§ 120 TITLE 23—HIGHWAYS Page 72

Subsec. (b). Pub. L. 97–134, §6(b), added subsec. (b)

providing that reconstruction may include the addition

of travel lanes and the construction and reconstruction

of interchanges and overcrossings along existing completed interstate routes, including the acquisition of

right-of-way where necessary.

1979—Subsec. (b). Pub. L. 96–106 substituted ‘‘January

1st’’ for ‘‘October 1st’’ and ‘‘next apportionment of

funds to such State’’ for ‘‘funds apportioned to such

State for that fiscal year’’.

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by Pub. L. 102–240 effective Dec. 18, 1991,

and applicable to funds authorized to be appropriated

or made available after Sept. 30, 1991, and, with certain

exceptions, not applicable to funds appropriated or

made available on or before Sept. 30, 1991, see section

1100 of Pub. L. 102–240, set out as a note under section

104 of this title.

GUIDANCE TO STATES

Section 1009(c) of Pub. L. 102–240 provided that: ‘‘The

Secretary shall develop and make available to the

States criteria for determining—

‘‘(1) what share of any project funded under section

119 of title 23, United States Code, is attributable to

the expansion of the capacity of an Interstate highway or bridge; and

‘‘(2) what constitutes adequate maintenance of the

Interstate System for the purposes of section 119(f)(1)

of title 23, United States Code.’’

INNOVATIVE TECHNOLOGIES

Section 142 of Pub. L. 97–424 provided that:

‘‘(a) The Congress hereby finds and declares that it is

in the national interest to encourage and promote utilization by the States of highway and bridge surfacing,

resurfacing, or restoration materials which are produced from recycled materials or which contain asphalt

additives to strengthen the materials. Such materials

conserve energy and reduce the cost of resurfacing or

restoring our highways.

‘‘(b) The Secretary of Transportation is hereby authorized for each of the fiscal years through September

30, 1985, to increase the Federal share as provided in

sections 119, 120, and 144 of title 23, United States Code,

by 5 per centum of any project submitted by the State

highway departments which contains in the plans,

specifications, and estimates submitted pursuant to

section 106, of title 23, United States Code, the use of

the materials described in subsection (a). To be eligible

for such supplemental Federal assistance, significant

amounts of asphalt additives or recycled materials

must be used in each project approved by the Secretary.

‘‘(c) The Secretary shall establish a procedure within

ninety days of the date of enactment of this Act [Jan.

6, 1983] for increasing the Federal share under this section.’’

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 118, 129 of this

title.

§ 120. Federal share payable

(a) INTERSTATE SYSTEM PROJECTS.—Except as

otherwise provided in this chapter, the Federal

share payable on account of any project on the

Interstate System (including a project to add

high occupancy vehicle lanes and a project to

add auxiliary lanes but excluding a project to

add any other lanes) shall be 90 percent of the

total cost thereof, plus a percentage of the remaining 10 percent of such cost in any State

containing unappropriated and unreserved public lands and nontaxable Indian lands, individual

and tribal, exceeding 5 percent of the total area

of all lands therein, equal to the percentage that

the area of such lands in such State is of its

total area; except that such Federal share payable on any project in any State shall not exceed 95 percent of the total cost of such project.

(b) OTHER PROJECTS.—Except as otherwise provided in this title, the Federal share payable on

account of any project or activity carried out

under this title (other than a project subject to

subsection (a)) shall be—

(1) 80 percent of the cost thereof, except that

in the case of any State containing nontaxable

Indian lands, individual and tribal, and public

domain lands (both reserved and unreserved)

exclusive of national forests and national

parks and monuments, exceeding 5 percent of

the total area of all lands therein, the Federal

share, for purposes of this chapter, shall be increased by a percentage of the remaining cost

equal to the percentage that the area of all

such lands in such State, is of its total area;

or

(2) 80 percent of the cost thereof, except that

in the case of any State containing nontaxable

Indian lands, individual and tribal, public domain lands (both reserved and unreserved), national forests, and national parks and monuments, the Federal share, for purposes of this

chapter, shall be increased by a percentage of

the remaining cost equal to the percentage

that the area of all such lands in such State is

of its total area;

except that the Federal share payable on any

project in a State shall not exceed 95 percent of

the total cost of any such project. In any case

where a State elects to have the Federal share

provided in paragraph (2) of this subsection, the

State must enter into an agreement with the

Secretary covering a period of not less than 1

year, requiring such State to use solely for purposes eligible for assistance under this title

(other than paying its share of projects approved

under this title) during the period covered by

such agreement the difference between the

State’s share as provided in paragraph (2) and

what its share would be if it elected to pay the

share provided in paragraph (1) for all projects

subject to such agreement.

