---
kind: "section"
citation: "23 U.S.C. § 106"
title: "23"
title_heading: "Highways"
number: "106"
heading: "Project approval and oversight"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/23/106"
units:
  - "Chapter 1 — Federal-Aid Highways"
---

# §106. Project approval and oversight

- (a) **In General.—**
  - (1) **Submission of plans, specifications, and estimates.—** Except as otherwise provided in this section, each [State transportation department](/usc/23/101.md?p=a-31) shall submit to the [Secretary](/usc/23/101.md?p=a-27) for approval such plans, specifications, and estimates for each proposed [project](/usc/23/101.md?p=a-20) as the [Secretary](/usc/23/101.md?p=a-27) may require.
  - (2) **Project agreement.—** The [Secretary](/usc/23/101.md?p=a-27) shall act on the plans, specifications, and estimates as soon as practicable after the date of their submission and shall enter into a formal [project agreement](/usc/23/101.md?p=a-21) with the [State transportation department](/usc/23/101.md?p=a-31) recipient formalizing the conditions of the [project](/usc/23/101.md?p=a-20) approval.
  - (3) **Contractual obligation.—** The execution of the [project agreement](/usc/23/101.md?p=a-21) shall be deemed a contractual obligation of the Federal Government for the payment of the Federal share of the cost of the [project](/usc/23/101.md?p=a-20).
  - (4) **Guidance.—** In taking action under this subsection, the [Secretary](/usc/23/101.md?p=a-27) shall be guided by section 109.
- (b) **Project Agreement.—**
  - (1) **Provision of state funds.—** The [project agreement](/usc/23/101.md?p=a-21) shall make provision for [State funds](/usc/23/101.md?p=a-29) required to pay the [State](/usc/23/101.md?p=a-28)’s non-Federal share of the cost of [construction](/usc/23/101.md?p=a-4) of the [project](/usc/23/101.md?p=a-20) (including payments made pursuant to a long-term concession agreement, such as availability payments) and to pay for [maintenance](/usc/23/101.md?p=a-13) of the [project](/usc/23/101.md?p=a-20) after completion of [construction](/usc/23/101.md?p=a-4).
  - (2) **Representations of state.—** If a part of the [project](/usc/23/101.md?p=a-20) is to be constructed at the expense of, or in cooperation with, political subdivisions of the [State](/usc/23/101.md?p=a-28), the [Secretary](/usc/23/101.md?p=a-27) may rely on representations made by the [State transportation department](/usc/23/101.md?p=a-31) with respect to the arrangements or agreements made by the [State transportation department](/usc/23/101.md?p=a-31) and appropriate local officials for ensuring that the non-Federal contribution will be provided under [paragraph (1)](#b-1).
- (c) **Assumption by States of Responsibilities of the Secretary.—**
  - (1) **NHS projects.—** For [projects](/usc/23/101.md?p=a-20) under this title that are on the [National Highway System](/usc/23/101.md?p=a-16), including [projects](/usc/23/101.md?p=a-20) on the [Interstate System](/usc/23/101.md?p=a-12), the [State](/usc/23/101.md?p=a-28) may assume the responsibilities of the [Secretary](/usc/23/101.md?p=a-27) under this title for design, plans, specifications, estimates, contract awards, and inspections with respect to the [projects](/usc/23/101.md?p=a-20) unless the [Secretary](/usc/23/101.md?p=a-27) determines that the assumption is not appropriate.
  - (2) **Non-nhs projects.—** For [projects](/usc/23/101.md?p=a-20) under this title that are not on the [National Highway System](/usc/23/101.md?p=a-16), the [State](/usc/23/101.md?p=a-28) shall assume the responsibilities of the [Secretary](/usc/23/101.md?p=a-27) under this title for design, plans, specifications, estimates, contract awards, and inspection of [projects](/usc/23/101.md?p=a-20), unless the [State](/usc/23/101.md?p=a-28) determines that such assumption is not appropriate.
  - (3) **Agreement.—** The [Secretary](/usc/23/101.md?p=a-27) and the [State](/usc/23/101.md?p=a-28) shall enter into an agreement relating to the extent to which the [State](/usc/23/101.md?p=a-28) assumes the responsibilities of the [Secretary](/usc/23/101.md?p=a-27) under this subsection.
  - (4) **Limitation on interstate projects.—**
    - (A) **In general.—** The [Secretary](/usc/23/101.md?p=a-27) shall not assign any responsibilities to a [State](/usc/23/101.md?p=a-28) for [projects](/usc/23/101.md?p=a-20) the [Secretary](/usc/23/101.md?p=a-27) determines to be in a high risk category, as defined under [subparagraph (B)](#c-4-B).
    - (B) **High risk categories.—** The [Secretary](/usc/23/101.md?p=a-27) may define the high risk categories under this subparagraph on a national basis, a [State](/usc/23/101.md?p=a-28)-by-[State](/usc/23/101.md?p=a-28) basis, or a national and [State](/usc/23/101.md?p=a-28)-by-[State](/usc/23/101.md?p=a-28) basis, as determined to be appropriate by the [Secretary](/usc/23/101.md?p=a-27).
