# Section 5310 Grants in 2027: How NEMT Companies Take Part

Canonical URL: https://nemtguide.com/guides/section-5310-grants/ · Updated 2026-09-30

A Section 5310 grant is federal transit money for rides for older adults and people with disabilities. FTA gives it to states and large urban areas, which award it to nonprofits, local governments, and operators of public transportation. A for-profit NEMT company usually takes part as a paid contractor, since buying rides counts as a capital cost funded at 80 percent, or as a shared-ride operator on nontraditional projects.

- Section 5310 money goes to states and large urban areas first, then to nonprofits, local governments, and operators of public transportation.
- Buying rides under contract counts as a capital cost, so the grantee pays only a 20 percent local share when it hires you.
- A for-profit company can be a subrecipient only if it runs regular shared-ride service, and only for nontraditional projects.
- Vehicle applicants in some states must notify private operators before they apply, so get on those lists.
- Each state runs its own calendar, and many cycles open a year or more before the money is spent.

Section 5310 is the federal transit program for rides for older adults and people with disabilities. A for-profit NEMT company cannot receive traditional 5310 money directly. It earns the money by being the company a grantee hires, or the operator that runs a grantee's vans.

## What Section 5310 pays for

Section 5310 of federal transit law funds four kinds of projects: service for older adults and people with disabilities where public transportation is insufficient, inappropriate, or unavailable; service beyond what the Americans with Disabilities Act requires; projects that improve access to fixed-route service and reduce reliance on ADA paratransit; and alternatives to public transportation ([49 U.S.C. 5310](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section5310&num=0&edition=prelim)).

FTA apportioned $443,948,114 nationwide for fiscal year 2025 (Federal Register, September 15, 2025). Those funds must be obligated by September 30, 2027. The law splits each year's money and sets how much of each project federal money may cover:

| Rule | What it says |
|---|---|
| Split by area | 60 percent to urbanized areas of 200,000 or more people, 20 percent to states for smaller urbanized areas, and 20 percent to states for rural areas, by each area's number of older adults and people with disabilities |
| Traditional projects | At least 55 percent of each recipient's money goes to capital projects for older adults and people with disabilities where public transportation falls short |
| Administration | Up to 10 percent may pay for administration, planning, and technical help |
| Capital projects | The grant pays 80 percent of net cost |
| Operating projects | The grant pays up to 50 percent of net operating cost |
| Buying rides | Buying public transportation services is an eligible capital cost |

That last line is where a private company comes in. Connecticut's January 2026 instructions spell it out: mobility management and purchase of service projects count as capital projects, so they are funded at 80 percent. An agency that runs its own rides with operating money pays at least half the cost. An agency that buys the same rides from you pays 20 percent. Texas adds that both the capital and operating costs of contracted service count as capital expenses, and that a contract may cover more than one year.

## Who receives the money

The money moves in two steps. Recipients get it from FTA, and subrecipients get it from recipients.

| Level | Who it is | In practice |
|---|---|---|
| Recipient | A state, or a designated recipient for an urbanized area of 200,000 or more. A state or local government that operates public transportation may also receive it directly. | The state DOT's transit office runs rural and small urban funds. In Wisconsin, regional planning bodies such as the Madison Area MPO handle the large urban areas. |
| Subrecipient | A state or local government authority, a private nonprofit, or an operator of public transportation that gets the money through a recipient | County transit systems, senior centers, disability agencies, and nonprofit ride programs |
| Contractor | Anyone the recipient or subrecipient pays to deliver the service | Private transportation companies, including NEMT providers |

Traditional money has a tighter rule. A recipient may pass it only to a private nonprofit, or to a public body that the state has approved to coordinate services for older adults and people with disabilities, or that certifies no private nonprofit is readily available in the area ([49 U.S.C. 5310(b)(2)(B)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section5310&num=0&edition=prelim)). Wisconsin applies this strictly. Unless it is the approved transportation coordinator, a local public body applying for vehicles must first write to every known private nonprofit in the area and certify that none is available and willing.

