The following are excluded from the provisions of this article: (1) Federal funds received by state institutions of higher education or by students or faculty members of such institutions for instructional or research purposes and federal funds received for student scholarships or grants-in-aid; (2) Federal nondiscretionary pass-through funds which are earmarked in specified amounts or proportions for transmittal to local political subdivisions or to designated classes of organizations and individuals which do not require state-matchinug funds and do not permit discretion in their distribution by the receiving state spending unit; and (3) All federal funds received by the West Virginia department of highways or the West Virginia commissioner of highways. a
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