This report, which updates the first version published in 2015, provides information on the sources of revenue to fund transit in urban and rural areas in Texas. All public transit systems are eligible for federal funds from the Federal Transit Administration (FTA). The state agency responsible for allocating state transit funds is the Texas Department of Transportation (TxDOT). The report explains funding for different categories of transit systems in Texas, discusses formulas used to allocate state transit funds appropriated by the Texas Legislature, describes federal funding programs, and also describes sources of local revenue for transit.