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TN lawmakers move to override local control of Musk’s tunnel

Story Center by Story Center
February 26, 2026
Reading Time: 9 mins read
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TN lawmakers move to override local control of Musk's tunnel

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Take a ride in The Boring Co.’s Vegas Loop before Nashville gets its own

Here’s what it’s like to ride inside one of The Boring Company’s Tesla tunnels. The Vegas Loop, which consists of eight stations and under five miles of tunnel so far, offers a preview into what Nashville can expect in 2027.

Tennessee legislators advanced a bill Feb. 24 that would create a new governing board with sweeping authority over underground transit projects, including The Boring Company’s Music City Loop in Nashville.

The Subterranean Transportation Infrastructure Coordination Authority board would be empowered to override local government decisions to “avoid bottlenecks,” effectively centralizing control of tunnel projects at the state level.

The change is notable as some Nashville Metro Council members have expressed opposition to Musk’s underground Tesla tunnel, most recently in a Feb. 19 public meeting. But state officials said the purpose is to streamline numerous permits moving through various departments

Announced in July 2025 at the Nashville International Airport’s Hilton Hotel, the Music City Loop would initially consist of two one-directional tunnels transporting passengers in Tesla sedans from Nashville International airport to downtown.

The Boring Company is also exploring a statewide expansion of the tunnel system, with potential routes to Murfreesboro, Memphis, Chattanooga and Knoxville, according to CEO Steve Davis. Locally, Davis has discussed possible stops at the new Nissan Stadium, the Music City Center and the Gaylord Opryland Resort & Convention Center.

The Boring Company is also exploring a statewide expansion of the tunnel system, with potential routes to Murfreesboro, Memphis, Chattanooga and Knoxville, according to CEO Steve Davis. In Nashville, Davis has discussed possible stops at the new Nissan Stadium, the Music City Center and the Gaylord Opryland Resort & Convention Center.

“That is what I want to happen,” Davis said. “It’s a system that you can expand without affecting the existing system and with zero taxpayer dollars.”

While the project itself would not receive state funding, the proposed board is expected to cost up to $5.4 million annually, paid from the state’s general fund to cover staff salaries and various expenses.

Senate Bill 2205, dubbed The Subterranean Transportation Infrastructure Coordination Act, would create a 11-member authority board to take absolute control of all future state dealings with “subterranean transit projects,” including the Music City Loop.

Tennessee Senate Majority Leader Jack Johnson, R-Franklin, sponsored the bill, which passed the Senate Commerce and Labor Committee in a 8-0 vote Feb. 24.

Johnson said the authority would “provide certainty to private partners who are willing to invest private sector dollars to help improve our infrastructure system.”

If signed into law, the board would be in place by July 31.

Here’s what to know about the bill.

What power would Tennessee’s new board have over Musk’s Nashville tunnel?

If passed, the bill would establish an 11-person Subterranean Transportation Infrastructure Coordination Authority. The governor, lieutenant governor and speaker of the House of Representatives would each appoint three board members. The board would also include the state commissioners of transportation, environment and conservation, commerce and insurance, and the state fire marshal.

The board would be granted absolute authority to carry out every task relating to underground transit projects.

After a list of 17 specific powers, the bill gives the board authority to do “and perform “each and every act and thing” and “exercise each and every power” that the board “deems necessary, convenient, or appropriate, to accomplish the purposes of this chapter.”

Among the specific powers listed, the board would be empowered to:

  • Execute contracts and leases
  • Hire employees including a CEO and legal counsel to transact business
  • Retain third-party contractors and agents
  • Enforce compliance with codes policies and land use regulations
  • Own, acquire, purchase, convey, donate, lease, and maintain property without need for approval from state or local governments
  • Develop, maintain, and operate transit projects
  • Lease transit projects to operators and have sole discretion over charging, waiver and collection of rent for the projects
  • Sell or lease transit projects to the transit operator for an amount determined by the board
  • Develop and maintain grounds around the transit project, including signage, trash removal, and landscaping
  • Accept and distribute federal grants
  • Regulate land use, utilities and utility systems
  • Enter into agreements with local and state government entities
  • Contract utility services for construction, operation and maintenance of the transit project.

