181 
dents are American Indians or Alaska Na-
tives; or 
‘‘(vi) are primary access routes pro-
posed by tribal governments, including 
roads between villages, roads to landfills, 
roads to drinking water sources, roads to 
natural resources identified for economic de-
velopment, and roads that provide access to 
intermodal terminals, such as airports, har-
bors, or boat landings. 
‘‘(C) LIMITATION
ON
PRIMARY
ACCESS 
ROUTES.—For purposes of this paragraph, a 
proposed primary access route is the shortest 
practicable route connecting 2 points of the pro-
posed route. 
‘‘(D) ADDITIONAL FACILITIES.—Nothing in 
this paragraph shall preclude the Secretary of 
the Interior from including additional transpor-
tation facilities that are eligible for funding 
under the tribal transportation program in the 
inventory if such additional facilities are in-
cluded in the inventory in a uniform and con-
sistent manner nationally. 
‘‘(E) BRIDGES.—All bridges in the inven-
tory shall be recorded in the national bridge in-
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182 
ventory administered by the Secretary under sec-
tion 151. 
‘‘(3) REGULATIONS.—Notwithstanding sections 
563(a) and 565(a) of title 5, the Secretary of the Inte-
rior shall maintain regulations governing the tribal 
transportation program and the funding formula 
under paragraph (4) in accordance with established 
policies and procedures. 
‘‘(4) BASIS FOR FUNDING FORMULA FACTORS.— 
‘‘(A) IN
GENERAL.—The funding formula 
established under this paragraph shall be based 
on factors that reflect— 
‘‘(i) the relative needs among the In-
dian tribes, and reservation or tribal com-
munities, for transportation assistance; and 
‘‘(ii) the relative administration capac-
ities of, and challenges faced by, various In-
dian tribes, including the cost of road con-
struction in each Bureau of Indian Affairs 
area, geographic isolation, and difficulty in 
maintaining all-weather access to employ-
ment, commerce, health, safety, and edu-
cational resources. 
‘‘(B) TRIBAL HIGH PRIORITY PROJECTS.— 
The tribal high priority projects program as in-
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cluded in the tribal transportation allocation 
methodology of part 170 of title 25, Code of Fed-
eral Regulations (as in effect on the date of en-
actment of the American Energy and Infrastruc-
ture Jobs Act of 2012), shall continue in effect. 
‘‘(5) DISTRIBUTION
OF
FUNDS
TO
INDIAN 
TRIBES.— 
‘‘(A) IN GENERAL.—Not later than 30 days 
after the date on which funds are made available 
to the Secretary or the Secretary of the Interior 
for a fiscal year to carry out the tribal transpor-
tation program, the funds shall be distributed to, 
and available for immediate use by, eligible In-
dian tribes in accordance with the formula 
maintained by the Secretary of the Interior 
under paragraph (4). 
‘‘(B) USE
OF
FUNDS.—Notwithstanding 
any other provision of this section, funds made 
available to Indian tribes for tribal transpor-
tation facilities shall be expended on projects 
identified in a transportation improvement pro-
gram approved by the Secretary. 
‘‘(6) HEALTH AND SAFETY ASSURANCES.—Not-
withstanding any other provision of law, an Indian 
tribal government may approve plans, specifications, 
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184 
and estimates for, and may commence, a project for 
construction of a tribal transportation facility with 
funds made available to carry out the tribal transpor-
tation program through a contract or agreement en-
tered into under the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450 et seq.) if 
the Indian tribal government— 
‘‘(A) provides assurances in the contract or 
agreement that the construction will meet or ex-
ceed applicable health and safety standards; 
‘‘(B) obtains the advance review of the 
plans and specifications for the project from a 
State-licensed civil engineer that has certified 
that the plans and specifications meet or exceed 
the applicable health and safety standards; 
‘‘(C) provides a copy of the certification 
under subparagraph (A) to the Deputy Assistant 
Secretary for Tribal Government Affairs of the 
Department of Transportation or the Assistant 
Secretary of Indian Affairs of the Department of 
the Interior, as appropriate; and 
‘‘(D) except with respect to a transportation 
facility owned by the Bureau of Indian Affairs 
or an Indian tribe, obtains the advance written 
approval of the plans, specifications, and esti-
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185 
mates from the facility owner or public authority 
having maintenance responsibility for the facil-
ity and provides a copy of the approval to the 
officials referred to in subparagraph (C). 
