Capital Metro is set to receive $104 million from the federal stimulus package.
The funding is part of a $25 billion package for mass transit systems across the U.S. approved after a consortium of transit authorities pleaded with federal officials for money they said would be needed to stay afloat amid the coronavirus pandemic.
Congressman Lloyd Doggett, D-Austin, announced the infusion as part of a larger package of federal aid headed to the Austin area that includes about $6.4 million for transit in San Marcos, $4.6 million for the Community Development Block Grant (CDBG) program for Austin, $700,000 for Travis County and $425,000 for San Marcos.
Austin will also receive $2.35 million for its Emergency Solutions Grant program and $272,000 for the Housing Opportunities for Persons With AIDS.
“While my first priority remains trying to speed up urgently-needed help for those suddenly jobless or struggling to keep a small business afloat, our new coronavirus relief legislation is also delivering resources for vital housing, transportation and other local public needs,” Doggett said. “City and county leaders can determine how best to apply these dollars to meet our many community challenges. Essential social distancing will not slow our working together. We will endure this storm.”
CORONAVIRUS IN TEXAS: What we know, latest updates
Cap Metro in recent weeks has seen a sharp decline in ridership of about 65%. It has led the transit authority to reduce some operations. But it also has hired dozens of part-time employees to sanitize buses multiple times a day to fight the spread of COVID-19.
However, ridership is only the beginning of Cap Metro’s likely financial woes. The system is largely financed through sales tax revenue collected in Austin and some smaller communities in the area. With steep reductions to that source of revenue on the horizon, the aid could be a critical funding source to keep Cap Metro afloat.
“Like the Calvary coming over the hill, the good news that Congressman Doggett and Congress are delivering federal funds for Austin and those hit hardest is much needed real action and concrete support,” Mayor Steve Adler said in a news release.
Credit: Source link