(c) INCREASED FEDERAL SHARE FOR CERTAIN

SAFETY PROJECTS.—The Federal share payable

on account of any project for traffic control signalization, safety rest areas, pavement marking,

commuter carpooling and vanpooling, rail-highway crossing closure, or installation of traffic

signs, traffic lights, guardrails, impact attenuators, concrete barrier endtreatments, breakaway utility poles, or priority control systems

for emergency vehicles at signalized intersections may amount to 100 percent of the cost of

construction of such projects; except that not

more than 10 percent of all sums apportioned for

all the Federal-aid systems for any fiscal year in

accordance with section 104 of this title shall be

used under this subsection. In this subsection,

the term ‘‘safety rest area’’ means an area

where motor vehicle operators can park their

vehicles and rest, where food, fuel, and lodging

services are not available, and that is located on

a segment of highway with respect to which the

Secretary determines there is a shortage of public and private areas at which motor vehicle operators can park their vehicles and rest.
Page 73 TITLE 23—HIGHWAYS § 120

(d) The Secretary may rely on a statement

from the Secretary of the Interior as to the area

of the lands referred to in subsections (a) and (b)

of this section. The Secretary of the Interior is

authorized and directed to provide such statement annually.

(e) EMERGENCY RELIEF.—The Federal share

payable on account of any repair or reconstruction provided for by funds made available under

section 125 of this title on account of any

project on a Federal-aid highway system, including the Interstate System, shall not exceed

the Federal share payable on a project on such

system as provided in subsections (a) and (b) of

this section; except that (1) the Federal share

payable for eligible emergency repairs to minimize damage, protect facilities, or restore essential traffic accomplished within 180 days after

the actual occurrence of the natural disaster or

catastrophic failure may amount to 100 percent

of the costs thereof; and (2) the Federal share

payable on account of any repair or reconstruction of forest highways, forest development

roads and trails, park roads and trails, parkways, public lands highways, public lands development roads and trails, and Indian reservation

roads may amount to 100 percent of the cost

thereof. The total cost of a project may not exceed the cost of repair or reconstruction of a

comparable facility. As used in this section with

respect to bridges and in section 144 of this title,

‘‘a comparable facility’’ shall mean a facility

which meets the current geometric and construction standards required for the types and

volume of traffic which such facility will carry

over its design life.

(f) The Secretary is authorized to cooperate

with the State highway departments and with

the Department of the Interior in the construction of Federal-aid highways within Indian reservations and national parks and monuments

under the jurisdiction of the Department of the

Interior and to pay the amount assumed therefor from the funds apportioned in accordance

with section 104 of this title to the State wherein the reservations and national parks and

monuments are located.

(g) At the request of any State, the Secretary

may from time to time enter into agreements

with such State to reimburse the State for the

Federal share of the costs of preliminary and

construction engineering at an agreed percentage of actual construction costs for each

project, in lieu of the actual engineering costs

for such project. The Secretary shall annually

review each such agreement to insure that such

percentage reasonably represents the engineering costs actually incurred by such State.

(h) Notwithstanding any other provision of

this section or of this title, the Federal share

payable on account of any project under this

title in the Virgin Islands, Guam, American

Samoa, or the Commonwealth of the Northern

Mariana Islands shall be 100 per centum of the

total cost of the project.

(i) INCREASED NON-FEDERAL SHARE.—Notwithstanding any other provision of this title and

subject to such criteria as the Secretary may establish, a State may contribute an amount in

excess of the non-Federal share of a project

under this title so as to decrease the Federal

share payable on such project.

(Pub. L. 85–767, Aug. 27, 1958, 72 Stat. 898; Pub. L.

86–70, §21(d)(4), (e)(4), June 25, 1959, 73 Stat. 145,

146; Pub. L. 86–342, title I, §107(b), Sept. 21, 1959,

73 Stat. 613; Pub. L. 86–657, §3, July 14, 1960, 74

Stat. 522; Pub. L. 88–658, Oct. 13, 1964, 78 Stat.

1090; Pub. L. 89–574, §9(a), Sept. 13, 1966, 80 Stat.

