212 
‘‘(ii) reallocate or redirect funds for 
such programs, services, functions, and ac-
tivities (or portions thereof), if the funds 
are— 
‘‘(I) expended on projects identi-
fied in a transportation improvement 
program approved by the Secretary; 
and 
‘‘(II) used in accordance with ap-
propriations Acts and other applicable 
statutory limitations. 
‘‘(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), if, pursuant to subsection (d), an 
Indian tribe receives a discretionary or competi-
tive grant from the Secretary or receives State 
apportioned funds, the Indian tribe shall use the 
funds for the purpose for which the funds were 
originally authorized. 
‘‘(2) RETROCESSION.— 
‘‘(A) IN GENERAL.— 
‘‘(i) AUTHORITY OF INDIAN TRIBES.— 
An Indian tribe may retrocede (fully or 
partially) to the Secretary programs, serv-
ices, functions, or activities (or portions 
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213 
thereof) included in a compact or funding 
agreement. 
‘‘(ii) REASSUMPTION
OF
REMAINING 
FUNDS.—Following a retrocession described 
in clause (i), the Secretary may— 
‘‘(I) 
reassume 
the 
remaining 
funding associated with the retroceded 
programs, functions, services, and ac-
tivities (or portions thereof) included 
in the applicable compact or funding 
agreement; 
‘‘(II) out of such remaining funds, 
transfer funds associated with Depart-
ment of Interior programs, services, 
functions, or activities (or portions 
thereof) to the Secretary of the Interior 
to carry out transportation services 
provided by the Secretary of the Inte-
rior; and 
‘‘(III) distribute funds not trans-
ferred under subclause (II) in accord-
ance with applicable law. 
‘‘(iii) CORRECTION OF PROGRAMS.—If 
the Secretary makes a finding under sub-
section (f)(2)(B) and no funds are available 
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214 
under subsection (f)(2)(A)(ii), the Secretary 
shall not be required to provide additional 
funds to complete or correct any programs, 
functions, or activities (or portions thereof). 
‘‘(B) EFFECTIVE DATE.—Unless the Indian 
tribe rescinds a request for retrocession, the ret-
rocession shall become effective within the time-
frame specified by the parties in the compact or 
funding agreement. In the absence of such a spec-
ification, the retrocession shall become effective 
on— 
‘‘(i) the earlier of— 
‘‘(I) 1 year after the date of sub-
mission of the request; or 
‘‘(II) the date on which the fund-
ing agreement expires; or 
‘‘(ii) such date as may be mutually 
agreed upon by the parties and, with re-
spect to Department of the Interior pro-
grams, functions, services, and activities (or 
portions thereof), the Secretary of the Inte-
rior. 
‘‘(f) PROVISIONS RELATING TO THE SECRETARY.— 
‘‘(1) DECISIONMAKER.—A decision that con-
stitutes a final agency action and relates to an appeal 
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215 
of the rejection of a final offer by the Department 
shall be made either— 
‘‘(A) by an official of the Department who 
holds a position at a higher organizational level 
within the Department than the level of the de-
partmental agency in which the decision that is 
the subject of the appeal was made; or 
‘‘(B) by an administrative judge. 
‘‘(2) TERMINATION
OF
COMPACT
OR
FUNDING 
AGREEMENT.— 
‘‘(A) AUTHORITY TO TERMINATE.— 
‘‘(i) PROVISION TO BE INCLUDED IN 
COMPACT
OR
FUNDING
AGREEMENT.—A 
compact or funding agreement shall include 
a provision authorizing the Secretary, if the 
Secretary makes a finding described in sub-
paragraph (B), to— 
‘‘(I) terminate the compact or 
funding agreement (or a portion there-
of); and 
‘‘(II) reassume the remaining 
funding associated with the reassumed 
programs, functions, services, and ac-
tivities included in the compact or 
funding agreement. 
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216 
‘‘(ii) TRANSFERS OF FUNDS.—Out of 
any funds reassumed under clause (i)(II), 
the Secretary may transfer the funds associ-
ated with Department of the Interior pro-
grams, functions, services, and activities (or 
portions thereof) to the Secretary of the In-
terior to provide continued transportation 
services in accordance with applicable law. 
‘‘(B) FINDINGS
RESULTING
IN
TERMI-
NATION.—The finding referred to in subpara-
graph (A) is a specific finding of— 
‘‘(i) imminent jeopardy to a trust 
asset, natural resources, or public health 
and safety that is caused by an act or omis-
sion of the Indian tribe and that arises out 
of a failure to carry out the compact or 
funding agreement, as determined by the 
Secretary; or 
‘‘(ii) gross mismanagement with re-
spect to funds or programs transferred to 
the Indian tribe under the compact or fund-
ing agreement, as determined by the Sec-
retary in consultation with the Inspector 
General of the Department, as appropriate. 
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217 
‘‘(C) PROHIBITION.—The Secretary shall 
not terminate a compact or funding agreement 
(or portion thereof) unless— 
‘‘(i) the Secretary has first provided 
written notice and a hearing on the record 
to the Indian tribe that is subject to the 
compact or funding agreement; and 
‘‘(ii) the Indian tribe has not taken 
corrective action to remedy the mismanage-
ment of funds or programs or the imminent 
jeopardy to a trust asset, natural resource, 
or public health and safety. 
‘‘(D) EXCEPTION.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraph (C), the Secretary, upon 
written notification to an Indian tribe that 
is subject to a compact or funding agree-
ment, may immediately terminate the com-
pact or funding agreement (or portion 
thereof) if— 
‘‘(I) the Secretary makes a find-
ing of imminent substantial and irrep-
arable jeopardy to a trust asset, nat-
ural resource, or public health and 
safety; and 
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