Modernizing Public Transit Act of 2011 - Revises project justification criteria the Secretary of Transportation (DOT) must use in approving capital investment grants for new fixed-guideway capital projects under the Federal Transit Administration (FTA) New Starts and Small Starts programs.
Adds to the criteria that must be considered: (1) the costs and impacts of urban sprawl; (2) population density, land use, proposed land use, and local development goals along the project corridor and along transit corridors connecting with the project, including bus, bus rapid transit, and rail; and (3) estimated reductions in transit times for passengers of the existing transit system as the result of the project.