Senate Bill 2180, also known as House Bill 2094, amends Tennessee Code Annotated to establish guidelines for the allocation of federal and state funds to transportation planning organizations. The bill introduces a new section in Title 54, Chapter 1, Part 1, defining key terms such as "Metropolitan planning organization" (MPO), "Nonmetropolitan area," "Rural planning organization" (RPO), and "Urbanized area," all of which align with existing federal definitions. A significant provision of the bill mandates that the allocation of funds to RPOs for transportation planning in nonmetropolitan areas must be equal to the funds allocated to MPOs for urbanized areas.

The act is set to take effect on July 1, 2026, and will apply to federal or state funds applied for on or after that date. If no applications are made before this date, the provisions will apply to funds accepted on or after July 1, 2027. This legislation aims to ensure equitable funding for transportation planning across both rural and urban areas in Tennessee.