City commissioners on Tuesday approved accepting $781,185 in federal funds for use in local street maintenance.

City engineer Brian Johnson said the city will again utilize the federal fund exchange program, calling it “federal gas tax reimbursement that comes back from the federal government to the states,” which can then be passed on to cities.

Johnson explained Manhattan can either spend those dollars on federal highways or exchange them for local use at a 90/10 split. “The state keeps 10, we get 90,” he said, noting the city typically chooses the exchange option to avoid costly federal requirements.

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