TennesseeTennessee law funds state agencies and sets school funding rules
Tennessee state agencies receive funding for the fiscal year beginning July 1, 2026, while public schools receive formula funding under set amounts and distribution rules.
What it does
The law sets aside money for Tennessee state agencies and programs, including government operations, public aid, debt payments, emergencies, and construction and repairs.
The law sets school funding amounts and distribution rules, including money tied to student needs and school performance. Local school systems must also pay minimum shares of participating employees’ basic health plan premiums.
The law sets aside money for named projects and grants, including competitive grants for emergency equipment and senior centers. Recipients must meet the rules for each grant.
Argument forCompetitive grants could help volunteer fire departments, rescue squads, and emergency medical groups buy needed equipment, if they meet the program rules.
Argument againstIf revenues fall, officials could limit some TennCare services, while federal cuts could also reduce programs and positions funded by those grants.
More detail
The law appropriates money for state agencies and programs. The appropriations cover state government operations, public aid, debt payments, emergencies, and construction and repairs. Some spending depends on available revenue, approval, or other conditions stated in the act. The main appropriations cover the fiscal year beginning July 1, 2026. Other provisions also provide supplemental funding for the fiscal year ending June 30, 2026.
The law provides funding for K–12 schools under the state funding formula. The funding rules cover Tennessee K–12 schools and local school systems receiving money through the state formula. Some funding depends on student needs or school performance. Local school systems must pay at least 45% of instructional employees’ monthly health premiums and 10% of support staff employees’ premiums under the basic plan. The formula funding applies to fiscal year 2026–2027. The health plan premium rules apply to the calendar year 2027 plan.
The law sets aside money for named projects and grant programs. The listed programs include grants for volunteer fire departments, rescue squads, emergency medical groups, senior centers, and local courthouse projects. Some grants are competitive or require approval or other conditions. Direct grants to non-governmental recipients require a spending plan and reports. The act provides grant amounts and schedules for the listed programs; some unspent funds may carry forward.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 27Pub. Ch. 1142Latest
- May 27Effective date(s) 05/22/2026, 07/01/2026
- May 22Signed by Governor Bill Lee.Became Law
- May 11Transmitted to Governor for action.To Governor
- May 7Signed by H. SpeakerMajor
- May 6Signed by Senate SpeakerMajor
- May 5Enrolled and ready for signaturesMinor
- Apr 17Sponsor(s) Added.Minor
- Apr 16Senate adopted Amendment (Amendment 2 - SA1057)
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 21 BY BEHN PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 11 BY CLEMMONS PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 9 BY HEMMER PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 7 BY HEMMER PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 18 BY BEHN PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 20 BY BEHN PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR PREVIOUS QUESTION MOTION TO ADOPT AMENDMENT # 10 BY CLEMMONS PASSAGE ON THIRD CONSIDERATION 4/16/2026 Passed. Result: pass.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 15 BY CLEMMONS PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR LAY ON THE TABLE MOTION TO ADOPT AMENDMENT # 13 BY CLEMMONS PASSAGE ON THIRD CONSIDERATION 4/16/2026 Passed. Result: pass.