Georgia congressman questions federal funding for TN Choice Lanes
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A Georgia congressman sent a letter to the top U.S. transportation official this week, expressing concerns about federal funding for Tennessee's I-24 toll lane project.
Why it matters: The toll lanes are supposed to bring in billions of dollars for Tennessee's transportation funding and help ease congestion on the busy I-24 corridor between Nashville and Rutherford County.
Driving the news: In a letter to Transportation Secretary Sean Duffy, U.S. Rep. Clay Fuller questioned plans for the project to use a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan.
- Since its launch in 1998, the TIFIA program has approved $52 billion in federal assistance.
- The largest loan to date was nearly $4 billion for the State Route 400 project in Fuller's home state of Georgia.
What he's saying: In his letter, Fuller worries TDOT would borrow "in the excess of $10 billion" for the project, and expresses concern that such an amount "would crowd out other viable and important projects nationwide."
State of play: Tennessee awarded the toll project to a consortium of businesses called DriveTN, which outbid its next closest competitors by a wide margin in order to secure the deal.
- DriveTN committed $24.8 billion in promised payments to Tennessee compared to the next highest bid of $7.4 billion.
- DriveTN's bid included $9.2 billion in estimated construction costs, which raised eyebrows for Fuller.
The other side: A spokesperson for the Tennessee Department of Transportation said the state remains in an active procurement and can't provide additional details. The contract for the project isn't finalized.
Yes, but: In an interview with the Nashville Business Journal, TDOT Commissioner Will Reid confirmed state officials are talking to U.S. senators and federal officials about a loan that will reach "uncharted territory for projects this large."
- The Business Journal reports those talks are "poised to produce a record" TIFIA loan, but Reid declined to say the dollar amount.
- "Can the TIFIA program manage this much of a loan, and how is that going to shape the market? We want to work through that so it works for everyone involved," Reid told the Business Journal. "We get the value that was promised to us … but we also don't blow up the entire TIFIA program."
How it works: Choice Lanes allow motorists to pay a toll to bypass congestion in the regular interstate lanes.
- In addition to questions about funding for the project, Choice Lanes has drawn criticism for affecting property owners in south Nashville.