2025 Governor's Proposals
The Governor’s proposed budget for TDOT is driven by the growing need to address critical infrastructure challenges that cannot be fully met through traditional funding sources. Population growth, increased wear and tear on roads, and rising costs of materials and construction have placed significant pressure on existing revenue streams. By securing general fund support, TDOT can ensure the timely maintenance of aging infrastructure, invest in new projects to support economic growth, and enhance safety and transportation for the motoring public. This funding is essential for sustaining a robust transportation system that serves as the backbone of Tennessee’s economy. Some specifics on the budget initiatives are below:
To ensure TDOT can provide motorists with a quality level of service while preserving our future ability to build new roads and bridges, TDOT is grateful for the recommendation of a recurring appropriation and a one-time infusion to be dedicated to the department’s efforts to maintain our state of good repair. This one-time appropriation would allow TDOT to address the most urgent pavement repair needs and prevent further degradation on Tennessee’s most vulnerable assets immediately and provide a jumpstart to our maintenance program. The recurring nature of this investment would allow the department to blunt long-term costs associated with major rehabilitation projects by allowing TDOT to address these deteriorating surfaces more rapidly than at current funding levels.
An appropriation for bridge maintenance would empower the department to address the impending challenge that most of the state’s bridges are coming due for replacement or significant repair in the next 10 years. The maintenance of our existing assets, particularly bridges, is critical to our economy. Without continuous additional funding, this trend will result in a significant backlog of bridge repairs, posing risks to public safety and increasing long-term repair costs. With these funds, TDOT can extend the service life of structures, reduce future repair costs, and ensure safe and reliable transportation for the state’s growing population.
Safety projects are arguably the most impactful to local communities and fulfill the basic tenets of our performance management plan. The increase in costs associated with basic safety projects like signalization, traffic markings, signs, and other technologies hinders TDOT’s ability to deliver these needed projects in communities across the state. The investment would not only cut the approximated delivery time of pending projects in the queue in half but would allow the department to invest further in spot safety improvements throughout the state.
The current and extraordinarily popular HELP truck program currently operates on 435 interstate miles in urban areas, 7 days a week, 16 hours per day. In order to improve motorist safety and response times along our rural interstates, the department is expanding the program. The Rural Service Patrol (RSP) extension of HELP services is TDOT’s response to not only an increased demand for services, but a recognition of the dire need for such a program in our rural areas. TDOT’s RSP will offer essential services to Tennessee’s rural population including but not limited to motorist assistance, interstate patrols, traffic incident management, and hazardous condition assistance. With this funding, TDOT will expand the HELP program from 11 counties to 46 counties with a renewed focus on our rural two-laned interstates.
Mowing and litter pick-up efforts not only improve the aesthetic nature of the state’s ROW but also improve visibility and safety for roadway users. Mowing cycles prevent overgrowth that can encroach on roadways, damaging infrastructure and increasing the likelihood of roadside crashes when vegetation reaches the point of limiting sight distances. Well maintained perimeters and limited litter discourage animals from coming too close to roadways and reduces likelihood of wildlife collisions.
As reported by the Tennessee Advisory Commission on Intergovernmental Relations (TACIR), Tennessee’s transportation infrastructure needs currently surpass $35 billion. Using TDOT’s existing 10-Year Plan, this proposed General Fund investment will be used to advance these projects at a quicker rate, add new projects to the 10-Year Plan, and leverage the number of statewide partnership projects with local governments. TDOT will continue to chip away at the existing project backlog and utilize one-time general fund dollars on essential upgrades that reduce congestion, improve safety, and support economic development throughout the state of Tennessee.
About
In 2017, the General Assembly passed the IMPROVE Act, which among other things, authorized certain local governments to increase revenue for public transit by levying surcharges on a variety of local taxes, such as sales, business, and rental car taxes, if approved via a local referendum. This authority was only extended to larger cities and counties and the revenue was limited to support transit project only.
Just as inflationary factors in infrastructure construction combined with flat gas tax revenue has significantly hindered TDOT’s ability to keep pace Tennessee’s growing transportation needs, cities and counties who often depend on their share of the gas tax to fund local infrastructure are facing the same challenges.
Additionally, while some communities have worked to partner with TDOT to delivery project of both local and regional significance, not every community is in a position financially to participate in such partnerships.
Solution
This bill seeks to support cities and counties of all sizes as they invest in their local infrastructure, whether that be transit or traditional highway and bridge projects, by expanding the authority to levy local surcharges to all cities and counties and by allowing revenue generated to support any transportation system project, inclusive of transit as well as highway and bridge projects.
All other existing statutory requirements are maintained, including, and most importantly, the requirement that such a surcharge be approved by the local legislative body before going before the voters via referendum.
Additionally, this legislation ensures that any revenue generated cannot supplant existing investments in infrastructure, while also ensuring that local maintenance of effort requirements are not negatively impacted by an influx of revenue from a surcharge.
This bill will provide cities and counties across the state with a new, but optional tool that must be approved by the voters, that will empower them to support local transportation priorities, such as local projects and partnering with the state on projects, of local, regional, and statewide significance.
The State Infrastructure Fund (SIF) is a critical funding mechanism designed to support local government units in the development and improvement of transportation infrastructure across Tennessee. Established under the Tennessee Transportation State Infrastructure Fund Act (T.C.A. 4-31-1201), the program continues the legacy of the State Infrastructure Loan Program, which originated in FY 2010 with an allocation through the Tennessee Local Development Authority (TLDA). The SIF aids local governments by providing them with low-interest loans administered through the TLDA to help in the construction of transportation infrastructure projects. By providing financial assistance for transportation projects, the SIF enables communities to enhance mobility, improve safety, and stimulate economic growth while ensuring the long-term sustainability of the state’s infrastructure system.
Through the State Infrastructure Fund, eligible local governments can access funding to support projects that deliver measurable public benefits, increasing safety, reducing congestion, and improving transportation access for residents and businesses. The program is designed to foster strategic partnerships between the state and local agencies, ensuring that infrastructure investments align with regional and statewide transportation goals. By promoting high-impact local projects that enhance the quality of life for Tennesseans, the State Infrastructure Fund plays a vital role in maintaining and modernizing Tennessee’s transportation system while supporting economic development initiatives across the state.
For more information of the State Infrastructure Program please contact: Tdot.project.intake@tn.gov
Resource Library
| TDOT Budget Legislation Proposal (video) | ||
| Budget and Legislation - at a glance | ||
| Budget FAQ | ||
| Budget Powerpoint |