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Tennessee Unveils Historic Transportation Funding Boost Without Raising Taxes

May 08, 2025 at 11:20 am by WGNS News


For the first time, Tennessee’s annual budget includes recurring General Fund dollars dedicated to transportation, a move set to transform infrastructure development across the state, as announced by the Governor on Tuesday, May 6. The Tennessee Department of Transportation (TDOT) will receive $80 million in recurring and $1 billion in one-time funding, enabling acceleration and expansion of its 10-Year Plan.

Governor Bill Lee praised the investment as a “bold approach” that boosts infrastructure without increasing taxes or debt. The recurring funds come from a reallocation of the Tire Sales Tax and will support maintenance programs including pavement resurfacing, bridge repairs, and safety initiatives.

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Lt. Governor Randy McNally and House Speaker Cameron Sexton called the investment fiscally responsible and a game-changer for Tennessee’s economy and road safety.

TDOT’s updated 2025 plan outlines 96 projects, including the state's first new interstate trade route in 45 years and the introduction of “Choice Lanes,” starting with I-24 between Nashville and Murfreesboro. New features include signage with expected completion dates and an annual review process for prioritizing projects based on safety, need, and efficiency.

More details are available at TDOT’s Build With Us website.

 

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