§2291 Federal Project Repayment District

Summary

The Secretary can sign a contract with a Federal Project Repayment District or other local government to pay or recover part of a project's costs before the project is built, run, improved, or financed. A Federal Project Repayment District covers the land and improvements that clearly benefit from the project. It must be set up under state law, have clear boundaries that can be changed if further benefit studies require it, and may use any cost‑recovery method allowed by the state that also meets the federal cost‑recovery rules. Before any contract is signed, the Secretary must get and approve a study from the State or local government showing the expected revenues will meet or exceed the federal cost‑recovery requirements over the repayment period.