Knoxville TPO executive board accepts $8.9 million in FTA FY2025 urban transit funds; approves 5310 project awards

The Knoxville Regional Transportation Planning Organization Executive Board voted Sept. 24 to accept the Federal Transit Administration (FTA) fiscal 2025 urban-area funding and to approve the Section 5310 program-of-projects awards.

Board members were presented an $8.9 million 5307 (urbanized area formula) allocation for FY2025 and a breakdown of how that funding will be used and distributed among regional transit operators. Doug (TPO staff) told the board, “The Federal Transit Administration requires us to have a public hearing on this particular item,” and noted the meeting and packet served that requirement.

Why it matters: The funds pay for capital and operating needs for the region’s public transit network, including paratransit and maintenance; accepting the federal allocation makes the region eligible to obligate and spend the money through the designated recipients.

What the board accepted and how it’s allocated: The board recorded an $8.9 million urban-area (5307) allocation for federal FY2025. The City of Knoxville, as the technical designated recipient, will distribute funds through the TPO process to the three primary transit operators: CAAT (79.8%, roughly $7.1 million), CAC (14.9%, roughly $1.3 million) and ETHRA (about $472,000). Doug said the funds may be used for capital or operating purposes and enumerated planned uses such as maintenance, ADA paratransit service, facility renovation, software and hardware upgrades, and safety and security investments.

Bus and bus facilities (5339): The board also reviewed a separate annual 5339 bus and bus facilities allocation of about $756,000 (an increase of roughly $25,000 from the prior year). The City of Knoxville is the technical designated recipient for 5339 because the funding must be used for fixed-route service; CAAT is the region’s fixed-route operator and will receive the funding for items the board listed, including a replacement service van, bus stop shelters and signage, shop equipment, mobile fare collection and support vehicles.

Section 5310 (enhanced mobility of seniors and individuals with disabilities): Doug reported the region’s 5310 allocation was about $837,000 for the year (a slight decrease from the prior year). Jonah (TPO staff) presented the program-of-projects details and said this round produced roughly $584,000 in FTA operating requests and $918,000 in FTA capital requests, for a total of just over $1.6 million in FTA funding requested across applicants. Jonah explained that operating awards are structured as 50% FTA, 25% TDOT and 25% local match, while capital awards are structured as 80% FTA, 10% TDOT and 10% local match.

Recipient change and applications: Jonah said that whereas the TPO had previously been the designated recipient for 5310 in the past, CAC will be the designated recipient going forward and the TPO will assist with the call for projects and project selection and with placing approved projects into the ETIP. He described the call for projects (advertised online and in regional newspapers) and said three agencies applied for operating funds (CAC, ETHRA, and a Blount County applicant) seeking two years of service funding. Several agencies applied for capital funds seeking accessible vans and mobility management funding; CAC requested funding for its mobility management program as well.

Sevier County applicant: Jonah noted one program the TPO previously funded — Sevier County’s Live It volunteer-assisted transportation — is now outside the TPO urban boundary following a census-based change and therefore is not eligible for the TPO-administered urban 5310 program; Jonah said TDOT now administers rural 5310 funds and the Sevier program will need to apply through TDOT.

Public comment and vote: Staff said the meeting served as the required public hearing; the TPO advertised the funding and posted materials online and reported no advance comments were received. The board moved to accept the FTA allocations and to approve the 5310 program-of-projects. The motions were seconded, the board approved both items by voice vote and the chair declared each motion carried.

Follow-up and next steps: Staff will incorporate the accepted projects and funding allocations into the ETIP and proceed with grant applications and TDOT coordination for match commitments. Jonah stressed TDOT’s match is not finalized until the FTA grant is approved and explained applicants are expected to provide the local match up front until TDOT commits its share.

Ending: Board members who asked questions received answers about eligibility, match structure and regional coordination. The board took no further action on transit funding at the Sept. 24 meeting.