769; Pub. L. 90–495, §§27(b), 34, Aug. 23, 1968, 82

Stat. 829, 835; Pub. L. 91–605, title I, §§106(f),

108(a), 109(b), 128, Dec. 31, 1970, 84 Stat. 1718, 1719,

1731; Pub. L. 95–599, title I, §§117, 129(a)–(c), (i),

Nov. 6, 1978, 92 Stat. 2699, 2707, 2708; Pub. L.

97–424, title I, §§109(b), 117, 123(a), 153(f), 156(c),

Jan. 6, 1983, 96 Stat. 2105, 2109, 2113, 2133, 2134;

Pub. L. 98–78, title III, §318, Aug. 15, 1983, 97

Stat. 473; Pub. L. 100–17, title I, §117(a)–(c)(1), (d),

(e), Apr. 2, 1987, 101 Stat. 155, 156; Pub. L. 102–240,

title I, §§1021(a), (b), 1022(a), Dec. 18, 1991, 105

Stat. 1950, 1951; Pub. L. 104–59, title III, §310(a),

Nov. 28, 1995, 109 Stat. 582; Pub. L. 104–205, title

III, §353(a), Sept. 30, 1996, 110 Stat. 2980.)

AMENDMENTS

1996—Subsec. (c). Pub. L. 104–205 inserted ‘‘rail-highway crossing closure,’’ after ‘‘carpooling and vanpooling,’’.

1995—Subsec. (c). Pub. L. 104–59 inserted ‘‘safety rest

areas,’’ after ‘‘signalization,’’ and inserted sentence at

end defining ‘‘safety rest area’’.

1991—Subsecs. (a) to (c). Pub. L. 102–240, §1021(a),

added subsecs. (a) to (c) and struck out former subsec.

(a) which contained provisions relating to Federal

share of Federal-aid primary, secondary and urban system projects, former subsec. (b) which contained provisions relating to Federal share of Interstate System

projects financed with funds authorized to be appropriated prior to June 29, 1956, and former subsec. (c)

which contained provisions relating to Federal share of

Interstate System projects financed with funds made

available under section 108(b) of the Federal-Aid Highway Act of 1956.

Subsec. (d). Pub. L. 102–240, §1021(a), (b)(2), redesignated subsec. (e) as (d) and struck out former subsec.

(d) which related to Federal share for projects for railway-highway crossing elimination, traffic control signalization, pavement marking, carpooling and vanpooling, and installation of traffic signs, highway lights,

guardrails, and impact attenuators.

Subsec. (e). Pub. L. 102–240, §1022(a), which directed

the substitution of ‘‘180 days’’ for ‘‘90 days’’ in subsec.

(d) as redesignated, was executed to subsec. (e) as redesignated to reflect the probable intent of Congress,

because the phrase ‘‘90 days’’ does not appear in subsec.

(d) as redesignated.

Pub. L. 102–240, §1021(b)(3), which directed the substitution of ‘‘and (b)’’ for ‘‘and (c)’’ in subsec. (d) as redesignated’’, was executed to subsec. (e) as redesignated to

reflect the probable intent of Congress, because the

phrase ‘‘and (c)’’ does not appear in subsec. (d) as redesignated.

Pub. L. 102–240, §1021(b)(2), redesignated subsec. (f) as

(e). Former subsec. (e) redesignated (d).

Subsecs. (f) to (h). Pub. L. 102–240, §1021(b)(2), redesignated subsecs. (g) to (i) as (f) to (h), respectively.

Former subsec. (f) redesignated (e).

Subsec. (i). Pub. L. 102–240, §1021(b)(2), redesignated

subsec. (n) as (i). Former subsec. (i) redesignated (h).

Subsecs. (j) to (m). Pub. L. 102–240, §1021(b)(1), struck

out subsec. (j) which related to Federal share of project

financed under section 307(c) of this title, subsec. (k)

which related to Federal share of projects under sections 143 and 155 of this title and projects for priority

primary routes under section 147 of this title, subsec. (l)

which related to Federal share of projects to reconstruct, resurface, restore and rehabilitate highways

which incurred substantial use as result of transportation activities to meet national energy requirements,

and subsec. (m) which related to Federal share of Great

River Road projects under section 148 of this title.
§ 120 TITLE 23—HIGHWAYS Page 74

Subsec. (n). Pub. L. 102–240, §1021(b)(2), redesignated

subsec. (n) as (i).

1987—Subsec. (d). Pub. L. 100–17, §117(a), inserted ‘‘or

for installation of traffic signs, highway lights, guardrails, or impact attenuators’’ after ‘‘vanpooling’’.

