Title 23 › Chapter CHAPTER 1— - FEDERAL-AID HIGHWAYS › § 123
States that pay to move utilities for a transportation project can be paid back with federal money in the same share as the federal share of the project. Federal money cannot be used if the payment would break State law or a State contract. The State must show the Secretary that it used State funds for such moves on projects with federal funds obligated after April 16, 1958. A State may do an early utility relocation before the full environmental review. Federal highway funds may later pay for that early work only if the Secretary finds the early move was necessary, the State documents eligible costs, an environmental review for the early move showed no significant harm and met federal rules, the early move did not affect the project’s environmental review, need, or design/location, the work followed laws and financial rules (including documentation and the requirements under section 109(l), except rules about authorizing or obligating federal funds), the project was in the transportation improvement program under sections 134 or 135, NEPA (National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)) for the project is complete, and the project is approved for construction. Other eligibility rules still apply. Definitions: cost of relocation = total the utility paid to move minus any increase in value of the new facility and any salvage from the old; early utility relocation project = moves the State does before the project’s environmental review is finished; environmental review process = the process named in section 139(a); transportation project = a project; utility facility = any public-serving line or system for things like power, water, gas, communications, street lights, or police/fire signals; utility relocation activity = work needed to move a utility (design, surveys, land, materials, construction). Other laws still apply, including section 138, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.), title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), and environmental review requirements.
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23 U.S.C. § 123
Title 23 — Highways
Last Updated
Apr 6, 2026
Release point: 119-73