The federal department that administers grants to states for highway construction through the Federal Highway Administration (FHWA) is the United States Department of Transportation (USDOT). The USDOT oversees transportation-related policies and programs at the federal level, and the FHWA is one of its key agencies responsible for managing and distributing federal funds for highway infrastructure projects across the country. The FHWA works closely with state departments of transportation to allocate and administer grants for highway construction, maintenance, and improvement projects