Abstract
This article looks at the Rural Capacity Building Initiative, a new joint Federal Highway Administration and Federal Transit Administration program created to deal with the pressing transportation needs of rural America. The impacts of the Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991 and the Transportation Equity Act for the 21st Century (TEA-21) on rural transportation are examined. In order to develop sound transportation planning for rural areas, an understanding of the key issues affecting rural America is essential. These issues are outlined and discussed.