Title 23 › CHAPTER 2 — OTHER HIGHWAYS › § 207
Creates a tribal transportation self-governance program run by the Secretary of Transportation. Tribes can join if their governing body asks and if they show three prior fiscal years of financial stability, good financial controls, and the ability to run transportation projects. If a tribe’s annual audits have had no uncorrected major problems for those three years, that proves the financial requirement. The Secretary must make a written government-to-government compact with an eligible tribe. The compact explains the basic relationship and can be changed only if both sides agree. After a compact, the Secretary must make an annual funding agreement with the tribe. That agreement lets the tribe plan, run, combine, and receive full tribal shares of formula funds, tribal transit funds, and discretionary or competitive grants that the Department gives tribes. It can include State funds if the State chooses to give them, and those funds can be passed either through the State or returned to the Secretary to pass to the tribe. If a State gives such funds, the tribe—not the State—must build, run, and maintain the project and manage the money during the relevant statute of limitations period. Funding agreements must list what the tribe will do, budget categories, funds provided (including recurring funds), timing and method of transfers, and each party’s duties. Unless a tribe says it will leave a program, each funding agreement stays in effect until a new one is signed, and the new agreement’s terms apply back to the end of the previous term. The Secretary cannot add or change terms in a new agreement without the tribe’s consent unless a Federal law requires it. A tribe may redesign or combine programs and move funds around if projects are in a Secretary-approved transportation improvement program and the money is used under appropriation rules, this title, chapter 53 of title 49, and other law. If funds were given for a specific discretionary purpose or are State-apportioned funds, they must be used for that original purpose. A tribe may give back (retrocede) programs to the Secretary; the Secretary may reassume funds and, where appropriate, pass funds for Interior programs to the Secretary of the Interior. If the Secretary finds imminent danger to a trust asset, natural resource, or public health and safety caused by the tribe, or gross mismanagement of funds, the Secretary may terminate a compact or agreement after notice and a hearing. For immediate and serious danger, the Secretary may end an agreement right away but must give a recorded hearing within 10 days. The Secretary carries the burden to prove termination grounds by clear and convincing evidence. Tribes must follow OMB cost rules when using funds, as modified by section 106 of the Indian Self-Determination and Education Assistance Act or other law. Construction work must meet approved construction standards and will be monitored. The Secretary must interpret laws and rules to help include and carry out programs and may allow tribes to ask for waivers of regulations; the Secretary must approve or deny waiver requests within 90 days or they are deemed approved. The Secretary must start rulemaking within 90 days of the FAST Act, publish proposed rules within 42 months, and the rulemaking authority ends after 48 months unless an extension of up to 180 days is granted. A negotiated rulemaking committee will include only federal and tribal government members, with a majority nominated by tribes with funding agreements. Not having formal Department rules does not stop the program, and tribes are not bound by Department circulars, policies, manuals, or guidance unless they agree to them in their compact or funding agreement. Definitions (one line each): Compact — the written government-to-government agreement. Department — the Department of Transportation. Eligible Indian tribe — a tribe that meets the program’s eligibility rules. Funding agreement — the yearly funding and work agreement. Indian tribe — a federally recognized tribe or an authorized tribe/consortium doing work for another tribe. Program — the tribal transportation self-governance program. Secretary — the Secretary of Transportation. Transportation programs — all Department programs under this title and chapter 53 of title 49.
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Highways, Source: USLM XML via OLRC
Legislative History
Reference
Citation
23 U.S.C. § 207
Title 23, Highways
Last Updated
Sep 22, 2026
Release point: 119-110