- (d) **Responsibilities of the Secretary.—** Nothing in this section, [section 133](/usc/23/133.md), or [section 149](/usc/23/149.md) shall affect or discharge any responsibility or obligation of the [Secretary](/usc/23/101.md?p=a-27) under—
  - (1) section [113](/usc/23/113.md) or [114](/usc/23/114.md); or
  - (2) any Federal law other than this title (including [section 5333 of title 49](/usc/49/5333.md)).
- (e) **Value Engineering Analysis.—**
  - (1) **Definition of value engineering analysis.—**
    - (A) **In general.—** In this subsection, the term “value engineering analysis” means a systematic process of review and analysis of a [project](/usc/23/101.md?p=a-20), during the planning and design phases, by a multidisciplinary team of persons not involved in the [project](/usc/23/101.md?p=a-20), that is conducted to provide recommendations such as those described in [subparagraph (B)](#e-1-B) for—
      - (i) providing the needed functions safely, reliably, and at the lowest overall lifecycle cost;
      - (ii) improving the value and quality of the [project](/usc/23/101.md?p=a-20); and
      - (iii) reducing the time to complete the [project](/usc/23/101.md?p=a-20).
    - (B) **Inclusions.—** The recommendations referred to in [subparagraph (A)](#e-1-A) include, with respect to a [project](/usc/23/101.md?p=a-20)—
      - (i) combining or eliminating otherwise inefficient use of costly parts of the original proposed design for the [project](/usc/23/101.md?p=a-20); and
      - (ii) completely redesigning the [project](/usc/23/101.md?p=a-20) using different technologies, materials, or methods so as to accomplish the original purpose of the [project](/usc/23/101.md?p=a-20).
  - (2) **Analysis.—** The [State](/usc/23/101.md?p=a-28) shall provide a value engineering analysis for—
    - (A) each [project](/usc/23/101.md?p=a-20) on the [National Highway System](/usc/23/101.md?p=a-16) receiving Federal assistance with an estimated total cost of $50,000,000 or more;
    - (B) a bridge [project](/usc/23/101.md?p=a-20) on the [National Highway System](/usc/23/101.md?p=a-16) receiving Federal assistance with an estimated total cost of $40,000,000 or more; and
    - (C) any other [project](/usc/23/101.md?p=a-20) the [Secretary](/usc/23/101.md?p=a-27) determines to be appropriate.
  - (3) **Major projects.—** The [Secretary](/usc/23/101.md?p=a-27) may require more than 1 analysis described in [paragraph (2)](#e-2) for a major [project](/usc/23/101.md?p=a-20) described in [subsection (h)](#h).
  - (4) **Requirements.—**
    - (A) **Value engineering program.—** The [State](/usc/23/101.md?p=a-28) shall develop and carry out a value engineering program that—
      - (i) establishes and documents value engineering program policies and procedures;
      - (ii) ensures that the required value engineering analysis is conducted before completing the final design of a [project](/usc/23/101.md?p=a-20);
      - (iii) ensures that the value engineering analysis that is conducted, and the recommendations developed and implemented for each [project](/usc/23/101.md?p=a-20), are documented in a final value engineering report; and
      - (iv) monitors, evaluates, and annually submits to the [Secretary](/usc/23/101.md?p=a-27) a report that describes the results of the value analyses that are conducted and the recommendations implemented for each of the [projects](/usc/23/101.md?p=a-20) described in [paragraph (2)](#e-2) that are completed in the [State](/usc/23/101.md?p=a-28).
    - (B) **Bridge projects.—** The value engineering analysis for a bridge [project](/usc/23/101.md?p=a-20) under [paragraph (2)](#e-2) shall—
      - (i) include bridge superstructure and substructure requirements based on [construction](/usc/23/101.md?p=a-4) material; and
      - (ii) be evaluated by the [State](/usc/23/101.md?p=a-28)—
        - (I) on engineering and economic bases, taking into consideration acceptable designs for bridges; and
        - (II) using an analysis of lifecycle costs and duration of [project](/usc/23/101.md?p=a-20) [construction](/usc/23/101.md?p=a-4).
  - (5) **Design-build projects.—** A requirement to provide a value engineering analysis under this subsection shall not apply to a [project](/usc/23/101.md?p=a-20) delivered using the design-build method of [construction](/usc/23/101.md?p=a-4).
- (f) **Life-Cycle Cost Analysis.—**
