§ 341 Federal Fund Matching Requirement

• •If the state takes money from this fund, the federal government must also spend the same amount of money on the same project.
• •The state and federal government must work together and spend the same amount on the project.
• •This rule was added in 1957.

The state wants to fix a big road that costs $100 million.

If the state takes $50 million from this fund to fix the road, the federal government must also spend $50 million on the same road. So, both spend the same amount to get the road fixed.