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TANF-ACF-PI-2009-04 (Use of Federal TANF funds to help meet the cost sharing requirement under the Jobs Access and Reverse Commute (JARC) Formula Grant Program)

Published: June 2, 2009
Audience:
Temporary Assistance for Needy Families (TANF)
Types:
Program Instructions (PI)

TO:

State agencies and Tribes administering the Temporary Assistance for Needy Families (TANF) program under title IV-A of the Social Security Act (Act), and other interested parties.

SUBJECT: 

Use of Federal TANF funds to help meet the cost sharing requirement under the Jobs Access and Reverse Commute (JARC) Formula Grant Program

REFERENCES:

Section 404(k) of the Social Security Act, section 3037 of the Transportation and Equity Act for the 21st Century (TEA-21) (Public Law 105-178, enacted June 9, 1998), The Safe, Accountable, Flexible, Efficient Transportation Act (SAFETEA-LU) (Public Law 109-59, enacted August 10, 2005), 49 USC 5316, 45 CFR 92.41(a)(1), TANF-ACF-PA-00-2.

PURPOSE:

Applicability of Section 404(k) of the Act (Limitations on Use of Grant for Matching Under Certain Federal Transportation Program).

BACKGROUND:

The JARC program was originally enacted via section 3037 of TEA-21 and is administered by the Federal Transit Administration (FTA) within the U.S. Department of Transportation. During fiscal years 2002 through 2005, Congress also earmarked specific projects and recipients to receive section 3037 JARC funding. These congressionally designated projects and recipients were included in the conference reports that accompanied the annual appropriation acts. Congress directed FTA to honor these designations through specific statutory language, stating that “notwithstanding any other provision of law, projects and activities designated [in the conference reports] shall be eligible for funding” under the terms and conditions of section 3037 of TEA-21.

SAFETEA-LU, enacted on August 10, 2005, continued the JARC program by adding the program to the U.S. Code at 49 U.S.C. 5316. SAFETEA-LU also repealed section 3037 of TEA 21, the original placement of the JARC program, effective October 1, 2005. Nevertheless, unless and until Congress decides differently, the specific congressionally designated projects continue to be eligible to receive their remaining unobligated JARC funding allocations under section 3037 of TEA-21. Please refer to the attached for a list of the congressionally designated projects. These are the only projects remaining under the terms and conditions of section 3037 of TEA-21.

The JARC program has always had a cost sharing requirement. The JARC program statute, under former section 3037 of TEA-21 and currently under 49 U.S.C. 5316(h), expressly allow the use of Federal funds from other programs (other than the Department of Transportation) to help meet the cost-sharing requirement. Specifically, section 5316(h)(3)(B) states that “amounts appropriated to or made available to a department or agency of the Government (other than the Department of Transportation) that are eligible to be expended for transportation” may be used to help pay for the remainder of net project costs.

However, section 404(k) of the Act limits the manner and amount of Federal TANF funds that States may use to “match funds made available under section 3037 of the Transportation Equity Act for the 21st Century.” (Section 404(k) was added to the Social Security Act through the Child Support Performance and Incentive Act of 1998, enacted on July 16, 1998 (Public Law 105-200).)

POLICY:

Section 404(k) of the Act limits the manner and amount of Federal TANF funds that may be used to help meet the cost-sharing requirement of a section 3037 JARC project. For example, section 404(k)(2) limits the total amount of Federal TANF funds that a State may use toward the JARC cost-sharing requirement for a fiscal year to the difference between 30 percent of the State’s Federal TANF grant amount and the amount of Federal TANF funds that the State transfers to the Child Care and Development Block Grant and Social Services Block Grant programs during that fiscal year. Also, section 404(k)(3) allows an exception to the definition of assistance for individuals receiving transportation services through a JARC project under section 3037 of TEA-21. When the State has used Federal TANF funds to help meet the cost-sharing requirement of the project, and TANF-funded transportation benefit is the only form of assistance provided to the individual for a month, then it is not considered “assistance” for purposes of the TANF programmatic requirements.

