---
kind: "section"
citation: "23 U.S.C. § 505"
title: "23"
title_heading: "Highways"
number: "505"
heading: "State planning and research"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/23/505"
units:
  - "Chapter 5 — Research, Technology, and Education"
---

# §505. State planning and research

- (a) **General Rule.—** Two percent of the sums apportioned to a [State](/usc/23/101.md?p=a-28) for fiscal year 1998 and each fiscal year thereafter under paragraphs [(1)](/usc/23/104.md?p=b-1) through [(5)](/usc/23/104.md?p=b-5) of section 104(b) shall be available for expenditure by the [State](/usc/23/101.md?p=a-28), in consultation with the [Secretary](/usc/23/101.md?p=a-27), only for the following purposes:
  - (1) Engineering and economic surveys and investigations.
  - (2) The planning of future [highway](/usc/23/101.md?p=a-11) programs and local public transportation systems and the planning of the financing of such programs and systems, including metropolitan and statewide planning under sections [134](/usc/23/134.md) and 135.
  - (3) Development and implementation of management systems, plans, and processes under sections [119](/usc/23/119.md), [148](/usc/23/148.md), [149](/usc/23/149.md), and 167.
  - (4) Studies of the economy, [safety](/usc/23/501.md?p=8), and convenience of surface transportation systems and the desirable regulation and equitable taxation of such systems.
  - (5) Research, development, and technology transfer activities necessary in connection with the planning, design, [construction](/usc/23/101.md?p=a-4), management, and [maintenance](/usc/23/101.md?p=a-13) of [highway](/usc/23/101.md?p=a-11), public transportation, and intermodal transportation systems.
  - (6) Study, research, and training on the engineering [standards](/usc/23/501.md?p=9) and [construction](/usc/23/101.md?p=a-4) materials for transportation systems described in [paragraph (5)](#a-5), including the evaluation and accreditation of inspection and testing and the regulation and taxation of their use.
  - (7) The conduct of activities relating to the planning of real-time monitoring elements.
- (b) **Minimum Expenditures on Research, Development, and Technology Transfer Activities.—**
  - (1) **In general.—** Subject to [paragraph (2)](#b-2), not less than 25 percent of the funds subject to [subsection (a)](#a) that are apportioned to a [State](/usc/23/101.md?p=a-28) for a fiscal year shall be expended by the [State](/usc/23/101.md?p=a-28) for research, development, and technology transfer activities described in [subsection (a)](#a), relating to [highway](/usc/23/101.md?p=a-11), public transportation, and intermodal transportation systems.
  - (2) **Waivers.—** The [Secretary](/usc/23/101.md?p=a-27) may waive the application of [paragraph (1)](#b-1) with respect to a [State](/usc/23/101.md?p=a-28) for a fiscal year if the [State](/usc/23/101.md?p=a-28) certifies to the [Secretary](/usc/23/101.md?p=a-27) for the fiscal year that total expenditures by the [State](/usc/23/101.md?p=a-28) for transportation planning under sections [134](/usc/23/134.md) and [135](/usc/23/135.md) will exceed 75 percent of the funds described in [paragraph (1)](#b-1) and the [Secretary](/usc/23/101.md?p=a-27) accepts such certification.
  - (3) **Nonapplicability of assessment.—** Funds expended under [paragraph (1)](#b-1) shall not be considered to be part of the extramural budget of the agency for the purpose of section 9 of the Small Business Act ([15 U.S.C. 638](/usc/15/638.md)).
- (c) **Implementation of Future Strategic Highway Research Program Findings and Results.—**
  - (1) **Funds.—** A [State](/usc/23/101.md?p=a-28) shall make available to the [Secretary](/usc/23/101.md?p=a-27) to carry out [section 503(c)(2)(C)](/usc/23/503.md?p=c-2-C) a percentage of funds subject to [subsection (a)](#a) that are apportioned to that [State](/usc/23/101.md?p=a-28), that is agreed to by ¾ of [States](/usc/23/101.md?p=a-28) for each of fiscal years 2013 and 2014.
  - (2) **Treatment of funds.—** Funds expended under [paragraph (1)](#c-1) shall not be considered to be part of the extramural budget of the agency for the purpose of section 9 of the Small Business Act ([15 U.S.C. 638](/usc/15/638.md)).
- (d) **Federal Share.—** The Federal share of the cost of a [project](/usc/23/501.md?p=7) carried out using funds subject to [subsection (a)](#a) shall be 80 percent unless the [Secretary](/usc/23/101.md?p=a-27) determines that the interests of the [Federal-aid highway](/usc/23/101.md?p=a-6) program would be best served by decreasing or eliminating the non-Federal share.
- (e) **Administration of Sums.—** Funds subject to [subsection (a)](#a) shall be combined and administered by the [Secretary](/usc/23/101.md?p=a-27) as a single fund and shall be available for obligation for the period described in [section 118(b)](/usc/23/118.md?p=b).

