PAYMENTS TO STATES FOR CONSTRUCTION.

SEC. 1302. PAYMENTS TO STATES FOR CONSTRUCTION. Section 121 of title 23, United States Code, is amended— (1) by striking subsections (a) and (b) and inserting the following: “(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 112 STAT. 227an 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.” ; (2) by striking subsections (c) and (d); and (3) by redesignating subsection (e) as subsection (c).