Title 23 › CHAPTER 1 — FEDERAL-AID HIGHWAYS › § 173
Creates a competitive grant program to pay for surface transportation projects in rural areas (places outside urban areas of more than 200,000 people). The Secretary of Transportation must run the program to help improve connections, make travel safer and more reliable for people and freight, and support regional economies and quality of life. The Secretary may keep up to 2% of program funds to run the program and can move some of that money to other Administrators to help award and oversee grants. States, regional planning groups, local governments, Tribal governments or consortia, and multijurisdictional groups can apply. Applicants must send the form and details the Secretary asks for. Grants must fund eligible projects like highway, bridge, tunnel, freight, and safety work, projects that improve access to farming, commercial, energy, or intermodal sites, or projects that create mobility systems. Projects can be bundled if listed in the statewide transportation plan and awarded to one contractor. Grant money can pay for planning, design, construction, land, equipment, mitigation, and operations. Projects must show regional benefits, be cost effective, meet national goals under section 150, be based on preliminary engineering, and be likely to start construction within 18 months of funding. Grants must be at least $25,000,000 unless from the small-project pool. The Federal share is generally up to 80%, but certain Appalachian or Denali projects may be up to 100%. Each year the Secretary must set aside up to 10% for small projects, 25% for Appalachian routes, and 15% for States with above-average rural lane-departure fatalities; unused reserved funds can be reallocated. At least 60 days before awarding a grant, the Secretary must send proposed selections, justifications, and amounts to two Congressional committees; a joint resolution can block a grant during that 60-day review. Within 30 days after awards, the Secretary must publish the same information and offer briefings to unsuccessful applicants. The Department must post an annual list of funded projects, and the Comptroller General will review and report on the selection process. Projects funded under this program count as Federal-aid highway projects.
Full Legal Text
Highways, Source: USLM XML via OLRC
Legislative History
Reference
Citation
23 U.S.C. § 173
Title 23, Highways
Last Updated
Sep 22, 2026
Release point: 119-110