49 CFR § 262.17
Combining grant awards
November 18, 2020
Two or more States, but not political subdivisions of States, may, pursuant to an agreement entered into by the States, combine any part of the amounts provided through grants for a project under this section provided:
(1) The project will benefit each of the States entering into the agreement; and
(2) The agreement is not a violation of the law of any such State.