## Where a private NEMT company fits

A for-profit company can take part in four ways. Which one fits depends on the kind of service you run.

| Role | How you get paid | What comes with it |
|---|---|---|
| Purchase of service contractor | The grantee pays you per trip or per hour under a contract | Expect a formal bid. Connecticut requires service projects to be bought through a procurement that follows FTA Circular 4220.1G, FTA's third-party contracting guidance. |
| Voucher program provider | Riders pay with vouchers, and you turn them in to the grantee for payment at set rates | In Texas, vouchers are an operating expense with a 50 percent federal share, and vouchers for fixed-route or ADA paratransit service are not eligible |
| Operator of a grantee's vehicle | A contract or lease with the nonprofit or agency that owns the van | Wisconsin requires a lease the state approves, and Texas has a lease approval form, PTN 110 |
| Subrecipient | A grant through the state for a nontraditional project | For a for-profit company, only as an operator of public transportation and only for nontraditional projects |

### Contractor or subrecipient: the shared-ride test

The law defines public transportation as regular, continuing shared-ride surface transportation open to the general public or to a segment of it defined by age, disability, or low income ([49 U.S.C. 5302](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section5302&num=0&edition=prelim)). An operator of that kind of service can be a subrecipient.

FTA applies the same test to taxis. In its September 27, 2024 notice of circular C 9070.1H, FTA said it has historically treated ride-hailing companies the same as taxis, and that depending on whether the service is exclusive-ride or shared-ride, they may be contractors or subrecipients. Texas's 2025 instructions list private taxi companies that give shared-ride taxi service to the general public on a regular basis as eligible.

If your trips are booked one rider at a time for a broker or a facility, ask your state DOT how it classifies your service before you apply as a subrecipient. If it counts as exclusive-ride, the contractor path is the one open to you.

## Get into the planning early

Every Section 5310 project must come from a locally developed, coordinated public transit and human services transportation plan. The law requires that plan to be developed with older adults, people with disabilities, and representatives of public, private, and nonprofit transportation and human services providers. It also requires public bodies and nonprofits that get other federal money for non-emergency transportation, from outside the Department of Transportation, to take part in the planning.

That gives a private provider a seat at the table. States add their own hooks:

- **Connecticut.** Vehicle applicants must email or mail private and paratransit operators in the service area, including taxi and livery operators, at least one week before placing a newspaper notice. Letters go to operators within a 15-mile radius, and the notice gives operators 7 days to comment. Applicants earn points for outreach to local transportation operators. The state's plan dates from 2021, with an update expected by late 2026.
- **Texas.** One of the program's stated objectives is to include private-sector operators in the plan. Public involvement workshops ran from December 3, 2024 to January 17, 2025, before the call opened.
- **Washington.** Applicants must take part in their regional coordinated plan and have their needs listed in it, through the regional transportation planning organization.

Ask your regional planning agency or mobility manager to add you to the list of operators it contacts. Mobility management is the coordination work among ride providers that 5310 pays for as a capital cost, so the mobility manager is a good first call.

## Application calendars in five states

Dates change every cycle, so confirm each one on the state's own page.

| State | Cycle | Key dates | Who applies |
|---|---|---|---|
| Connecticut | 2026 cycle, federal fiscal year 2025 funds | Notices to operators one week before the newspaper notice. Newspaper notice by March 6, 2026. Applications by 4 p.m. March 31, 2026. Awards expected January or February 2027. Nontraditional operating funds usable from July 1, 2027. | Nonprofits, municipalities, and operators of public transportation. Taxi operators apply for accessible taxis through a transit district. |
| South Carolina | State fiscal year 2026-2027, rural and small urban | Applications due March 6, 2026 | Rural and small urban projects, through SCDOT's Office of Public Transit |
| Texas | Every two years, fiscal years 2026 and 2027 | Open February 3, 2025. Due 5 p.m. March 10, 2025. The schedule set commission action for July 30, 2025 and grant agreements starting August 29, 2025. | Nonprofits, qualifying public bodies, and private taxi companies with shared-ride service open to the public |
| Washington | Consolidated Grant, July 1, 2027 to June 30, 2029 | Funding notice May 19, 2026. Due September 9, 2026. Revised applications November 13, 2026. Award letters May to June 2027. | Nonprofits, tribes, public transit agencies, and local agencies |
| Wisconsin | Calendar year 2027 vehicles, from federal fiscal year 2026 money | Annual competitive cycle. A Unique Entity ID from SAM.gov is required at application, and vehicle applications need a score of at least 70. | Private nonprofits, or a local public body when no nonprofit is available or it is the approved coordinator |

Washington's program combines Section 5310 with Section 5311, Section 5339, and state money. For the 2025 to 2027 biennium, 153 new and continuing projects shared $136.5 million. Connecticut notes a gap of about two years between a nontraditional operating award and the date the money can be spent, so plan your bids a cycle ahead.