  - (1) **Use of life-cycle cost analysis.—** The [Secretary](/usc/23/101.md?p=a-27) shall develop recommendations for the [States](/usc/23/101.md?p=a-28) to conduct life-cycle cost analyses. The recommendations shall be based on the principles contained in section 2 of Executive Order No. 12893 and shall be developed in consultation with the American Association of [State](/usc/23/101.md?p=a-28) [Highway](/usc/23/101.md?p=a-11) and Transportation Officials. The [Secretary](/usc/23/101.md?p=a-27) shall not require a [State](/usc/23/101.md?p=a-28) to conduct a life-cycle cost analysis for any [project](/usc/23/101.md?p=a-20) as a result of the recommendations required under this subsection.
  - (2) **Life-cycle cost analysis defined.—** In this subsection, the term “life-cycle cost analysis” means a process for evaluating the total economic worth of a usable [project](/usc/23/101.md?p=a-20) segment by analyzing initial costs and discounted future costs, such as [maintenance](/usc/23/101.md?p=a-13), user costs, reconstruction, rehabilitation, restoring, and resurfacing costs, over the life of the [project](/usc/23/101.md?p=a-20) segment.
- (g) **Oversight Program.—**
  - (1) **Establishment.—**
    - (A) **In general.—** The [Secretary](/usc/23/101.md?p=a-27) shall establish an oversight program to monitor the effective and efficient use of funds authorized to carry out this title.
    - (B) **Minimum requirement.—** At a minimum, the program shall be responsive to all areas relating to financial integrity and [project](/usc/23/101.md?p=a-20) delivery.
  - (2) **Financial integrity.—**
    - (A) **Financial management systems.—** The [Secretary](/usc/23/101.md?p=a-27) shall perform annual reviews that address elements of the [State transportation departments](/usc/23/101.md?p=a-31)’ financial management systems that affect [projects](/usc/23/101.md?p=a-20) approved under [subsection (a)](#a).
    - (B) **Project costs.—** The [Secretary](/usc/23/101.md?p=a-27) shall develop minimum standards for estimating [project](/usc/23/101.md?p=a-20) costs and shall periodically evaluate the practices of [States](/usc/23/101.md?p=a-28) for estimating [project](/usc/23/101.md?p=a-20) costs, awarding contracts, and reducing [project](/usc/23/101.md?p=a-20) costs.
  - (3) **Project delivery.—**
    - (A) **In general.—** The [Secretary](/usc/23/101.md?p=a-27) shall perform reviews that address elements of the [project](/usc/23/101.md?p=a-20) delivery system of a [State](/usc/23/101.md?p=a-28), which elements include one or more activities that are involved in the life cycle of a [project](/usc/23/101.md?p=a-20) from conception to completion of the [project](/usc/23/101.md?p=a-20).
    - (B) **Frequency.—**
      - (i) **In general.—** Except as provided in clauses [(ii)](#g-3-B-ii) and [(iii)](#g-3-B-iii), the [Secretary](/usc/23/101.md?p=a-27) shall carry out a review under [subparagraph (A)](#g-3-A) not less frequently than once every 2 years.
      - (ii) **Consultation with state.—** The [Secretary](/usc/23/101.md?p=a-27), after consultation with a [State](/usc/23/101.md?p=a-28), may make a determination to carry out a review under [subparagraph (A)](#g-3-A) for that [State](/usc/23/101.md?p=a-28) less frequently than provided under [clause (i)](#g-3-B-i).
      - (iii) **Cause.—** If the [Secretary](/usc/23/101.md?p=a-27) determines that there is a specific reason to require a review more frequently than provided under [clause (i)](#g-3-B-i) with respect to a [State](/usc/23/101.md?p=a-28), the [Secretary](/usc/23/101.md?p=a-27) may carry out a review more frequently than provided under that clause.
  - (4) **Responsibility of the states.—**
    - (A) **In general.—** The [States](/usc/23/101.md?p=a-28) shall be responsible for determining that subrecipients of Federal funds under this title have—
      - (i) adequate [project](/usc/23/101.md?p=a-20) delivery systems for [projects](/usc/23/101.md?p=a-20) approved under this section; and
      - (ii) sufficient accounting controls to properly manage such Federal funds.
    - (B) **Periodic review.—** The [Secretary](/usc/23/101.md?p=a-27) shall periodically review the monitoring of subrecipients by the [States](/usc/23/101.md?p=a-28).
  - (5) **Specific oversight responsibilities.—**
    - (A) **Effect of section.—** Nothing in this section shall affect or discharge any oversight responsibility of the [Secretary](/usc/23/101.md?p=a-27) specifically provided for under this title or other Federal law.
    - (B) **Appalachian development highways.—** The [Secretary](/usc/23/101.md?p=a-27) shall retain full oversight responsibilities for the design and [construction](/usc/23/101.md?p=a-4) of all Appalachian development [highways](/usc/23/101.md?p=a-11) under [section 14501 of title 40](/usc/40/14501.md).
- (h) **Major Projects.—**
  - (1) **In general.—** Notwithstanding any other provision of this section, a recipient of Federal financial assistance for a [project](/usc/23/101.md?p=a-20) under this title with an estimated total cost of $500,000,000 or more, and recipients for such other [projects](/usc/23/101.md?p=a-20) as may be identified by the [Secretary](/usc/23/101.md?p=a-27), shall submit to the [Secretary](/usc/23/101.md?p=a-27) for each [project](/usc/23/101.md?p=a-20)—
