The Secretary may authorize a State to proceed with a project authorized under this title—

(1) without the use of Federal funds; and

in accordance with all procedures and requirements applicable to the project other than those procedures and requirements that limit the State to implementation of a project—

(A) with the aid of Federal funds previously apportioned or allocated to the State; or

(B) with obligation authority previously allocated to the State.

The Secretary, on the request of a State and execution of a project agreement, may obligate all or a portion of the Federal share of a project authorized to proceed under this section from any category of funds for which the project is eligible.

The Secretary may approve an application for a project under this section only if the project is included in the transportation improvement program of the State developed under section 135(f).

(Pub. L. 85–767, Aug. 27, 1958, 72 Stat. 896; Pub. L. 90–495, § 25(a), (b), Aug. 23, 1968, 82 Stat. 828, 829; Pub. L. 93–643, § 111, Jan. 4, 1975, 88 Stat. 2285; Pub. L. 96–106, § 4, Nov. 9, 1979, 93 Stat. 797; Pub. L. 97–424, title I, § 113, Jan. 6, 1983, 96 Stat. 2106; Pub. L. 100–17, title I, § 113(a)–(d)(1), Apr. 2, 1987, 101 Stat. 149, 150; Pub. L. 102–302, § 103, June 22, 1992, 106 Stat. 252; Pub. L. 104–59, title III, § 308, Nov. 28, 1995, 109 Stat. 582; Pub. L. 105–178, title I, §§ 1103(l)(3)(A), 1106(c)(1)(A), 1226(a), title V, § 5119(d), June 9, 1998, 112 Stat. 126, 136, 452; Pub. L. 105–206, title IX, § 9003(a), July 22, 1998, 112 Stat. 837; Pub. L. 109–59, title I, § 1501(a), Aug. 10, 2005, 119 Stat. 1235; Pub. L. 110–244, title I, § 101(j), June 6, 2008, 122 Stat. 1574.)