A bill to amend the Urban Mass Transportation Act of 1964, as amended, to provide that not more than 50 percent of the apportionment under section 5 may be used for operating expenses, except in certain circumstances.

Amends the Urban Mass Transportation Act of 1964 to limit the percentage of funds made available for mass transportation service projects under such Act which may be used for operating expenses to 50 percent for urban areas above a specified population level. Makes such limitation inapplicable if the largest political subdivision within an urbanized area has, prior to June 2, 1976, approved a tax issue to support a transit improvement program which includes an agreement which requires that subdivision to use all the funds made available under such Act for operating expenses.