Charter Regulations

FTA develops, issues, and enforces regulations to govern the agency’s financial assistance programs for public transportation. Transit agencies who receive federal funds are precluded from providing charter service and competing with private charter operators. Charter is defined as: 1) Transportation provided by a recipient at the request of a third party for the exclusive use of a bus or van for a negotiated price. The following features may be characteristics of charter service: a. A third party pays the transit provider a negotiated price for the group; b. Any fares charged to individual members of the group are collected by a third party; c. The service is not part of the transit provider’s regularly scheduled service, or is offered for a limited period of time; or d. A third party determines the origin and destination of the trips as well as scheduling; or 2) Transportation provided by a recipient to the public for events or functions that occur on an irregular basis or for a limited duration and: a. A premium fare is charged that is greater than the usual or customary fixed route fare; or b. The service is paid for in whole or in part by a third party.

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