‘‘(7) CONTRACTS AND AGREEMENTS WITH INDIAN 
TRIBES FOR PROGRAM COSTS.— 
‘‘(A) IN
GENERAL.—Notwithstanding any 
other provision of law or any interagency agree-
ment, program guideline, manual, or policy di-
rective, all funds made available under this 
chapter and section 125(e) for tribal transpor-
tation facilities to pay for the costs of programs, 
services, functions, and activities, or portions 
thereof, that are specifically or functionally re-
lated to the cost of any tribal transportation fa-
cility that provides access to or is located within 
the reservation or community of an Indian tribe 
shall be made available, upon request of the In-
dian tribal government, to the Indian tribal gov-
ernment for contracts and agreements for such 
planning, research, engineering, and construc-
tion in accordance with the Indian Self-Deter-
mination and Education Assistance Act (25 
U.S.C. 450 et seq.). 
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186 
‘‘(B) EXCLUSION
OF
AGENCY
PARTICIPA-
TION.—Funds for programs, functions, services, 
or activities, or portions thereof (including sup-
portive administrative functions that are other-
wise contractible to which subparagraph (A) ap-
plies) shall be paid in accordance with subpara-
graph (A) without regard to the organizational 
level at which the Department of Transportation 
or the Department of the Interior has previously 
carried out such programs, functions, services, or 
activities. 
‘‘(8) CONTRACTS AND AGREEMENTS WITH INDIAN 
TRIBES FOR TRIBAL TRANSPORTATION FACILITY PRO-
GRAMS AND PROJECTS.— 
‘‘(A) IN
GENERAL.—Notwithstanding any 
other provision of law or any interagency agree-
ment, program guideline, manual, or policy di-
rective, all funds made available to an Indian 
tribal government under this title or chapter 53 
of title 49 for a tribal transportation facility 
program or project that is located on an Indian 
reservation or provides access to the reservation 
or a community of an Indian tribe shall be made 
available, on the request of the Indian tribal gov-
ernment, to the Indian tribal government for use 
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187 
in carrying out, in accordance with the Indian 
Self-Determination and Education Assistance 
Act (25 U.S.C. 450 et seq.), contracts, agree-
ments, and grants for the planning, research, de-
sign, engineering, construction, and maintenance 
relating to the program or project. 
‘‘(B) EXCLUSION
OF
AGENCY
PARTICIPA-
TION.—In accordance with subparagraph (A), 
all funds for a program or project to which sub-
paragraph (A) applies shall be paid to the In-
dian tribal government without regard to the or-
ganizational level at which the Department of 
the Interior has previously carried out, or the 
Department of Transportation has previously 
carried out, the programs, functions, services, or 
activities involved. 
‘‘(C) CONSORTIA.—Two or more Indian 
tribes that are otherwise eligible to participate in 
a program or project to which this chapter ap-
plies may form a consortium to be considered as 
a single Indian tribe for the purpose of partici-
pating in the project under this section. 
‘‘(D) SECRETARY AS SIGNATORY.—Notwith-
standing any other provision of law, the Sec-
retary is authorized to enter into a funding 
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188 
agreement with an Indian tribal government in 
accordance with and governed by the Indian 
Self-Determination and Education Assistance 
Act (25 U.S.C. 450 et seq.) to carry out a tribal 
transportation facility program or project under 
subparagraph (A) that is located on an Indian 
reservation or provides access to the reservation 
or a community of the Indian tribe. 
‘‘(E) FUNDING.—The amount an Indian 
tribal government receives for a program or 
project under subparagraph (A) shall equal the 
sum of the funding that the Indian tribal gov-
ernment would otherwise receive for the program 
or project in accordance with the funding for-
mula established under this subsection and such 
additional amounts as the Secretary determines 
equal the amounts that would have been withheld 
for the costs of the Bureau of Indian Affairs for 
administration of the program or project. 
‘‘(F) ELIGIBILITY.— 
‘‘(i) IN
GENERAL.—Subject to clause 
(ii), funds may be made available under 
subparagraph (A) to an Indian tribal gov-
ernment for a program or project in a fiscal 
year only if the Indian tribal government 
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189 
requesting the funds demonstrates to the sat-
isfaction of the Secretary financial stability 
and financial management capability dur-
ing the 3 fiscal years immediately preceding 
the fiscal year for which the request is 
made. 