Subsec. (f). Pub. L. 100–17, §117(c)(1), inserted heading

and amended first sentence generally. Prior to amendment, first sentence read as follows: ‘‘The Federal

share payable on account of any repair or reconstruction provided for by funds made available under section

125 of this title shall not exceed 100 per centum of the

cost thereof: Provided, That the Federal share payable

on account of any repair or reconstruction of forest

highways, forest development roads and trails, park

roads and trails, parkways, public lands highways, public lands development roads and trails, and Indian reservation roads may amount to 100 per centum of the

cost thereof.’’

Subsecs. (i), (j). Pub. L. 100–17, §117(b), redesignated

subsec. (i) relating to Federal share payable on account

of any project financed under section 307(c) of this title,

as subsec. (j). Former subsec. (j) redesignated (k).

Subsec. (k). Pub. L. 100–17, §117(b), (d)(1), redesignated

former subsec. (j) as (k) and substituted ‘‘(j)’’ for ‘‘(i)’’,

‘‘and 155’’ for ‘‘, 148, and 155,’’ and ‘‘100–3’’ for ‘‘97–61’’.

Former subsec. (k) redesignated (l).

Subsec. (l). Pub. L. 100–17, §117(b), redesignated

former subsec. (k) as (l).

Subsec. (m). Pub. L. 100–17, §117(d)(2), added subsec.

(m).

Subsec. (n). Pub. L. 100–17, §117(e), added subsec. (n).

1983—Subsec. (j). Pub. L. 98–78 inserted ‘‘, and for

funds allocated under the provisions of section 155 of

this title and obligated subsequent to January 6, 1983,’’

after ‘‘Representatives’’.

1983—Subsec. (c). Pub. L. 97–424, §117(a), inserted provision at end that, notwithstanding subsection (a) of

this section, the Federal share payable on account of

any project financed with primary funds on the Interstate System for resurfacing, restoring, rehabilitating,

and reconstructing shall be the percentage provided in

this subsection.

Subsec. (d). Pub. L. 97–424, §117(b), inserted ‘‘or for

pavement marking’’ after ‘‘signalization’’, and provision that the Federal share payable on account of any

project for traffic control signalization under section

103(e)(4) of this title may amount to 100 per centum of

the cost of construction of such project.

Pub. L. 97–424, §123(a), inserted ‘‘or for commuter carpooling and vanpooling’’ before ‘‘, may amount to 100

per centum’’.

Subsec. (f). Pub. L. 97–424, §153(f), substituted ‘‘100 per

centum’’ for ‘‘75 per centum’’ after ‘‘shall not exceed’’,

struck out provision that in the case of any State containing nontaxable Indian lands, individual and tribal,

and public domain lands (both reserved and unreserved)

exclusive of national forests and national parks and

monuments exceeding 5 per centum of the total area of

all lands therein, the Federal share would be increased

by a percentage of the remaining cost equal to the percentage that the area of all such lands in such State is

of its total area, struck out ‘‘, whether or not such

highways, roads, or trails are on any Federal-aid highway system’’ after ‘‘may amount to 100 per centum of

the cost thereof’’, substituted provision that the total

cost of a project may not exceed the cost of repair or

reconstruction of a comparable facility for provision

that the Secretary might increase the Federal share

payable on account of any repair or reconstruction

under this section up to 100 per centum of the replacement cost of a comparable facility if he determined it

to be in the public interest, and struck out provision

that any project agreement for which the final voucher

had not been approved by the Secretary on or before

the date of this Act might be modified to provide for

the Federal share authorized herein.

Subsec. (i). Pub. L. 97–424, §156(c), added subsec. (i) relating to Federal share payable for any project financed under section 307(c) of this title.

Subsec. (j). Pub. L. 97–424, §117(c), added subsec. (j).

Subsec. (k). Pub. L. 97–424, §109(b), added subsec. (k).

1978—Subsec. (a). Pub. L. 95–599, §129(a), substituted

‘‘75 per centum’’ for ‘‘70 per centum’’ wherever appearing.

Subsec. (d). Pub. L. 95–599 §§117, 129(b), inserted ‘‘and

for any project for traffic control signalization,’’ after

‘‘section 130 of this title,’’, and substituted ‘‘75 per centum’’ for ‘‘70 per centum.’’

Subsec. (f). Pub. L. 95–599, §129(c), substituted ‘‘75 per

centum’’ for ‘‘70 per centum’’ wherever appearing.

