Rural Transportation Act

Rural Transportation Act - Title I: Small Community Air Service Improvements - Amends the Federal Aviation Act of 1958 to establish criteria to be used by the Civil Aeronautics Board in determining the compensation for the carriage of mail during the seven year period beginning on July 1, 1978.

Directs the Board to establish the rates of compensation and to pay such amount to eligible air carriers providing essential air transportation to small communities and isolated areas. Specifies criteria for the Board to use in determining which points may be eligible for such assistance.

Sets forth procedures, limitations, and eligibility requirements for the issuance of a certificate to engage in local air transportation under this Act. Stipulates that air carriers holding such a certificate shall not furnish local air transportation using aircraft above a specified takeoff weight or passenger capacity.

Title II: Rural Road and Bridge System Improvements - Amends the Federal-Aid Highway Act of 1976 to increase the authorization for appropriations for the Federal-aid secondary system in rural areas for fiscal year 1978. Authorizes appropriations of $600,000,000 for fiscal year 1979 and $600,000,000 for fiscal year 1980 for such system. Increases the authorization for safety projects on off-system roads for fiscal year 1978. Authorizes appropriations for such purpose for fiscal years 1979 and 1980.

Authorizes the Secretary of Transportation to approve Federal participation in projects to repair or replace unsafe highway bridges. Authorizes appropriations out of the Highway Trust Fund of $400,000,000 for each of the fiscal years 1978 through 1990.

Title III: Extension of Highway Trust Fund and Certain Related Provisions - Amends the Highway Revenue Act of 1956 to extend appropriations under such Act for the Highway Trust Fund through fiscal year 1990.

Amends the Land and Water Conservation Fund Act of 1965 to extend such fund through fiscal year 1990. Postpones specified excise tax reductions under the Internal Revenue Code of 1954.

Title IV: Improvements to the Local Rail Service Assistance Program - Amends the Department of Transportation Act to revise the periods during which Federal financial assistance shall be available for rail freight assistance programs.

Amends the Regional Rail Reorganization Act of 1973 to establish the time periods during which Federal assistance shall be available for the rehabilitation and maintenance of rail properties.

Revises the formula for computing State entitlements for rail service assistance funds under the Department of Transportation Act.

Amends the Regional Rail Reorganization Act of 1973 to revise the formula for computing State entitlements to rail service continuation funds under such Act.

Makes rail lines "potentially subject to abandonment" for which a carrier plans to submit an application for a certificate of abandonment or discontinuance, or lines for which an application is pending eligible for rail service assistance under the Department of Transportation Act.

Prohibits the Secretary of Transportation from withholding approval of State rail freight projects under the Department of Transportation Act or the Regional Rail Reorganization Act solely on the ground that the State initiated the program without the Secretary's prior approval.

Stipulates that, out of the funds authorized to be appropriated for rail service assistance programs under the Department of Transportation Act, up to $10,000,000 shall be available for planning grants for each of the fiscal years 1977 through 1980.