Approved projects are cost reimbursable, meaning the states carry out the work at their expense and are reimbursed up to a maximum federal share of 75 percent. States must provide at least 25 percent of the project funding from a non-federal source. To be substantial, the projects must address a legitimate, described need, and be designed to meet the need in a reasonable way at a reasonable cost. Once they are approved, the federal share of the project funding is obligated from the state's apportionment. The state may then begin the project and be reimbursed as costs are incurred.
States have full authority to determine their needs and priorities and submit projects accordingly.
Projects are monitored to ensure activities are completed as proposed and funds are spent on approved activities. Bud Fuchs, Fish and Wildlife Team Leader Tel. The Secretary of the Interior is directed to cooperate with states for the purpose of conserving endangered and threatened species. This includes providing funding to the states for endangered and threatened species projects under Section 6 of the Act. Any state or territory which establishes and maintains an adequate and active program for the conservation of endangered and threatened species is eligible.