Tennessee Code Title 54. Highways, Bridges and Ferries § 54-4-404

(a) Funds appropriated to the state-aid highway system shall be allocated to the local agencies to be expended upon the designated highways and roads by the same formula as is set forth in § 54-4-103.

(b) No funds shall be either obligated or expended under this program unless the local agency agrees to match the proposed expenditures in an amount of twenty-five percent (25%). All of the required match or a portion of the match may be provided by in-kind contributions.

(c) A local agency may choose to transfer up to fifty percent (50%) of its funds allocated for the state-aid highway system to its state off-system bridge replacement program, in which case the matching requirements for bridge replacement projects as set forth in chapter 916 of the Public Acts of 1982, § 11, Item 48, shall apply. It may choose to transfer up to that amount to participate in the federal-aid bridge replacement and rehabilitation program.

(d) If any county has an unexpended balance of funds that have accrued in the state treasury and that are available for the benefit of the county under this part, then the county may use the unexpended balance, in whole or in part, to provide a portion of the local agency share required by subsection (b); provided, that the county shall provide at least two percent (2%) of the approved project costs from county funds or in-kind project work approved by the commissioner of transportation, or both.