## What comes with 5310 work

Federal money brings federal rules, and several of them reach the contractor too.

- **ADA.** When a public entity contracts with a private company for demand response service, the company must meet the ADA rules that would apply to the public entity, and any vehicle it buys for that service must be accessible wherever the public entity's would have to be ([49 CFR 37.23](https://www.ecfr.gov/current/title-49/section-37.23)). See [ADA requirements for NEMT](https://nemtguide.com/guides/ada-requirements-for-nemt/).
- **Drug and alcohol testing.** FTA's testing rule covers recipients and subrecipients of Section 5307, 5309, and 5311 money, and their contractors ([49 CFR 655.3](https://www.ecfr.gov/current/title-49/section-655.3)). Section 5310 is not on that list, but if the agency that hires you also receives 5307 or 5311 money, the rule can reach you as its contractor. See [NEMT driver drug testing](https://nemtguide.com/guides/nemt-driver-drug-testing/).
- **Insurance.** Connecticut's vehicle grantees need auto liability of at least $1,000,000 for vehicles seating 10 or fewer passengers, $1,500,000 for 11 to 14, and $5,000,000 for 15 or more, plus a $3,000,000 umbrella, with the state named as additional insured. Wisconsin requires a grantee or its lessee to carry collision and comprehensive coverage. See [NEMT insurance requirements](https://nemtguide.com/guides/nemt-insurance-requirements/).
- **Reports.** Connecticut's operating grantees report monthly. Wisconsin's grantees report rides every quarter, and lessees send their ride counts to the grantee.
- **Fares.** On vehicles bought with Connecticut's traditional funds, riders may not be charged a fare. Riders may give a donation, but no one can be refused a ride for not giving one.
- **Civil rights.** Connecticut and Wisconsin grantees must meet federal Title VI rules, and Wisconsin requires a notice of FTA funding on every solicitation, contract, and brochure the grant pays for.

## What a 5310 vehicle costs

State vehicle lists show what grantees pay, which helps when you price a lease or compare it to buying your own. Wisconsin's list for calendar year 2027, based on its 2026 vehicle procurement, gives these estimates:

| Vehicle | Seating (ambulatory and wheelchair positions) | Estimated total cost | 20 percent match |
|---|---|---|---|
| Minivan, side entry | 3 and 2 | $85,477 | $17,095 |
| Transit or bariatric van, rear entry, medium roof | 7 and 0, 3 and 1, or 3 and 2 | $87,004 | $17,400 |
| Transit or bariatric van, side entry, high roof | 7 and 1, 5 and 2, or 5 and 1 | $88,560 | $17,712 |
| Medium bus, gas | 12 and 1, 10 and 2, or 8 and 3 | $128,196 | $25,639 |

Wisconsin pays at most 80 percent of the list price and puts replacements ahead of new vehicles. Connecticut treats a van as having reached its useful life at 4 years or 100,000 miles, and a bus at 5 years or 150,000 miles. For the costs of buying your own, see [wheelchair van cost](https://nemtguide.com/guides/wheelchair-van-cost/).

## How to take part, step by step

1. **Find who holds the money.** For rural and small urban areas, it is your state DOT's transit office. For a large urban area, ask the state DOT or the metropolitan planning organization who the designated recipient is.
2. **Read your coordinated plan.** Note the gaps it lists, such as evening rides, rural medical trips, or wheelchair capacity. Connecticut's scoring favors vehicles used evenings, weekends, more than six hours a day, and for medical rides.
3. **Get on the operator lists.** Ask the regional planning agency and the mobility manager to include you when applicants notify private operators.
4. **List the grantees near you.** Senior centers, disability agencies, county transit systems, and nonprofits that drive older adults. Ask each one whether it buys rides or needs someone to run its vans.
5. **Know their cost math.** Connecticut's instructions show agencies how to compare their own cost per one-way trip and per vehicle hour with a purchase of service offer. Price your bid against those numbers.
6. **Be ready for procurement.** Have your insurance certificates, ADA vehicle details, driver files, and a drug and alcohol policy on hand. Register in SAM.gov if you plan to apply as a subrecipient.
7. **Bid, deliver, and report.** Send ride counts on the grantee's schedule, since the grantee reports them to the state.

