The state highway department of the state of Michigan, through the state highway commissioner, is hereby authorized to make surveys, prepare plans and specifications and take charge of the construction, including the letting of contracts and the paying out of all costs of preliminary work and construction, of roads located in part or in whole within the limits of a United States forest within this state: Provided, however, That before proceeding with any work the state highway commissioner shall, and is hereby authorized to, enter into a contract with the United States government relative to the construction of said road, said contract to provide that the state of Michigan shall be reimbursed by the United States government to the extent of 50 per cent of the total amount of funds expended by the state of Michigan and the United States government on such forest road: Provided further, That in no case shall the amount of state funds used for this purpose exceed 100,000 dollars in any 1 year.

The boards of county road commissioners are also authorized to expend funds either raised by general taxation or received from the distribution of motor vehicle funds for the purposes of the construction and/or maintenance of such forest highways. For the purposes of construction the counties' share of such cost shall be such share as may be mutually agreed upon between the United States government, the state highway commissioner and the board of county road commissioners. The maintenance of any such road built under the provisions of this act shall be a direct obligation of the county in which the said road is located and shall be to all intents and purposes a part of the county road system of such county and shall so remain unless such road has been or may be hereafter lawfully established as trunk line highway. The maintenance and construction of trunk line highways through the United States forests shall be subject to the general provisions of law relating thereto.

The state treasurer is authorized to pay out money under the provisions of this act under orders of the director of the state transportation department, and the state treasurer is authorized to receive any and all money due the state of Michigan under the provisions of this act.