$18.4 MILLION IN ADDITIONAL FEDERAL FUNDS RESCINDED FROM TDOT
More than $171 million in Federal Funds Rescinded in Last 18 Months

Nashville, Tenn. – The Tennessee Department of Transportation (TDOT) received word today that another $18.4 million in federal funds have been rescinded from the department’s federal allocation of funds for the fiscal year 2007. TDOT has lost a total of $171.4 million in federal funds since December of 2005. A rescission of funds means that federal dollars promised to Tennessee have now been cancelled and will not be received.

“Nearly 50% of the department’s budget comes from the federal government, so a reduction in these revenues significantly impacts the resources available to TDOT,” said TDOT Commissioner Gerald Nicely. “This loss of funds, coupled with inflation in the cost of construction materials, further reduces our ability to address transportation needs in the state.”

In August 2005, President George W. Bush signed the Safe, Accountable, Flexible, Efficient Transportation Equity Act, a Legacy for Users (SAFETEA-LU). This Act authorized the Federal surface transportation programs for highways, highway safety, and transit for the five-year period from 2005 to 2009. SAFETEA-LU put into place the levels of annual federal funds each state transportation department receives. However, in the past several years authorized funding levels have been significantly reduced by rescissions.

TDOT has experienced the following rescissions over the last 18 months:

“Federal funds support a variety of programs at TDOT, such as public transit, road building, and environmental programs aimed at improving air quality,” Nicely added. “Continuing federal shortfalls will force us to make difficult decisions in all of these areas, especially those programs which receive a majority of funds from the federal government.”

According to the U.S. Department of Transportation, Federal Highway Administration, the funds are being rescinded in accordance with Title IV, Chapter 8 of the U.S. Troop Readiness, Veterans’ Care, Katrina Recover, and Iraq Accountability Appropriations Act of 2007, Public Law (Pub. L. No.) 110-28.