Federal Aid Road Act of 1916
The Federal Aid Road Act of 1916 was an early federal highway funding act, also known as the Bankhead-Shackleford Act. This act was one of the first progressive-era Grants-in-aid legislative acts designed to erode the states' discretion, and bring them under the control of the federal government.
Initially, the act provided $75 million in construction funding. The most notable feature were the matching federal requirements that each state must create its own highway department, which would be in charge of monitoring the use of federal funds.[1]