Transportation Development Act (TDA) & State Transit Assistance (STA)

Transportation Development Act (TDA)

The Transportation Development Act (TDA) has long been a cornerstone of state transit funding.

Since the arly 1970s, a quarter of every cent of the general sales tax funds transportation in California. Each county receives the funds generated by the county. These funds are primarily used to support transit operations. 

TDA funding allows each county to establish a quarter-cent sales tax to finance a wide variety of transportation projects, including:

• Transit operations
• Bus and rail projects
• Special transit services for disabled riders
• Pedestrian and bicycle facilities
• Transportation planning

State Transit Assistance (STA)

State Transit Assistance (STA) funds are generated by a sales tax on fuel and diesel fuel. The amount of money available for transit agencies varies from year to year based on the ups and downs of diesel prices. The State splits the STA program into two components:

• Population-based funds: MCTC receives STA based on our share of the population. The City of Chowchilla, City of Madera, and Madera County determine how to invest these funds in public transit services/projects.
   
• Revenue-based funds: The state allocates funds to transit operators based on their revenue as defined by PUC 99314 (b).

Operators have full discretion over the use of TDA and the STA revenue-based funds apportioned to them. Funds may be used by transit agencies for both capital projects and transit operations. For most small transit agencies, TDA and STA are their main sources of operating funds.

The Road Repair and Accountability Act of 2017, Senate Bill 1, added a third category of STA funds: State of Good Repair. These funds are to be used for eligible transit maintenance, rehabilitation and capital projects. See more information on the Caltrans State of Good Repair program overview.