The Tennessee Department of Transportation (TDOT) announced that for the first time in history, the state’s annual budget includes additional dedicated, recurring General Fund dollars for transportation. The $80 million in recurring and $1 billion in non-recurring dollars will allow the Tennessee Department of Transportation (TDOT) to accelerate, leverage, and add new projects to the department’s fiscally constrained 10-Year Plan, officials said.
TDOT officials stated, "These funds build on the historic investments and authority granted to TDOT by the Tennessee General Assembly during the past three years, reinforcing the need to build efficiently and effectively to accommodate Tennessee’s exceptional growth. Today, TDOT also released its updated annual plan to include these added funds outlined in the recently passed budget."
“Tennesseans and all who travel through our state will benefit from the historic infrastructure investments we’ve made in partnership with the General Assembly,” said Governor Bill Lee. “I’m grateful for their partnership and willingness to strategically fund transportation projects without raising taxes or going into debt, and this 10-year plan is a bold approach to funding new projects while maintaining our aging infrastructure.”
Officials said, "The first-of-its-kind recurring General Fund dollars are made possible by reallocating a portion of the existing Tire Sales Tax revenue to TDOT. This innovative funding approach doesn’t raise taxes but does increase TDOT’s ability to deliver a higher level of service across Tennessee. This additional money is primarily planned for state-of-good-repair maintenance of pavement and bridges, ensuring the state’s existing infrastructure is properly maintained for years to come."
"This budget and these new investments in transportation and infrastructure will be a game-changer for our state,” said Lt. Governor Randy McNally. “Without raising taxes or debt, we’re accelerating projects, improving safety, and preparing our roads for the future. The General Assembly’s commitment ensures Tennessee stays strong, connected, and economically competitive."
“Thanks to the strong partnership between TDOT and the General Assembly, we’ve made strategic, fiscally responsible investments that have helped accelerate key transportation projects across our state, without raising taxes or taking on debt,” said House Speaker Cameron Sexton. “This budget keeps Tennessee moving forward.”
The $1 billion non-recurring funding will be allocated to additional statewide projects, plus one-time investments in the department’s pavement, bridges, and the Spot Safety Program, and funding into the State Infrastructure Fund for local partnership transportation investments. The $80 million in recurring dollars will be allocated as follows:
- Pavement Preservation Program, leading to an additional 130 lane miles resurfaced annually.
- Bridge Preservation Program, leading to an additional 700,000 square feet of bridge deck treatment being repaired annually.
- Mowing and Litter Program, adding a mowing and litter cycle on interstates and state routes, improving service levels and safety for citizens.
- Spot Safety Program to address transportation safety concerns more efficiently and effectively for taxpayers.
- Rural Service Patrol, expanding our popular urban Help Truck Program to cover an additional 46 counties of rural Tennessee highways, increasing safety and service for all who traverse Tennessee’s rural interstates.
The updated 2025 10-Year Plan contains 96 projects, including Tennessee’s first new interstate trade route in 45 years. Additionally, TDOT introduced something new to the 10-Year Project Map: the checkered flag, which indicates projects delivered to construction.
“This 10-Year Plan shows that we’re keeping our promise of what gets started, gets finished,” said Deputy Governor & TDOT Commissioner Butch Eley. “TDOT delivered 100% of its 2024 projects. And in another step toward transparency and accountability, Tennesseans should notice new road signs before entering work zones showing expected construction completion dates.”
Also on schedule is TDOT’s first Choice Lanes project, the I-24 Southeast Corridor between Nashville and Murfreesboro. This project partners with the private sector to add two additional lanes in both directions at no additional cost to Tennessee. Additional corridors, such as I-65 in Nashville, I-40/I-75 in Knoxville, and I-24 in Chattanooga, have been identified as potential future projects in the Choice Lanes program to enhance regional mobility. Planning and environmental work are underway on the Nashville I-65 corridor priority investment project.
TDOT reevaluates the 10-Year Project Plan annually to adapt to new circumstances. Every project must be carefully assessed, considering many factors, including how it advances through the project delivery process, its importance to the community, and how it fits into the statewide transportation plan. TDOT’s prioritization process evaluates each project based on safety, cost, need, and deliverability. The thoughtful, dynamic, transparent, and accountable approach allows TDOT to move projects forward more effectively, it was stated.
For more information about the plan and strategy, visit TDOT’s Build With Us website.