Any local government may apply for, accept, and expend financial assistance from:
(1) The state, for one (1) or more mass transportation projects provided pursuant to this title, whether by way of direct financial assistance or by way of prefinancing of any financial assistance from the federal government; and
(2) The federal government, or any agency or instrumentality thereof, for the construction, operation or maintenance of one (1) or more mass transportation projects provided pursuant to any act of the congress of the United States or any rule, regulation or order promulgated pursuant thereto.