    - (A) a [project](/usc/23/101.md?p=a-20) management plan; and
    - (B) an annual financial plan, including a phasing plan when applicable.
  - (2) **Project management plan.—** A [project](/usc/23/101.md?p=a-20) management plan shall document—
    - (A) the procedures and processes that are in effect to provide timely information to the [project](/usc/23/101.md?p=a-20) decisionmakers to effectively manage the scope, costs, schedules, and quality of, and the Federal requirements applicable to, the [project](/usc/23/101.md?p=a-20); and
    - (B) the role of the agency leadership and management team in the delivery of the [project](/usc/23/101.md?p=a-20).
  - (3) **Financial plan.—** A financial plan—
    - (A) shall be based on detailed estimates of the cost to complete the [project](/usc/23/101.md?p=a-20);
    - (B) shall provide for the annual submission of updates to the [Secretary](/usc/23/101.md?p=a-27) that are based on reasonable assumptions, as determined by the [Secretary](/usc/23/101.md?p=a-27), of future increases in the cost to complete the [project](/usc/23/101.md?p=a-20);
    - (C) may include a phasing plan that identifies fundable incremental improvements or phases that will address the purpose and the need of the [project](/usc/23/101.md?p=a-20) in the short term in the event there are insufficient financial resources to complete the entire [project](/usc/23/101.md?p=a-20). If a phasing plan is adopted for a [project](/usc/23/101.md?p=a-20) pursuant to this section, the [project](/usc/23/101.md?p=a-20) shall be deemed to satisfy the fiscal constraint requirements in the statewide and metropolitan planning requirements in sections [134](/usc/23/134.md) and [135](/usc/23/135.md);
    - (D) for a [project](/usc/23/101.md?p=a-20) in which the [project](/usc/23/101.md?p=a-20) sponsor intends to carry out the [project](/usc/23/101.md?p=a-20) through a public-private partnership agreement, shall include a detailed value for money analysis or similar comparative analysis for the [project](/usc/23/101.md?p=a-20); and
    - (E) shall assess the appropriateness of a public-private partnership to deliver the [project](/usc/23/101.md?p=a-20).
- (i) **Other Projects.—** A recipient of Federal financial assistance for a [project](/usc/23/101.md?p=a-20) under this title with an estimated total cost of $100,000,000 or more that is not covered by [subsection (h)](#h) shall prepare an annual financial plan. Annual financial plans prepared under this subsection shall be made available to the [Secretary](/usc/23/101.md?p=a-27) for review upon the request of the [Secretary](/usc/23/101.md?p=a-27).
- (j) **Use of Advanced Modeling Technologies.—**
  - (1) **Definition of advanced modeling technology.—** In this subsection, the term “advanced modeling technology” means an available or developing technology, including 3-dimensional digital modeling, that can—
    - (A) accelerate and improve the environmental review process;
    - (B) increase effective public participation;
    - (C) enhance the detail and accuracy of [project](/usc/23/101.md?p=a-20) designs;
    - (D) increase safety;
    - (E) accelerate [construction](/usc/23/101.md?p=a-4), and reduce [construction](/usc/23/101.md?p=a-4) costs; or
    - (F) otherwise expedite [project](/usc/23/101.md?p=a-20) delivery with respect to transportation [projects](/usc/23/101.md?p=a-20) that receive Federal funding.
  - (2) **Program.—** With respect to transportation [projects](/usc/23/101.md?p=a-20) that receive Federal funding, the [Secretary](/usc/23/101.md?p=a-27) shall encourage the use of advanced modeling technologies during environmental, planning, financial management, design, simulation, and [construction](/usc/23/101.md?p=a-4) processes of the [projects](/usc/23/101.md?p=a-20).
  - (3) **Activities.—** In carrying out [paragraph (2)](#j-2), the [Secretary](/usc/23/101.md?p=a-27) shall—
    - (A) compile information relating to advanced modeling technologies, including industry best practices with respect to the use of the technologies;
    - (B) disseminate to [States](/usc/23/101.md?p=a-28) information relating to advanced modeling technologies, including industry best practices with respect to the use of the technologies; and
    - (C) promote the use of advanced modeling technologies.
  - (4) **Comprehensive plan.—** The [Secretary](/usc/23/101.md?p=a-27) shall develop and publish on the public website of the Department of Transportation a detailed and comprehensive plan for the implementation of [paragraph (2)](#j-2).

