The Department may accept, receive, and receipt for federal moneys and other moneys, either public or private, for and in behalf of this State, or any political subdivision, for the acquisition, construction, improvement, maintenance, and operation of airports and other air navigation facilities, whether such work is to be done by the State or by such political subdivisions, or jointly, aided by grants of aid from the United States, upon terms and conditions prescribed by the laws of the United States and any rules or regulations made thereunder. The Department may act as agent of any political subdivision upon the request of such political subdivision, in accepting, receiving, and receipting for such moneys in its behalf for airports or other air navigation facility purposes, and in contracting for the acquisition, construction, improvement, maintenance, or operation of airports or other air navigation facilities, financed either in whole or in part by federal moneys. The governing body of any such political subdivision may designate the Department as its agent for such purposes and enter into an agreement with it prescribing the terms and conditions of such agency in accordance with federal laws, rules, and regulations and with this chapter. All moneys so paid over by the United States government shall be retained by the State or paid over to the political subdivision under terms and conditions imposed by the United States government in making such grants.