What power would Nashville, cities have over underground transit?

Johnson said during the Commerce Committee hearing that all powers that would be vested in the new board already exist at the state level but exist in “a hodgepodge of different authorities” — whether environmental, fire safety, or structural safety.

Local governments currently have no input on any subterranean transit projects, Johnson said.

“The state has the authority now to grant that permit underneath state owned property, because they own the rights of subterranean for that,” Johnson said. He added that the bill would offer a new appeals process for surface permit denials which “hopefully would never be needed.”

“If there is an adverse decision from the local government, there is an appeal back to this authority, simply to make sure that if there’s a local government that wishes to inhibit the development of this project, the permit applicant is getting a fair hearing,” Johnson said.

Local governments and private property owners retain all building and land use standards for surface-level construction, Johnson said.

“Nothing in the bill would authorize construction beneath locally owned property without the locality’s consent, or privately owned property without the property owners’ consent,” Johnson said. “Those standards, however, would not be allowed to prohibit or effectively prohibit a qualifying project.”

Nashville airport could lose oversight of Tesla tunnel

The bill specifies that it applies to The Music City Loop. It also delineates its intent to usurp control from the Metro Nashville Airport Authority.

On Feb 18, following eight months of negotiations, MNAA commissioners unanimously approved a $34 million, 40-year deal with The Boring Co., making way for Music City Loop construction on airport property. The deal also established potential for over $300 million in additional airport revenue from operating costs that The Boring Co. will pay MNAA once the tunnel is up and running.

Established in 1970 by state legislators and appointed by the Nashville mayor, the MNAA governs the Nashville airport. In recent years, the state has attempted to take some appointing power back from city leadership, but courts have repeatedly ruled the bids unconstitutional.

As approved by the Commerce Committee, Johnson’s bill would require MNAA to transfer its agreement over to the Subterranean Transportation Infrastructure Coordination Authority.

However, Johnson’s office said that is not the intent of the bill, and another amendment is coming to clarify that airport leaders retain oversight on their property.

“This legislation will effectively result in the Authority taking the place of the MNAA in such agreement with the TBC, no later than October 1, 2026,” the bill states.

Airport officials said they were not aware of the legislation prior to its introduction.

“MNAA needs time to evaluate the impact this legislation may have on the Letter of Intent we signed with The Boring Company on February 18, 2026, and the subsequent license agreement, which we are currently working to finalize,” an airport spokesperson said.

A spokesperson from Nashville Mayor Freddie O’Connell’s office said the mayor’s team is also reviewing potential impacts of the legislation.

How much would the state board members, CEO make?

About $2.6 million of the $5.4 million budget would go toward staff salaries for the new board, according to the Tennessee General Assembly’s Fiscal Review Committee. That would include a CEO, 11 board members and eight additional staffers.

Here’s the breakdown of the top position’s approved salaries:

  • CEO: $200,000
  • Executive administrative assistant: $87,912
  • General counsel and deputy general counsel: $213,336
  • Attorney: $134,244

Appointed board members would not receive a salary but will be paid $2,000 per month for the first three years of the authority’s existence. They will also be reimbursed for any travel expenses.

The bill’s advancement comes in the wake of Metro Nashville Council members’ critique of The Boring Co. during a special committee meeting on Feb. 19. District 6 Council member Clay Capp said actions around the project have consistently lacked transparency.

Meanwhile, Gov. Bill Lee is touting the project’s existence as a success.

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“Tennessee continues to lead the nation in finding innovative solutions to accommodate growth,” Lee said in a Feb. 25 social media statement. “In partnership with (The Boring Co.), we’re exploring possibilities we couldn’t achieve on our own — at no cost to taxpayers.”

Hadley Hitson covers business news for The Tennessean. She can be reached at [email protected].

‘ The preceding article may include information circulated by third parties ’

‘ Some details of this article were extracted from the following source www.tennessean.com ’

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