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 5 BY JONES J PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 8 BY HEMMER PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 19 BY BEHN PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 22 BY CLEMMONS PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR LAY ON THE TABLE MOTION TO ADOPT AMENDMENT # 4 BY SALINAS PASSAGE ON THIRD CONSIDERATION 4/16/2026 Passed. Result: pass.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 23 BY CLEMMONS PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 10 BY CLEMMONS PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 12 BY CLEMMONS PASSAGE ON THIRD CONSIDERATION 4/16/2026 Failed. Result: fail.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR LAY ON THE TABLE MOTION TO ADOPT AMENDMENT # 17 BY JOHNSON PASSAGE ON THIRD CONSIDERATION 4/16/2026 Passed. Result: pass.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR LAY ON THE TABLE MOTION TO ADOPT AMENDMENT # 16 BY JOHNSON PASSAGE ON THIRD CONSIDERATION 4/16/2026 Passed. Result: pass.Lower
- Vote recorded FLOOR VOTE: APPROPRIATIONS CALENDAR PREVIOUS QUESTION MOTION TO ADOPT AMENDMENT # 11 BY CLEMMONS PASSAGE ON THIRD CONSIDERATION 4/16/2026 Passed. Result: pass.Lower
- Apr 16Senate adopted Amendment (Amendment 3 - SA1058)
- Apr 16Amendment tabled (Amendment 4 - SA1062)Minor
- Apr 16Amendment tabled (Amendment 5 - SA1063)Minor
- Apr 16Amendment tabled (Amendment 6 - SA1064)Minor
- Apr 16Amendment withdrawn. (Amendment 1 - SA1056)
- Apr 16Passed Senate as amended, Ayes 26, Nays 5Passed House
- Apr 16Engrossed; ready for transmission to HouseMinor
- Apr 16Subst. for comp. HB.Major
- Apr 16Am. withdrawn. (Amendment 2 - HA1160)Minor
- Apr 16Am. withdrawn. (Amendment 3 - HA1164)Minor
- Apr 16Am. tabled. (Amendment 4 - HA1165)Minor
- Apr 16Failed to adopt am (Amendment 5 - HA1166), Ayes 18, Nays 74, PNV 1
- Apr 16Am. withdrawn. (Amendment 6 - HA1167)Minor
- Apr 16Failed to adopt am (Amendment 7 - HA1168), Ayes 23, Nays 66, PNV 0
- Apr 16Failed to adopt am (Amendment 8 - HA1169), Ayes 24, Nays 67, PNV 0
- Apr 16Failed to adopt am (Amendment 9 - HA1170), Ayes 22, Nays 67, PNV 1
- Apr 16Failed to adopt am (Amendment 10 - HA1171), Ayes 19, Nays 69, PNV 3
- Apr 16Failed to adopt am (Amendment 11 - HA1172), Ayes 24, Nays 61, PNV 2
- Apr 16Failed to adopt am (Amendment 12 - HA1173), Ayes 19, Nays 67, PNV 5
- Apr 16Am. tabled. (Amendment 13 - HA1174)Minor
- Apr 16Failed to adopt am (Amendment 14 - HA1175), Ayes 24, Nays 65, PNV 2
- Apr 16Failed to adopt am (Amendment 15 - HA1176), Ayes 19, Nays 74, PNV 0
- Apr 16Am. tabled. (Amendment 16 - HA1177)Minor
- Apr 16Am. tabled. (Amendment 17 - HA1178)Minor
- Apr 16Failed to adopt am (Amendment 18 - HA1179), Ayes 20, Nays 73, PNV 1
- Apr 16Failed to adopt am (Amendment 19 - HA1180), Ayes 18, Nays 73, PNV 0
- Apr 16Failed to adopt am (Amendment 20 - HA1181), Ayes 19, Nays 73, PNV 0
- Apr 16Failed to adopt am (Amendment 21 - HA1182), Ayes 20, Nays 74, PNV 0
- Apr 16Am. withdrawn. (Amendment 1 - HA1159)Minor
- Apr 16Passed H., Ayes 83, Nays 12, PNV 0Passed Senate
- Apr 15Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 2 PNV 0
- Apr 15Placed on Senate Regular Calendar 2 for 4/16/2026
- Apr 14Action deferred in Senate Finance, Ways, and Means Committee to 4/15/2026
- Apr 14Placed on Senate Finance, Ways, and Means Committee calendar for 4/15/2026
- Apr 8Placed on Senate Finance, Ways, and Means Committee calendar for 4/14/2026
- Feb 19Passed on Second Consideration, refer to Senate Finance, Ways & Means CommitteeMinor
- Feb 12Introduced, Passed on First ConsiderationMinor
- Feb 9Filed for introductionIntroduced
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