Highways, Roads and Bridges - As introduced, extends the authority for local governments to levy a surcharge on local privilege taxes to fund a transportation improvement program to all cities instead of only Chattanooga, Clarksville, Knoxville, Nashville, and Memphis, and to all counties instead of only Wilson, Washington, Blount, Sullivan, Sumner, Montgomery, Williamson, Rutherford, Hamilton, Knox, Davidson, and Shelby counties; expands the use of such local surcharge revenue for highway and bridge projects, in addition to mass transit projects. - Amends TCA Section 67-3-901 and Title 67, Chapter 4, Part 32.

HB 127 expands Tennessee local governments' ability to fund transportation projects by allowing all cities and counties - not just specific cities like Nashville or counties like Shelby - to levy a surcharge on local privilege taxes. The bill changes the funding purpose from "transit improvement" to "transportation improvement," explicitly including highway and bridge projects alongside mass transit. It also adds a requirement that local governments must allocate at least the average of their prior five years' road funding (excluding certain revenues) to avoid losing surcharge funds, which would then go to the state highway fund for road improvements. The changes take effect July 1, 2025.