## Source credit

(Pub. L. 85–767, Aug. 27, 1958, 72 Stat. 892; Pub. L. 88–157, § 7(a), Oct. 24, 1963, 77 Stat. 278; Pub. L. 91–605, title I, §§ 106(e), 142, Dec. 31, 1970, 84 Stat. 1717, 1737; Pub. L. 94–280, title I, § 114, May 5, 1976, 90 Stat. 436; Pub. L. 100–17, title I, § 133(b)(4), Apr. 2, 1987, 101 Stat. 171; Pub. L. 102–240, title I, §§ 1016(b), 1018(a), Dec. 18, 1991, 105 Stat. 1945, 1948; Pub. L. 104–59, title III, § 303, Nov. 28, 1995, 109 Stat. 578; Pub. L. 105–178, title I, § 1305(a)–(c), June 9, 1998, 112 Stat. 227–229; Pub. L. 109–59, title I, § 1904(a), Aug. 10, 2005, 119 Stat. 1465; Pub. L. 112–141, div. A, title I, § 1503(a), July 6, 2012, 126 Stat. 561; Pub. L. 114–94, div. A, title II, § 2002(b), Dec. 4, 2015, 129 Stat. 1446; Pub. L. 117–58, div. A, title I, §§ 11307(f), 11508(d)(1), Nov. 15, 2021, 135 Stat. 534, 587.)

## Notes

### Editorial Notes

### References in Text

Executive Order No. 12893, referred to in subsec. (f)(1), is set out as a note under section 501 of Title 31, Money and Finance.

### Amendments

2021—Subsec. (g)(3). Pub. L. 117–58, § 11307(f), designated existing provisions as subpar. (A) and inserted heading, struck out “annual” before “reviews”, and added subpar. (B).

Subsec. (h)(3)(D), (E). Pub. L. 117–58, § 11508(d)(1), added subpar. (D) and redesignated former subpar. (D) as (E).

2015—Subsec. (b)(1). Pub. L. 114–94 inserted “(including payments made pursuant to a long-term concession agreement, such as availability payments)” after “construction of the project”.

2012—Subsec. (a)(2). Pub. L. 112–141, § 1503(a)(1), inserted “recipient” before “formalizing”.

Subsec. (c)(1). Pub. L. 112–141, § 1503(a)(2)(A)(ii), (iii), substituted “, including projects on the Interstate System” for “but not on the Interstate System” and “with respect to the projects unless the Secretary determines that the assumption is not appropriate.” for “of projects unless the State or the Secretary determines that such assumption is not appropriate.”

Pub. L. 112–141, § 1503(a)(2)(A)(i), struck out “Non-interstate” before “nhs” in heading. Resulting initial word was editorially changed to “NHS” to conform to style of paragraph headings.

Subsec. (c)(4). Pub. L. 112–141, § 1503(a)(2)(B), added par. (4) and struck out former par. (4). Prior to amendment, text read as follows: “The Secretary may not assume any greater responsibility than the Secretary is permitted under this title on September 30, 1997, except upon agreement by the Secretary and the State.”

Subsec. (e)(1)(A). Pub. L. 112–141, § 1503(a)(3)(A)(i), substituted “planning” for “concept” and “multidisciplinary” for “multidisciplined” in introductory provisions.

Subsec. (e)(1)(A)(i). Pub. L. 112–141, § 1503(a)(3)(A)(ii), added cl. (i) and struck out former cl. (i) which read as follows: “providing the needed functions safely, reliably, and at the lowest overall cost;”.

Subsec. (e)(2). Pub. L. 112–141, § 1503(a)(3)(B)(i), struck out “or other cost-reduction analysis” after “engineering analysis” in introductory provisions.

Subsec. (e)(2)(A). Pub. L. 112–141, § 1503(a)(3)(B)(ii), substituted “National Highway System receiving Federal assistance” for “Federal-aid system” and “$50,000,000” for “$25,000,000”.

Subsec. (e)(2)(B). Pub. L. 112–141, § 1503(a)(3)(B)(iii), inserted “on the National Highway System receiving Federal assistance” after “a bridge project” and substituted “$40,000,000” for “$20,000,000”.

Subsec. (e)(4), (5). Pub. L. 112–141, § 1503(a)(3)(C), added pars. (4) and (5) and struck out former par. (4). Prior to amendment, text read as follows: “Analyses described in paragraph (1) for a bridge project shall—

“(A) include bridge substructure requirements based on construction material; and

“(B) be evaluated—

“(i) on engineering and economic bases, taking into consideration acceptable designs for bridges; and

“(ii) using an analysis of life-cycle costs and duration of project construction.”

Subsec. (h)(1)(B). Pub. L. 112–141, § 1503(a)(4)(A), inserted “, including a phasing plan when applicable” after “financial plan”.

Subsec. (h)(3). Pub. L. 112–141, § 1503(a)(4)(B), added par. (3) and struck out former par. (3). Prior to amendment, text read as follows: “A financial plan shall—

“(A) be based on detailed estimates of the cost to complete the project; and

“(B) provide for the annual submission of updates to the Secretary that are based on reasonable assumptions, as determined by the Secretary, of future increases in the cost to complete the project.”

Subsec. (j). Pub. L. 112–141, § 1503(a)(5), added subsec. (j).

