Highway System. (e) Expenditure of funds (1) Consistency with metropolitan planning Except as otherwise provided in this section, programming and expenditure of funds for projects under this section shall be consistent with the requirements of section 134 of title 23, United States Code. (2) Selection of projects (A) In general Notwithstanding subsections (j)(5) and (k)(4) of section 134 of such title, a direct recipient shall select, from the approved transportation improvement program under section 134 of such title, all projects described under this section, including projects on the National Highway System. (B) Eligible projects The project selection process described in this subsection shall apply to all federally funded projects within the boundaries of a metropolitan planning area served by a direct recipient that are carried out under this section. (C) Consultation required In selecting a project under this subsection, the metropolitan planning organization shall consult with— (i) in the case of a highway project, the State and locality in which such project is located