‘‘(ii) CRITERIA FOR DETERMINING FI-
NANCIAL
STABILITY
AND
FINANCIAL
MAN-
AGEMENT CAPABILITY.—If an Indian tribal 
government did not have an uncorrected 
significant and material audit exception in 
a required annual audit of the Indian trib-
al government’s self-determination contracts 
or self-governance funding agreements with 
a Federal agency during the 3-fiscal year 
period referred in clause (i), the Indian 
tribe shall be treated as having conclusive 
evidence of its financial stability and finan-
cial management capability for purposes of 
clause (i). 
‘‘(G) ASSUMPTION OF FUNCTIONS AND DU-
TIES.—An Indian tribal government receiving 
funding under subparagraph (A) for a program 
or project shall assume all functions and duties 
that the Secretary or the Secretary of the Inte-
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190 
rior would have performed with respect to a pro-
gram or project under this chapter, other than 
those functions and duties that inherently cannot 
be legally transferred under the Indian Self-De-
termination and Education Assistance Act (25 
U.S.C. 450 et seq.). 
‘‘(H) POWERS.—An Indian tribal govern-
ment receiving funding under subparagraph (A) 
for a program or project shall have all powers 
that the Secretary or the Secretary of the Inte-
rior would have exercised in administering the 
funds transferred to the Indian tribal govern-
ment for such program or project under this sec-
tion if the funds had not been transferred, except 
to the extent that such powers are powers that 
inherently cannot be legally transferred under 
the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450 et seq.). 
‘‘(I) DISPUTE RESOLUTION.—In the event of 
a disagreement between the Secretary or the Sec-
retary of the Interior and an Indian tribe over 
whether a particular function, duty, or power 
may be lawfully transferred under the Indian 
Self-Determination and Education Assistance 
Act (25 U.S.C. 450 et seq.), the Indian tribe 
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191 
shall have the right to pursue all alternative dis-
pute resolutions and appeal procedures author-
ized by such Act, including regulations issued to 
carry out such Act. 
‘‘(J) 
TERMINATION
OF
CONTRACT
OR 
AGREEMENT.—On the date of the termination of 
a contract or agreement under this section by an 
Indian tribal government, the Secretary shall 
transfer all funds that would have been allocated 
to the Indian tribal government under the con-
tract or agreement to the Secretary of the Inte-
rior to provide continued transportation services 
in accordance with applicable law. 
‘‘(d) PLANNING BY INDIAN TRIBAL GOVERNMENTS.— 
‘‘(1) IN GENERAL.—Of the funds made available 
for a fiscal year to carry out the tribal transportation 
program, the greater of 2 percent or $35,000 may be 
allocated to Indian tribal governments that have been 
authorized to conduct transportation planning pursu-
ant to the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450 et seq.). 
‘‘(2) COOPERATION.—An Indian tribal govern-
ment described in paragraph (1), in cooperation with 
the Secretary of the Interior, and as appropriate with 
a State, local government, or metropolitan planning 
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192 
organization, shall carry out a transportation plan-
ning process in accordance with section 201(e). 
‘‘(3) APPROVAL.—Projects selected by an Indian 
tribal government described in paragraph (1) from a 
transportation improvement program shall be subject 
to the approval of the Secretary of the Interior and 
the Secretary. 
‘‘(e) FEDERAL-AID ELIGIBLE PROJECT.—Before ap-
proving as a project on a tribal transportation facility any 
project eligible funds apportioned under section 104 in a 
State, the Secretary shall determine that the obligation of 
funds for such project is supplementary to and not in lieu 
of the obligation, for projects on tribal transportation facili-
ties, of a fair and equitable share of funds apportioned to 
such State under section 104. 
‘‘(f) ELIGIBILITY FOR DISCRETIONARY AND COMPETI-
TIVE GRANTS.—Notwithstanding any other provision of 
law, an Indian tribe may directly apply for and receive 
any discretionary or competitive grant made available to 
a State or a political subdivision of a State under this title 
or chapter 53 of title 49 in the same manner and under 
the same circumstances as a State or a political subdivision 
of a State. 
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‘‘§ 203. Federal lands transportation program 
‘‘(a) IN GENERAL.—The Secretary shall carry out a 
Federal lands transportation program in accordance with 
the requirements of this section. 
