To amend title 49, United States Code, relating to continuation of operating assistance for small transit operators in large urbanized areas.

Amends Federal transportation law to authorize the Secretary of Transportation to allow a small transit operator (with fewer than 20 revenue service vehicles) in an urbanized area with a population of at least 200,000 to use mass transportation block grants (subject to certain limits) to fund the operating costs of equipment, facilities, and associated capital maintenance items for use in mass transportation, if providing no assistance to the small transit operator has caused or will cause: (1) the small transit operator to suffer undue hardship; or (2) significant fare increases or cuts in transit service.