I-69 in Tennessee has been divided into three segments of independent utility (SIUs). Tennessee considered legislation that would allow I-69 to be built as a toll road, thereby accelerating its design and construction timetable by several years should such legislation be approved. Tennessee's toll road legislation came as
Congress withdrew $171 million (equivalent to $ in ) allocated for Tennessee highway projects, including funds for I-69, in 2007. This federal highway allotment was diverted to fund military operations in
Iraq under
U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007.
SIU 7 This SIU begins at the
Kentucky–Tennessee border in
Fulton and closely follows US 51 to
Dyersburg. The stretch between Dyersburg and
Troy is at Interstate Highway standards—opening with the completion of
I-155 west of Dyersburg. An additional stretch north of Union City to within of the Kentucky border is also a freeway. Thus, the vast majority of the work on SIU 7 will involve bypassing the portion of US 51 between Troy and Union City (where it is currently a four-lane surface arterial with at-grade intersections) and redesigning the US 51/
US 45 interchange in
South Fulton. The redesign is projected to start construction in 2028. This stretch has been divided into five smaller sections. The first two sections make up the Troy Bypass, while the northern three sections represent the Union City Bypass.
Tennessee State Route 690 will be the temporary designation for the Union City bypass until I-69 is completed between the
Purchase Parkway and I-155. The first construction contract was set for SIU 7 on October 30, 2009, covering Section 4 (middle leg of the Union City Bypass). The winning bid for constructing the section between
SR 21 and
SR 5 northwest of Union City was awarded to Ford Construction Company of Dyersburg for $33 million (equivalent to $ in ). Construction on this section of the Union City Bypass began in the spring of 2010 and was completed in the summer of 2012. However, it remained closed to traffic until adjacent sections were completed. , land acquisition and utility relocations were underway in all five sections from Troy to Union City. The
Tennessee Department of Transportation (TDOT) awarded a construction contract for Section 3 (southern leg of the Union City Bypass) in March 2016 and planned to let a second contract for Section 5 (northern leg of the Union City Bypass) in December 2016. Work began on Section 3 in June 2016. There is no current timetable for letting contracts to construct the Troy Bypass (Sections 1 and 2). However, TDOT Commissioner John Schroer estimated in February 2013 that it would take around 10 years to gradually complete work on SIU 7 due to lack of funding. This situation (and the next one below) regarding funding was solved on May 23, 2017, with the signing of the IMPROVE (Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy) Act. The legislation raised taxes and fees for drivers and others: $0.06 for regular fuel, $0.10 for diesel fuel, and $0.08 for liquefied and compressed natural gases (a total of $355 million). The state would get $250 million, counties $70 million, and cities $35 million. Most vehicle owners saw their registration fees go up by $5; private and commercial owners had their fees go up by $10, with ride-sharing exempt; and heavy truck operators would pay $20 more. Electric vehicle owners in Tennessee (about 2,500) would pay an additional $100 in registration and renewal fees (since they do not pay fuel taxes); hybrid-electric car owners are exempt from the extra charges. The new money would fund parts of I-69 in the state. The Union City sections (3, 4, and 5) of this segment begin construction in 2017. Paving on the three segments begin in July 2021 and the segment opened to traffic on February 21, 2024 as SR 690. While TDOT has acquired the right-of-way and is finalizing design for the Troy portion (1 and 2), a timeline for construction has not yet been established.
SIU 9 South of Millington, I-69 will intersect the
I-269 Memphis Outer Beltway, then continue southwest, roughly parallel to US 51, then abruptly turn east near
General DeWitt Spain Airport to connect with
I-40 at the existing
SR 300 interchange in the
Frayser neighborhood. I-69 follows I-40 for about to the I-40/
I-240 Midtown Interchange, where I-69 continues south along the
Midtown portion of I-240 (mileposts 25–31) to the I-240/
I-55 interchange in
Whitehaven. From that interchange, I-69 continues south, merged with I-55 for approximately , crossing the
Mississippi state line. The
Mississippi Department of Transportation (MDOT) has been working on widening I-55/I-69 between Hernando and the Tennessee state line, adding travel lanes in each direction, reconstructing bridges, and improving
traffic flow at interchanges. Meanwhile, TDOT is reconstructing I-55 and I-240 from the Mississippi line to Memphis. With much of the route already built and at Interstate standards through Memphis, the FHWA authorized TDOT to sign I-69 over I-55, I-240, and I-40 on January 18, 2008; however, TDOT has done so. However, it is still signed as an "I-69 FUTURE CORRIDOR". Similar to segment 8, TDOT has suspended work indefinitely on the unbuilt section between SR 300 and the proposed interchange with I-269 near Millington due to a lack of funding. TDOT has further stated that it does not intend to resume work on this section until Congress commits federal funding to complete environmental studies, right-of-way acquisition and construction. ==Exit list==