23 USC 142 - Public transportation

(a) 
(1) To encourage the development, improvement, and use of public mass transportation systems operating motor vehicles (other than on rail) on Federal-aid highways for the transportation of passengers (hereafter in this section referred to as buses), so as to increase the traffic capacity of the Federal-aid systems for the movement of persons, the Secretary may approve as a project on any Federal-aid system the construction of exclusive or preferential high occupancy vehicle lanes, highway traffic control devices, bus passenger loading areas and facilities (including shelters), and fringe and transportation corridor parking facilities to serve high occupancy vehicle and public mass transportation passengers, and sums apportioned under section 104 (b) of this title shall be available to finance the cost of projects under this paragraph. If fees are charged for the use of any parking facility constructed under this section, the rate thereof shall not be in excess of that required for maintenance and operation of the facility and the cost of providing shuttle service to and from the facility (including compensation to any person for operating the facility and for providing such shuttle service).
(2) In addition to the projects under paragraph (1), the Secretary may approve as a project on the the[1] surface transportation program for payment from sums apportioned under section 104 (b)(3) for carrying out any capital transit project eligible for assistance under chapter 53 of title 49, capital improvement to provide access and coordination between intercity and rural bus service, and construction of facilities to provide connections between highway transportation and other modes of transportation.
(b) Sums apportioned in accordance with section 104 (b)(4) shall be available to finance the Federal share of projects for exclusive or preferential high occupancy vehicle, truck, and emergency vehicle routes or lanes. Routes constructed under this subsection shall not be subject to the third sentence of section 109 (b) of this title.

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(c) Accommodation of Other Modes of Transportation.— 
The Secretary may approve as a project on any Federal-aid system for payment from sums apportioned under section 104 (b) modifications to existing highway facilities on such system necessary to accommodate other modes of transportation if such modifications will not adversely affect automotive safety.
(d) Metropolitan Planning.— 
Any project carried out under this section in an urbanized area shall be subject to the metropolitan planning requirements of section 134.
(e) 
(1) For all purposes of this title, a project authorized by subsection (a)(1) of this section shall be deemed to be a highway project.
(2) Notwithstanding section 209(f)(1) of the Highway Revenue Act of 1956, the Highway Trust Fund shall be available for making expenditures to meet obligations resulting from projects authorized by subsection (a)(2) of this section and such projects shall be subject to, and governed in accordance with, all provisions of this title applicable to projects on the surface transportation program, except to the extent determined inconsistent by the Secretary.
(3) The Federal share payable on account of projects authorized by subsection (a) of this section shall be that provided in section 120 of this title.
(f) Availability of Rights-of-Way.— 
In any case where sufficient land or air space exits[2] within the publicly acquired rights-of-way of any highway, constructed in whole or in part with Federal-aid highway funds, to accommodate needed passenger, commuter, or high speed rail, magnetic levitation systems, and highway and nonhighway public mass transit facilities, the Secretary shall authorize a State to make such lands, air space, and rights-of-way available with or without charge to a publicly or privately owned authority or company or any other person for such purposes if such accommodation will not adversely affect automotive safety.
(g) The provision of assistance under subsection (a)(2) shall not be construed as bringing within the application of chapter 15 of title 5, United States Code, any non-supervisory employee of an urban mass transportation system (or of any other agency or entity performing related functions) to whom such chapter is otherwise inapplicable.
(h) Funds available for expenditure to carry out the purposes of subsection (a)(2) of this section shall be supplementary to and not in substitution for funds authorized and available for obligation pursuant to chapter 53 of title 49.
(i) The provisions of section 5323 (a)(1)(D)3 of title 49 shall apply in carrying out subsection (a)(2) of this section.
[1] So in original.
[2] So in original. Probably should be “exists”.
[3] See References in Text note below.