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Title 23, HighwaysRelease 119-110

§132 Payments on Federal-aid Projects Undertaken by a Federal Agency

Title 23 › CHAPTER 1 — FEDERAL-AID HIGHWAYS › § 132

Last updated Sep 22, 2026|Official source

Summary

A State can either tell the Secretary to send the federal share of a project directly to the federal agency doing the work, or the State can pay or deposit money with that federal agency to meet the State’s part of the agreement. When the State signs the project agreement, the Secretary may pay back the State, using any available funds, for the estimated federal share of what the State paid. If the State is paid back more than the federal share shown on the approved final voucher, the extra must be taken back and put into the same fund the federal payment came from.

Full Legal Text

Title 23, §132

Highways, Source: USLM XML via OLRC

(a)In General.—
In a case in which a proposed Federal-aid project is to be undertaken by a Federal agency in accordance with an agreement between a State and the Federal agency, the State may—
(1)direct the Secretary to transfer the funds for the Federal share of the project directly to the Federal agency; or
(2)make such deposit with, or payment to, the Federal agency as is required to meet the obligation of the State under the agreement for the work undertaken or to be undertaken by the Federal agency.
(b)Reimbursement.—
On execution with a State of a project agreement described in subsection (a), the Secretary may reimburse the State, using any available funds, for the estimated Federal share under this title of the obligation of the State deposited or paid under subsection (a)(2).
(c)Recovery and Crediting of Funds.—
Any sums reimbursed to the State under this section which may be in excess of the Federal pro rata share under the provisions of this title of the State’s share of the cost as set forth in the approved final voucher submitted by the State shall be recovered and credited to the same class of funds from which the Federal payment under this section was made.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2005—Pub. L. 109–59 designated third sentence as subsec. (c), inserted heading, and substituted subsecs. (a) and (b) for first and second sentences which read as follows: “Where a proposed Federal-aid project is to be undertaken by a Federal agency pursuant to an agreement between a State and such Federal agency and the State makes a deposit with or payment to such Federal agency as may be required in fulfillment of the State’s obligation under such agreement for the work undertaken or to be undertaken by such Federal agency, the Secretary, upon execution of a project agreement with such State for the proposed Federal-aid project, may reimburse the State out of the appropriate appropriations the estimated Federal share under the provisions of this title of the State’s obligation so deposited or paid by such State. Upon completion of such project and its acceptance by the Secretary, an adjustment shall be made in such Federal share payable on account of such project based on the final cost thereof.”

Reference

Citations & Metadata

Citation

23 U.S.C. § 132

Title 23, Highways

Last Updated

Sep 22, 2026

Release point: 119-110