Highway Fund Rescission Hits TDOT Enhancement Grants

Even though Congress has passed a one-month extension of the federal highway bill, Tennessee will still lose $190 million it had not yet contracted out. State transportation officials say $30 million will come out of money for enhancement grants.

Enhancement grants have been made for cities to restore old train stations and build bike lanes or sidewalks. They are typically unconventional transportation projects, and TDOT spokeswoman Julie Oakes says competition is stiff.

“We get probably four times as many applications as we can fund in a given year. Many counties and cities will tell you, they apply three, four, five times before they actually end up getting their grant.”

Under the soon-to-expire highway bill, the state received $17 million a year to divvy up among hundreds of local projects. The federal government is taking back money that had not yet been contracted out.

The state also got $17 million for enhancement grants from the stimulus package this year which is not affected by the rescission.

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