(a) The governing body of any political subdivision may designate the Department of Transportation as its agent to accept, receive and receipt for federal moneys in its behalf for airport purposes and to contract for the acquisition, construction, enlargement, improvement, maintenance, equipment or operation of such airports, or other air navigation facilities, and may enter into an agreement with the Department of Transportation prescribing the terms and conditions of the agency in accordance with federal laws, rules and regulations and applicable laws of this State.
(b) The moneys that are paid over by the United States government shall be paid over to the political subdivision under such terms and conditions as may be imposed by the United States government in making the grant.