TDOT asks legislature to approve $425 million package for maintenance, bridges and 10‑year projects

Tennessee Department of Transportation Commissioner Will Reed outlined the department’s FY27 spending plan to the Finance, Ways and Means committee, asking the General Assembly to support a combined $425 million package that pairs $25 million in recurring funds with $400 million in one‑time investments.

Reed said the governor’s proposal separates the $400 million one‑time pot into three priorities: an initial $75 million for maintenance (a combination of $25 million recurring and $50 million one‑time in year one), $150 million for critical bridge investments spread over two years and $200 million reserved to add the next ready, high‑impact projects to TDOT’s 10‑year plan if funds are available. “If this budget is accepted and passed by this body, we would return to the General Assembly with a 10‑year plan of how those dollars would fit in,” Reed said.

Natalie Christophe, TDOT deputy commissioner and chief financial officer, told the committee the agency’s funding mix is roughly half federal dollars and half state funds, noting federal grants are highly restricted and usually do not cover routine maintenance or day‑to‑day operations. Christophe said state recurring revenue has been effectively flat and that inflation has eroded purchasing power; she cited the introduction of a tire‑sales tax in 2026 that the department projects will add roughly $80 million in collections this year.

Reed framed the investments as both safety and long‑term asset management. The maintenance funds would support culvert upgrades, pothole repair, vegetation management and sign replacement; bridge dollars would focus on preserving statewide bridge condition and, the commissioner said, delay a federally mandated threshold crossing from around 2030 to beyond 2035. Reed also said the department is assessing how many off‑system (local) bridges could be addressed with the $150 million allocation.

The department emphasized it will treat the $200 million reserved for the 10‑year plan conservatively: projects will be identified and prioritized if one‑time funds become available, and TDOT will follow the same planning process used since 2023 to slot projects into the plan.

Committee members pressed whether recurring revenue would be preferable to avoid a funding “valley” in the early 2030s. Reed said recurring funds make long‑term planning easier but that the agency can and will use either one‑time or recurring dollars to deliver projects efficiently. He also highlighted the Transportation Modernization Act (TMA), passed in 2023, as a tool to leverage private investment for large projects.

The committee did not take a vote; TDOT answered member questions and said it would provide additional details on project lists and planned schedules if the General Assembly adopts the governor’s proposal.