TPO previews 2026 TIP, proposes 10% contingency reserve and changes to delayed-project reporting and CMAQ phasing

TPO staff presented an update on development of the next Transportation Improvement Program (TIP) at the Jan. 29 board meeting, outlining a draft schedule that targets January 2026 for final approval and previewing funding available for programming.

Craig Lubecky, the TIP presenter, said the TIP is "where the dollars that we work on long range planning actually go out into the world to actual physical projects," and gave an overview of the project call that opened Jan. 17 and runs through February. Staff provided projected federal funding levels for key programs available to the board this cycle: about $126 million in LSTBG (Surface Transportation Block Grant), just under $12 million in TAP (Transportation Alternatives Program), and a little over $9 million in the Carbon Reduction Program. Lubecky noted local match is not included in those federal figures.

Staff proposed three programming changes for the new TIP cycle: increase the cost-overrun and contingency reserve from 9% to 10% of TPO-controlled revenue when fiscally constraining the TIP; change delayed-project reporting from quarterly to twice annually with more robust reporting back to the board; and acknowledge a TDOT request for CMAQ projects to be programmed initially for NEPA and design phases only, with right-of-way and construction programmed later when phases are closer to readiness. On the reserve, Lubecky explained staff expect to set aside roughly 10% of the LSTBG pot (approximately $12.6 million on a $126 million program) to manage cost increases across the portfolio.

Board members asked about the potential federal funding pause following an executive order discussed in Washington. Matt Mazurvi, TDOT planning director, said his understanding is that formula programs "are fine. They should be they should be moving forward just like they are business as usual and that it that includes larger programs like the STBG, National Highway Performance," while discretionary grants may be more uncertain.

Staff also reviewed the TIP's delayed-project policy and cost-overrun approval thresholds: currently, technical committee approval is required for increases exceeding 25% of a project's cost or TPO federal funds advancing by more than $500,000; staff proposed retaining those approval thresholds and only increasing the program reserve to 10%.

Lubecky and staff said project scoring and fiscal-constraint work will continue through the application period; the board will review funding packages and make final decisions as part of the TIP adoption process.