---
kind: "section"
citation: "49 C.F.R. § 29.418"
title: "49"
number: "29.418"
heading: "May a funding agreement include transfers of State funds?"
url: "https://uscodex.org/cfr/49/29.418"
---

# §29.418. May a funding agreement include transfers of State funds?

- (a) A State may elect to provide a portion of Federal-aid funds apportioned to the State under chapter 1 of title 23 of the U.S. Code to an eligible Tribe for a project eligible under [23 U.S.C. 202(a)](/usc/23/202.md?p=a).
- (b) If a State provides such funds, the transfer may occur in accordance with 23 U.S.C. [202(a)(9)](/usc/23/202.md?p=a-9), [23](/usc/23/23.md) U.S.C. 207(d)(2)(A)(ii), or the State may transfer the funds to the Department, and the Department will transfer the funds to the participating Tribe through the Tribe's funding agreement.
- (c) If a State provides such funds, the Tribe (and not the State) will be responsible for:
  - (1) Constructing and maintaining any projects carried out using the funds;
  - (2) Administering and supervising the projects and funds in accordance with [23 U.S.C. 207](/usc/23/207.md);
  - (3) **Complying with applicable post-construction requirements.**
- (d) The receipt of any State funds transferred at the election of a State to the Tribe pursuant to 23 U.S.C. [202(a)(9)](/usc/23/202.md?p=a-9), [23](/usc/23/23.md) U.S.C. 207(d)(2)(A)(ii), or funds awarded to a State pursuant to [49 U.S.C. 5311](/usc/49/5311.md) that are transferred at the election of a State to the Federal Transit Administration for the benefit of a Tribe does not entitle the Tribe to receive contract support costs under [25 U.S.C. 5325(a)](/usc/25/5325.md?p=a). While a Tribe is not entitled to additional funds for contract supports costs, a Tribe may use a portion of such State funds for overhead and administrative expenses if such costs are reasonable, allowable, and allocable in accordance with [2 CFR part 200](/cfr/2/part200.md) and the statutory and regulatory requirements applicable to the funding source.

## Notes

### Authority

Authority: 23 U.S.C. 207

### Source

Source: 85 FR 33504, June 1, 2020, unless otherwise noted.