State Infrastructure Fund
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.
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.
How SIF works with SPP:
With the passage of the FY2026 budget, TDOT received a $50 million one-time appropriation to revitalize the State Infrastructure Fund (SIF).
As TDOT works to implement this program in conjunction with the Tennessee Local Development Authority (TLDA), it is important to note that the TDOT Statewide Partnership Program (SPP) and the SIF serve complementary but distinct roles in supporting transportation infrastructure across Tennessee.
The SPP is a competitive, limited-window opportunity aimed at locally prioritized traditional highway and bridge projects, offering communities a chance to leverage local funds with state investment to advance key initiatives.
In contrast, the Statewide Infrastructure Fund provides a longer application period and offers low interest loans that can finance a broader range of transportation infrastructure needs.
Notably, one key element of the collaborative nature of these two programs is that communities without the ability to offer financial partnership through the SPP with traditional local funds could consider utilizing an SIF loan, subject to the approval of the TLDA, to enable flexible, layered financing strategies to support local efforts to partner with the state on transportation improvements.
The application window is open from September 30 to October 31 if you intend for your project to be included in TDOT's 10-Year Plan.