Title 23 — Highways
Chapter 1 — Federal-Aid Highways
§ 121. Payment to States for construction
Statutory text
In General.—
The Secretary, from time to time as the work progresses, may make payments to a State for costs of construction incurred by the State on a project (including payments made pursuant to a long-term concession agreement, such as availability payments). Such payments may also be made for the value of the materials—
that have been stockpiled in the vicinity of the construction in conformity to plans and specifications for the projects; and
that are not in the vicinity of the construction if the Secretary determines that because of required fabrication at an off-site location the material cannot be stockpiled in such vicinity.
Project Agreement.—
No payment shall be made under this chapter except for a project covered by a project agreement. After completion of the project in accordance with the project agreement, a State shall be entitled to payment out of the appropriate sums apportioned or allocated to the State of the unpaid balance of the Federal share payable for such project.
Such payments shall be made to such official or officials or depository as may be designated by the State transportation department and authorized under the laws of the State to receive public funds of the State.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 85–767 · 72 Stat. 885
Enacted · 23 U.S.C. § 121
Pub. L. 85–767, Aug. 27, 1958, 72 Stat. 899
Source evidence
Code source credit
Pub. L. 85–767, Aug. 27, 1958, 72 Stat. 899Federal-Aid Highway Amendments Act of 1963
Pub. L. 88–157 § 7(b) · 77 Stat. 276
Substituted · 23 U.S.C. § 121(d)
Pub. L. 88–157 substituted “any project financed with Federal-aid primary, secondary, or urban funds” for “any one project” and provided for limitation, on payments for construction engineering on projects financed with Federal-aid primary, secondary, or urban funds, of 15 percent of Federal share of cost of construction of the project where found by the Secretary to be necessary and for 10–percent limitation on projects financed with interstate funds
Source evidence
Code amendment note
Subsec. (d). Pub. L. 88–157 substituted “any project financed with Federal-aid primary, secondary, or urban funds” for “any one project” and provided for limitation, on payments for construction engineering on projects financed with Federal-aid primary, secondary, or urban funds, of 15 percent of Federal share of cost of construction of the project where found by the Secretary to be necessary and for 10–percent limitation on projects financed with interstate funds.Enacted provision · exact public law section
(b) The second sentence of subsection (d) of section 121 of title 23, United States Code, is amended to read as follows: “Payments for construction engineering on any project financed with Federal-aid primary, secondary, or urban funds shall not exceed 10 per centum of the Federal share of the cost of construction of such project after excluding from the cost of construction the costs of rights-of-way, preliminary engineering, and construction engineering: Provided, That such limitation shall be 15 per centum in any State with respect to which the Secretary finds such higher limitation to be necessary. For any project financed with interstate funds, such limitation shall be 10 per centum.”Federal-Aid Highway Act of 1973
Pub. L. 93–87 title I § 117 · 87 Stat. 250
Changed · 23 U.S.C. § 121(a)
Pub. L. 93–87 authorized payments to be made for materials not in the construction vicinity where the Secretary determines that because of required fabrication at an off-site location the materials cannot be stockpiled in such vicinity
Source evidence
Code amendment note
Subsec. (a). Pub. L. 93–87 authorized payments to be made for materials not in the construction vicinity where the Secretary determines that because of required fabrication at an off-site location the materials cannot be stockpiled in such vicinity.Enacted provision · exact public law section
Sec. 117. materials at off-site locations Section 121(a) of title 23 of the United States Code is 72 Stat. 899. amended by inserting after the period at the end thereof the following: “Such payments may also be made in the case of any such materials not in the vicinity of such construction if the Secretary determines that because of required fabrication at an off-site location the materials cannot be stockpiled in such vicinity.”Federal-Aid Highway Act of 1976
Pub. L. 94–280 title I § 118(a) · 90 Stat. 425
Substituted · 23 U.S.C. § 121(d)
Pub. L. 94–280 substituted “Federal-aid highway funds” for “Federal-aid primary, secondary, or urban funds”
Struck · 23 U.S.C. § 121(d)
Pub. L. 94–280 struck out 10 per centum limitation provision for any project financed with interstate funds
Source evidence
Code amendment note
Subsec. (d). Pub. L. 94–280 substituted “Federal-aid highway funds” for “Federal-aid primary, secondary, or urban funds” and struck out 10 per centum limitation provision for any project financed with interstate funds.Enacted provision · exact public law section
(a) Section 121(d) of title 23, United States Code, is amended to read as follows: “(d) In making payments pursuant to this section, the Secretary shall be bound by the limitations with respect to the permissible amounts of such payments contained in sections 120 and 130 of this title. Payments for construction engineering on any project financed 23 USC 120, 130. with Federal-aid highway funds shall not exceed 10 per centum of the Federal share of the cost of construction of such project after excluding from the cost of construction the costs of rights-of-way, preliminary engineering, and construction engineering. However, this limitation shall be 15 per centum in any State with respect to which the Secretary finds such higher limitation to be necessary.”.Federal-Aid Highway Act of 1987
Pub. L. 100–17 title I § 133(b)(6) · 101 Stat. 132
Substituted · 23 U.S.C. § 121(d)
Pub. L. 100–17 substituted “15 percent” for “10 per centum”
Struck · 23 U.S.C. § 121(d)
Pub. L. 100–17 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.”
