TennesseeTennessee caps lottery transfers to its Promise scholarship reserve
The law limits transfers from Tennessee’s lottery education account to the Tennessee Promise scholarship reserve to $10 million per fiscal year, while requiring a cushion for funding gaps.
What it does
Transfers to the Tennessee Promise scholarship reserve cannot exceed $10 million per fiscal year. Transfers are required at least annually when lottery education funds exceed money reserved for funding gaps plus $10 million.
Argument forThe annual cap could keep more money in the lottery education account when available funds exceed the required cushion.
Argument againstThe annual cap could slow the growth of Tennessee Promise scholarship reserves when extra lottery money is available.
More detail
The state must transfer excess lottery education money to the Tennessee Promise scholarship special reserve account, up to $10 million per fiscal year. The rules cover transfers from Tennessee’s lottery education account to its Tennessee Promise scholarship special reserve account. The transfer requirement applies to money above the combined amount of the general shortfall reserve, which covers funding gaps, and $10 million. Transfers must occur at least annually. The state treasurer and the commissioner of finance and administration may choose to transfer money more often. The transfer rules apply beginning in fiscal year 2025–2026. The law took effect on May 13, 2026.
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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 18Pub. Ch. 975Latest
- May 18Effective date(s) 05/13/2026
- May 13Signed by Governor Bill Lee.Became Law
- May 5Transmitted to Governor for action.To Governor
- May 1Signed by H. SpeakerMajor
- Apr 23Signed by Senate SpeakerMajor
- Apr 23Enrolled and ready for signaturesMinor
- Apr 20Subst. for comp. HB.Major
- Apr 20Passed H., Ayes 96, Nays 0, PNV 0Passed House
- Apr 2Rcvd. from S., held on H. desk.
- Mar 30Passed Senate, Ayes 33, Nays 0Passed Senate
- Vote recorded FLOOR VOTE: Motion to Adopt 3/30/2026 Passed. Result: pass.Upper
- Mar 30Engrossed; ready for transmission to HouseMinor
- Mar 27Placed on Senate Consent Calendar 2 for 3/30/2026
- Mar 24Recommended for passage, refer to Senate Calendar Committee
- Vote recorded SENATE FINANCE, WAYS AND MEANS COMMITTEE: Recommended for passage, refer to Senate Calendar Committee 3/24/2026 Passed. Result: pass.Upper
- Mar 24Sponsor(s) Added.Minor
- Mar 17Action deferred in Senate Finance, Ways, and Means Committee to 3/24/2026
- Mar 17Placed on Senate Finance, Ways, and Means Committee calendar for 3/24/2026
- Mar 10Placed on Senate Finance, Ways, and Means Committee calendar for 3/17/2026
- Mar 4Recommended for passage, refer to Senate Finance, Ways, and Means Committee
- Vote recorded SENATE EDUCATION COMMITTEE: Recommended for passage, refer to Senate Finance, Ways, and Means Committee 3/4/2026 Passed. Result: pass.Upper
- Feb 26Placed on Senate Education Committee calendar for 3/4/2026
- Feb 25Action deferred in Senate Education Committee to 3/4/2026
- Feb 18Placed on Senate Education Committee calendar for 2/25/2026
- Feb 5Passed on Second Consideration, refer to Senate Education CommitteeMinor
- Feb 2Filed for introductionMinor
- Feb 2Introduced, Passed on First ConsiderationIntroduced
EducationTaxes & Budget