N.Y. Transportation Law Section 304
Project grant procedure

State moneys may be expended for any municipal project pursuant to a contract entered into by the commissioner, in the name of the state, and the municipal corporation undertaking such project. Any such contract may include such provisions as may be agreed upon by the parties thereto, and shall include, in substance, the following provisions:

a.

An estimate of the reasonable cost of the project as determined by the commissioner.

b.

An agreement by the commissioner to pay to or on behalf of the municipal corporation, following completion of the project, or during the undertaking thereof, in the form of progress payments, as may be agreed upon by the parties and subject to the rules and regulations of the commissioner, the state share of the project cost as he may determine in accordance with § 300 (Declaration of policy)section three hundred of this article.

c.

An agreement by the municipal corporation:

(1)

To proceed expeditiously with, and complete, the project in accordance with plans approved by the commissioner;

(2)

To commence and continue operation of the project on completion of the project, and not to discontinue operation or dispose of the project without the approval of the commissioner;

(3)

To provide for the payment of the municipal corporation’s share of the cost of the project, and

(4)

To include in its planning for the project, to the extent mutually deemed appropriate, consideration and planning for joint development as defined in Transportation Law § 14-D (Rail service preservation)section fourteen-d of the transportation law relating to the environment of the area in which the project is to be constructed.

d.

A provision that, in the event that federal assistance which was not included in the calculation of the state payment pursuant to § 300 (Declaration of policy)section three hundred of this article becomes available to the municipal corporation, the amount of the state payment shall be recalculated with the inclusion of such additional federal assistance and the municipal corporation shall either (1) pay to the state the amount by which the state payment actually made exceeds the state payment determined by the recalculation or, (2) if such additional federal assistance has not been received by the municipal corporation, authorize the state to receive such amount from the federal government and to retain an appropriate amount thereof. The commissioner may adopt rules and regulations governing the making and enforcing of contracts pursuant to this subdivision. Contracts entered into pursuant to this subdivision shall be subject to approval by the state comptroller, the director of the budget and by the attorney general as to form. All payments by the state pursuant to such contracts shall be made after audit by and upon the warrant of the comptroller on vouchers approved by the commissioner.

Source: Section 304 — Project grant procedure, https://www.­nysenate.­gov/legislation/laws/TRA/304 (updated Sep. 22, 2014; accessed Nov. 15, 2025).

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Verified:
Nov. 15, 2025

Last modified:
Sep. 22, 2014

§ 304. Project grant procedure's source at nysenate​.gov

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