2005—Subsec. (e). Pub. L. 109–59, § 1904(a)(1), added subsec. (e) and struck out heading and text of former subsec. (e). Text read as follows: “For such projects as the Secretary determines advisable, plans, specifications, and estimates for proposed projects on any Federal-aid highway shall be accompanied by a value engineering analysis or other cost reduction analysis.”

Subsecs. (g) to (i). Pub. L. 109–59, § 1904(a)(2), added subsecs. (g) to (i) and struck out former subsecs. (g) and (h) which related to establishment of a value engineering analysis program for projects with an estimated total cost of $25,000,000 or more and requirement that recipient of assistance for a project with an estimated total cost of $1,000,000,000 or more submit an annual financial plan for the project.

1998—Pub. L. 105–178, § 1305(a)(1), substituted “Project approval and oversight” for “Plans, specifications, and estimates” in section catchline.

Subsecs. (a) to (d). Pub. L. 105–178, § 1305(a)(3), added subsecs. (a) to (d) and struck out former subsecs. (a) to (d) which related to requirement for State highway departments to submit to Secretary for approval plans, specifications, and estimates for each proposed highway project, special rules relating to resurfacing, restoring, and rehabilitating projects on National Highway System, to low-cost National Highway System projects, and to non-National Highway System proj­ects, limitation on estimates for construction engineering, and provisions relating to value engineering or other cost reduction analysis.

Subsec. (e). Pub. L. 105–178, § 1305(a)(3), added subsec. (e). Former subsec. (e) redesignated (f).

Subsec. (f). Pub. L. 105–178, § 1305(c), added subsec. (f) and struck out former subsec. (f) which read as follows:

“(f) Life-Cycle Cost Analysis.—

“(1) Establishment.—The Secretary shall establish a program to require States to conduct an analysis of the life-cycle costs of each usable project segment on the National Highway System with a cost of $25,000,000 or more.

“(2) Analysis of the life-cycle costs defined.—In this subsection, the term ‘analysis of the life-cycle costs’ means a process for evaluating the total economic worth of a usable project segment by analyzing initial costs and discounted future costs, such as maintenance, reconstruction, rehabilitation, restoring, and resurfacing costs, over the life of the project segment.”

Pub. L. 105–178, § 1305(a)(2), redesignated subsec. (e) as (f). Former subsec. (f) redesignated (g).

Subsec. (g). Pub. L. 105–178, § 1305(a)(2), redesignated subsec. (f) as (g).

Subsec. (h). Pub. L. 105–178, § 1305(b), added subsec. (h).

1995—Subsecs. (e), (f). Pub. L. 104–59 added subsecs. (e) and (f).

1991—Subsec. (a). Pub. L. 102–240, § 1016(b)(1), inserted “this section and” before “section 117”.

Subsec. (b). Pub. L. 102–240, § 1016(b)(2), added subsec. (b) and struck out former subsec. (b) which read as follows: “In addition to the approval required under subsection (a) of this section, proposed specifications for projects for construction on (1) the Federal-aid secondary system, except in States where all public roads and highways are under the control and supervision of the State highway department, and (2) the Federal-aid urban system, shall be determined by the State highway department and the appropriate local road officials in cooperation with each other.”

Subsec. (c). Pub. L. 102–240, § 1018(a), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “Items included in any such estimate for construction engineering shall not exceed 15 percent of the total estimated cost of a project financed with Federal-aid highway funds, after excluding from such total estimate cost, the estimated costs of rights-of-way, preliminary engineering, and construction engineering.”

1987—Subsec. (c). Pub. L. 100–17 substituted “15 percent” for “10 per centum” and struck out at end “However, this limitation shall be 15 per centum in any State with respect to which the Secretary finds such higher limitation to be necessary.”

1976—Subsec. (c). Pub. L. 94–280 substituted “Federal-aid highway funds” for “Federal-aid primary, secondary, or urban funds” and “such total estimate cost” for “such total estimated cost” and struck out 10 per centum limitation for any project financed with interstate funds.

1970—Subsec. (b). Pub. L. 91–605, § 106(e), inserted reference to the Federal-aid urban system.

Subsec. (d). Pub. L. 91–605, § 142, added subsec. (d).

1963—Subsec. (c). Pub. L. 88–157 substituted “a proj­ect financed with Federal-aid primary, secondary, or urban funds” for “the project” and provided for limitation, on items included in estimates for construction engineering on projects financed with Federal-aid primary, secondary, or urban funds, of 15 percent of total estimated cost of the project where found by the Secretary to be necessary and for 10-percent limitation on projects financed with interstate funds.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2021 Amendment

Amendment by Pub. L. 117–58 effective Oct. 1, 2021, except as otherwise provided, see section 10003 of Pub. L. 117–58, set out as a note under section 101 of this title.

Amendment by section 11508(d)(1) of Pub. L. 117–58 only applicable to a public-private partnership agreement entered into on or after Nov. 15, 2021, see section 11508(e) of Pub. L. 117–58, set out in a Requirements for Transportation Projects Carried Out Through Public-Private Partnerships note below.