For other grant-funded ride work, read [grants for NEMT businesses](https://nemtguide.com/guides/nemt-grants/), [government NEMT contracts](https://nemtguide.com/guides/government-nemt-contracts/), and [area agency on aging transportation](https://nemtguide.com/guides/area-agency-on-aging-transportation/). If you are weighing a nonprofit arm to apply directly, see nonprofit NEMT. Rural operators can pair this with [rural NEMT](https://nemtguide.com/guides/rural-nemt/) and the [paratransit vs NEMT](https://nemtguide.com/glossary/paratransit/) glossary entry.

## Frequently asked questions

### Can a for-profit NEMT company get a Section 5310 grant?

Not a traditional one. The law lets states give traditional 5310 money only to private nonprofits and to certain public bodies. A for-profit operator of public transportation, meaning regular, continuing shared-ride service open to the public or to older adults, people with disabilities, or people with low incomes, can be a subrecipient for nontraditional projects. Texas, for example, lists private taxi companies that give shared-ride service to the public on a regular basis as eligible.

### What is the local match for a Section 5310 grant?

The federal share is 80 percent for capital projects and up to 50 percent for operating projects, under 49 U.S.C. 5310(d). Buying rides under a contract counts as a capital cost, so a grantee that hires you pays 20 percent. The match may come from service agreements with social service agencies or from federal programs outside the Department of Transportation, and Texas also accepts documented in-kind contributions it approves.

### When are Section 5310 applications due?

Each state sets its own dates. For its 2026 cycle Connecticut wanted applications by March 31, 2026, and South Carolina's rural and small urban deadline was March 6, 2026. Washington's Consolidated Grant applications were due September 9, 2026 for July 2027 to June 2029. Texas takes applications every two years, and its 2025 call closed March 10, 2025.

### Can my company drive a nonprofit's Section 5310 van?

Sometimes, with the state's approval. Wisconsin lets a grantee give its vehicle to another organization to operate only under an active lease the state approves, and the state stays the lien holder through the vehicle's useful life. Texas asks applicants whether they lease vehicles to other agencies, including private for-profit shared-ride operators, and whether they sent those leases to TxDOT for approval. Its lease approval form is PTN 110.

### Do FTA drug and alcohol testing rules apply to Section 5310 contractors?

Not on account of Section 5310 alone. 49 CFR 655.3 covers recipients and subrecipients of Section 5307, 5309, and 5311 money, and their contractors. Many agencies that give out 5310 money also receive 5307 or 5311 money, so ask whether the agency hiring you does before you bid.

### How much Section 5310 money is there?

FTA apportioned $443,948,114 nationwide for fiscal year 2025, which must be obligated by September 30, 2027. States see their share by area. Connecticut estimated $5,396,083 for its 2026 cycle, and Wisconsin lists $2,522,264 for small urban areas and $2,644,944 for rural areas from fiscal year 2026 money.

## Official resources

- [FTA: Enhanced Mobility of Seniors and Individuals with Disabilities, Section 5310](https://www.transit.dot.gov/funding/grants/enhanced-mobility-seniors-individuals-disabilities-section-5310)
- [FTA: Section 5310 circular C 9070.1H](https://www.transit.dot.gov/regulations-and-programs/fta-circulars/enhanced-mobility-seniors-and-individuals-disabilities)
- [U.S. Code: 49 U.S.C. 5310](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section5310&num=0&edition=prelim)
- [SAM.gov: Register your entity and get a Unique Entity ID](https://sam.gov/)
- [Connecticut DOT: Section 5310 application instructions](https://portal.ct.gov/dot/-/media/dot/programs/section-5310/2026-cycle/2025-section-5310-grant-application-instructions-01022026.pdf?rev=b3335bfffaac447bb5f5533f7181c181&hash=21C4271D7AFAFE4ECA0261516FD241C0)
- [Texas DOT: Section 5310 calls for projects](https://www.txdot.gov/business/grants-and-funding/public-transportation-grants/past-calls-for-projects.html)
- [Washington State DOT: Consolidated Grant Program](https://wsdot.wa.gov/business-wsdot/grants/public-transportation-grants/public-transportation-grant-programs-and-awards/consolidated)