(1) The Idaho transportation department shall establish and maintain a strategic initiatives program. The purpose of the program is to fund transportation projects that are proposed by the department’s six (6) districts and local units of government. Proposed projects shall compete for strategic initiative program selection and funding on a statewide basis based on an analysis of their return on investment in the following categories:
(a)  Safety, including the projected reduction of crashes, injuries and fatalities;
(b)  Mobility, including projected traffic-flow improvements for freight and passenger cars;
(c)  Economic opportunity, including the projected cost-benefit ratio for users and businesses;
(d)  The repair and maintenance of bridges;
(e)  The purchase of public rights-of-way; and
(f)  Child pedestrian safety on the state and local system.
(2)(a)  There is hereby established in the state treasury the strategic initiatives program fund, to which shall be deposited any appropriated moneys for funding of the strategic initiatives program.
(b)  Unless otherwise specified, moneys transferred into the strategic initiatives program fund after May 30, 2017, shall be apportioned as follows:
(i)   Sixty percent (60%) to projects proposed by the Idaho transportation department’s six (6) districts; and
(ii)  Forty percent (40%) to local units of government for the purpose of operating a strategic initiatives program administered by the local highway technical assistance council established in section 40-2401, Idaho Code.
(c)  The strategic initiatives program for local units of government shall be exempt from the requirements contained in subsection (1)(c) of this section.
(3)(a)  The Idaho transportation department shall establish and maintain a strategic initiatives grant program, which shall be separate from the strategic initiatives program described in subsections (1) and (2) of this section. The strategic initiatives grant program shall be for the purpose of assisting local units of government to mitigate the impact of state highway projects on local roads or for economically significant local transportation projects that require the assistance of the Idaho transportation department to facilitate.
(b)  There is hereby established in the state treasury the strategic initiatives grant program fund, to which shall be deposited any appropriated moneys for funding of the strategic initiatives grant program.
(c)  Fifty percent (50%) of the funds appropriated to the strategic initiatives grant program described in this subsection shall be awarded to large urban areas that have a population greater than fifty thousand (50,000), and fifty percent (50%) of such funds shall be awarded to rural areas or to small urban areas with a population that is less than fifty thousand (50,000). For fiscal year 2024 only, the first thirty-six million dollars ($36,000,000) appropriated to the strategic initiatives grant program shall be used by the Idaho transportation department on local roads to mitigate the impact of adding new connections of state highways to interstate highways. The Idaho transportation department shall report annually to the transportation and defense committee of the house of representatives and the transportation committee of the senate of the legislature regarding the strategic initiatives grant program.
(4)  Interest earned on the investment of idle moneys in the funds established pursuant to this section shall be paid to such funds. All moneys in the strategic initiatives program fund shall be used for funding the strategic initiatives program. All moneys in the strategic initiatives grant program fund shall be used for funding the strategic initiatives grant program. All moneys in the funds established pursuant to this section are hereby continuously appropriated to the Idaho transportation department.