New York City is likely one of the five finalists expected to be announced today to split $1.2 billion in federal funds to reduce traffic on congested city streets, state and city officials say.

Mayor Bloomberg has applied for $537 million to implement congestion pricing and expand mass transit options throughout the five boroughs. The city must receive a minimum of $200 million to keep alive the compromise congestion pricing bill passed by state lawmakers last month, which creates a 17-member commission to study congestion pricing and alternative proposals to reduce Manhattan traffic.

Members of the commission, to be appointed by top city and state officials, are likely to include academics, union representatives, transit advocates, and top executives from private companies, city officials said.

“I think there’s going to be more of an emphasis toward getting nonpolitical people involved,” Council Member John Liu, who heads the council’s Transportation Committee, said.

The MTA, meanwhile, is shaping its financial plans based on the assumption that New York City stands to receive half a billion dollars from the Bush administration. Its four-year financial plan forecasts receiving $600 million a year in government aid beginning in 2010, a portion of it from congestion pricing. New York City is competing for the one-time grants with Atlanta, Dallas, Denver, Miami, Minneapolis-St. Paul, San Diego, San Francisco, and Seattle. A spokesman for the U.S. Department of Transportation did not return telephone calls yesterday.