‘‘(G) operation of educational programs to
promote safety and environmental protection as
those objectives relate to the use of recreational
trails, but in an amount not to exceed 5 percent
of the apportionment made to the State for the
fiscal year; and
‘‘(H) payment of costs to the State in-
curred in administering the program, but in an
amount not to exceed 7 percent of the appor-
tionment made to the State for the fiscal year
to carry out this section.’’.
(c) USE OF APPORTIONMENTS.—Section 206(d)(3)
of such title is amended—
(1) by striking subparagraph (C);
(2) by redesignating subparagraph (D) as sub-
paragraph (C); and
(3) in subparagraph (C) (as so redesignated) by
striking ‘‘(2)(F)’’ and inserting ‘‘(2)(H)’’.
(d) FEDERAL SHARE.—Section 206(f) of such title
is amended—
(1) in paragraph (1)—
(A) by inserting ‘‘and the Federal share of
the administrative costs of a State’’ after
‘‘project’’; and
(B) by striking ‘‘not exceed 80 percent’’
and inserting ‘‘be determined in accordance
with section 120(b)’’;
(2) in paragraph (2)(A) by striking ‘‘80 percent
of’’ and inserting ‘‘the amount determined in accord-
ance with section 120(b) for’’;
(3) in paragraph (2)(B) by inserting ‘‘spon-
soring the project’’ after ‘‘Federal agency’’;
(4) by striking paragraph (5);
(5) by redesignating paragraph (4) as para-
graph (5);
(6) in paragraph (5) (as so redesignated) by
striking ‘‘80 percent’’ and inserting ‘‘the Federal
share as determined in accordance with section
120(b)’’; and
(7) by inserting after paragraph (3) the fol-
lowing:
‘‘(4) USE OF RECREATIONAL TRAILS PROGRAM
FUNDS
TO
MATCH
OTHER
FEDERAL
PROGRAM
FUNDS.—Notwithstanding any other provision of
law, funds made available under this section may be
used toward the non-Federal matching share for
other Federal program funds that are—
‘‘(A) expended in accordance with the re-
quirements of the Federal program relating to
activities funded and populations served; and
‘‘(B) expended on a project that is eligible
for assistance under this section.’’.
(e) PLANNING AND ENVIRONMENTAL ASSESSMENT
COSTS INCURRED PRIOR TO PROJECT APPROVAL.—Sec-
tion 206(h)(1) of such title is amended by adding at the
end the following:
‘‘(C) PLANNING AND ENVIRONMENTAL AS-
SESSMENT COSTS INCURRED PRIOR TO PROJECT
APPROVAL.—The Secretary may allow pre-ap-
proval planning and environmental compliance
costs to be credited toward the non-Federal
share of the cost of a project described under
subsection (d)(2) (other than subparagraph (I))
in accordance with subsection (f), limited to
costs incurred less than 18 months prior to
project approval.’’.
(f) ENCOURAGEMENT OF USE OF YOUTH CONSERVA-
TION OR SERVICE CORPS.—The Secretary shall encourage
the States to enter into contracts and cooperative agree-
ments with qualified youth conservation or service corps
to perform construction and maintenance of recreational
trails under section 206 of title 23, United States Code.
SEC. 1120. FEDERAL LANDS HIGHWAYS.
(a) CONTRACTS
AND AGREEMENTS WITH INDIAN
TRIBES.—Section 202(d)(3) of title 23, United States
Code, is amended to read as follows:
‘‘(3) CONTRACTS AND AGREEMENTS WITH IN-
DIAN TRIBES.—
‘‘(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 for a high-
way, road, bridge, parkway, or transit facility
project that is located on an Indian reservation
or provides access to the reservation or a com-
munity of the Indian tribe shall be made avail-
able, on the request of the Indian tribal govern-
ment, to the Indian tribal government for use
in carrying out, in accordance with the Indian
Self-Determination and Education Assistance
Act (25 U.S.C. 450 et seq.), contracts and
agreements for the planning, research, engi-
neering, and construction relating to such
project.
‘‘(B) EXCLUSION OF AGENCY PARTICIPA-
TION.—In accordance with subparagraph (A),
all funds for a project to which subparagraph
(A) applies shall be paid to the Indian tribal
government without regard to the organiza-
tional level at which the Department of the In-
terior has previously carried out, or the Depart-
ment of Transportation has previously carried
out under the Federal lands highway programs,
the programs, functions, services, or activities
involved.
‘‘(C) CONSORTIA.—Two or more Indian
tribes that are otherwise eligible to participate
in a project to which this title applies may form
a consortium to be considered as a single In-
dian tribe for the purpose of participating in
the project under this section.
‘‘(D) SECRETARY
AS
SIGNATORY.—Not-
withstanding any other provision of law, the
Secretary is authorized to enter into a funding
agreement with an Indian tribe or tribal gov-
ernment to carry out a highway, road, bridge,
parkway, or transit project under subparagraph
(A) that is located on an Indian reservation or
provides access to the reservation or a commu-
nity of the Indian tribe.
‘‘(E) FUNDING.—The amount an Indian
tribal government receives for a project under
subparagraph (A) shall equal the sum of the
funding that the Indian tribal government
would otherwise receive for the project in ac-
cordance with the funding formula established
under this subsection and such additional
amount as the Secretary determines equal the
amounts that would have been withheld for the
costs of the Bureau of Indian Affairs for ad-
ministration of the project.
