NASHVILLE - A recent news story contained information about federal transportation funding rescissions impacting the Tennessee Department of Transportation. The article has resulted in several subsequent reports from various media outlets, many of which contained incorrect or misleading information that confused these funding rescissions with funds received through the American Recovery and Reinvestment Act of 2009. TDOT would like to clarify that information for any future reports.
TDOT has been impacted by over $556 million in rescinded federal funds since 2002. The most recent rescissions removed over $190 million in future transportation spending from Tennessee's balances. These funds are part of the regular federal appropriations granted to TDOT and other DOT's each year through the federal transportation funding bill.
TDOT has managed to reduce the impact of the latest federal rescissions on core programs that fund bridge and major highway construction projects. However, the loss of funds did have significant impact on our Congestion Mitigation & Air Quality, Enhancement, and Safety programs. The rescissions also severely reduced the fund balances available to cities and Metropolitan Planning Organizations across the state. The losses will reduce the department's and MPO's flexibility in delivering transportation projects and programs.
The impact of the most recent rescissions on specific projects in communities across the state is still being determined at this time. TDOT, MPO's, and local governments are currently in the process of reevaluating projects based on the funding available.
The $190 million in federal rescissions are completely separate from the $572 million in stimulus funding received for highways and bridges in Tennessee this year. Over 95% of the stimulus projects are underway and those remaining will be committed well before the March 2, 2010 deadline. The projects funded through the American Recovery and Reinvestment Act will NOT be impacted by the loss of future federal transportation spending dollars.