Nashville

Tennessee Allocates Over $42 Million in Grants to Enhance Multimodal Transportation

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Published on December 29, 2025
Tennessee Allocates Over $42 Million in Grants to Enhance Multimodal TransportationSource: Tennessee Office of the Governor

Tennessee's push towards improving its transportation infrastructure just received a significant financial boost, with Governor Bill Lee and the Tennessee Department of Transportation (TDOT) Commissioner Will Reid announcing more than $42 million in grants. The grants are focused on enhancing the state's multimodal transportation options, emphasizing safety, community connectivity, and access. "Increasing safety, strengthening community connections, and expanding access make our cities and towns better places to live, work, and thrive," Gov. Lee stated, highlighting the expected benefits of these projects for Tennessee's communities, as reported by the TDOT.

The funding is divided among three grant programs. The federal Transportation Alternatives Program (TAP) is awarding $16.4 million to six communities for diverse projects, including historic facility restoration, bike and pedestrian trails, and landscaping. Commissioner Reid noted, "Since 1991, through these grants, TDOT has funded over $400 million in non-traditional transportation projects." The aim is multifaceted, addressing downtown revitalization, economic development, and alternative transportation means. The grant recipients and project details can be found on the TDOT's TAP page.

Next, the state’s IMPROVE Transit Investment Grant, which garnered 14 applications from nine transit agencies, is allocating $22.2 million to fortify the public transit system. TDOT's competitive transit grant program has invested over $100 million since 2018, according to the official announcement. The investments span a variety of projects ranging from new transit centers in cities like Kingsport and Nashville to the adoption of electric buses and corresponding charging infrastructure in Knoxville and Chattanooga. More information about the beneficiaries of this year’s funding is available on TDOT’s website.

The third component of these transportation grants is the Multimodal Access Grant (MMAG), which allocated $4 million in funding for four projects. These efforts support infrastructure improvements for pedestrians, bicyclists, and transit users, filling critical gaps along state routes. Especially noteworthy is that two of the projects are placed in counties identified as distressed or at-risk, aiming to bring needed transportation improvements to these areas. A list of the MMAG projects can be viewed at TDOT’s Multimodal Access Grant page.