‘‘(F) ELIGIBILITY.—An Indian tribal gov-
ernment may receive funding under subpara-
graph (A) for a project in a fiscal year if the
Indian tribal government demonstrates to the
satisfaction of the Secretary financial stability
and financial management capability as dem-
onstrated in the annual auditing required under
the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450 et seq.) and,
during the preceding fiscal year, had no uncor-
rected significant and material audit exceptions
in the required annual audit of the Indian
tribe’s self-determination contracts or self-gov-
ernance funding agreements with any Federal
agency.
‘‘(G) ASSUMPTION OF FUNCTIONS AND DU-
TIES.—An Indian tribal government receiving
funding under subparagraph (A) for a project
shall assume all functions and duties that the
Secretary of the Interior would have performed
with respect to projects under this chapter,
other than those functions and duties that in-
herently cannot be legally transferred under the
Indian Self-Determination and Education As-
sistance Act (25 U.S.C. 450b et seq.).
‘‘(H) POWERS.—An Indian tribal govern-
ment receiving funding under subparagraph (A)
for a project shall have all powers that the Sec-
retary of the Interior would have exercised in
administering the funds transferred to the In-
dian tribal government for such project under
this section if such funds had not been trans-
ferred, except to the extent that such powers
are powers that inherently cannot be legally
transferred under the Indian Self-Determina-
tion and Education Assistance Act (25 U.S.C.
450b et seq.).
‘‘(I) DISPUTE RESOLUTION.—In the event
of a disagreement between the Secretary of
Transportation or the Secretary of the Interior
and an Indian tribe over whether a particular
function, duty, or power may be lawfully trans-
ferred under the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b et
seq.), the Indian tribe shall have the right to
pursue all alternative dispute resolutions and
appeal procedures authorized by such Act, in-
cluding regulations issued to carry out such
Act.’’.
(b) ALASKA NATIVE VILLAGE INVENTORY.—Section
202(d)(2) of such title is amended by adding at the end
the following:
‘‘(E) ALASKA NATIVE ROAD INVENTORY.—
‘‘(i) IN
GENERAL.—For fiscal year
2005 and each fiscal year thereafter, any
allocation of sums authorized to be appro-
priated for Indian reservation roads in
Alaska shall be based on an inventory of
roads within the exterior boundaries of vil-
lage corporation land selected pursuant to
the Alaska Native Claims Settlement Act
(43 U.S.C. 1601 et seq.) that includes all
routes previously included in such an in-
ventory. The Secretary of Transportation
and the Secretary of the Interior may in-
clude, in the inventory of roads, those pro-
posed for inclusion by tribal village govern-
ments from among community streets
within the village and those proposed pri-
mary access routes for inclusion by tribal
village governments, including roads and
trails between villages (including links over
water), roads and trails to landfills, roads
and trails to drinking water sources, roads
and trails to natural resources identified
for economic development, and roads and
trails that provide access to intermodal ter-
mini, such as airports, harbors, or boat
landings.
‘‘(ii) LIMITATION ON PRIMARY ACCESS
ROUTES.—For purposes of this subpara-
graph, a proposed primary access route is
the shortest practicable route connecting 2
points of the proposed route.’’.
(c) 
BIA 
ADMINISTRATIVE
EXPENSES.—Section
202(d)(2) of such title is further amended by adding at
the end the following:
‘‘(F) ADMINISTRATIVE EXPENSES.—Of the
funds authorized to be appropriated for Indian
reservation roads, $27,000,000 for fiscal year
2006, $28,000,000 for fiscal year 2007,
$29,000,000 
for 
fiscal 
year 
2008, 
and
$30,000,000 for fiscal year 2009 may be used
by the Secretary of the Interior for program
management oversight and project-related ad-
ministrative expenses.’’.
(d) BRIDGE PRECONSTRUCTION ACTIVITIES ELIGI-
BILITY.—Section 202(d)(4)(B) of such title is amended by
adding at the end the following: ‘‘Of the amount reserved
under this paragraph for a fiscal year, not more than 15
percent may be used for preconstruction activities, such
as engineering and design.’’.
(e) GRANTS
FOR
FINANCING
TRANSPORTATION
DEBT.—Section 202(d)(2)(A) of such title is amended by
inserting before the period at the end the following: ‘‘; ex-
cept that, beginning October 1, 2004, the Secretary may
use up to 3 percent of such funds for making grants to
Indian tribes for the purpose of financing transportation
debt for individual Indian reservation roads subject to all
requirements governing Federal assistance for Indian
roads under this section and section 204’’.
(f) DEPUTY ASSISTANT SECRETARY OF TRANSPOR-
TATION
FOR TRIBAL GOVERNMENT AFFAIRS.—Section
102 of title 49, United States Code, is amended—
(1) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively; and
(2) by inserting after subsection (e) the fol-
lowing:
‘‘(f) DEPUTY ASSISTANT SECRETARY FOR TRIBAL
GOVERNMENT AFFAIRS.—The Department of Transpor-
tation shall have, within the office of the Secretary, a Dep-
uty Assistant Secretary for Tribal Government Affairs ap-
pointed by the President to plan, coordinate, and imple-
ment the Department of Transportation policy and pro-
grams serving Indian tribes and tribal organizations and
to coordinate tribal transportation programs and activities
in all offices and administrations of the Department and
to be a participant in any negotiated rulemaking related
to, or has impact on, projects, programs, or funding asso-
ciated with the tribal transportation program.’’.
(g) ALASKA
NATIVE
VILLAGE
TRANSPORTATION
PROGRAM.—
(1) 
ESTABLISHMENT.—Not 
later 
than 
months after the date of enactment of this Act, the
Secretary and the Denali Commission, in coordina-
tion with the Alaska Federation of Natives, shall es-
tablish an Alaska Native Village transportation pro-
gram to pay the costs of planning, design, construc-
tion, and maintenance of road and other surface