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<br />Part Two - Program Specific Information, Continued <br /> <br />Eligible Costs <br />and Activities - <br />Overview <br /> <br />Eligible costs and activities for urban areas and transit activities are classified <br />into five categories: <br /> <br />I. Planning <br />2. Equipment acquisitions <br />3. Training <br />4. Exercise <br />5. Management and administrative (M&A). <br /> <br />NOTE: Other than a 3% cap on M&A funds, there are no restrictions on <br />allocation of funds across these categories. <br /> <br />Urban areas must allocate all funding in support of projects related to the <br />goals and objectives identified in their Urban Area Homeland Security <br />Strategy and the State Homeland Security Strategy. <br /> <br />Mass transit authorities must allocate all funding in support of projects related <br />to their Transit Security and Emergency Preparedness Plans developed <br />through this program. Funding for mass transit systems is intended to address <br />security needs at these high-risk critical infrastructure facilities and to <br />promote comprehensive regional planning and coordination. <br /> <br />Continued on next page <br /> <br />FY04 Urban Areas Security Initiative <br /> <br />Page 17 <br />