To amend the Urban Mass Transportation Act of 1964 to allow certain recipients of mass transit assistance to continue to use mass transit vehicles for providing school bus transportation.

Amends the Urban Mass Transportation Act of 1964 to provide that a financial assistance recipient under such Act who used a mass transit vehicle as a school bus in calendar year 1987 may receive financial assistance whether or not such recipient uses any part of it for acquisition, construction, or improvement of a mass transit vehicle for school bus use.