The director is authorized and empowered to make all contracts and to do all things necessary to cooperate with the United States government in the administration of grants and other discretionary funding mechanisms administered through any appropriate federal agency which the department is otherwise eligible for. The department may accept all eligible matching funding sources, whether public or private, as authorized by the provisions of the federal agency providing the grant or funding, for the purpose of administering a program. All eligible match funding must be deposited with the state treasurer in the flexible transportation fund and be made available in accordance with the grant requirements.