H.R.734: To amend title 49, United States Code, to allow additional transit systems greater flexibility with certain public transportation projects.

Transit System Flexibility Protection Act of 2007 - Authorizes the Secretary of Transportation to make public transportation formula grants for operating costs of equipment and facilities for use in public transportation in an urbanized area with a population of at least 200,000 if the state or regional authority providing public transportation for the area operates less than 100 buses in fixed-route service in the area during peak service hours.