ALLOCATION OF SECTION 3 FUNDS.

SEC. 305. ALLOCATION OF SECTION 3 FUNDS. Section 3 of the Urban Mass Transportation Act of 1964 is amended by adding at the end thereof the following: “(k) Allocations.— “(1) In general.—Of the amounts available for grants and loans under this section for fiscal years 1987, 1988, 1989, 1990, and 1991— “(A) 40 percent shall be available for rail modernization; “(B) 40 percent shall be available for construction of new fixed guideway systems and extensions to fixed guideway systems; “(C) 10 percent shall be available for the replacement, rehabilitation, and purchase of buses and related equipment and the construction of bus-related facilities; and “(D) 10 percent shall be available for the purposes described in subparagraphs (A) through (C), as determined by the Secretary. “(2) Eligibility.—(A) The receipt of, or application for, assistance for a project described in subparagraph (A), (B), or (C) of paragraph (1) shall not preclude eligibility for assistance for a project described in any other such subparagraph. “(B) Prior to the expiration of the 2-year period beginning on the date of enactment of this subsection, the Secretary may not change program administration regarding eligibility for assistance for rail modernization.”.