Source evidence
Code amendment note
Subsec. (d). 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.”Enacted provision · exact public law section
(6) Section 121(d) of such title is amended by striking out “10 per centum” and inserting in lieu thereof “15 percent” and by striking out the third sentence.Intermodal Surface Transportation Efficiency Act of 1991
Pub. L. 102–240 title I § 1018(b) · 105 Stat. 1914
Substituted · 23 U.S.C. § 121(d)
Pub. L. 102–240 substituted “106(c), 120,” for “120”
Struck · 23 U.S.C. § 121(d)
Pub. L. 102–240 struck out at end “Payments for construction engineering on any project financed with Federal-aid highway funds shall not exceed 15 percent of the Federal share of the cost of construction of such project after excluding from the cost of construction the costs of rights-of-way, preliminary engineering, and construction engineering.”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 102–240 substituted “106(c), 120,” for “120” and struck out at end “Payments for construction engineering on any project financed with Federal-aid highway funds shall not exceed 15 percent of the Federal share of the cost of construction of such project after excluding from the cost of construction the costs of rights-of-way, preliminary engineering, and construction engineering.”Enacted provision · exact public law section
(b) Conforming Amendments.— Section 121(d) of such title is amended— (1) by striking “120” and inserting “106(c), 120,”; and (2) by striking the last sentence.Transportation Equity Act for the 21st Century
Pub. L. 105–178 § 1302(1) · 112 Stat. 107
Added · 23 U.S.C. § 121(a)
Pub. L. 105–178, § 1302(1), added subsec. (a)
Struck · 23 U.S.C. § 121(a)
Pub. L. 105–178, § 1302(1), struck out former subsec. (a) which read as follows: “The Secretary may, in his discretion, from time to time as the work progresses, make payments to a State for costs of construction incurred by it on a project. These payments shall at no time exceed the Federal share of the costs of construction incurred to the date of the voucher covering such payment plus the Federal share of the value of the materials which have been stockpiled in the vicinity of such construction in conformity to plans and specifications for the project. Such payments may also be made in the case of any such materials not in the vicinity of such construction if the Secretary determines that because of required fabrication at an off-site location the materials cannot be stockpiled in such vicinity.”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 105–178, § 1302(1), added subsec. (a) and struck out former subsec. (a) which read as follows: “The Secretary may, in his discretion, from time to time as the work progresses, make payments to a State for costs of construction incurred by it on a project. These payments shall at no time exceed the Federal share of the costs of construction incurred to the date of the voucher covering such payment plus the Federal share of the value of the materials which have been stockpiled in the vicinity of such construction in conformity to plans and specifications for the project. Such payments may also be made in the case of any such materials not in the vicinity of such construction if the Secretary determines that because of required fabrication at an off-site location the materials cannot be stockpiled in such vicinity.”Enacted provision · exact public law section
(1) by striking subsections (a) and (b) and inserting the following: “(a) In General.— The Secretary, from time to time as the work progresses, may make payments to a State for costs of construction incurred by the State on a project. Such payments may also be made for the value of the materials— “(1) that have been stockpiled in the vicinity of the construction in conformity to plans and specifications for the projects; and “(2) that are not in the vicinity of the construction if the Secretary determines that because of required fabrication at an off-site location the material cannot be stockpiled in such vicinity. “(b) Project Agreement.— No payment shall be made under this chapter except for a project covered by a project agreement. After completion of the project in accordance with the project agreement, a State shall be entitled to payment out of the appropriate sums apportioned or allocated to the State of the unpaid balance of the Federal share payable for such project.” ;Transportation Equity Act for the 21st Century
Pub. L. 105–178 § 1302(1) · 112 Stat. 107
Added · 23 U.S.C. § 121(b)
Pub. L. 105–178, § 1302(1), added subsec. (b)
Struck · 23 U.S.C. § 121(b)
Pub. L. 105–178, § 1302(1), struck out former subsec. (b) which read as follows: “After completion of a project in accordance with the plans and specifications, and approval of the final voucher by the Secretary, a State shall be entitled to payment out of the appropriate sums apportioned to it of the unpaid balance of the Federal share payable on account of such project.”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 105–178, § 1302(1), added subsec. (b) and struck out former subsec. (b) which read as follows: “After completion of a project in accordance with the plans and specifications, and approval of the final voucher by the Secretary, a State shall be entitled to payment out of the appropriate sums apportioned to it of the unpaid balance of the Federal share payable on account of such project.”Enacted provision · exact public law section
