September 23, 2023
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The Federal Transit Administration issued a final rule on September 23 amending regulations governing project management oversight (PMO) of transit capital investments.

[Above photo by the MBTA.]

The FTA added that this final rule streamlines PMO regulations by reducing the number of projects subject to FTA project management oversight as well as modifying them to make them consistent with statutory changes.

Photo by the MBTA

The final PMO rule also redefines a “major capital project” as a new fixed guideway project — or an expansion, rehabilitation or modernization of an existing fixed guideway system — with a total project cost of $300 million or more and with a federal investment of $100 million or more.

The previous threshold defined a major capital project as a project costing $100 million or more but did not include federal support as a factor, the agency said.

“The number of transit capital projects and the infrastructure costs associated with them has increased significantly since the PMO program was first authorized in 1987,” noted K. Jane Williams, FTA’s deputy administrator, in a statement.

“This rule tailors the level of FTA oversight to the real costs, complexities, and risks of major capital projects and right-sizes the role of federal oversight while eliminating unnecessary red tape for state and local leaders,” she said.

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