Transportation Modernization Act Provides Major Boost in Funding for Road Improvements
By State Senator Page Walley
Our rural communities are about to see a major boost in transportation funding from the state. In the General Assembly. We passed a law this session, which I cosponsored, to modernize Tennessee’s infrastructure and address traffic congestion, prolonged project delivery timelines, and the deteriorating revenue stream for road funding. The Transportation Modernization Act of 2023 seeks to address a $26 billion backlog of congestion-related needs, and at the same time issues no new taxes, no road debt and ensures that funds are proportionally allocated to urban and rural areas of the state.
This major legislation makes a 15-fold increase in the amount of road funding that we typically invest to counties. It will result in over $25 million of new state dollars coming to our district through the State-Aid Highway System Program which provides funds to counties for local transportation projects. The funding is based on the needs of each county, with counties in our district receiving anywhere from $2.4 million to $3.5 million. This is good news as I get more correspondence from constituents about local roads than any other topic.
The legislation also evenly distributes $3 billion to fund critical infrastructure projects in rural and urban areas of Tennesseans. Each of the Tennessee Department of Transportation’s four regions will receive $750,000,000 through this fund. Our rural communities will not be left behind in the distribution of these funds. In fact, the needs of rural areas were prioritized when determining how to allocate these funds and I am certain that it will result in tremendous benefits to our district and communities. Roads are the veins of our rural communities and it is paramount that we prioritize keeping those roads well-maintained and safe.
The legislation also establishes parity between what the drivers of combustible engine vehicles and their electric vehicle and hybrid counterparts pay in gas taxes. It will increase the registration fee for EVs to $200 for the first three years following passage and $274 by 2026. For hybrid vehicles, a $100 fee would be set immediately following passage. This move seeks to address the eroding effect that the adoption of EVs and hybrid vehicles will have on the state’s gas tax collection as their adoption increases.
I am proud of this historic investment in our transportation and infrastructure. It invests in the future of our rural communities and will yield tremendous benefits for all who use our roads.
As always, it is an honor to serve as your state Senator. Please reach out to me if I can be of assistance to you at sen.page.walley@capitol.tn.gov or (615) 741-2368.
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