(1) by striking subsections (a) and (b) and inserting the following: “(a) In General.— The Secretary, from time to time as the work progresses, may make payments to a State for costs of construction incurred by the State on a project. Such payments may also be made for the value of the materials— “(1) that have been stockpiled in the vicinity of the construction in conformity to plans and specifications for the projects; and “(2) that are not in the vicinity of the construction if the Secretary determines that because of required fabrication at an off-site location the material cannot be stockpiled in such vicinity. “(b) Project Agreement.— No payment shall be made under this chapter except for a project covered by a project agreement. After completion of the project in accordance with the project agreement, a State shall be entitled to payment out of the appropriate sums apportioned or allocated to the State of the unpaid balance of the Federal share payable for such project.” ;Transportation Equity Act for the 21st Century
Pub. L. 105–178 § 1302(2) · 112 Stat. 107
Redesignated · 23 U.S.C. § 121(c)
Pub. L. 105–178, § 1302(2), (3), redesignated subsec. (e) as (c)
Struck · 23 U.S.C. § 121(c)
Pub. L. 105–178, § 1302(2), (3), struck out former subsec. (c) which read as follows: “No payment shall be made under this chapter, except for a project located on a Federal-aid system and covered by a project agreement. No final payment shall be made to a State for its costs of construction of a project until the completion of the construction has been approved by the Secretary following inspections pursuant to section 114(a) of this title.”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 105–178, § 1302(2), (3), redesignated subsec. (e) as (c) and struck out former subsec. (c) which read as follows: “No payment shall be made under this chapter, except for a project located on a Federal-aid system and covered by a project agreement. No final payment shall be made to a State for its costs of construction of a project until the completion of the construction has been approved by the Secretary following inspections pursuant to section 114(a) of this title.”Enacted provision · exact public law section
(2) by striking subsections (c) and (d); andTransportation Equity Act for the 21st Century
Pub. L. 105–178 § 1302(2) · 112 Stat. 107
Struck · 23 U.S.C. § 121(d)
Pub. L. 105–178, § 1302(2), struck out subsec. (d) which read as follows: “In making payments pursuant to this section, the Secretary shall be bound by the limitations with respect to the permissible amounts of such payments continued in sections 106(c), 120, and 130 of this title.”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 105–178, § 1302(2), struck out subsec. (d) which read as follows: “In making payments pursuant to this section, the Secretary shall be bound by the limitations with respect to the permissible amounts of such payments continued in sections 106(c), 120, and 130 of this title.”Enacted provision · exact public law section
(2) by striking subsections (c) and (d); andTransportation Equity Act for the 21st Century
Pub. L. 105–178 § 1302(3) · 112 Stat. 107
Redesignated · 23 U.S.C. § 121(e)
Pub. L. 105–178, § 1302(3), redesignated subsec. (e) as (c)
Source evidence
Code amendment note
Subsec. (e). Pub. L. 105–178, § 1302(3), redesignated subsec. (e) as (c).Enacted provision · exact public law section
(3) by redesignating subsection (e) as subsection (c).Transportation Equity Act for the 21st Century
Pub. L. 105–178 § 1212(a)(2)(A)(i) · 112 Stat. 107
Substituted · 23 U.S.C. § 121(e)
Pub. L. 105–178, § 1212(a)(2)(A)(i), substituted “State transportation department” for “State highway department”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 105–178, § 1212(a)(2)(A)(i), substituted “State transportation department” for “State highway department”.Enacted provision · exact public law section
(i) by striking “State highway department” each 23 USC 102 et seq. place it appears and inserting “State transportation department”; andFixing America’s Surface Transportation Act
Pub. L. 114–94 div. A title II § 2002(a) · 129 Stat. 1312
Inserted · 23 U.S.C. § 121(a)
Pub. L. 114–94 inserted “(including payments made pursuant to a long-term concession agreement, such as availability payments)” after “a project” in introductory provisions
Source evidence
Code amendment note
Subsec. (a). Pub. L. 114–94 inserted “(including payments made pursuant to a long-term concession agreement, such as availability payments)” after “a project” in introductory provisions.Enacted provision · exact public law section
(a) Payment to States for Construction.— Section 121(a) of title 23, United States Code, is amended by inserting “(including payments made pursuant to a long-term concession agreement, such as availability payments)” after “a project”.Effective date note
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.
