Tennessee Gov. Phil Bredesen awarded more than $3.6 million in federal intercity transit grant funds to seven local agencies, including Nashville-based Anchor Trailways. The funds will be used to connect more than 40 cites and counties in Tennessee’s rural communities to fixed route public transportation services.

The Intercity Bus Demonstration Program is administered by the Tennessee Department of Transportation’s Multimodal Transportation Resource Division and utilizes federal 5311(f) grant funds. The Section 5311(f) Intercity Bus Program is designed to address the intercity travel needs of residents and people in non-urbanized areas of the state.

The grant funds may be used to purchase buses, vans, radios, wheelchair lifts, computers and other equipment necessary to maintain and transport human services agency clients and the general public in non-urbanized areas.

On average, $1.3 million will be available each year for the state of Tennessee to assist with continued expansion of rural transit services. The annual federal allocations are based on the non-urbanized population, the number of vehicles and counties in the service area.