Tenn. Code Ann. § 54-4-403

When the state-aid highway system has been designated as provided in § 54-4-402, the local authorities having authority over the selected roads shall submit an annual program to the department specifying the type of work to be performed in the local entity on the state-aid highway system. The types of qualifying work may include the planning, engineering, right-of-way acquisition, construction, improvement, and rehabilitation of roads and bridges. Upon approval of this annual program by the commissioner, within the funds allocated for the local agency, the program of work shall be carried out as provided in this part.