3. Pledge of federal highway funds. The Department of Transportation is authorized to transfer, assign or pledge any or all of the funds paid to it, directly or indirectly, by the Federal Highway Administration with respect to the qualified transportation project, together with any matching funds of the State as necessary and legally available that are allocated for such purpose on an annual basis by the Department of Transportation in its sole discretion. Any such pledge does not constitute a debt or liability on behalf of the State or of any political subdivision of the State or a loan of the credit of the State or of any political subdivision of the State or a pledge of the faith and credit of the State or of any political subdivision of the State. A decision by the Department of Transportation not to allocate such federal transportation funds or state matching funds as necessary and legally available in any given fiscal year for the payment of such bonds or notes or related costs and expenses may not be construed to constitute an action impairing any contract entered into by the bank under this Act.

4. Contracts are subject to continuing federal appropriations of federal transportation funds. Every contract relating to the issuance of bonds or notes to finance all or a part of the costs of the qualified transportation project must provide that all financial obligations of the State or of any agency, political subdivision, instrumentality or department of the State in regard to the portion of the principal of and interest on such bonds or notes and the related costs and expenses that may be paid from federal transportation funds pursuant to federal law and any agreement between the Federal Highway Administration or any agency of the Federal Highway Administration and the Department of Transportation that is or is to be the initial recipient of such federal transportation funds are subject to continuing federal appropriations of federal