Sen. Massey and TPO staff warn of growing transportation funding gap; federal reauthorization timeline noted
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Summary
Sen. Massey told the TPO board that an estimate places the region/state backlog at about $38 billion and outlined a state task force studying alternative revenue sources. TPO staff summarized federal reauthorization work under IIJA, the Highway Trust Fund shortfall and options such as mileage fees or suballocating discretionary funds to regions.
Sen. Massey told the Knoxville Regional Transportation Planning Organization on Dec. 17 that the state faces a large transportation backlog and that lawmakers are studying alternative funding models to address rising costs and eroding purchasing power in the gas‑tax revenue stream.
"One of the last estimates was $38,000,000,000 in backlog of identified projects," Massey said, summarizing the scale of unmet needs she said TDOT and the state face. She listed budget requests sent to the governor that included $75 million for statewide maintenance, $75 million for critical bridge investment, $100 million recurring for highway program support, and $250 million one‑time for rest area and welcome center modernization.
Massey said a state study group is analyzing alternative revenue tools — from small delivery fees to mileage‑based user fees and indexing options — and that a final study is expected in 2026. "We have to have the, quote, final study by the end by, you know, here in '26," she said.
TPO staff also updated the board on federal surface transportation reauthorization following IIJA. Mike (TPO staff) said the federal authorization typically covers five years and that IIJA expires Sept. 30, 2026. He noted pressure on the Highway Trust Fund and cited federal fuel taxes of 18.4¢ per gallon for gasoline and 24.4¢ for diesel, last changed in 1993. "The Highway Trust Fund became insolvent back in '2 since 2008," he said, describing repeated general fund transfers to maintain solvency and projecting that the fund could hit zero again in 2028 absent new revenue or structural changes.
Staff discussed policy options under consideration at the federal level, including shifting some discretionary programs into formula suballocations to regions, increasing planning funds for metropolitan planning organizations, and exploring revenue mechanisms such as mileage‑based fees. Board members asked about local bridge projects such as Gay Street Bridge and about ways to reduce wear and tear on highways, including investments in transit and rail.
The board received the updates for information; no action was required.
