple Line.
Slightly more than $12 million has been allocated to the 15.2 mile Purple Line Bus Rapid Transit route that will connect downtown Indianapolis with downtown Lawrence via Midtown.
The funding source is the American Rescue Plan Act of 2021, which was signed into law by President Biden on March 11, 2021. According to the Federal Transit Administration (FTA), the funds are available for obligation until September 30, 2024 and must be disbursed by September 30, 2029. Additionally, the Federal share for funds provided under ARP for the project is 100% meaning IndyGo is not required to provide any matching funds. The FTA reports that such funds are separate and apart from funds appropriated annually for projects eligible under its Capital Investment Grants program. Further, the terms established for these projects under previously executed Full Funding Grant Agreements and Small Starts Grant Agreements are not affected, including the maximum Federal share, meaning such agreements will remain in effect without amendment.
The stated goal of the funding is to help communities across the country protect the jobs of workers involved in constructing transit projects, ensuring the continued advancement of those critical pieces of infrastructure, despite the impacts of COVID-19.