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TennesseeHB 1092114th General Assembly (2025-2026)HouseWALLET

AN ACT relative to government applications for federal financial assistance.

Sponsored By: Cameron Speaker Sexton (Republican)

Became Law

Federal Aid

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 0 benefits, 0 costs, 6 mixed.

One rulebook for state departments

Most state departments must follow the same process when they seek or use federal aid. They must meet the notice, review, and approval steps in the new law. This applies to aid applied for on or after July 1, 2025. If no application happened before then, it applies to aid accepted on or after July 1, 2026. The rule spans many areas, including economic development and other major departments named in state law.

Stronger state control of federal aid

The law sets one statewide process for federal aid. Before applying for or accepting any aid, recipients must tell the Joint Committee on Ways and Means. For $25 million or more, the committee reviews and can block the aid within 30 days. Any federal loan or other debt also needs State Funding Board approval. The governor must give written approval before acceptance, and agreements cannot spend more than available funds. Applicants must share the purpose, state match, time period, and budget and policy impacts, and give more data if asked. By February 1 each year, recipients report prior‑year federal funds, spending, and any money sent back. The law takes effect July 1, 2025. It applies to aid applied for on or after that date, or to aid accepted on or after July 1, 2026 if no earlier application was filed. Older cross‑references and sections are removed so this framework controls.

Federal funds must follow grant terms

Beginning July 1, 2025, state entities can obligate or spend federal dollars only as the original grant allows. Any change needs written approval from the federal grantor. The change also must meet the new state review rules before going forward.

Transport and safety grants face new steps

The transportation department may apply for federal transportation funds only if it follows the new state process, and it must still do required U.S. DOT audits and inspections. Worker safety and related boards, and the corrections commissioner, must also follow the same process before seeking or using federal grants. These rules take effect July 1, 2025, and use the same application and acceptance dates described above.

Human services grants face new steps

Human services and children’s programs can seek and run federal grants only by following the new process. Directors and the department must complete the notice, review, and approval steps before applying for or taking funds. The rule applies to aid applied for on or after July 1, 2025, or to aid accepted on or after July 1, 2026 if no application was filed earlier.

New steps for school federal funds

Education funding actions must follow the new state process for federal aid. The education department must use the notice and review steps when handling federal dollars. This starts July 1, 2025.

Sponsors & Cosponsors

Sponsor

  • Cameron Speaker Sexton

    Republican • House

Cosponsors

  • Monty Fritts

    Republican • House

  • Gary Hicks

    Republican • House

  • Dan Howell

    Republican • House

  • Bud Hulsey

    Republican • House

  • Rick Scarbrough

    Republican • House

  • Ryan Williams

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 321 • No: 55

House vote • 4/22/2025

FLOOR VOTE: REGULAR CALENDAR 2 AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/22/2025

Yes: 69 • No: 23

House vote • 4/22/2025

FLOOR VOTE: REGULAR CALENDAR 2 MOTION TO ADOPT AMENDMENT # 3 BY HULSEY AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/22/2025

Yes: 78 • No: 18

House vote • 4/22/2025

FLOOR VOTE: REGULAR CALENDAR 2 MOTION TO CONSIDER AMENDMENT # 3 BY HULSEY AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/22/2025

Yes: 83 • No: 9

Senate vote • 4/22/2025

FLOOR VOTE: Third Consideration 4/22/2025

Yes: 26 • No: 5

House vote • 4/21/2025

HOUSE FINANCE, WAYS, AND MEANS COMMITTEE

Yes: 27 • No: 0

House vote • 4/17/2025

HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE

Yes: 11 • No: 0

House vote • 4/17/2025

HOUSE FINANCE, WAYS, AND MEANS COMMITTEE

Yes: 27 • No: 0

Actions Timeline

  1. Pub. Ch. 512

    5/27/2025

  2. Effective date(s) 07/01/2025

    5/27/2025

  3. Signed by Governor.

    5/21/2025

  4. Transmitted to Governor for his action.

    5/9/2025House

  5. Signed by Senate Speaker

    5/8/2025Senate

  6. Signed by H. Speaker

    4/30/2025House

  7. Enrolled; ready for sig. of H. Speaker.

    4/28/2025House

  8. H. adopted am. (Amendment 1 - HA0527)

    4/22/2025House

  9. H. adopted am. (Amendment 2 - HA0528)

    4/22/2025House

  10. H. adopted am. (Amendment 3 - HA0534)

    4/22/2025House

  11. Sponsor(s) Added.

    4/22/2025House

  12. Passed H., as am., Ayes 69, Nays 23, PNV 1

    4/22/2025House

  13. Engrossed; ready for transmission to Sen.

    4/22/2025House

  14. Received from House, Passed on First Consideration

    4/22/2025Senate

  15. Senate substituted House Bill for companion Senate Bill.

    4/22/2025Senate

  16. Amendment withdrawn. (Amendment 1 - SA0451)

    4/22/2025Senate

  17. Passed Senate, Ayes 26, Nays 5

    4/22/2025Senate

  18. Placed on cal. Finance, Ways, and Means Committee for 4/21/2025

    4/21/2025House

  19. Rec. for pass. if am., ref. to Calendar & Rules Committee

    4/21/2025House

  20. Placed on cal. Calendar & Rules Committee for 4/21/2025

    4/21/2025House

  21. H. Placed on Regular Calendar 2 for 4/21/2025

    4/21/2025House

  22. Rec. for pass by s/c ref. to Finance, Ways, and Means Committee

    4/17/2025House

  23. Action def. in Finance, Ways, and Means Committee to next available Calendar

    4/17/2025House

  24. Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/17/2025

    4/16/2025House

  25. Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025

    4/9/2025House

Bill Text

  • HA0527 (Substitute)

    4/22/2025

    PDF

  • Enrolled / Public Chapter

    PDF

  • Fiscal Note

    PDF

  • HA0528

    PDF

  • HA0534

    PDF

  • Introduced

    PDF

  • SA0451

    PDF

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