But physically making the street not be a through street is possible. Just plop down a couple of Jersey walls and you're done.
Check out how Vancouver made semlin, grant, and gravely forcibly "no thru traffic" here: https://maps.app.goo.gl/DFVJNDF2DftbFzpv9
https://www.centredaily.com/news/local/community/state-colle...
Traffic bound for North Atherton (bottom left of map) has to go down to the intersection with Park instead of taking Allen.
Easy enough to take a bike through them, I used to ride that way regularly in to campus. But I think it's worked well to not have cars shortcutting through the neighborhood at high speeds.
https://www.google.com/maps/@55.101503,-1.584329,3a,75y,42.5...
https://padailypost.com/2017/11/17/traffic-complaints-to-res...
Can state law change this, or is this a federal funding requirement? (I can't imagine it's a constitutional requirement. Plenty of publicly-funded services from food stamps to the restrooms at Area 51 have restrictions on which members of the general public can use them.)
Whereas there might be nothing whatsoever wrong with such a law you can't legally fine or arrest people for not following instructions you were never legally authorized to give. Essentially anything you put on a sign doesn't gain the force of law.
Example GA went through some drama regarding that notably their local chief of police publicly stated
http://dunwoodynorth.blogspot.com/2017/12/dunwoody-homeowner...
residents in my neighborhood were looking for relief from this cut thru issue along with more enforcement of speeding, stop sign violations and trucks also cutting thru. I reached out to Chief Grogan to share the neighbors concerns and asked that he have the Dunwoody legal staff research the legality of enforcing the "No thru Traffic" on public streets as I personally see the issue as unenforceable.
I wouldn't be surprised if some neighborhoods or property owners also put up fake signs. Wouldn't be the first time.
Occasionally with less selfish motives
https://www.vice.com/en_us/article/kbnzvw/fake-street-sign-i...