Alcohol Open Container Requirements

CFDA 20.607 Active Grant
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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding
$56.9M FY2025
$61.8M
FY24
$56.9M
FY25

Program Objective

To encourage States to enact and enforce a compliant alcohol open container law. Under Section 154, to avoid the transfer of funds, a State must enact and enforce an open container law that prohibits the possession of any open alcoholic beverage container, or the consumption of any alcoholic beverage, in the passenger area of any motor vehicle (including possession or consumption by the driver of the vehicle) located on a public highway, or the right-of-way of a public highway, in the State. 23 U.S.C. 154(b)(1)

Eligibility

Eligible Applicants

  • U.S. State Government
  • U.S. Territory Government

States, the District of Columbia, and Puerto Rico.

Beneficiaries

  • U.S. State Government
  • U.S. Territory Government

State Departments of Transportation and State Highway Safety agencies.

How to Apply

Award Procedure

Once the State provides the agency with a split letter to NHTSA, the State will be given access to the transfer and can obligate the funds.

Program details & compliance

Description

To encourage States to enact and enforce a compliant alcohol open container law. Under Section 154, to avoid the transfer of funds, a State must enact and enforce an open container law that prohibits the possession of any open alcoholic beverage container, or the consumption of any alcoholic beverage, in the passenger area of any motor vehicle (including possession or consumption by the driver of the vehicle) located on a public highway, or the right-of-way of a public highway, in the State. 23 U.S.C. 154(b)(1)

Mission Categories

Primary: Highways, Public Roads, and Bridges

Use of Funds

Allowed Uses

States failing to comply with Section 164 are subject to a reservation of 2.5 percent of federal-aid highway funds apportioned for the National Highway Performance Program and the Surface Transportation Block Grant Program. States decide the percentage of the reserved funds to be transferred to NHTSA for alcohol and/or drug-impaired driving countermeasures and/or to remain with FHWA for eligible activities under the Highway Safety Improvement Program. Funds transferred to NHTSA are subject to the requirements of the 402 program.

Required Documentation

If a State has not enacted and is not enforcing an Open Container Law, then a state meets eligibility requirements. After being informed by NHTSA that it is subject to the penalty transfer, the State submits to the agency a letter how the penalty funds will be distributed for use among alcohol-impaired driving programs and highway safety improvement program (HSIP) eligible activities under 23 U.S.C. 148. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Reporting & Compliance

Records Retention
3 years

Applicable 2 CFR 200 Subparts

  • Subpart B — General Provisions
  • Subpart C — Pre-Federal Award Requirements
  • Subpart D — Post-Federal Award Requirements
  • Subpart E — Cost Principles
  • Subpart F — Audit Requirements

Contacts

Barbara Sauers — Associate Administrator, Regional Operations and Program Delivery
(202) 366-0144
1200 New Jersey Avenue, S.E., NRO-010, Washington, DC 20590
Data from SAM.gov Federal Assistance Listings. Source published: 2025-12-02. Spec v2.0. Last synced: 2026-05-30 02:34:06.