A bill to amend the Urban Mass Transportation Act of 1964 to make available Federal assistance for competitive procurement of public transportation service by privately owned motor vehicles as an alternative to financing the acquisition of motor vehicles.

Amends the Urban Mass Transportation Act of 1964 to make Federal grants available to pay up to 80 percent of the cost of the competitive procurement of public transportation service by privately owned motor vehicles in lieu of financing the acquisition of motor vehicles. Restricts such grants to the procurement of service to be provided by motor vehicles that were acquired without public financial assistance. Requires such service to be supplementary, specialized, or community-level public transportation service. Sets forth terms and conditions for such grants.