TN budget for 2026 adds extra TDOT funding

The 2026 Tennessee fiscal budget now includes an unprecedented $80 million of recurring money for the Tennessee Department of Transportation. This allows for the sales tax on tires sold in the state, around $80 million, to go towards TDOT for various maintenance and new build projects, many in rural areas. TDOT released a statement thanking the lawmakers for providing more funding as well as detailing how it will use the additional funds for six specific projects. TDOT says there are $38 billion worth of backlogged projects and the new funding will allow the department to work on them faster than originally planned.