Section 154 transfer program: open container (23 C.F.R. Part 1270; 23 U.S.C. § 154) ― penalty transfer funds to support alcohol and drug-impaired driving countermeasures in states that fail to enact…

The National Highway Traffic Safety Administration awarded the Virginia Department of Motor Vehicles $25,785,768 in formula grant funding on October 1, 2025, under the Alcohol Open Container Requirements program (CFDA 20.607). The award obligates funds through September 30, 2029.

This is penalty transfer funding designated to support alcohol and drug-impaired driving countermeasures in states that fail to enact and enforce conforming open alcohol container laws. Under Section 154 of 23 U.S.C., Virginia receives these funds because it has not enacted legislation prohibiting the possession or consumption of open alcoholic beverages in the passenger area of motor vehicles on public highways or their rights-of-way, including by drivers.

The Virginia DMV's Grants Management Division administers the award from Richmond, Virginia. The DMV serves as the prime recipient and uses its federal grant administration infrastructure to implement highway safety programs aligned with NHTSA priorities. The Federal share is reimbursed on a claims basis through electronic fund transfer. Obligated funds remain available until expended. The recipient must retain records for three years following submission of a final expenditure report and project deliverables.

Section 154 transfer program: open container (23 C.F.R. Part 1270; 23 U.S.C. § 154) ― penalty transfer funds to support alcohol and drug-impaired driving countermeasures in states that fail to enact and enforce conforming open alcohol container laws. Under section 154, to avoid the transfer of funds, a state must enact and enforce an open container law that prohibits the possession of any open alcoholic beverage container, or the consumption of any alcoholic beverage, in the passenger area of any motor vehicle (including possession or consumption by the driver of the vehicle) located on a public highway, or the right-of-way of a public highway, in the state. 23 U.S.C. 154(B)(1)