Protecting Transit Through Increased Flexibility Act of 2011

Protecting Transit Through Increased Flexibility Act of 2011 - Authorizes the Secretary of Transportation (DOT) to make urbanized area formula grants for the operating costs of equipment and facilities for use in public transportation in an urbanized area with a population of at least 200,000, if: (1) the term of the grant does not exceed one year; and (2) such grant funds are derived from formula grants requested by the grantee and approved by the Secretary for capital projects, planning, or transit enhancements.

Repeals current requirements that: (1) the area population not exceed 225,000, (2) the urbanized area include parts of more than one state; (3) the portion of the urbanized area receiving grant funds include only one state; (3) the population of the portion of the urbanized area receiving such funds be less than 30,000; and (4) the grant will not be used to provide public transportation outside of the portion of the urbanized area receiving the funds.

Requires grant applications to: (1) document reduced tax revenue or appropriations of funds available to the recipient over the previous year, as well as increased fuel costs or any other factor affecting the operating costs in the recipient's budget; and (2) certify that the amount requested does not exceed such reductions in tax revenues and appropriations.