TDOT presents $425M package to Tennessee Senate committee, budget advances to finance

Tennessee Department of Transportation Commissioner Will Reed told the Senate Transportation and Safety Committee on Thursday that TDOTis seeking $425,000,000 in proposed funds for the coming year, including a $25,000,000 recurring allocation and $400,000,000 in one-time dollars to address maintenance, bridges and targeted projects.

"Our objective today is really, really three things," Reed said, opening the departmentpresentation. He highlighted the agencyresponse to recent winter storm "Fern," noting nearly 150,000 labor hours, more than 106,000 tons of salt used and thousands of incidents managed as evidence of operational capacity and the need for sustained funding.

TDOTchief financial officer (recorded in the hearing transcript as Natalie Christophe) told the committee that more than half of TDOTfunding comes from federal sources, which are typically restricted to construction or specific programs and are not eligible for routine maintenance. She said inflation has left state user-fee revenue essentially flat while costs for materials and maintenance have risen.

Reed and his team proposed the $425,000,000 package be split to prioritize near-term preservation and safety. The department described a first-year maintenance boost of $75,000,000 (made up of the $25,000,000 recurring plus $50,000,000 one-time), a $150,000,000 nonrecurring bridge program intended to improve statewide bridge condition ratings and defer a federally measured threshold decline, and roughly $200,000,000 to bring additional projects into TDOTthe 10-year plan if the budget is approved.

Reed also outlined a $165,000,000 proposal to renovate or repurpose existing rest areas and welcome centers statewide (with one site excluded per the Improve Act). "We will look at which ones can be upgraded or repurposed for truck parking," he said, noting coordination with the tourism and general services agencies would follow.

On aviation, TDOT deputy commissioner Preston Elliott described roughly $56.2 million requested for general-aviation needs and a larger air-carrier request that leverages federal FAA funds and TEF resources.

The presentation drew committee questions on several fronts: how the department would maintain eligibility for federal matching funds as maintenance needs grow; the size of the statewide backlog of needs (figures cited during the hearing ranged from $30 billion to $58 billion depending on assumptions); and procurement for the I-24 Choice Lanes project, where TDOT reported four proposers and a planned commercial close in the third quarter.

Senator Powers asked about a $50,000,000 AI appropriation in the governorbudget and how TDOT would use artificial intelligence. Reed said TDOT is exploring AI to support asset management and maintenance decision-making: "We are actually looking at an AI application that will be the backbone of our asset management," he said.

After questions and a separate committee letter motion urging $20,000,000 in nonrecurring funding for Tennessee short-line railroads, the committee voted by roll call to advance the TDOT teed-up budget to the Finance Committee by a 9-0 vote.

The next procedural step is consideration in the Senate Finance Committee; TDOT officials told senators they will return with additional detail on encumbrances and project-level lists when requested.