18 of 19 references resolved to an enrolled provision · 1 partial
Editorial Notes
Amendments1963–2015 · 7 rounds
2015
Subsec. (a). Pub. L. 114–94 inserted “(including payments made pursuant to a long-term concession agreement, such as availability payments)” after “a project” in introductory provisions.
1998
Subsec. (a). Pub. L. 105–178, § 1302(1), added subsec. (a) and struck out former subsec. (a) which read as follows: “The Secretary may, in his discretion, from time to time as the work progresses, make payments to a State for costs of construction incurred by it on a project. These payments shall at no time exceed the Federal share of the costs of construction incurred to the date of the voucher covering such payment plus the Federal share of the value of the materials which have been stockpiled in the vicinity of such construction in conformity to plans and specifications for the project. Such payments may also be made in the case of any such materials not in the vicinity of such construction if the Secretary determines that because of required fabrication at an off-site location the materials cannot be stockpiled in such vicinity.”
Subsec. (b). Pub. L. 105–178, § 1302(1), added subsec. (b) and struck out former subsec. (b) which read as follows: “After completion of a project in accordance with the plans and specifications, and approval of the final voucher by the Secretary, a State shall be entitled to payment out of the appropriate sums apportioned to it of the unpaid balance of the Federal share payable on account of such project.”
Subsec. (c). Pub. L. 105–178, § 1302(2), (3), redesignated subsec. (e) as (c) and struck out former subsec. (c) which read as follows: “No payment shall be made under this chapter, except for a project located on a Federal-aid system and covered by a project agreement. No final payment shall be made to a State for its costs of construction of a project until the completion of the construction has been approved by the Secretary following inspections pursuant to section 114(a) of this title.”
Subsec. (d). Pub. L. 105–178, § 1302(2), struck out subsec. (d) which read as follows: “In making payments pursuant to this section, the Secretary shall be bound by the limitations with respect to the permissible amounts of such payments continued in sections 106(c), 120, and 130 of this title.”
Subsec. (e). Pub. L. 105–178, § 1302(3), redesignated subsec. (e) as (c).
Pub. L. 105–178, § 1212(a)(2)(A)(i), substituted “State transportation department” for “State highway department”.
1991
Subsec. (d). Pub. L. 102–240 substituted “106(c), 120,” for “120” and struck out at end “Payments for construction engineering on any project financed with Federal-aid highway funds shall not exceed 15 percent of the Federal share of the cost of construction of such project after excluding from the cost of construction the costs of rights-of-way, preliminary engineering, and construction engineering.”
1987
Subsec. (d). 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. (d). Pub. L. 94–280 substituted “Federal-aid highway funds” for “Federal-aid primary, secondary, or urban funds” and struck out 10 per centum limitation provision for any project financed with interstate funds.
1973
Subsec. (a). Pub. L. 93–87 authorized payments to be made for materials not in the construction vicinity where the Secretary determines that because of required fabrication at an off-site location the materials cannot be stockpiled in such vicinity.
1963
Subsec. (d). Pub. L. 88–157 substituted “any project financed with Federal-aid primary, secondary, or urban funds” for “any one project” and provided for limitation, on payments for construction engineering on projects financed with Federal-aid primary, secondary, or urban funds, of 15 percent of Federal share of cost of construction 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 2015 Amendment
Amendment by Pub. L. 114–94 effective , 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 1991 Amendment
Amendment by Pub. L. 102–240 effective , and applicable to funds authorized to be appropriated or made available after , and, with certain exceptions, not applicable to funds appropriated or made available on or before , see section 1100 of Pub. L. 102–240, set out as a note under section 104 of this title.