Subsec. (i). Pub. L. 95–599, §129(i), added subsec. (i) relating to Federal share payable for any project in the

Virgin Islands, etc.

1970—Subsec. (a). Pub. L. 91–605, §§106(f), 108(a), inserted reference to the Federal-aid urban system, and

substituted ‘‘70 per centum’’ for ‘‘50 per centum’’ in two

places.

Subsec. (d). Pub. L. 91–605, §108(a), substituted ‘‘70 per

centum’’ for ‘‘50 per centum’’.

Subsec. (f). Pub. L. 91–605, §§108(a), 109(b), inserted

definition of ‘‘a comparable facility’’ and substituted

‘‘70 per centum’’ for ‘‘50 per centum’’.

Subsec. (h). Pub. L. 91–605, §128, added subsec. (h).

1968—Subsec. (a). Pub. L. 90–495, §34, made provision

for an election by the States as to the formula it desired to have its Federal share computed under by adding an optional formula permitting an increase in the

Federal share by a percentage of the remaining cost

equal to the percentage that the area of specified lands

is of the State’s total, but not so as to increase the

share beyond 95 percent of the total cost of the project,

with States exercising the option required to enter into

an agreement to use the difference solely for highway

construction purposes.

Subsec. (f). Pub. L. 90–495, §27(b), authorized the Secretary to increase the Federal share payable on account of any repair or reconstruction under this section up to 100 per centum of the replacement cost of a

comparable facility if he determines that it is in the

public interest.

1966—Subsec. (f). Pub. L. 89–574 added parkways, public land highways, public lands development roads, and

trails to the list of road projects on the repair or reconstruction of which the Federal share payable may

amount to 100 per centum of the cost.

1964—Subsec. (f). Pub. L. 88–658 provided that in case

of any State containing nontaxable Indian lands, and

public domain lands exclusive of national forests and

national parks and monuments exceeding 5 per centum

of the total area of all lands therein, the Federal share

shall be increased by a percentage of the remaining

cost equal to the percentage that the area of all such

lands in such State, is of its total area.

1960—Subsec. (a). Pub. L. 86–657 substituted ‘‘nontaxable Indian lands, individual and tribal, and public

domain lands (both reserved and unreserved) exclusive

of national forests and national parks and monuments’’

for ‘‘unappropriated and unreserved public lands and

nontaxable Indian lands, individual and tribal’’.

1959—Subsec. (a). Pub. L. 86–70, §21(e)(4), substituted

‘‘subsection (d) of this section’’ for ‘‘subsections (d) and

(h) of this section’’.

Subsec. (f). Pub. L. 86–342 provided that the Federal

share payable on account of any repair or reconstruction of forest highways, forest development roads and

trails, park roads and trails, and Indian reservation

roads may amount to 100 per centum of the cost thereof, whether or not such highways, roads or trails are on

any Federal-aid highway system.

Subsec. (h). Pub. L. 86–70, §21(d)(4), repealed subsec.

(h) which related to contributions by the Territory of

Alaska and to the expenditure of Federal funds apportioned to the Territory of Alaska and funds contributed

by the Territory.

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by section 1021 of Pub. L. 102–240 effective Dec. 18, 1991, and applicable to funds authorized to

be appropriated or made available after Sept. 30, 1991,

and, with certain exceptions, not applicable to funds
Page 75 TITLE 23—HIGHWAYS § 120

appropriated or made available on or before Sept. 30,

1991, see section 1100 of Pub. L. 102–240, set out as a note

under section 104 of this title.

Section 1022(c) of Pub. L. 102–240 provided that: ‘‘The

amendments made by subsections (a) and (b) [amending

this section and section 125 of this title] shall only

apply to natural disasters and catastrophic failures occurring after the date of the enactment of this Act

[Dec. 18, 1991].’’

EFFECTIVE DATE OF 1987 AMENDMENT

Section 117(c)(2) of Pub. L. 100–17 provided that: ‘‘The

amendment made by paragraph (1) [amending this section] shall apply to all natural disasters and catastrophic failures which occur after the date of the enactment of this Act [Apr. 2, 1987].’’

EFFECTIVE DATE OF 1978 AMENDMENT

Section 129(h) of Pub. L. 95–599 provided that: ‘‘The

amendments made by subsections (a) through (g) of

this section [amending this section and sections 148,

155, 215, and 406 of this title] shall take effect with respect to obligations incurred after the date of enactment of this section [Nov. 6, 1978].’’