‘‘(b) USE OF FUNDS.— 
‘‘(1) IN
GENERAL.—Funds made available to 
carry out the Federal lands transportation program 
shall be used by the Secretary and the Secretaries of 
Federal land management agencies to pay for the fol-
lowing: 
‘‘(A) The covered costs of— 
‘‘(i) Federal lands highways; 
‘‘(ii) vehicular parking areas adjacent 
to Federal lands highways (which may in-
clude electric vehicle charging stations); 
‘‘(iii) pedestrian walkways and bicycle 
transportation facilities (as defined in sec-
tion 217) on Federal lands; and 
‘‘(iv) roadside rest areas, including 
sanitary and water facilities, on Federal 
lands. 
‘‘(B) The costs of transportation projects on 
public roads or trails eligible for assistance 
under this title that are within, or provide access 
to, Federal lands. 
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‘‘(C) The costs of public transportation 
projects eligible for assistance under section 
5311(b)(1) of title 49 that are within, or provide 
access to, Federal lands (without regard to 
whether the project is located in an urbanized 
area). 
‘‘(D) The costs of rehabilitation, restoration, 
and construction of interpretive signage at Fed-
eral lands highways. 
‘‘(E) The costs of acquisition of necessary 
scenic easements and scenic or historic sites asso-
ciated with Federal lands highways. 
‘‘(2) COVERED COSTS DEFINED.—In paragraph 
(1), the term ‘covered costs’ means the costs of pro-
gram administration, transportation planning, re-
search, preventive maintenance, engineering, rehabili-
tation, restoration, construction, and reconstruction. 
‘‘(3) CONTRACT.—In connection with an activity 
described in paragraph (1), the Secretary and the 
Secretary of the appropriate Federal land manage-
ment agency may enter into a contract or other ap-
propriate agreement with respect to such activity 
with— 
‘‘(A) a State (including a political subdivi-
sion of a State); or 
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‘‘(B) an Indian tribe. 
‘‘(4) ADMINISTRATION.—All appropriations for 
the construction and improvement of Federal lands 
transportation facilities shall be administered in con-
formity with regulations and agreements jointly ap-
proved by the Secretary and the Secretary of the ap-
propriate Federal land management agency. 
‘‘(5) COOPERATION.— 
‘‘(A) IN
GENERAL.—The cooperation of 
States and political subdivisions of States may 
be accepted in construction and improvement of 
Federal lands transportation facilities. 
‘‘(B) CREDITING OF FUNDS.—Any funds re-
ceived from a State or a political subdivision of 
a State for such construction or improvement of 
Federal lands transportation facilities shall be 
credited to appropriations available for the class 
of Federal lands transportation facilities to 
which funds were contributed. 
‘‘(6) COMPETITIVE BIDDING.—Construction of a 
project under the Federal lands transportation pro-
gram shall be performed pursuant to a contract 
awarded by competitive bidding unless the Secretary 
or the Secretary of the appropriate Federal land 
management agency affirmatively finds that, under 
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196 
the circumstances relating to the project, some other 
method is in the public interest. 
‘‘(c) AGENCY PROGRAM DISTRIBUTIONS.— 
‘‘(1) IN GENERAL.—On October 1 of each fiscal 
year, the Secretary shall allocate the funds made 
available to carry out the Federal lands transpor-
tation program for the fiscal year on the basis of ap-
plications of need, as determined by the Secretary, 
and in coordination with the transportation plans re-
quired by section 201(e), of the respective transpor-
tation systems of the Federal land management agen-
cies. 
‘‘(2) MINIMUM ALLOCATIONS.—When making an 
allocation of funds under paragraph (1) for a fiscal 
year, the Secretary shall ensure that, of the total 
amount of funds subject to the allocation— 
‘‘(A) the National Park Service receives, at 
a minimum, 38 percent; 
‘‘(B) the Forest Service receives, at a min-
imum, 32 percent; and 
‘‘(C) the United States Fish and Wildlife 
Service receives, at a minimum, 4.5 percent. 
‘‘(3) APPLICATIONS.— 
‘‘(A) IN GENERAL.—The Secretary of a Fed-
eral land management agency may submit to the 
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197 
Secretary an application for assistance under the 
Federal lands transportation program. 
‘‘(B) CONTENTS.—An application submitted 
by the Secretary of a Federal land management 
agency under subparagraph (A) shall contain 
such information as the Secretary may require, 
including a description of any proposed program 
for which the agency is seeking assistance and 
the potential funding levels for the program. 