## Source credit

(Added Pub. L. 105–178, title V, § 5105, June 9, 1998, 112 Stat. 432; amended Pub. L. 109–59, title V, § 5205, Aug. 10, 2005, 119 Stat. 1795; Pub. L. 112–141, div. E, title II, § 52005, July 6, 2012, 126 Stat. 882; Pub. L. 114–94, div. A, title I, § 1104(e)(6), Dec. 4, 2015, 129 Stat. 1332.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 505, added Pub. L. 90–495, § 30, Aug. 23, 1968, 82 Stat. 831, related to highway relocation assistance payments, prior to repeal by Pub. L. 91–646, title II, § 220(a)(10), Jan. 2, 1971, 84 Stat. 1903.

### Amendments

2015—Subsec. (a). Pub. L. 114–94 substituted “through (5)” for “through (4)” in introductory provisions.

2012—Subsec. (a). Pub. L. 112–141, § 52005(1)(A), substituted “paragraphs (1) through (4) of section 104(b)” for “section 104 (other than sections 104(f) and 104(h)) and under section 144” in introductory provisions.

Subsec. (a)(3). Pub. L. 112–141, § 52005(1)(B), substituted “, plans, and processes under sections 119, 148, 149, and 167” for “under section 303”.

Subsecs. (c), (d). Pub. L. 112–141, § 52005(2), (3), added subsec. (c) and redesignated former subsec. (c) as (d). Former subsec. (d) redesignated (e).

Subsec. (e). Pub. L. 112–141, § 52005(2), (4), redesignated subsec. (d) as (e) and substituted “section 118(b)” for “section 118(b)(2)”.

2005—Subsec. (a)(7). Pub. L. 109–59, § 5205(1), added par. (7).

Subsec. (d). Pub. L. 109–59, § 5205(2), substituted “for the period described in section 118(b)(2)” for “for the same period as funds apportioned under section 104(b)(1)”.

### Statutory Notes and Related Subsidiaries

### 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.

### Alaska Highway Study

Pub. L. 87–866, § 13, Oct. 23, 1962, 76 Stat. 1149, as amended by Pub. L. 97–449, § 2(a), Jan. 12, 1983, 96 Stat. 2439, provided that: The Secretary of Transportation, in cooperation with the State of Alaska, is hereby authorized to make engineering studies and estimates and planning surveys relative to a highway construction program for the State of Alaska, and, in accordance with treaties or other agreements to be negotiated with Canada by the Secretary of State in consultation with the Secretary of Transportation, engineering studies, estimates, and planning surveys relative to connecting Alaskan roads with Canadian roads at the International boundary. On or before May 15, 1964, the Secretary of Transportation shall submit a report to the Congress which shall include— an analysis of the adequacy of the Federal-aid highway program to provide for a satisfactory program in both the populated and the undeveloped areas in Alaska; specific recommendations as to the construction of roads through undeveloped areas of Alaska and connection of such roads with Canadian roads at the International boundary; and a feasible program for implementing such specific recommendations, including cost estimates, recommendations as to the sharing of cost responsibilities, and other pertinent matters. From time to time, either before or after submission of the report provided for in subsection (b) of this section, the Secretary of Transportation may submit recommendations to the Congress with respect to the construction of particular highways to carry out the purposes of this section. Nothing in this section shall be construed as creating any obligation in the Congress, express or implied, to carry out the recommendations referred to in subsections (b) and (c). There is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, to be available until expended, the sum of $800,000 for the purpose of making the studies, surveys, and report authorized by subsections (a) and (b) hereof.”