EFFECTIVE DATE OF 1970 AMENDMENT

Section 108(b) of Pub. L. 91–605, as amended by Pub.

L. 93–87, title I, §153, Aug. 13, 1973, 87 Stat. 276, provided

that: ‘‘The amendments made by subsection (a) of this

section [amending this section] shall take effect with

respect to all obligations incurred after June 30, 1973.’’

EFFECTIVE DATE OF 1968 AMENDMENT

Amendment by section 27(b) of Pub. L. 90–495 applicable to repair or construction with respect to which

project agreements have been entered into on or before

Jan. 1, 1968, see section 27(c) of Pub. L. 90–495, set out

as a note under section 125 of this title.

Amendment by section 34 of Pub. L. 90–495 effective

Aug. 23, 1968, see section 37 of Pub. L. 90–495, set out as

a note under section 101 of this title.

EFFECTIVE DATE OF 1959 AMENDMENT

Amendment by section 21(d)(4) of Pub. L. 86–70 effective July 1, 1959, see section 21(d) of Pub. L. 86–70, set

out as a note under section 103 of this title.

Amendment by section 21(e)(4) of Pub. L. 86–70 effective July 1, 1959, see section 12(e) of Pub. L. 86–70, set

out as a note under section 101 of this title.

CREDIT FOR NON-FEDERAL SHARE

Section 1044 of Pub. L. 102–240 provided that:

‘‘(a) ELIGIBILITY.—A State may use as a credit toward

the non-Federal matching share requirement for all

programs under this Act [see Short Title of 1991

Amendment note set out under section 101 of Title 49,

Transportation] and title 23, United States Code, toll

revenues that are generated and used by public, quasipublic and private agencies to build, improve, or maintain highways, bridges, or tunnels that serve the public

purpose of interstate commerce. Such public, quasipublic or private agencies shall have built, improved,

or maintained such facilities without Federal funds.

‘‘(b) MAINTENANCE OF EFFORT.—The credit for any

non-Federal share shall not reduce nor replace State

monies required to match Federal funds for any program pursuant to this Act or title 23, United States

Code. In receiving a credit for non-Federal capital expenditures under this section, a State shall enter into

such agreements as the Secretary may require to ensure that such State will maintain its non-Federal

transportation capital expenditures at or above the average level of such expenditures for the preceding three

fiscal years.

‘‘(c) TREATMENT.—Use of such credit for a non-Federal share shall not expose such agencies from which

the credit is received to additional liability, additional

regulation or additional administrative oversight.

When credit is applied from chartered multi-State

agencies, such credit shall be applied equally to all

charter States. The public, quasi-public, and private

agencies from which the credit for which the non-Federal share is calculated shall not be subject to any additional Federal design standards, laws or regulations

as a result of providing non-Federal match other than

those to which such agency is already subject.’’

TEMPORARY MATCHING FUND WAIVER

Section 1054 of title I of Pub. L. 102–240 provided that:

‘‘(a) WAIVER OF MATCHING SHARE.—Notwithstanding

any other provision of law, the Federal share of any

qualifying project approved by the Secretary under

title 23, United States Code, and of any qualifying

project for which the United States becomes obligated

to pay under title 23, United States Code, during the

period beginning on October 1, 1991, and ending September 30, 1993, shall be the percentage of the construction

cost as the State requests, up to and including 100 percent.

‘‘(b) REPAYMENT.—The total amount of increases in

the Federal share made pursuant to subsection (a) for

any State shall be repaid to the United States by the

State on or before March 30, 1994. Payments shall be deposited in the Highway Trust Fund and repaid amounts

shall be credited to the appropriate apportionment accounts of the State.

‘‘(c) DEDUCTION FROM APPORTIONMENTS.—If a State

has not made the repayment as required by subsection

(b), the Secretary shall deduct from funds apportioned

to the State under title 23, United States Code, in each

of the fiscal years 1995 and 1996, a pro rata share of each

category of apportioned funds. The amount which shall

be deducted in each fiscal year shall be equal to 50 percent of the amount needed for repayment. Any amount

deducted under this subsection shall be reapportioned

for fiscal years 1995 and 1996 in accordance with title 23,

United States Code, to those States which have not received a higher Federal share under this section and to

those States which have made the repayment required

by subsection (b).

