The federal government does not provide grants directly to low-income families or individuals for transportation expenses. Instead, the money flows to universities, non-profits, and state agencies to achieve a public good.
However, using different strategies, you can find financial assistance for transportation to medical appointments, worksites, and grocery shopping.
For instance, you can trace grant money from federal departments to local state, county, or municipal agencies that provide benefits to specific groups.
Or, you can take advantage of government programs that include financial assistance for transportation costs buried in the fine print.
Often, you need to know where to look and what questions to ask. Find a roadmap to seven possible resources below.
Grants for Work Commuting
Individuals and low-income families can trace transportation grants to local agencies that provide financial assistance when commuting to work. The secret is knowing where to apply or how to recognize alternative names.
You do not have to pay back government benefits. Applying for one of these programs might prove more fruitful when you widen the net beyond rides to work, medical appointments, or the grocery store. Leave no stone unturned when seeking relief from sky-high gas prices!
TANF
The Temporary Assistance for Needy Families (TANF) program receives three federal grants. It disperses some funding to low-income households to help them with employment-related transportation costs.
- The TANF block grant program administered by the Department of Health and Human Services (HHS)
- The Welfare-to-Work (WtW) competitive grant program administered by the Department of Labor (DOT)
- The Job Access and Reverse Commute grant program (Job Access) administered by DOT, Federal Transit
Apply for TANF by contacting the DHS agency in your state. The federal Department of Health & Human Services (DHS) provides the funding through grants, but each state decides how to allocate the money.
Section 132
The Internal Revenue Service (IRS) offers a disguised transportation grant called the Section 132 commuter benefit. Transit and parking accounts enable individuals to use pre-tax dollars to pay specific expenses.
Commuter Reimbursement Account (CRA) pre-tax payroll deductions reduce your income subject to three possible taxes: federal income, FICA, and state income when applicable.
- Transit Account: use pre-tax dollars to pay for mass transit commuting expenses: subway, train, bus, and vanpools
- Parking Account: use pre-tax dollars to pay for eligible parking expenses near your place of employment or mass transit access points
You can use your CRA debit card to pay for ridesharing on Lyft. However, Uber no longer accepts Commuter Benefit Cards as payment.
Apply for this financial assistance by electing Elect to fund a Flexible Spending Account (FSA) or Health Savings Account (HSA) during your annual open enrollment at work.
Transportation for Medical Appointments
Federal and state governments provide two transportation grants with alternate names. The first offers financial assistance to low-income families, while the second helps individuals who earn more.
Medicaid
Medicaid provides transportation grants to low-income families when needed to receive approved healthcare. According to state rules, the financial assistance provides rides to doctor offices and hospitals when necessary.
For instance, Medicaid might pay for taxi, car, van, subway, or train rides to and from approved medical appointments.
- Air or ground ambulance to the closest emergency room after a severe medical event such as a heart attack or car accident
- Non-emergency medical transportation for approved care at a doctor’s office or medical imaging center
Apply for Medicaid benefits at this government website.
Medical Deductions
The IRS offers disguised grants to higher-income individuals who need transportation to doctor and dental appointments. Topic 502 indicates that travel expenses are tax-deductible medical expenses.
For instance, you can deduct payments of the actual fare for a taxi, bus, train, ambulance, or personal auto, plus tolls and parking when needed for essential medical care.
Higher-income individuals who pay income taxes have two ways to utilize IRS-sponsored financial assistance. Still, most people find that using a Flexible Spending Account (FSA) works better than deducting expenses at the end of the year.
Take the deductions using Schedule A but only after satisfying two thresholds.
- Itemized deductions exceed the standard deduction
- Unreimbursed medical expenses top 10% of Adjusted Gross Income
An FSA offers first-dollar tax savings (no thresholds) while offering an easily overlooked hidden benefit.
Transportation for Shopping
Many low-income families and individuals can find financial assistance with transportation grants to shop for groceries and other essentials by applying for help from local grant recipients.
Disabled Individuals
Indirect transportation grants are available to disabled individuals who cannot drive a car or take public transportation because of specific limitations.
ADA
The Americans with Disabilities Act (ADA) requires public transit agencies to provide “complementary paratransit” service to disabled people who cannot use the fixed-route bus or rail service.
The complementary paratransit occurs within ¾ of a mile of an established bus route or rail station during the same service hours and days at no more than twice the regular fixed-route fare.
In other words, the service is not free but may be cheaper than taking a taxi or an Uber ride because the government subsidizes mass transit fares.
Find a local provider required to provide this service by searching for “ADA paratransit” combined with your state name.
DDD
Your state’s Department of Developmental Disabilities (DDD) may provide financial assistance with transportation. Many states allocate budget dollars to help adults with special needs to foster independent living.
For example, the state of New Jersey pays for Uber and Lyft rides for adults with special needs. They even include a payment option built into the app that connects to a third-party fiscal intermediary that manages the transactions.
Apply for this benefit by revising the Individualized Service Plan (ISP) to include transportation services. In New Jersey, you would complete Section 5 on page 3 of the ISP.
Elderly Individuals
Elderly individuals can often find financial assistance with many of their transportation needs through the senior center in their community. Many programs provide curb-to-curb rides from residents’ homes to the senior center.
From the senior center, you can take advantage of scheduled busses that run regular routes to and from popular shopping areas such as the local grocery store, pharmacy, or YMCA.
