1. Short title This Act may be cited as the State Transportation Flexibility Act . 2. Direct Federal-aid highway program (a) In general Chapter 1 of title 23, United States Code, is amended by adding at the end the following: 171. Direct Federal-aid highway program (a) Election by State not To participate Notwithstanding any other provision of law and in accordance with this section, a State may elect not to participate in any Federal program relating to highways, including a Federal highway program under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users ( Public Law 109–59 ; 119 Stat. 1144), the Moving Ahead for Progress in the 21st Century Act ( Public Law 112–141 ; 126 Stat. 405), the Fixing America's Surface Transportation Act ( Public Law 114–94 ; 129 Stat. 1312), this title, or title 49. (b) Direct Federal-Aid highway program (1) In general The Secretary shall carry out a direct Federal-aid highway program (referred to in this section as the program ) in accordance with the requirements of this section under which the legislature of a State may elect, not fewer than 90 days before the beginning of a fiscal year— (A) to waive the right of the State to receive amounts apportioned or allocated to the State under this chapter for the fiscal year to which the election relates; and (B) to receive an amount for that fiscal year that is determined in accordance with subsection (e) for that fiscal year. (2) Effect On making an election under paragraph (1), a State— (A) assumes all Federal obligations relating to each program that is the subject of the election