Federal Register #2026-11272

FTA Raises Oversight Thresholds for Transit Capital Projects

This final rule from the Federal Transit Administration (FTA) updates oversight thresholds for transit capital projects: - Government Buyer: - Federal Transit Administration (FTA), U.S. Department of Transportation - Regulatory Change (Not a Procurement): - Raises total project cost threshold for Project Management Oversight (PMO) from $300 million to $400 million - Raises Federal investment threshold from $100 million to $150 million - Applicability: - Applies to construction, expansion, rehabilitation, or modernization of fixed guideways - Does not apply to projects solely for vehicle or rolling stock acquisition, maintenance, or rehabilitation - Impact: - Reduces the number of projects subject to FTA oversight - Allows FTA to focus on higher-risk, larger projects - No OEMs, vendors, or specific products/services are named, as this is a regulatory update, not a procurement action

Description

This final rule modifies the applicability of project management oversight by raising the total cost and Federal investment thresholds to align with the statutory thresholds for Small Starts projects under FTA's Capital Investment Grant program. The rule raises the total project cost threshold from $300 million to $400 million and the Federal investment threshold from $100 million to $150 million. This amendment reduces the number of projects subject to project management oversight requirements, thereby reducing regulatory burden and allowing FTA to focus oversight on higher-risk projects. The rule is effective July 6, 2026.

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