Fund Transfers to Tribes Through 23 U.S.C. 202(a)(9)

PURPOSE: To Identify the procedures to transfer funds from States to Tribes pursuant to 23 U.S.C. 

104(f)(3) for tribal transportation projects in furtherance of implementation of 23 U.S.C. 202(a)(9)(B).

BACKGROUND: Section 202(a)(9) of title 23, United States Code encourages cooperation between 

States and Tribes by allowing any funds received from a State, county, or local government to be 

credited to appropriations available for the Tribal Transportation Program (TTP). One potential source 

of such funding are funds apportioned or allocated to a State under title 23. Section 104(f)(3) allows the

Secretary of Transportation to, at the request of a State, transfer among States, or to the Department’s 

Federal Highway Administration (FHWA), funds that have been so apportioned or allocated. This 

provision, used in conjunction with the authority under 23 U.S.C. 209(a)(9), allows State funds to be 

transferred to FHWA, which in turn would provide the funds to the specified Tribe.

A Tribe would receive the transferred funds in the same manner that it receives its TTP funds. Some 

Tribes carry out their TTP projects and activities through Agreements developed with the FHWA Office 

of Federal Lands Highway (HFL) under 23 U.S.C. 202(b)(7). Other Tribes carry out their TTP projects and 

activities through Agreements with the Department of the Interior’s Bureau of Indian Affairs (BIA) under 

23 U.S.C. 202(b)(6). Tribes that have an Agreement with FHWA would receive the transferred funds 

from FHWA. The FHWA would transfer the funds to BIA for Tribes that have an Agreement with BIA. In 

either case, the credit to TTP appropriations under 23 U.S.C. 202(a)(9) applies to all funding received and 

credited to the TTP pursuant to this authority.

General requirements

If, under 23 U.S.C. 202(a)(9), a State elects to transfer to a Tribe funds apportioned or allocated under 

title 23, the Tribe then administers the project or activity in accordance with TTP provisions. Upon 

transfer, the funds are credited to the TTP and the project is carried out in accordance with 23 U.S.C.

202(a)(9). Additionally, the State is relieved of oversight for the transferred funds and FHWA or BIA (as 

applicable) assumes oversight.

In accordance with 23 U.S.C. 104(f)(3)(A), funds that are transferred to the TTP must be for a specific 

project and that project must be eligible under the initial source of funding. Consistent with 31 U.S.C. 

1532, the funds retain their matching requirements from the initial funding source and must be used for 

the purpose agreed to between the State and the Tribe. A master tri-party Agreement (template) 

should be used for the transfer of this funding, signed by the Tribe, State, and either FHWA or BIA. The 

agreement should also contain an addendum that identifies the project, funding, expectations, roles and 

responsibilities, etc. The BIA or HFL, as applicable, should track the Funds received separately from the 

Tribe’s TTP funds, to ensure that obligation deadlines are met. When the project is complete, any 

remaining balance must be returned to the State that originated the transfer, unless further agreements 

are reached for eligible projects. 

Obligation of funding

Any funding (and associated obligation limitation) transferred through this process is obligated 

through the same process as the TTP funding. Formula obligation limitation is available for a single 

fiscal year. Therefore, if the transfer is of apportioned funds and formula obligation limitation, the 

funds and formula obligation limitation must be obligated within the fiscal year of transfer. If 

allocated funding is transferred, any associated allocated obligation limitation that FHWA or BIA 

does not obligate by the end of the fiscal year is subject to August redistribution and, in the 

following fiscal year, FHWA will make available obligation limitation equal to any amount so 

redistributed for the project. However, to avoid having the transferred funds be subject to August 

redistribution, the Tribe needs to commit in July to obligate the funding prior to the end of the 

Fiscal Year of the transfer.
Transfer process

To carry out transfers of apportioned funds, a State DOT should work directly with its respective Division 

Office by submitting the transfer form (FHWA-1576) to transfer the funds to Federal Lands Highway 

Headquarters (HFL HQ). The transfer form should:

• clearly define the type of funds being transferred;

• specify that the funds are transferred to HFL HQ for the TTP in accordance with 23 U.S.C. 

202(a)(9);

• identify the purpose for which the funds are being transferred, and the name of the receiving 

Tribe; and

• include supporting Agreements with the Tribe, or other related documentation.

The FHWA will transfer the funding to BIA for those Tribes that do not operate their TTP with FHWA

following the standard transfer process that is used for TTP funding.

To carry out transfers of allocated funds, the FHWA Division Office will need to coordinate with the 

appropriate HQ Program Office to administer the transfer.