‘‘(C) CONSIDERATIONS.—In reviewing a 
proposed program described in an application 
submitted by the Secretary of a Federal land 
management agency under subparagraph (A), 
the Secretary shall consider the extent to which 
the program supports— 
‘‘(i) a state of good repair of transpor-
tation facilities across the agency’s inven-
tory; 
‘‘(ii) a reduction of deficient bridges 
across the agency’s inventory; 
‘‘(iii) improvement of safety across the 
agency’s inventory; 
‘‘(iv) high use Federal recreation sites 
or Federal economic generators; and 
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‘‘(v) the resource management goals of 
the Secretary of the respective Federal land 
management agency. 
‘‘(d) NATIONAL FEDERAL LANDS HIGHWAYS INVEN-
TORY.— 
‘‘(1) IN GENERAL.—The Secretaries of the Fed-
eral land management agencies, in cooperation with 
the Secretary, shall maintain a comprehensive na-
tional inventory of Federal lands highways. 
‘‘(2) HIGHWAYS INCLUDED IN THE INVENTORY.— 
For purposes of identifying the Federal lands trans-
portation system and determining the relative trans-
portation needs among Federal land management 
agencies, the inventory shall include, at a minimum, 
highways that— 
‘‘(A) provide access to high use Federal 
recreation sites or Federal economic generators, 
as determined by the Secretary in coordination 
with the Secretaries of the Federal land manage-
ment agencies; and 
‘‘(B) are administered by a Federal land 
management agency. 
‘‘(3) AVAILABILITY.—The Secretary of each Fed-
eral land management agency shall maintain an in-
ventory of the Federal lands highways administered 
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199 
by the agency and make the inventory available to the 
Secretary. 
‘‘(4) UPDATES.—The Secretary of each Federal 
land management agency shall update its inventory 
referred to in paragraph (3) as determined by the 
Secretary. 
‘‘(5) REVIEW.—A decision to add or remove a 
highway from an inventory referred to in paragraph 
(1) or (4) shall not be considered a Federal action for 
purposes of review under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.).’’. 
SEC. 1502. DEFINITIONS. 
(a) REPEALS.—Paragraphs (7), (9), (12), (19), (20), 
(24), (25), (26), and (28) of section 101(a) are repealed. 
(b) DEFINITIONS RELATING TO FEDERAL LANDS AND 
TRIBAL TRANSPORTATION PROGRAMS.—Section 101(a) is 
amended by adding at the end the following: 
‘‘(40) FEDERAL LAND MANAGEMENT AGENCY.— 
The term ‘Federal land management agency’ means 
each of the following: 
‘‘(A) The National Park Service. 
‘‘(B) The Forest Service. 
‘‘(C) The United States Fish and Wildlife 
Service. 
‘‘(D) The Corps of Engineers. 
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200 
‘‘(E) The Bureau of Land Management. 
‘‘(41) FEDERAL
LANDS.—The term ‘Federal 
lands’ means lands administered by a Federal land 
management agency. 
‘‘(42) FEDERAL
LANDS
HIGHWAY.—The term 
‘Federal lands highway’ means a public road, high-
way, bridge, or trail that is located on, is adjacent to, 
or provides access to Federal lands and appears on 
the national inventory of Federal lands highways 
maintained under section 203(d). 
‘‘(43) FEDERAL LANDS TRANSPORTATION FACIL-
ITY.—The term ‘Federal lands transportation facility’ 
means a transportation facility eligible for assistance 
under section 203(b). 
‘‘(44) TRIBAL
ROAD.—The term ‘tribal road’ 
means a public road, highway, bridge, or trail that 
is located on or provides access to tribal lands and 
appears on the national inventory of tribal roads 
maintained under section 202(c). 
‘‘(45) TRIBAL TRANSPORTATION FACILITY.—The 
term ‘tribal transportation facility’ means a trans-
portation facility eligible for assistance under section 
202(b).’’. 
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201 
SEC. 1503. CONFORMING AMENDMENTS. 