‘‘(d) QUALIFYING PROJECT DEFINED.—For purposes of

this section, the term ‘qualifying project’ means a

project approved by the Secretary after the effective

date of this title [Dec. 18, 1991], or a project for which

the United States becomes obligated to pay after such

effective date, and for which the Governor of the State

submitting the project has certified, in accordance

with regulations established by the Secretary, that sufficient funds are not available to pay the cost of the

non-Federal share of the project.’’

INCENTIVE PROGRAM FOR USE OF COAL ASH

Section 117(f) of Pub. L. 100–17 provided that: ‘‘Notwithstanding sections 119, 120, and 144 of title 23, United

States Code, in each of fiscal years 1987, 1988, 1989, 1990,

and 1991, the percentage specified in such sections as

the Federal share of the cost payable on account of any

highway or bridge construction project in which materials produced from coal ash are used in significant

amounts shall be increased by adding 5 percent to such

percentage; except that in no case shall the Federal

share payable on account of any project exceed 95 percent of the cost of such project as a result of increasing

such Federal share under this subsection.’’

OBLIGATIONS FOR PROJECTS RESULTING FROM NATURAL

DISASTERS OR CATASTROPHIC FAILURES; EMERGENCY

RELIEF; FEDERAL SHARE

Section 153(g) of Pub. L. 97–424 provided that: ‘‘All obligations for projects resulting from a natural disaster

or catastrophic failure which the Secretary finds to be

eligible for emergency relief subsequent to the date of

enactment of this subsection [Jan. 6, 1983] shall provide

for the Federal share required by subsection (f) of sec-
§ 121 TITLE 23—HIGHWAYS Page 76

tion 120 of title 23, United States Code, as amended by

this section.’’

FEDERAL SHARE OF PROJECTS APPROVED DURING PERIOD BEGINNING FEBRUARY 12, 1975, AND ENDING SEPTEMBER 30, 1975

Pub. L. 94–30, §§1, 2, June 4, 1975, 89 Stat. 171, as

amended by Pub. L. 94–280, title I, §145, May 5, 1976, 90

Stat. 446, provided for Federal share of projects approved under section 106(a) of this title, and projects

for which United States becomes obligated under section 117 of this title during the period beginning Feb.

12, 1975, and ending Sept. 30, 1975, and repayment schedule for States from Jan. 1, 1977, through Jan. 1, 1979.

REVIEW AND ANALYSIS OF EXCISE TAXES DEDICATED TO

HIGHWAY TRUST FUND

Section 507 of Pub. L. 95–599 provided that:

‘‘(a) IN GENERAL.—The Secretary of the Treasury, in

consultation with the Secretary of Transportation and

the staff of the Joint Committee on Taxation, shall—

‘‘(1) review and analyze each excise tax now dedicated to the Highway Trust Fund with respect to

such factors as ease or difficulty of administration of

such tax and the compliance burdens imposed on taxpayers by such tax, and

‘‘(2) on or before April 15, 1982, report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate

as to the matters set forth in paragraph (1) and other

findings, as well as recommendations on—

‘‘(A) improvements in excise taxation which

would enhance tax administration, equity, and

compliance, or

‘‘(B) a new system of raising revenues to fund the

Highway Trust Fund which would meet the objectives set forth in subparagraph (A).

The recommendations described in paragraph (2) shall

be formulated in conjunction with the recommendations of the cost allocation study under section 506 set

out as note under section 307 of this title of the equitable distribution of the highway excise taxes.

‘‘(b) INTERIM REPORTS.—The Secretary of the Treasury, in consultation with the Secretary of Transportation and the staff of the Joint Committee on Taxation, shall file an interim report with the Committee

on Ways and Means of the House of Representatives

and the Committee on Finance of the Senate on or before April 15, 1980, and a second interim report on or before April 15, 1981.’’

HIGHWAY TRUST FUND

Section 209 of act June 29, 1956, ch. 462, title II, 70

Stat. 397, as amended by Pub. L. 86–342, title II, §202,

Sept. 21, 1959, 73 Stat. 615; Pub. L. 86–346, title I, §104(5),

Sept. 22, 1959, 73 Stat. 622; Pub. L. 86–440, §1(c), Apr. 22,

1960, 74 Stat. 81; Pub. L. 87–61, title II, §207, June 29,

1961, 75 Stat. 128; Pub. L. 88–578, title II, §202, Sept. 3,

1964, 78 Stat. 904; Pub. L. 89–44, title II, §210, title VIII,

§809(e), June 21, 1965, 79 Stat. 144, 168; Pub. L. 91–258,

title II, §§207(e), 208(g), May 21, 1970, 84 Stat. 249, 252;

Pub. L. 91–605, title III, §301, Dec. 31, 1970, 84 Stat. 1743;

Pub. L. 94–273, §18, Apr. 21, 1976, 90 Stat. 379; Pub. L.