Section 404(k) of the Act only pertains to Federal TANF funds used by a State to help meet the cost-sharing requirement of a project designated by Congress under section 3037 of TEA-21 that is operating in the State. These congressionally designated projects are the only JARC-funded projects that continue to operate under the terms and conditions of section 3037 of TEA-21.

Section 404(k) of the Act does not apply to the use of Federal TANF funds to help meet the cost sharing requirement of a recipient of JARC transportation funds provided under the authority of 49 U.S.C. 5316. States may use an allocable portion of Federal TANF funds to help meet the JARC program’s cost sharing requirement, as long as the State uses the funds for allowable costs for or on behalf of TANF clientele. The annual dollar limit in section 404(k)(2) does not apply. Any Federal TANF funds used to provide services to families who are not employed constitute assistance, per the TANF regulations at 45 CFR 263.31(a)(3). The exception in 404(k)(3) does not apply.

(Per section 409(a)(7)(B)(iv)(IV) of the Act and the TANF regulations at 45 CFR 263.6(c), a State may not claim toward its TANF maintenance-of-effort requirement any State expenditures it makes to help meet the cost-sharing requirement of a recipient of JARC transportation funds.)

EFFECTIVE: 

Immediately.
                      
INQUIRIES:

Inquiries should be directed to the appropriate Regional TANF Program Manager.

ATTACHMENT:

Table showing unobligated section 3037 JARC allocations

 

/s/
Ann Barbagallo,
Acting Director
Office of Family Assistance
 


 

FEDERAL TRANSIT ADMINISTRATION
Prior Year Unobligated Section 3037 JARC Allocations
State Earmark ID Project  Description
 Unobligated
Allocation 
FY 2002 Unobligated Allocations
 
CA
E2002-JARC-008
Del Norte County, California
         $73,400
NY
E2002-JARC-054
Columbia County, New York
         100,000
VA
E2002-JARC-082
Winchester, Virginia
      1,000,000
  Subtotal FY 2002 Unobligated Allocations…………………………………………
   $1,173,400
     
 
FY 2003 Unobligated Allocations
 
OH
E2003-JARC-078
STEP-UP Job Access Project Dayton
       $123,834
NY
E2003-JARC-065
Chemung County Transit
           74,300
NY
E2003-JARC-066
Columbia County
           99,067
  Subtotal FY 2003 Unobligated Allocations…………………………………………
      $297,201
     
 
FY 2004 Unobligated Allocations
 
AK
E2004-JARC-000
Craig Transit Service JARC Program
         $49,563
NY
E2004-JARC-070
Ulster County Area Transit Rural Feeder Service
           49,563
VA
E2004-JARC-101
Virginia Beach Paratransit Services
         198,252
SD
E2004-JARC-083
Cheyenne River Sioux Tribe Public Bus System
         247,815
NY
E2004-JARC-050
New Jersey Community Development Corporation Transportation Opportunity Center
         297,378
CA
E2004-JARC-013
City of Irwindale Senior Transportation Services
           64,432
CA
E2004-JARC-014
Guaranteed Ride Home Santal Clarita
         396,504
MD
E2004-JARC-040
VoxLinx Voice-Enabled Transit Trip Planner
      1,288,638
TN
E2204-JARC-087
Monroe County Job Access and Reverse Commute Program
           99,126
  Subtotal FY 2004 Unobligated Allocations…………………………………………
   $2,691,271
     
 
FY 2005 Unobligated Allocations
 
OH
E2005-JARC-066
Western Reserve Transit Job Access Program, Ohio
         $79,734
GA
E2005-JARC-026
Dooly-Crisp Unified Transportation System, Georgia
         198,236
MI
E2005-JARC-042
DCC Community Health & Safety Transport Project, Michigan
         297,354
PA
E2005-JARC-071
Philadelphia Unemployment Project (PUP), Pennsylvania
         306,772
WI
E2005-JARC-095
Wisconsin Statewide JARC
      2,747,662
  Subtotal FY 2005 Unobligated Allocations…………………………………………
   $3,629,758
  Total Unobligated Allocations………………………………………………………..
   $7,791,630