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TxDOT says competitive awards will make better use of federal transportation money. Earlier application instructions show projects were already scored and ranked. The significant change is removal of a formula that helped determine how funding was distributed across Texas.
Texas is changing how it distributes certain federal transportation grants intended to help older adults and people with disabilities travel to medical appointments, reach essential services and participate in their communities.
Beginning October 14, the Texas Department of Transportation will replace its prescribed geographic allocation formula for the federal Section 5310 program with a competitive funding framework.
The change was adopted through amendments to 43 Texas Administrative Code §31.31, published in the October 9 Texas Register.
TxDOT says the new approach will improve the efficient use of available funds and streamline grant awards.
But the department’s earlier application instructions show that providers were already submitting applications that could be evaluated, scored and ranked. The significant change is the removal of a prescribed method for dividing available funding among geographic areas.
That raises an accountability question about how the state will demonstrate fair distribution once the previous formula is gone.
Section 5310 supports transportation services for older adults and individuals with disabilities. Eligible activities can include accessible vehicles, transportation equipment and operating activities intended to address mobility needs that conventional transportation does not adequately meet.
Under TxDOT’s previous state framework, funds for rural areas and urbanized areas with populations below 200,000 were divided using prescribed geographic calculations.
The department’s 2025 application instructions described a formula that allocated 25% of available funds equally using applicable TxDOT district boundaries. The remaining 75% was distributed using population-based calculations involving older adults and people with disabilities.
The calculations differed between rural areas and smaller urbanized areas, but both incorporated geographic and demographic considerations.
That framework did not guarantee funding to every applicant. Providers still had to submit qualifying projects and satisfy program requirements. It did establish a method for determining how portions of the funding were distributed geographically before final project selection.
The new rule removes those formula provisions.
TxDOT’s earlier application guidance already required applications to be evaluated against program criteria. It described a review process in which acceptable applications could be scored and ranked.
TxDOT also considered demonstrated transportation need, consistency with program goals, applicant performance, geographic diversity, project sustainability and available funding. The department retained discretion to reject incomplete applications, negotiate project details and select projects for funding.
The earlier system therefore combined geographic funding allocations with competitive project evaluation. The amended approach removes the prescribed geographic formula in favor of competitive distribution.
The question is how TxDOT will determine the distribution of money among regions when the previous calculation no longer governs that decision.
In the adopted-rule notice, TxDOT says the change is intended to maximize efficient use of available funding and simplify awards. The department also says federal program guidance permits the competitive approach.
The revised provisions require the department to distribute Section 5310 funds fairly and equitably within Texas in accordance with federal requirements. That commitment remains part of the governing framework. What changes is the mechanism used to accomplish it.
The adopted notice does not establish that the new approach will produce better geographic coverage, higher ridership, lower costs or improved transportation availability. Those results must be measured after implementation.
Older adults and people with disabilities may depend on specialized transportation to reach medical care, employment, grocery stores and other essential destinations. In communities with limited transportation options, a provider’s ability to maintain vehicles, replace equipment or support operations may depend partly on grant funding.
A competitive process may allow TxDOT to direct money toward projects it determines best satisfy program goals. It could also produce different geographic award patterns than the previous formula. Neither outcome can be assumed from the adopted rule alone.
The public-interest question is whether the new system continues to meet documented transportation needs across rural and smaller urban communities.
An October 2023 Texas Transportation Commission record identifies $2,421,778 in Section 5310 awards, including $2.1 million for Capital Area Rural Transportation System and $321,778 for Mounting Horizons Inc. The commission record states that the awards were determined under the Section 5310 allocation rule then in effect.
Those awards show how the program operated under the earlier framework. They do not establish what either organization will receive under the new rules.
A valid comparison will require later competitive-award records, including recipient names, funding amounts, geographic service areas and selection criteria.
TxDOT’s adoption notice states that no public comments were received on the proposed Chapter 31 amendments, new sections or repeals. The proposed changes were published in the July 10 Texas Register.
The absence of submitted comments is a procedural fact. It does not establish that transportation providers, riders or disability advocates support or oppose the new funding method, or that affected organizations were aware of the proposal.
The final rulemaking also includes changes beyond Section 5310, including procurement, grant administration, property inventories and other public transportation requirements. Removing the geographic allocation formula is one consequential part of that broader revision.
The October 9 adoption notice establishes the legal change and its scheduled October 14 effective date. TxDOT’s earlier application materials establish how geographic allocations and project scoring operated before that change.
The first solicitation and resulting awards under the amended allocation framework have not been independently authenticated for this report. Those records will be necessary to determine whether the change affects which providers receive funding, how much money goes to different regions and whether transportation services improve or decline.
Until those comparisons are possible, claims that the new process will help or harm particular communities would go beyond the available evidence.
TxDOT has adopted a significant change in how it administers Section 5310 funding. The state is removing a prescribed geographic allocation formula while retaining a competitive process for selecting transportation projects.
The department says that approach will improve efficiency and streamline awards. The records establish the policy decision; they do not yet establish its consequences.
For Texans who depend on transportation assistance, the meaningful test will be whether the new system directs available money to documented needs without leaving communities underserved. For the public, the accountability test will be whether future solicitations, scoring decisions and award records make those choices understandable and verifiable.
The formula is being removed. The obligation to demonstrate fair distribution remains.
Verification limitation: The adopted rule and historical application framework are established through official records. The first solicitation and resulting awards under the amended allocation framework have not been authenticated. No finding is made that the change has already caused funding losses, service reductions, preferential treatment or improper conduct.
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