94–280, title III, §301, May 5, 1976, 90 Stat. 456; Pub. L.

95–599, title V, §§503(a), 504(a), Nov. 6, 1978, 92 Stat. 2757;

Pub. L. 95–618, title II, §233(b)(2)(E), Nov. 9, 1978, 92

Stat. 3191; Pub. L. 96–451, title II, §203(a), Oct. 14, 1980,

94 Stat. 1988; Pub. L. 97–424, title V, §531(b), Jan. 6, 1983,

96 Stat. 2191; Pub. L. 97–449, §2(a), Jan. 12, 1983, 96 Stat.

2439, provided that:

‘‘(a) [Repealed. Pub. L. 97–424, title V, §531(b), Jan. 6,

1983, 96 Stat. 2191. Subsec. (a) provided for the creation

of a Highway Trust Fund.]

‘‘(b) DECLARATION OF POLICY.—It is hereby declared to

be the policy of the Congress that if it hereafter appears—

‘‘(1) that the total receipts of the Trust Fund (exclusive of advances under subsection (d) will be less

than the total expenditures from such Fund (exclusive of repayments of such advances); or

‘‘(2) that the distribution of the tax burden among

the various classes of persons using the Federal-aid

highways, or otherwise deriving benefits from such

highways, is not equitable, the Congress shall enact

legislation in order to bring about a balance of total

receipts and total expenditures, or such equitable distribution, as the case may be.

‘‘(c) to (g) [Repealed. Pub. L. 97–424, title V, §531(b),

Jan. 6, 1983, 96 Stat. 2191. Subsecs. (c) to (g) provided

generally for the transfer of the equivalent of the receipts of certain taxes to the Fund, for additional appropriations to the Fund, for its management, methods

and purposes of expenditures, and for adjustment of apportionments regarding the Fund.]’’

Section 203(b) of Pub. L. 96–451 provided that: ‘‘The

amendment made by subsection (a) [amending former

subsec. (f)(5) of section 209 of Act June 29, 1956] shall

apply to taxes received on or after October 1, 1980.’’

Section 504(b) of Pub. L. 95–599 provided that: ‘‘The

amendment made by subsection (a) [amending former

subsec. (g) of section 209 of Act June 29, 1956] shall

apply to fiscal years beginning after September 30,

1978.’’

Pub. L. 91–258, title II, §208(g), May 21, 1970, 84 Stat.

252, which added subsec. (c)(5) of section 209 of the Act

of June 29, 1956, ch. 462, title II, 70 Stat. 397, was repealed by Pub. L. 97–248, title II, §281(b), Sept. 3, 1982,

96 Stat. 566.

PERCENTAGE OF FUNDS CONTRIBUTED BY ALASKA

Section 21(d)(4) of Pub. L. 86–70, which repealed subsec. (h) of this section, provided in part that the provisions of subsec. (h) relating to the percentage of funds

to be contributed by Alaska shall continue to apply to

funds apportioned to Alaska for fiscal year 1960 and

prior fiscal years.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 104, 107, 108, 121,

122, 125, 130, 142, 147, 148, 217 of this title; title 42 section

3338.

§ 121. Payment to States for construction

(a) The Secretary may, in his discretion, from

time to time as the work progresses, make payments to a State for costs of construction incurred by it on a project. These payments shall

at no time exceed the Federal share of the costs

of construction incurred to the date of the

voucher covering such payment plus the Federal

share of the value of the materials which have

been stockpiled in the vicinity of such construction in conformity to plans and specifications

for the project. Such payments may also be

made in the case of any such materials not in

the vicinity of such construction if the Secretary determines that because of required fabrication at an off-site location the materials

cannot be stockpiled in such vicinity.

(b) After completion of a project in accordance

with the plans and specifications, and approval

of the final voucher by the Secretary, a State

shall be entitled to payment out of the appropriate sums apportioned to it of the unpaid balance of the Federal share payable on account of

such project.

(c) No payment shall be made under this chapter, except for a project located on a Federal-aid

system and covered by a project agreement. No

final payment shall be made to a State for its

costs of construction of a project until the completion of the construction has been approved by

the Secretary following inspections pursuant to

section 114(a) of this title.

(d) In making payments pursuant to this section, the Secretary shall be bound by the limita-