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The Tennessee Conservative [By Paula Gomes] –
The One Big Beautiful Bill Act (OBBBA) has killed a grant for an east Knoxville connectivity project aimed at restoring “cultural and economic opportunity” to communities that were impacted by urban renewal in the past.
When the seven-phase project was first announced, Knoxville Mayor Indya Kincannon called it a good step to “heal” the separation of the city which was split decades ago when dozens of homes, some businesses, and churches were torn down in order to make way for the Knoxville Civic Coliseum.

According to the city, the grant was awarded through the U.S. Department of Transportation (USDOT) for a “civic infrastructure plan intended to begin the restoration of cultural and economic opportunity to communities impacted by urban renewal initiatives.”
Last year, Kincannon called the substantial sum, funding approximately half of the cost of the project, the largest federal grant in recent history to be awarded to Knoxville, praising the impact it would have on disadvantaged communities.
More than $42 million was meant to be awarded to Knoxville’s Community Development Corporation (KCDC), the city’s public housing authority, for the connectivity project with its plan to create nearly ten miles of greenway improvements linking East Knoxville, Morningside Park and the Old City to the Urban Wilderness, Baker Creek Preserve, and certain areas of South Knoxville.
Ben Bentley, KCDC’s executive director and CEO, said in a statement that the OBBBA included a provision that defunded the Neighborhood Access and Equity Grant program, eliminating last year’s grant through the USDOT’s Reconnecting Communities and Neighborhoods Program.

That now defunct program was created by the 2021 Bipartisan Infrastructure Law with the goal of assisting communities, especially those considered disadvantaged, to improve their access to daily needs like education, health care, jobs, and recreation.
The city is still expected to receive a grant for a pedestrian bridge that will span the Tennessee River.
In May, we wrote that Knoxville officials were facing uncertainty with regard to plans for the bridge amid a reminder from USDOT that those using DEI hiring practices would be denied federal funds.
In a letter dated April 24th, 2025, Transportation Secretary Sean Duffy reminded all recipients of USDOT funds to “follow the law.”
“I write to clarify and reaffirm pertinent legal requirements, to outline the Department’s expectations, and to provide a reminder of your responsibilities and the consequences of noncompliance with Federal law and the terms of your financial assistance agreements,” wrote Duffy. “It is the policy of the Department to award and to continue to provide Federal financial assistance only to those recipients who comply with their legal obligations.”
The pedestrian bridge – estimated to cost $60 million – will allow residents to access the University of Tennessee’s pedestrian concourse, as well as downtown Knoxville, from Clancy Avenue, south of the Tennessee river. The south waterfront, an improvement project affecting roughly 750 acres over a two-decade timeframe, will front three miles of the river on the south side.

About the Author: Paula Gomes is a Tennessee resident and reporter for The Tennessee Conservative. You can reach Paula at paula@tennesseeconservativenews.com.