### Effective Date of 2015 Amendment

Amendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.

### Effective Date of 2012 Amendment

Amendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.

### Effective Date of 1991 Amendment

Amendment by Pub. L. 102–240 effective Dec. 18, 1991, and applicable to funds authorized to be appropriated or made available after Sept. 30, 1991, and, with certain exceptions, not applicable to funds appropriated or made available on or before Sept. 30, 1991, see section 1100 of Pub. L. 102–240, set out as a note under section 104 of this title.

### Improved Federal-State Stewardship and Oversight Agreements

Pub. L. 117–58, div. A, title I, § 11307(a)–(e), Nov. 15, 2021, 135 Stat. 532–534, provided that: Definition of Template.—In this section, the term ‘template’ means a template created by the Secretary [of Transportation] for Federal-State stewardship and oversight agreements that— includes all standard terms found in stewardship and oversight agreements, including any terms in an attachment to the agreement; is developed in accordance with section 106 of title 23, United States Code, or any other applicable authority; and may be developed with consideration of relevant regulations, guidance, or policies.Request for Comment.— In general.—Not later than 60 days after the date of enactment of this Act [Nov. 15, 2021], the Secretary shall publish in the Federal Register the template and a notice requesting public comment on ways to improve the template. Comment period.—The Secretary shall provide a period of not less than 60 days for public comment on the notice under paragraph (1). Certain issues.—The notice under paragraph (1) shall allow comment on any aspect of the template and shall specifically request public comment on— whether the template should be revised to delete standard terms requiring approval by the Secretary of the policies, procedures, processes, or manuals of the States, or other State actions, if Federal law (including regulations) does not specifically require an approval; opportunities to modify the template to allow adjustments to the review schedules for State practices or actions, including through risk-based approaches, program reviews, process reviews, or other means; and any other matters that the Secretary determines to be appropriate.Notice of Action; Updates.— In general.—Not later than 1 year after the date of enactment of this Act, after considering the comments received in response to the Federal Register notice under subsection (b), the Secretary shall publish in the Federal Register a notice that— describes any proposed changes to be made, and any alternatives to such changes, to the template; addresses comments in response to which changes were not made to the template; and prescribes a schedule and a plan to execute a process for implementing the changes referred to in subparagraph (A). Approval requirements.—In addressing comments under paragraph (1)(B), the Secretary shall include an explanation of the basis for retaining any requirement for approval of State policies, procedures, processes, or manuals, or other State actions, if Federal law (including regulations) does not specifically require the approval.Implementation.— In general.—Not later than 60 days after the date on which the notice under paragraph (1) is published, the Secretary shall make changes to the template in accordance with— the changes described in the notice under paragraph (1)(A); and the schedule and plan described in the notice under paragraph (1)(C). Updates.—Not later than 1 year after the date on which the revised template under subparagraph (A) is published, the Secretary shall update existing agreements with States according to the template updated under subparagraph (A). Inclusion of Non-standard Terms.—Nothing in this section precludes the inclusion in a Federal-State stewardship and oversight agreement of non-standard terms to address a State-specific matter, including risk-based stewardship and Department [of Transportation] oversight involvement in individual projects of division interest.Compliance With Non-statutory Terms.— In general.—The Secretary shall not enforce or otherwise require a State to comply with approval requirements that are not required by Federal law (including regulations) in a Federal-State stewardship and oversight agreement. Approval authority.—Notwithstanding any other provision of law, the Secretary shall not assert approval authority over any matter in a Federal-State stewardship and oversight agreement reserved to States.”

### Requirements for Transportation Projects Carried Out Through Public-Private Partnerships

Pub. L. 117–58, div. A, title I, § 11508, Nov. 15, 2021, 135 Stat. 587, provided that: Definitions.—In this section: Project.—The term ‘project’ means a project (as defined in section 101 of title 23, United States Code) that— is carried out, in whole or in part, using Federal financial assistance; and has an estimated total cost of $100,000,000 or more. Public-private partnership.—The term ‘public-private partnership’ means an agreement between a public agency and a private entity to finance, build, and maintain or operate a project. Requirements for Projects Carried Out Through Public-private Partnerships.—With respect to a public-private partnership, as a condition of receiving Federal financial assistance for a project, the Secretary [of Transportation] shall require the public partner, not later than 3 years after the date of opening of the project to traffic— to conduct a review of the project, including a review of the compliance of the private partner with the terms of the public-private partnership agreement; to certify to the Secretary that the private partner of the public-private partnership is meeting the terms of the public-private partnership agreement for the project; or to notify the Secretary that the private partner of the public-private partnership has not met 1 or more of the terms of the public-private partnership agreement for the project, including a brief description of each violation of the public-private partnership agreement; and to make publicly available the certification or notification, as applicable, under paragraph (2) in a form that does not disclose any proprietary or confidential business information. Notification.—If the Secretary provides Federal financial assistance to a project carried out through a public-private partnership, not later than 30 days after the date on which the Federal financial assistance is first obligated, the Secretary shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a notification of the Federal financial assistance made available for the project.Value for Money Analysis.— Project approval and oversight.— Surface transportation block grant program.— TIFIA.— Applicability.—This section and the amendments made by this section shall only apply to a public-private partnership agreement entered into on or after the date of enactment of this Act [Nov. 15, 2021].”

