FTA: Transit grants would be held up by shutdown

If the federal government shuts down at midnight Friday, transit grants — including those that have already been awarded — would be held up, the Federal Transit Administration said.

The agency is one of many in Washington preparing for a possible federal shutdown. Its administrator, Peter Rogoff, said even funding grants that have already been awarded, but were being paid in parts, would be put on hold.

"As soon as funding lapses, FTA will not be permitted to incur further financial obligations," Rogoff said in a "Dear Colleague" letter. "This means FTA will neither obligate grants nor make payments to grantees. For projects under development, FTA staff will not carry out environmental, legal, civil rights, and other reviews essential for advancing projects to the point of obligation since these are not related to immediate issues of life and safety."

Rogoff said that FTA makes about $270 million worth of grant reimbursements per week. But under a shutdown, "no grants, cooperative agreements, contracts, purchase orders, travel authorizations, or other documents obligating funds will be executed to any of the FTA’s 1300 grantees," he said. 

He added that he did not want to be preparing for a work stoppage, but he has to.

"Throughout these discussions the president has made clear that he does not want a government shutdown, and the administration is willing and ready to work day and night to find a solution with which all sides can agree," he said. "Given the realities of the calendar, however, I am required to apprise you of the procedures that FTA will use to implement an orderly shutdown should Congress be unable to pass a funding bill."

Rogoff said 90 percent of FTA's staff would be furloughed if the federal government shuts down.

Lawmakers on both sides of the aisle said Friday negotiations for a budget deal were ongoing but that nothing is finalized. Senate Majority Leader Harry Reid (D-Nev.) has said he and House Speaker John Boehner (R-Ohio) have agreed to a deal that cuts $38 billion in spending this year, but the agreement is being held up over arguments about abortion funding. Boehner said the holdup is over a final number in spending cuts and that "almost all" the policy issues have been resolved.