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Comptroller officials: Transportation Financing Authority helped secure $2 billion PAB allocation for I‑24 Choice Lanes
Summary
Comptroller Office witnesses told a joint subcommittee the Tennessee Transportation Financing Authority adopted an inducement resolution enabling TDOT to obtain a $2 billion allocation of federal private activity bonds for the I‑24 Choice Lanes; the House recommended a six‑year extension for the authority.
Caroline Grassi, legislative director for the Comptroller's Office, told the joint subcommittee the Tennessee Transportation Financing Authority was created as a conduit issuer to support projects authorized under the state’s transportation modernization framework and that the authority’s inducement resolution enabled TDOT to secure a $2,000,000,000 allocation of federal private activity bonds for the I‑24 Choice Lanes project.
"The Transportation Financing Authority was created to fulfill that role," Grassi said. She added the authority is administratively attached to the Comptroller's Office, is governed by a board composed of the governor, the finance commissioner, the comptroller, the secretary of state and the treasurer, and that the board had met once and adopted bylaws and the inducement resolution.
Jordan Flynn, deputy general counsel for the Comptroller's Office, told members that because the authority’s responsibilities are tied to project financing milestones rather than a regular operating schedule, it had not met again since initial formation and that TDOT expects to reach commercial close later this year, after which the authority will finalize financing and close the transaction.
Representative Michelle Renaud asked how projects are selected; presenters said project‑specific selection is primarily TDOT’s role and indicated projects under the modernization framework are selected through a competitive process. Grassi and Flynn said the authority anticipates additional meetings as project milestones are reached.
A committee member moved to recommend a six‑year extension for the Transportation Financing Authority; the House voice vote recorded 'ayes' and the motion carried in the House. The chair noted the Senate did not have a quorum and would not vote; the committee’s recommendation will be drafted into a sunset bill for the 2027 legislative session.
