The University of Tennessee at Knoxville has received a grant from the National Endowment for the Humanities to digitize local newspapers from 1836 to 1922. The newspapers will first appear on the Library of Congress's Chronicling America Web site and will later be added to the University of Tennessee Library's Web site. They will be digitized over the next two years.
Here is a link with more details:
http://www.utk.edu/tntoday/2010/06/17/ut-library-digitize-newspapers/