NATIONAL HIGHWAY INSTITUTE.

SEC. 131. NATIONAL HIGHWAY INSTITUTE. Subsections (b) and (c) of section 321 of title 23, United States Code, are amended to read as follows: “(b) Set Aside.—Not to exceed ¼ of 1 percent of all funds apportioned to a State under sections 104(b)(1) and 104(b)(5) of this title shall be available for expenditure by the State highway department, subject to approval by the Secretary, for payment of not to exceed 75 percent of the cost of tuition and direct educational expenses (but not travel, subsistence, or salaries) in connection with the education and training of State and local highway department employees as provided in this section. “(c) Federal Responsibility.—Education and training of Federal, State, and local highway employees authorized by this section shall be provided— “(1) by the Secretary at no cost to the States and local governments for those subject areas which are a Federal program responsibility; or “(2) in any case where such education and training are to be paid for under subsection (b) of this section, by the State, subject to the approval of the Secretary, through grants and contracts with public and private agencies, institutions, individuals, and the Institute.”.