Section 29.418 - May a funding agreement include transfers of State funds?(a) A State may elect to provide a portion of Federal-aid funds apportioned to the State under chapter 1 of title 23 of the U.S. Code to an eligible Tribe for a project eligible under 23 U.S.C. 202(a) .(b) If a State provides such funds, the transfer may occur in accordance with 23 U.S.C. 202(a)(9) , 23 U.S.C. 207(d)(2)(A)(ii) , or the State may transfer the funds to the Department, and the Department will transfer the funds to the participating Tribe through the Tribe's funding agreement.(c) If a State provides such funds, the Tribe (and not the State) will be responsible for:(1) Constructing and maintaining any projects carried out using the funds;(2) Administering and supervising the projects and funds in accordance with 23 U.S.C. 207 ;(3) Complying with applicable post-construction requirements.(d) The receipt of any State funds transferred at the election of a State to the Tribe pursuant to 23 U.S.C. 202(a)(9) , 23 U.S.C. 207(d)(2)(A)(ii) , or funds awarded to a State pursuant to 49 U.S.C. 5311 that are transferred at the election of a State to the Federal Transit Administration for the benefit of a Tribe does not entitle the Tribe to receive contract support costs under 25 U.S.C. 5325(a) . While a Tribe is not entitled to additional funds for contract supports costs, a Tribe may use a portion of such State funds for overhead and administrative expenses if such costs are reasonable, allowable, and allocable in accordance with 2 CFR part 200 and the statutory and regulatory requirements applicable to the funding source.