A bill to amend the Urban Mass Transportation Act of 1964 to provide an alternative operating subsidy for fiscal years 1979 through 1982, and for other purposes.

Amends the Urban Mass Transportation Act of 1964 to establish an alternative operating subsidy for urban mass transit programs for fiscal years 1979 through 1982. Authorizes the Secretary of Transportation, under such new subsidy program, to make operating subsidy grants of up to the lesser of 50 percent of the project's net eligible operating expenses or a matching share of those expenses which will be paid from non-Federal sources. Establishes a ceiling level for such grants.