### Assumption of Authorities

Pub. L. 114–94, div. A, title I, § 1316, Dec. 4, 2015, 129 Stat. 1403, provided that: In General.—The Secretary [of Transportation] shall use the authority under section 106(c) of title 23, United States Code, to the maximum extent practicable, to allow a State to assume the responsibilities of the Secretary for project design, plans, specifications, estimates, contract awards, and inspection of projects, on both a project-specific and programmatic basis. Submission of Recommendations.—Not later than 18 months after the date of enactment of this Act [Dec. 4, 2015], the Secretary, in cooperation with the States, shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate recommendations for legislation to permit the assumption of additional authorities by States, including with respect to real estate acquisition and project design.”

### Consolidation of Grants

Pub. L. 112–141, div. A, title I, § 1527, July 6, 2012, 126 Stat. 581, provided that: Definitions.—In this section, the term ‘recipient’ means— a State, local, or tribal government, including— a territory of the United States; a transit agency; a port authority; a metropolitan planning organization; or any other political subdivision of a State or local government; a multistate or multijurisdictional group, if each member of the group is an entity described in paragraph (1); and a public-private partnership, if both parties are engaged in building the project.Consolidation.— In general.—A recipient that receives multiple grant awards from the Department [of Transportation] to support 1 multimodal project may request that the Secretary [of Transportation] designate 1 modal administration in the Department to be the lead administering authority for the overall project. New starts.—Any project that includes funds awarded under section 5309 of title 49, United States Code, shall be exempt from consolidation under this section unless the grant recipient requests the Federal Transit Administration to be the lead administering authority.Review.— In general.—Not later than 30 days after the date on which a request under paragraph (1) is made, the Secretary shall review the request and approve or deny the designation of a single modal administration as the lead administering authority and point of contact for the Department.Notification.— In general.—The Secretary shall notify the requestor of the decision of the Secretary under subparagraph (A) in such form and at such time as the Secretary and the requestor agree. Denial.—If a request is denied, the Secretary shall provide the requestor with a detailed explanation of the reasoning of the Secretary with the notification under clause (i).Duties.— In general.—A modal administration designated as a lead administering authority under this section shall— be responsible for leading and coordinating the integrated project management team, which shall consist of all of the other modal administrations in the Department [of Transportation] relating to the multimodal project; and to the extent feasible during the first 30 days of carrying out the multimodal project, identify overlapping or duplicative regulatory requirements that exist for the project and propose a single, streamlined approach to meeting all of the applicable regulatory requirements through the activities described in subsection (d).Administration.— In general.—The Secretary [of Transportation] shall transfer all amounts that have been awarded for the multimodal project to the modal administration designated as the lead administering authority.Option.— In general.—Participation under this section shall be optional for recipients, and no recipient shall be required to participate. Secretarial duties.—The Secretary is not required to identify every recipient that may be eligible to participate under this section.Cooperation.— In general.—The Secretary [of Transportation] and modal administrations with relevant jurisdiction over a multimodal project should cooperate on project review and delivery activities at the earliest practicable time. Purposes.—The purposes of the cooperation under paragraph (1) are— to avoid delays and duplication of effort later in the process; to prevent potential conflicts; and to ensure that planning and project development decisions are made in a streamlined manner and consistent with applicable law. Applicability.—Nothing in this section shall— supersede, amend, or modify the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or any other Federal environmental law; or affect the responsibility of any Federal officer to comply with or enforce any law described in paragraph (1).”

### Study of Value Engineering

Pub. L. 102–240, title I, § 1091, Dec. 18, 1991, 105 Stat. 2024, required the Secretary to study the effectiveness and benefits of value engineering review programs applied to Federal-aid highway projects and to report to Congress, no later than 1 year after Dec. 18, 1991, on the results of the study, including recommendations on how value engineering could be utilized and improved in Federal-aid highway projects.

### Modification of Project Agreements To Effectuate Requirement of Four-Lanes of Traffic

Pub. L. 89–574, § 5(b), Sept. 13, 1966, 80 Stat. 767, as amended by Pub. L. 97–449, § 2(a), Jan. 12, 1983, 96 Stat. 2439, authorized Secretary to modify project agreements entered into prior to Sept. 13, 1966, pursuant to section 106 of this title for purpose of effectuating amendment made by this section (amending section 109(b) of this title to add a requirement of four lanes of traffic) with respect to as much of National System of Interstate and Defense Highways [now Dwight D. Eisenhower System of Interstate and Defense Highways] as may be possible.