§ 16362 Federal Funds Transfer Rules

• •If the state gets money from the U.S. government for a specific reason, it must first go into a special fund called the Federal Trust Fund.
• •After that, the money can be moved to the right state fund to be used for what it was meant for.
• •The state can't skip the Federal Trust Fund step—it's like a mandatory pit stop for the money.

The U.S. government gives California money to help fix roads after a big storm.

California can't just put that money straight into its road repair fund. First, it has to go into the Federal Trust Fund, and then it gets moved to the road repair fund to actually fix the roads.