(a) FEDERAL
SHARE
PAYABLE.—Section 120 is 
amended— 
(1) in subsection (e) by striking ‘‘forest high-
ways, forest development roads and trails, park roads 
and trails, parkways, public lands highways, public 
lands development roads and trails, and Indian res-
ervation roads’’ and inserting ‘‘tribal roads and Fed-
eral lands highways’’; and 
(2) in subsection (l)— 
(A) in the subsection heading by striking 
‘‘FEDERAL LANDS HIGHWAYS PROGRAM’’ and 
inserting ‘‘TRIBAL TRANSPORTATION PROGRAM 
AND FEDERAL LANDS TRANSPORTATION PRO-
GRAM’’; and 
(B) by striking ‘‘the Federal lands highways 
program under section 204’’ and inserting ‘‘the 
tribal transportation program under section 202 
and the Federal lands transportation program 
under section 203’’. 
(b) PRESERVATION OF PARKLANDS.—Section 138(a) is 
amended by striking ‘‘park road or parkway under section 
204 of this title’’ and inserting ‘‘Federal lands transpor-
tation facility under section 203’’. 
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202 
(c) 
EFFICIENT
ENVIRONMENTAL
REVIEWS
FOR 
PROJECT DECISIONMAKING.—Section 139(j)(3) is amend-
ed— 
(1) in the paragraph heading by striking ‘‘USE 
OF FEDERAL LANDS HIGHWAY FUNDS’’ and inserting 
‘‘USE
OF
TRIBAL
TRANSPORTATION
PROGRAM
AND 
FEDERAL LANDS TRANSPORTATION PROGRAM FUNDS’’; 
and 
(2) by striking ‘‘section 204’’ and inserting ‘‘sec-
tions 202 and 203’’. 
(d) BICYCLE
TRANSPORTATION
AND
PEDESTRIAN 
WALKWAYS.—Section 217(c) is amended— 
(1) in the subsection heading by striking ‘‘FED-
ERAL LANDS HIGHWAYS’’ and inserting ‘‘TRIBAL 
TRANSPORTATION PROGRAM
AND FEDERAL LANDS 
TRANSPORTATION PROGRAM FUNDS’’; and 
(2) by striking ‘‘Funds authorized for’’ and all 
that follows through ‘‘public lands highways’’ and in-
serting ‘‘Funds authorized for tribal transportation 
facilities and Federal lands transportation facilities’’. 
(e) RULES, REGULATIONS, AND RECOMMENDATIONS.— 
Section 315 is amended by striking ‘‘sections 204(f) and 
205(a) of this title’’ and inserting ‘‘sections 203(b)(4) and 
205(a)’’. 
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203 
SEC. 1504. REPEALS; EFFECTIVE DATE. 
(a) IN GENERAL.—Sections 204 and 214, and the 
items relating to such sections in the analysis for chapter 
2, are repealed. 
(b) EXISTING FUNDS.—A repeal or amendment made 
by this subtitle shall not affect funds apportioned or allo-
cated (or funds awarded but not yet allocated) before the 
effective date of the repeal or amendment. 
SEC. 1505. CLERICAL AMENDMENT. 
The analysis for chapter 2 is amended by striking the 
items relating to sections 201 through 203 and inserting 
the following: 
‘‘201. General provisions. 
‘‘202. Tribal transportation program. 
‘‘203. Federal lands transportation program.’’. 
SEC. 1506. TRIBAL TRANSPORTATION SELF-GOVERNANCE 
PROGRAM. 
(a) IN GENERAL.—Chapter 2 is amended by inserting 
after section 206 the following: 
‘‘§ 207. Tribal transportation self-governance program 
‘‘(a) ESTABLISHMENT.—Subject to the requirements of 
this section, the Secretary shall establish and carry out a 
program to be known as the tribal transportation self-gov-
ernance program. The Secretary may delegate responsibil-
ities for administration of the program as the Secretary de-
termines appropriate. 
‘‘(b) ELIGIBILITY.— 
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204 
‘‘(1) IN GENERAL.—An Indian tribe shall be eli-
gible to participate in the program if the Indian 
tribe— 
‘‘(A) requests participation in the program 
by resolution or other official action by the gov-
erning body of the Indian tribe; and 
‘‘(B) demonstrates, for the preceding 3 fiscal 
years, financial stability and financial manage-
ment capability. 
‘‘(2) CRITERIA
FOR
DETERMINING
FINANCIAL 
STABILITY AND FINANCIAL MANAGEMENT CAPACITY.— 
For the purposes of paragraph (1)(B), evidence that, 
during the preceding 3 fiscal years, an Indian tribe 
had no uncorrected significant and material audit ex-
ceptions in the required annual audit of the Indian 
tribe’s self-determination contracts or self-governance 
funding agreements with any Federal agency shall be 
conclusive evidence of the required stability and capa-
bility. 
