State and federal transportation regulators have reached an agreement allowing �I Love NY� highway signs to stay in place without costing New York $14 million in highway funding.

The Federal Highway Administration had warned the state that the 514 big blue tourism signs along highways from Long Island to Buffalo didn�t adhere to regulations and were distracting to drivers. New York stood to lose federal funding if the dispute wasn�t resolved by month�s end.

Mike Reynard, spokesman for the federal agency, says Friday that New York�s Department of Transportation has reached agreement with the agency on a path forward.

Democratic Gov. Andrew Cuomo�s office late Friday announced an agreement to launch �an innovative experimental project to allow tourism signage,� with a final plan expected �in the coming months.�

(AP)