New York Consolidated Laws, Highway Law - HAY § 229-a. Federal aid

1. If the federal government, through any federal law, makes an allotment of moneys or otherwise provides financial aid and assistance for approved projects, the commissioner is hereby authorized to accept such federal moneys, aid and assistance, to sign all necessary agreements therefor, and to do and perform all necessary acts in connection therewith.  The commissioner shall not enter into any agreement or agreements which will require a total state contribution in excess of the amounts available for the state's share of the cost of such projects.

2. The execution by the state of any such agreement or agreements shall not operate or be construed to relieve the state or any town from its or their obligations under the provisions of this article, except as hereinafter provided in this section.

3. The department of taxation and finance may accept and receive as custodian any and all grants and money awarded for assistance for approved projects in this state under or pursuant to any such federal law.  All moneys so received shall be deposited by the department of taxation and finance in a special fund or funds and shall be used exclusively for the purposes of any such federal law.  Such moneys shall be paid from such fund or funds on audit of the state comptroller upon vouchers certified or approved by the commissioner for carrying out the purposes of such federal law.

4. Federal aid in relation to any approved project shall be allocated to reduce the amount of state aid for the project and the town's share of the cost of the project in the same proportion as each is required to contribute to or pay for the portion of the cost of the project in relation to which state aid may be paid under section two hundred twenty-seven of this article.