‘‘(c) COMPACTS.— 
‘‘(1) COMPACT REQUIRED.—Upon the request of 
an eligible Indian tribe, and subject to the require-
ments of this section, the Secretary shall negotiate 
and enter into a written compact with the Indian 
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205 
tribe for the purpose of providing for the participa-
tion of the Indian tribe in the program. 
‘‘(2) CONTENTS.—A compact entered into under 
paragraph (1) shall set forth the general terms of the 
government-to-government relationship between the 
Indian tribe and the United States under the pro-
gram and other terms that will continue to apply in 
future fiscal years. 
‘‘(3) AMENDMENTS.—A compact entered into 
with an Indian tribe under paragraph (1) may be 
amended only by mutual agreement of the Indian 
tribe and the Secretary. 
‘‘(d) ANNUAL FUNDING AGREEMENTS.— 
‘‘(1) FUNDING
AGREEMENT
REQUIRED.—After 
entering into a compact with an Indian tribe under 
subsection (c), the Secretary shall negotiate and enter 
into a written annual funding agreement with the In-
dian tribe. 
‘‘(2) CONTENTS.— 
‘‘(A) IN GENERAL.— 
‘‘(i) DISCRETIONARY AND COMPETITIVE 
GRANTS.—A funding agreement entered into 
with an Indian tribe shall authorize the In-
dian tribe, as determined by the Indian 
tribe, to plan, conduct, consolidate, admin-
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206 
ister, and receive full tribal share funding 
and funding to tribes from discretionary 
and competitive grants administered by the 
Department for all programs, services, func-
tions, and activities (or portions thereof) 
that are made available to Indian tribes to 
carry out tribal transportation programs 
and programs, services, functions, and ac-
tivities (or portions thereof) administered 
by the Secretary that are otherwise avail-
able to Indian tribes. 
‘‘(ii) TRANSFERS OF STATE FUNDS.— 
‘‘(I) INCLUSION OF TRANSFERRED 
FUNDS
IN
FUNDING
AGREEMENT.—A 
funding agreement entered into with 
an Indian tribe shall include Federal- 
aid funds apportioned to a State under 
chapter 1 if the State elects to provide 
a portion of such funds to the Indian 
tribe for a project eligible under section 
202(b). 
‘‘(II) METHOD FOR TRANSFERS.— 
If a State elects to provide funds de-
scribed in subclause (I) to an Indian 
tribe, the State shall transfer the funds 
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back to the Secretary and the Secretary 
shall transfer the funds to the Indian 
tribe in accordance with this section. 
‘‘(III) 
RESPONSIBILITY
FOR 
TRANSFERRED
FUNDS.—Notwith-
standing any other provision of law, if 
a State provides funds described in 
subclause (I) to an Indian tribe— 
‘‘(aa) the State shall not be 
responsible for constructing or 
maintaining a project carried out 
using the funds or for admin-
istering or supervising the project 
or funds during the applicable 
statute of limitations period re-
lated to the construction of the 
project; and 
‘‘(bb) the Indian tribe shall 
be responsible for constructing 
and maintaining a project carried 
out using the funds and for ad-
ministering and supervising the 
project and funds in accordance 
with this section during the appli-
cable statute of limitations period 
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208 
related to the construction of the 
project. 
‘‘(B) 
ADMINISTRATION
OF
TRIBAL 
SHARES.—The tribal shares referred to in sub-
paragraph (A) shall be provided without regard 
to the agency or office of the Department within 
which the program, service, function, or activity 
(or portion thereof) is performed. 
‘‘(C) FLEXIBLE
AND
INNOVATIVE
FINANC-
ING.— 
‘‘(i) IN GENERAL.—A funding agree-
ment entered into with an Indian tribe 
under paragraph (1) shall include provi-
sions pertaining to flexible and innovative 
financing if agreed upon by the parties. 
‘‘(ii) TERMS AND CONDITIONS.— 
‘‘(I) AUTHORITY TO ISSUE REGU-
LATIONS.—The Secretary may issue 
regulations to establish the terms and 
conditions relating to the flexible and 
innovative financing provisions re-
ferred to in clause (i). 
