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Transit officials to return $963,864 to FTA after grant drawdown error; city to temporarily cover reimbursement
Summary
Jackson Transit Services will return $963,864 to the Federal Transit Administration for draws made at an incorrect ratio during the COVID period; staff said the city initially pays transit bills from the general fund and is reimbursed by grants, and will reclaim the funds at the correct ratios once posted.
The City Council on May 6 authorized the mayor to issue a refund of $963,864.08 to the U.S. Department of Transportation Federal Transit Administration covering the period from April 4, 2020, to Jan. 22, 2022.
Christine Welch, transit services, explained the repayment is not a permanent loss of grant funds but a correction of an earlier drawdown: "We are not losing this funding. It's being returned to the grant…
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