Does the Federal Highway Administration (FHWA) have the authority to make a direct grant to a non-State DOT entity?
No. The FHWA may only make direct grants to non-State DOT entities where such entities are specified in statute. It is clear that Sections 1301, 1302, and 1306 require that funds be distributed to a State. The FHWA’s long-standing practice is to distribute funds through the State DOTs. This policy is based on the FHWA’s interpretation of 23 U.S.C.