‘‘(II) TERMS AND CONDITIONS IN 
ABSENCE
OF
REGULATIONS.—If the 
Secretary does not issue regulations 
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under subclause (I), the terms and con-
ditions relating to the flexible and in-
novative financing provisions referred 
to in clause (i) shall be consistent 
with— 
‘‘(aa) 
agreements 
entered 
into by the Department under sec-
tion 202(c)(8) before the date of 
enactment of the American En-
ergy and Infrastructure Jobs Act 
of 2012; or 
‘‘(bb) regulations of the De-
partment of the Interior relating 
to flexible financing contained in 
part 170 of title 25, Code of Fed-
eral Regulations, as in effect on 
the date of enactment of such Act. 
‘‘(3) 
DISCRETIONARY
AND
COMPETITIVE 
GRANTS.—Notwithstanding any other provision of 
law, an Indian tribe shall be eligible to directly apply 
for and receive the discretionary and competitive 
grants made available under transportation programs 
that States or political subdivisions of States are eli-
gible to apply for and receive. 
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210 
‘‘(4) TERMS.—A funding agreement shall set 
forth— 
‘‘(A) terms that generally identify the pro-
grams, services, functions, and activities (or por-
tions thereof) to be performed or administered by 
the Indian tribe; and 
‘‘(B) for items identified in subparagraph 
(A)— 
‘‘(i) the general budget category as-
signed; 
‘‘(ii) the funds to be provided, includ-
ing those funds to be provided on a recur-
ring basis; 
‘‘(iii) the time and method of transfer 
of the funds; 
‘‘(iv) the responsibilities of the Sec-
retary and the Indian tribe; and 
‘‘(v) any other provision agreed to by 
the Indian tribe and the Secretary. 
‘‘(5) SUBSEQUENT FUNDING AGREEMENTS.— 
‘‘(A) APPLICABILITY OF EXISTING AGREE-
MENT.—Absent notification from an Indian tribe 
that the Indian tribe is withdrawing from or ret-
roceding the operation of one or more programs, 
services, functions, or activities (or portions 
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211 
thereof) identified in a funding agreement, or 
unless otherwise agreed to by the parties, each 
funding agreement shall remain in full force and 
effect until a subsequent funding agreement is ex-
ecuted. 
‘‘(B) EFFECTIVE
DATE
OF
SUBSEQUENT 
AGREEMENT.—The terms of the subsequent fund-
ing agreement shall be retroactive to the end of 
the term of the preceding funding agreement. 
‘‘(6) CONSENT OF INDIAN TRIBE REQUIRED.— 
The Secretary shall not revise, amend, or require ad-
ditional terms in a new or subsequent funding agree-
ment without the consent of the Indian tribe that is 
subject to the agreement unless such terms are re-
quired by Federal law. 
‘‘(e) GENERAL PROVISIONS.— 
‘‘(1) REDESIGN AND CONSOLIDATION.— 
‘‘(A) IN
GENERAL.—An Indian tribe, in 
any manner that the Indian tribe considers to be 
in the best interest of the Indian community 
being served, may— 
‘‘(i) redesign or consolidate programs, 
services, functions, and activities (or por-
tions thereof) included in a funding agree-
ment; and 
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230 
(j) REIMBURSEMENT FOR SEGMENTS OF THE INTER-
STATE SYSTEM CONSTRUCTED WITHOUT FEDERAL ASSIST-
ANCE.—Section 160, and the item relating to that section 
in the analysis for chapter 1, are repealed. 
(k) NATIONAL SCENIC BYWAYS PROGRAM.—Section 
162, and the item relating to that section in the analysis 
for chapter 1, are repealed. 
(l) INTER-AMERICAN HIGHWAY.—Section 212, and the 
item relating to that section in the analysis for chapter 2, 
are repealed. 
(m) DARIEN GAP HIGHWAY.—Section 216, and the 
item relating to that section in the analysis for chapter 2, 
are repealed. 
(n) STATE COORDINATORS.—Section 217 (as amended 
by this Act) is further amended— 
(1) by striking subsection (d); and 
(2) by redesignating subsections (e) through (j) 
as subsections (d) through (i), respectively. 
(o) ALASKA HIGHWAY.—Section 218 is amended— 
(1) in subsection (a)— 
(A) by striking the first 2 sentences; 
(B) in the third sentence— 
(i) by striking ‘‘, in addition to such 
funds,’’; and 
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