(1) Federal aid secondary funds allocated to Mississippi and to be expended on the federal aid secondary system roads shall be expended as follows:

(a) Effective only upon the passage of an act of the Legislature providing state aid funds, federal aid secondary funds allocated to Mississippi and to be expended on the federal aid secondary system shall be divided between the Mississippi Department of Transportation and the several counties, so that fifty percent (50%) will be matched by the Mississippi Department of Transportation and expended on the federal aid secondary system roads on the state highway system, and fifty percent (50%) matched by the counties with state aid funds and expended on the federal aid secondary roads of the state aid road system.

(b) Such division will be made upon allocation by the Administrator of the Federal Highway Administration after the Department of Transportation provides for the matching of the percent of such allotment as covered by federal act and available for financing in part the Mississippi Department of Transportation’s Division of Highway Planning. The expenditure of all federal aid secondary funds shall be through and under the Department of Transportation, subject to and in accordance with all rules and regulations and applicable laws of the federal government.

(c) The amount of funds allocated to each county for use on State Aid System roads shall be apportioned among the counties of this state by the Mississippi Transportation Commission subject to and in accordance with applicable federal law, rules and regulations, and limited to such counties as recommended by the State Aid Engineer. The Mississippi Transportation Commission is authorized to finance from its own funds the preliminary surveys, engineering and plans for all work involving funds expended on federal aid secondary projects on the state aid road system, and the rights-of-way required for state aid system roads constructed with federal aid secondary funds shall be provided by the county receiving such aid from its funds other than state aid funds. The Mississippi Transportation Commission shall program federal aid secondary funds made available to the counties under this act on such projects and limited to such counties as recommended by the State Aid Engineer.

(2) Federal “safer off-system” funds, and/or any other available federal road funds, except the federal aid secondary funds hereinabove provided for separately, allocated to Mississippi and to be expended on county roads, but not on the designated state highway system, shall be expended as follows:

(a) Federal “safer off-system” funds and/or any such other available federal road funds shall be matched with available state aid funds and expended on such county roads.

(b) The expenditure of such federal “safer off-system” funds and all such other available federal road funds shall be through and under the Mississippi Department of Transportation, subject to, and in accordance with, all rules and regulations and applicable laws of the federal government.

(c) The amount of such federal “safer off-system” funds and/or all such other available federal road funds allocated to each county for use on such county roads shall be apportioned among the counties of this state by the Mississippi Transportation Commission in accordance with the formula in the manner provided in Section 65-9-3, Mississippi Code of 1972. The Mississippi Transportation Commission will program such federal “safer off-system” funds and all such other available federal road funds made available to the counties on such projects and limited to such counties as recommended by the State Aid Engineer.

(3) Federal aid off-system highway funds allocated to Mississippi, (except federal aid secondary funds and federal “safer off-system” funds provided for separately in subsections (1) and (2) of this section), including federal bridge replacement funds and other special grants made available for expenditure of county roads, shall be expended as follows:

(a) Federal aid off-system highway funds expended on state aid roads shall be matched with available state aid funds and/or other available local funds, or as otherwise provided in Section 65-1-70, Mississippi Code of 1972.

(b) Federal aid off-system highway funds available for expenditure on roads not on the state aid system and not eligible for inclusion on the state aid system shall be matched with available local funds, or as otherwise provided in Section 65-9-17 or Section 65-1-70, Mississippi Code of 1972.

(c) The expenditure of all federal off-system highway funds on county roads shall be programmed by the Mississippi Transportation Commission, subject to and in accordance with applicable federal law, rules and regulations, and limited to such county projects as recommended by the State Aid Engineer. The State Aid Engineer is authorized to assign state aid personnel to administer off-system construction projects and other special federal aid program requirements in the same manner and under the same provisions and conditions as other projects authorized under this chapter.