The agency is seeking section 5307 operating assistance to continue public transportation services within the knoxville TN urbanized area UZA 74

The Federal Transit Administration awarded East Tennessee Human Resource Agency, Inc. (ETHRA) $813,131 on February 2, 2026, under the Federal Transit Formula Grants program (CFDA 20.507) to continue public transportation operating assistance and preventive maintenance in the Knoxville, Tennessee urbanized area.

ETHRA will use the funding to provide seamless public transportation services across the urbanized areas of Anderson, Blount, Knox, Loudon, and Sevier counties, transitioning recipients from rural transit (Section 5311) to urbanized area (Section 5307) funding. Operating assistance of $332,194 (50 percent federal share of $166,097 and 50 percent ETHRA local match and third-party contract revenue) will cover salaries, wages, fringe benefits, indirect costs, services, fuel and lubricants, materials and supplies, utilities, insurance, and leases. Preventive maintenance funding of $218,209 (80 percent federal share of $174,567, 10 percent Tennessee Department of Transportation state match of $21,821, and 10 percent ETHRA local match of $21,821) will support bus maintenance and other capital items.

The period of performance runs from October 1, 2025, through September 30, 2026. The ultimate completion date of March 30, 2032, reflects the broader formula grant cycle. ETHRA's Title VI plan, adverse impact and utilization analysis, and DBE threshold questionnaire have received Federal Transit Administration review and approval.

Activities

1. Section 5307 operating assistance ALI 30.09.01 operating assistance up to 50% federal share section 5307 operating assistance in the amount of (50% federal $166097 and 50% ethra local match third party contract revenue $166097. Funding will be utilized to provide public transportation services within the urbanized areas of anderson blount knox loudon and sevier counties. Operating expenses will include but not limited to salaries wages fringe benefits indirect cost services fuel and lubricants materials and supplies utilities insurance and leases.2. Section 5307 preventative maintenance ALI 11.7A.00 other capital items (bus) section 5307 preventative maintenance items (80% federal $174567 10% tdot state match $21821 and 10% ethra local match third party contract revenue $21821) the funding allocations are identified on the attached transportation improvement program tip amendment authorized by the knoxville regional transportation planning organization. Capitalized maintenance expenditures include all maintenance labor and maintenance supplies expended in the urbanized area UZA 74.east tennessee human resource agency does not anticipate the purchase of items over $10000 in value at this time. Any items with value over $10000 identified during the execution of the activities under this ALI will be included via budget revision (actual value and useful life).3. Section 5307 job access and reverse commute (jarc) ALI 30.09.01 operating assistance section 5307 job access and reverse commute (jarc) (50% federal $129594 and 50% ethra local matching funds $129594. Matching funds will be provided third party contract revenue. Jarc addresses these barriers by providing funds to support the development of new transportation services to employment related destinations.4. Section 5307 0.75% will be expended on safety operating assistance ALI 30.09.01 (50% federal $1770 and 50% ethra matching funds $1770) and shall be reflected in detail in the application budget. Items associated with this line item are cost of security camera system and are monthly alarm monitoring services quarterly maintenance testing and inspection services of interior/exterior cameral systems and alarm notifications.

Expected outcomes

As a result of the 2020 census several of the rural communities served by east tennessee human resource agency are now a part of the knoxville urbanized area. Those communities include the cities of clinton OAK ridge and oliver springs in anderson county the cities of alcoa and maryville in blount county the cities of loudon and lenoir city in loudon county and the city of seymour in sevier county.through a supplemental split letter agreement with the city of knoxville federal transit administration funding will be utilized by the east tennessee human resource agency to provide operating and capital assistance to continue the provision of demand response public transportation services within the newly urbanized communities cited above.

Intended beneficiaries

Ethra offers the only mass transit operations within the knoxville expanded urbanized areas of anderson blount loudon and sevier counties providing door to door curb to curb hand in hand non-emergency transportation demand and response service including accessibility to persons with disabilities. The total urbanized population we represent in the expanded urbanized (anderson blount loudon and sevier counties) is 170657 based on the 2020 U.S. Census data.

Subrecipient activities

Currently the agency does not have any subrecipients transit management or service contractors or lessees. As a direct recipient of section 5307 funding the agency will continue to provide the identical demand response services to residents in the newly urbanized area as was provided prior to the release of the 2020 census. The agency will not have subrecipient transit management or service contractors or lessees for this grant application.