Haw. Rev. Stat. § 261-8
The department of transportation may accept, receive, receipt for, disburse, and expend federal moneys, and other moneys, public or private, made available by grant or loan to accomplish, in whole or in part, any of the purposes of this chapter. All federal moneys accepted under this section shall be accepted and expended by the department upon such terms and conditions as are prescribed by the United States, and the department may enter into any contracts which may be required in connection therewith. All moneys received by the department pursuant to this section shall be deposited in the treasury and, unless otherwise prescribed by the authority from which the moneys were received, shall be kept in separate funds designated according to the purpose for which the same were made available, to be disbursed or expended in accordance with the terms and conditions upon which they were made available.
HRS § 261-8