FY 2026-2029 Transportation Improvement Program – Surface Transportation Block Grant (STBG), Surface Transportation Block Grant – Transportation Alternatives (STBG-TA), Carbon Reduction Program (CRP) and Congestion Mitigation and Air Quality Improvement (CMAQ PM 2.5) Federal Funding Opportunity

Purpose

The Knoxville Regional Transportation Planning Organization (TPO) is currently developing the Fiscal Year 2026-2029 Transportation Improvement Program (TIP). The TIP is updated on a three-year cycle and covers a period of four years. Therefore, the current FY 2023-2026 TIP will transition to a new FY 2026-2029 TIP. This call for projects allows jurisdictions to apply for new projects or roll over and update unobligated phases of projects currently programmed in the FY 2023-2026 TIP.

Funding Availability

  • Local Surface Transportation Block Grant (L-STBG): TPO staff projects a federal fund balance of approximately $70.2 million in FY 2026 available to program projects rolled over from the current TIP, cover funding shortfalls in rollover projects and fund new projects. Fiscal years 2027 through 2029 are projected to have approximately $14 million available annually.
  • Local Surface Transportation Block Grant Transportation Alternatives Program (L-STBG-TA): Approximately $5.2 million is available to program projects rolled over from the current TIP, cover funding shortfalls in rollover projects and fund new projects in FY 2026. Fiscal years 2027 through 2029 are projected to have approximately $1.7 million available annually.
  • Carbon Reduction Program (CRP): Approximately $2.6 million is available to program projects rolled over from the current TIP, cover funding shortfalls in rollover projects and fund new projects in FY 2026. Fiscal years 2027 through 2029 are projected to have approximately $1.7 million available annually.
  • Final revenue amounts will be determined by authorizations from the federal transportation bill. Carryover funds may be impacted by cost increases within the current TIP program.
  • Congestion Mitigation and Air Quality Improvement (CMAQ) PM 2.5 Program: While the TPO has not received programming authority for CMAQ PM 2.5 funds beyond 2025, this project call serves as an opportunity to develop a project list from which the TPO can coordinate with the TDOT Air Quality Office to seek programming authority in FY 2026 and beyond.

Project Eligibility

STBG projects to improve roadway safety, capacity, operations, or other conditions must be located facilities identified on the federal functional classification system as an Urban Minor Collector or higher. Bicycle/Pedestrian and other multimodal projects (e.g., sidewalks, greenways, transit) are not required to be on the federal functional classification system. Most projects require a 20% local match.

STBG-TA also projects typically require a 20% local match. Transportation Alternatives eligible programs and projects include, but are not limited to:

  • On- and off-road pedestrian and bicycle facilities, including trails for nonmotorized use.
  • Construction of turnouts, overlooks, and viewing areas.
    • Community improvement activities:
    • Historic preservation
  • Vegetation management
  • Environmental mitigation for stormwater and habitat connectivity
  • Recreational trail projects
  • Safe routes to school projects

More information about the STBG-TA program and eligible project types can be found here.

CRP funding is available for projects that support the reduction of transportation emissions. More information about the CRP program and eligible project types can be found here: https://www.fhwa.dot.gov/environment/sustainability/energy/policy/crp_guidance.pdf

CMAQ funding is available to reduce congestion and improve air quality for areas that do not meet the National Ambient Air Quality Standards for ozone, carbon monoxide, or particulate matter (nonattainment areas) and for former nonattainment areas that are now in compliance (maintenance areas).

In addition, projects should be included in the fiscally constrained project list of the Knoxville TPO’s Metropolitan Transportation Plan (Mobility Plan 2050). In some instances, projects not individually listed, yet consistent with Mobility Plan 2050, may be eligible to proceed. Projects not currently included in the Mobility Plan fiscally constrained project list should be considered for the TIP only when new funds have been identified to advance the project.

Application Process

Fillable application forms are included in the links below. New projects (those not rolled over from FY 2023-2026 TIP) will submit a full application form. Projects programmed in the current TIP (and eligible for rollover programming, as determined by TIP Policies) will submit a simplified project rollover/update form. Please contact TPO staff for any questions about the application forms, or to verify which form to complete.

Applications are due to TPO staff by Friday, February 28th.

Evaluation Criteria

Projects will be scored based on the goals and factors developed as part of the Mobility Plan 2050 and identified on the Application Form. Other criteria that TPO staff will be evaluating in making project selection recommendations will involve an assessment of project completion scheduling and assessment of project delays as determined by TIP programming policies. This assessment will be based on ease of project implementation, past performance of the sponsoring agency in the TDOT project development process and amount/status of other projects already under development by the sponsoring agency.

Call for Projects Timeline and Draft TIP Development Schedule

  • Begin Call for Projects – January 17, 2025
  • End Call for Projects – Friday, February 28, 2025
  • TPO Staff Scoring and Project Selection Recommendation – March, 2025
  • Draft TIP to Technical Committee/Executive Board for Review – June, 2025
  • Final TIP Technical Committee Recommendation/Executive Board Adoption – October, 2025

While individuals may not submit project applications, we encourage the public to reach out to your local leaders now if there is a project you think should be included.

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