At-Risk Project Preagreement Authority
Pub. L. 114–94, div. A, title I, § 1440, , 129 Stat. 1434, provided that:
“(a) Definition of Preliminary Engineering.—
In this section, the term ‘preliminary engineering’ means allowable preconstruction project development and engineering costs.
“(b) At-risk Project Preagreement Authority.—
A recipient or subrecipient of Federal-aid funds under title 23, United States Code, may—
“(1) incur preliminary engineering costs for an eligible project under title 23, United States Code, before receiving project authorization from the State, in the case of a subrecipient, and the Secretary [of Transportation] to proceed with the project; and
“(2) request reimbursement of applicable Federal funds after the project authorization is received.
“(c) Eligibility.—
The Secretary may reimburse preliminary engineering costs incurred by a recipient or subrecipient under subsection (b)—
“(1) if the costs meet all applicable requirements under title 23, United States Code, at the time the costs are incurred and the Secretary concurs that the requirements have been met;
“(2) in the case of a project located within a designated nonattainment or maintenance area for air quality, if the conformity requirements of the Clean Air Act (42 U.S.C. 7401 et seq.) have been met; and
“(3) if the costs would have been allowable if incurred after the date of the project authorization by the Department.
“(d) At-risk.—
A recipient or subrecipient that elects to use the authority provided under this section shall—
“(1) assume all risk for preliminary engineering costs incurred prior to project authorization; and
“(2) be responsible for ensuring and demonstrating to the Secretary that all applicable cost eligibility conditions are met after the authorization is received.
“(e) Restrictions.—
Nothing in this section—
“(1) allows a recipient or subrecipient to use the authority under this section to advance a project beyond preliminary engineering prior to the completion of the environmental review process;
“(2) waives the applicability of Federal requirements to a project other than the reimbursement of preliminary engineering costs incurred prior to an authorization to proceed in accordance with this section; or
“(3) guarantees Federal funding of the project or the eligibility of the project for future Federal-aid highway funding.”
Submission of Recommendations to Congress for Reimbursement of States for Certain Highways
Pub. L. 85–845, , 72 Stat. 1083, required Secretary of Commerce, within ten days after first day of first session of Eighty-sixth Congress, to submit to Congress recommendations for legislation for purpose of assisting Congress to determine whether or not to reimburse each State of any portion of a toll or free highway (1) which was on National System of Interstate and Defense Highways [now Dwight D. Eisenhower System of Interstate and Defense Highways], (2) which met standards required by Federal-Aid Highway Act of 1956 for such System of Interstate and Defense Highways, and (3) construction of which had been completed since , or which had been in actual use or under construction by contract, for completion, awarded not later than .
Credits
1958–2015 · 8 acts
- 1958Pub. L. 85–767, , 72 Stat. 899
- 1963Pub. L. 88–157, § 7(b), , 77 Stat. 278
- 1973Pub. L. 93–87, title I, § 117, , 87 Stat. 259
- 1976Pub. L. 94–280, title I, § 118(a), , 90 Stat. 437
- 1987Pub. L. 100–17, title I, § 133(b)(6), , 101 Stat. 171
- 1991Pub. L. 102–240, title I, § 1018(b), , 105 Stat. 1948
- 1998Pub. L. 105–178, title I, §§ 1212(a)(2)(A)(i), 1302, , 112 Stat. 193, 226
- 2015Pub. L. 114–94, div. A, title II, § 2002(a), , 129 Stat. 1446.
Show as published
(Pub. L. 85–767, , 72 Stat. 899; Pub. L. 88–157, § 7(b), , 77 Stat. 278; Pub. L. 93–87, title I, § 117, , 87 Stat. 259; Pub. L. 94–280, title I, § 118(a), , 90 Stat. 437; Pub. L. 100–17, title I, § 133(b)(6), , 101 Stat. 171; Pub. L. 102–240, title I, § 1018(b), , 105 Stat. 1948; Pub. L. 105–178, title I, §§ 1212(a)(2)(A)(i), 1302, , 112 Stat. 193, 226; Pub. L. 114–94, div. A, title II, § 2002(a), , 129 Stat. 1446.)