§ 121. — Payment to States for construction.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 23USC121]
TITLE 23--HIGHWAYS
CHAPTER 1--FEDERAL-AID HIGHWAYS
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 121. Payment to States for construction
(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.
(c) 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.
(Pub. L. 85-767, Aug. 27, 1958, 72 Stat. 899; Pub. L. 88-157, Sec. 7(b),
Oct. 24, 1963, 77 Stat. 278; Pub. L. 93-87, title I, Sec. 117, Aug. 13,
1973, 87 Stat. 259; Pub. L. 94-280, title I, Sec. 118(a), May 5, 1976,
90 Stat. 437; Pub. L. 100-17, title I, Sec. 133(b)(6), Apr. 2, 1987, 101
Stat. 171; Pub. L. 102-240, title I, Sec. 1018(b), Dec. 18, 1991, 105
Stat. 1948; Pub. L. 105-178, title I, Secs. 1212(a)(2)(A)(i), 1302, June
9, 1998, 112 Stat. 193, 226.)
Amendments
1998--Subsec. (a). Pub. L. 105-178, Sec. 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, Sec. 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, Sec. 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, Sec. 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, Sec. 1302(3), redesignated subsec. (e)
as (c).
Pub. L. 105-178, Sec. 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.
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.
Submission of Recommendations to Congress for Reimbursement of States
for Certain Highways
Pub. L. 85-845, Aug. 28, 1958, 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 Aug. 2, 1947, or which had been in actual use or under
construction by contract, for completion, awarded not later than June
30, 1957.
Section Referred to in Other Sections
This section is referred to in section 122 of this title.
