‘‘(I) 
INCLUSION
OF
TRANS-
FERRED FUNDS IN FUNDING AGREE-
MENT.—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(a). 
‘‘(II) 
METHOD
FOR
TRANS-
FERS.—If a State elects to provide 
funds described in subclause (I) to an 
Indian tribe, the State shall transfer 
the funds 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 
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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 ap-
plicable statute of limitations pe-
riod 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 with-
in which the program, service, function, or ac-
tivity (or portion thereof) is performed. 
‘‘(C) FLEXIBLE AND INNOVATIVE FINANC-
ING.— 
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‘‘(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 
under subclause (I), the terms and 
conditions relating to the flexible and 
innovative financing provisions re-
ferred to in clause (i) shall be con-
sistent with— 
‘‘(aa) 
agreements 
entered 
into by the Department under— 
‘‘(AA) 
section 
202(d)(5), as in effect be-
fore the date of enactment 
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of MAP–21 (Public Law 
112–141); and 
‘‘(BB) 
section 
202(b)(7); or 
‘‘(bb) regulations of the De-
partment of the Interior relating 
to flexible financing contained in 
part 170 of title 25, Code of 
Federal Regulations, as in effect 
on the date of enactment of the 
Tribal Transportation Self-Gov-
ernance Act of 2015. 
‘‘(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 pro-
grams that States or political subdivisions of States 
are eligible to apply for and receive. 
‘‘(4) TERMS.—A funding agreement shall set 
forth— 
‘‘(A) terms that generally identify the pro-
grams, services, functions, and activities (or 
portions thereof) to be performed or adminis-
tered by the Indian tribe; and 
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‘‘(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 retroceding the operation of one or more pro-
grams, services, functions, or activities (or por-
tions 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 executed. 
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‘‘(B) EFFECTIVE
DATE
OF
SUBSEQUENT 
AGREEMENT.—The terms of the subsequent 
funding agreement shall be retroactive to the 
end of the term of the preceding funding agree-
ment. 
‘‘(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 
‘‘(ii) reallocate or redirect funds for 
such programs, services, functions, and ac-
tivities (or portions thereof), if the funds 
are— 
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