Knoxville’s Community Development Corporation is springing into action to line up local donors to pay for an ambitious plan to strengthen connections between the east side and the rest of city after a $42.7 million grant was cut by President Donald Trump’s “Big Beautiful Bill.”
The passage of the “Big Beautiful Bill” included a provision that eliminated a Reconnecting Communities grant announced by the city on March 13, 2024. The grant was designed to reestablish connections between eastside neighborhoods and the downtown that were intentionally severed during the urban removal project that flattened entire blocks of mostly Black homes, churches and businesses from 1959-74.
“Although KCDC has not yet received official notice of the funding withdrawal, we recognize the impact this decision will have on the City of Knoxville,” KCDC Executive Director Ben Bentley said in a release. “As federal funding becomes increasingly uncertain, proactively identifying additional local revenue sources will be essential to advance transformative initiatives and deliver housing, infrastructure and amenities that are local priorities.”
Through eminent domain, the city acquired significant tracts of property for the construction of the Knoxville Civic Auditorium and Coliseum. Urban removal created the James White Parkway and a portion of Interstate 40 that hugs the downtown and Old City. It displaced thousands of Black Knoxvillians and created a physical barrier that choked off access from the east side to downtown.
The plan announced by KCDC and city leaders in 2024 would create paths for people to walk or bike to jobs, activities and recreational amenities. The seven-phase project would also connect to South Knoxville’s Urban Wilderness.
The South Knoxville connection was planned to run through Morningside Park and involves retrofitting James White Parkway, one of the most notable barriers built by urban removal, to create barricaded walkways and bike paths along the bridge crossing the Tennessee River.
When KCDC and the city announced they had secured the money in 2024, Mayor Indya Kincannon hailed it as the largest federal grant awarded in recent history, saying it would allow “residents to move safely to jobs, schools, health care and parks.”
Kincannon addressed the cut July 8 in her report at the regular city council meeting. “We are already pivoting to seek other grant opportunities,” she said. “This deal is a reminder of why local dollars for local projects are more important than ever before.”
In total, the project is projected to cost $85.6 million, according to documents obtained by Knox News.
KCDC did not outline specifics in its July 8 press release about how it intends to raise the money necessary to carry the plan forward.
U.S. Rep. Tim Burchett, who represents Knoxville, voted for the “Big Beautiful Bill” signed into law by the president on July 4. Burchett declined to answer questions from Knox News on July 8 about whether he knew the bill would cut Knoxville’s grant funding.
“Congressman Burchett remains committed to supporting state and local partners, like KCDC, in their applications for new federal funding opportunities,” Will Garrett, a spokesperson for Burchett said. “We are approaching $40 trillion in debt, and we need to prioritize reining in federal spending.”
Allie Feinberg reports on politics for Knox News. Email: allie.feinberg@knoxnews.com
This article originally appeared on Knoxville News Sentinel: Big Beautiful Bill kills grant for project to reconnect east side