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TennesseeHB 1409114th General Assembly (2025-2026)HouseWALLET
AN ACT to make appropriations for the purpose of defraying the expenses of the state government for the fiscal years beginning July 1, 2024, and July 1, 2025, in the administration, operation and maintenance of the legislative, executive and judicial branches of the various departments, institutions, offices and agencies of the state; for certain state aid and obligations; for capital outlay, for the service of the public debt, for emergency and contingency; to repeal certain appropriations and any acts inconsistent herewith; to provide provisional continuing appropriations; and to establish certain provisions, limitations and restrictions under which appropriations may be obligated and expended. This act makes appropriations for the purposes described above for the fiscal years beginning July 1, 2024, and July 1, 2025.
Sponsored By: William Lamberth (Republican)
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Bill Overview
Analyzed Economic Effects
99 provisions identified: 71 benefits, 9 costs, 19 mixed.
More funding tools for TennCare
For 2025–2026, the state can use certified public expenditures and transfers to draw more federal Medicaid dollars for TennCare, as federal rules allow. The law also sets large one‑time appropriations if named bills became law: about $1.57 billion for TennCare, $184.9 million for nursing homes, and $10.2 million for ambulance services. Unspent TennCare funds as of June 30, 2025 carry forward into 2025–2026. TennCare spending must follow federal law.
One-time help for homeowners and consumers
The law sends one-time mortgage settlement money to state programs. $34.5 million goes to the Tennessee Housing Development Agency for Keep My Tennessee Home aid and foreclosure counseling. $250,000 goes to the Attorney General’s Consumer Education Fund. $1 million goes to the Department of Financial Institutions for examiner training, IT, a $125,000 financial literacy grant, and $175,000 for consumer education. The Financial Institutions Commissioner can shift that $1 million among those listed uses.
Grants to fight violent crime
The state provides $175 million one time for public safety. It sets $75 million for agencies serving one of the 50 zip codes with the most homicides from 2018–2022; sheriff applicants must have a 287(g) agreement. It sets $100 million for downtown safety grants for Nashville, Memphis, Chattanooga, Knoxville, and certain business improvement districts in cities with at least 181,000 people. Grants must be awarded by December 31, 2025 and need Finance and Administration approval.
New $250M performing arts center
The state grants $250 million one time to the Tennessee Performing Arts Center Management Corporation to build a new center. The Corporation must raise a 20% match ($50 million) before the state pays. Any unspent state money does not revert and is kept in a reserve for this project.
More money for roads and bridges
Transportation gets about $2.41 billion for the year starting July 1, 2025. The state pays $9.54 million for 80% of certain bridge projects; local governments pay 20%. Half of county bridge money is split equally; half goes to counties with more weak‑rated bridges. The state also spends $80 million in cash instead of issuing highway bonds.
Federal funds for social services
The law directs federal block grants to state agencies. It provides $35.36 million for Social Services, $20.41 million for Mental Health Services, and $252.92 million for Child Care and Development. It provides $2.62 million for Maternal and Child Health, $0.95 million for Preventive Health, and $14.98 million for Community Services. It provides $65.79 million for Low‑Income Energy Assistance, $35.88 million for Substance Abuse Prevention and Treatment, $232.28 million for TANF, and $56.27 million for Small Cities Community Development.
More K-12 funding and charter support
The law boosts school funding under the new formula. Students generate set amounts, like $500 for K–3, $500 for rising 4th graders not yet proficient in reading, and $43 per college‑readiness test try. CTE programs get level-based amounts (about $5,000–$5,700) plus a $2 million set‑aside for high‑cost CTE. The state pays 70% of base and weighted funding and 100% of direct funding and outcome bonuses; outcome bonuses total $80 million and unspent funds carry forward. For 2025–2026, a district’s economically disadvantaged funding cannot drop by more than 75% versus 2024–2025. Education must submit next year’s formula by January 1 each year. The state also gives an equitable facilities grant to the Tennessee Charter School Center, and charter students share $22 million.
School funding and teacher raises
The law sets base school funding at $7,295 per student. It reserves $125 million of those funds for raises for current teachers. It also funds capped TISA supports, like fast‑growth and infrastructure stipends (up to $60 million, with $5 million for infrastructure), transition aid (up to $13 million), distressed county MOE help (up to $10 million), tourism‑zone LEAs (up to $8 million), teacher pay disparity aid (up to $14.5 million), and high‑performer incentives (up to $17 million). Cost differential factor grants are set at $0.
Bigger rainy-day fund and year-end bills
The state builds a larger rainy-day reserve. It aims for at least $2.15 billion by June 30, 2025, and at least $2.1856 billion by June 30, 2026. The law also sets aside enough money to pay any state liabilities due on June 30, 2026, once certified by the Finance Commissioner. This helps the state meet obligations on time.
State budget for 2025–2026
The law funds state government for the year that starts July 1, 2025. It provides about $27.36 billion for agencies, schools, courts, capital projects, debt service, and emergencies. State departments can spend the amounts listed in their budgets for that year.
Rules to fund state debt payments
The law keeps at least $342 million flowing to the debt service fund in 2024–2025 and moves any excess to the general fund. It sends $2.7 million of the $1.50 title fee to debt service. It uses general fund interest earnings to pay any IRS arbitrage tax. If the state issues tax‑revenue notes, debt service is covered within the year. Federal payments for school construction bonds can be used to pay that bond debt.
State can limit TennCare to cut costs
The Finance Commissioner can move money, adjust operations, and issue emergency rules for TennCare. The law allows service limits or cuts to optional eligibility groups to control spending, with prompt notice to legislative leaders.
Bonuses for firefighter and police training
Local governments can pay up to $800 to firefighters and police officers who complete at least 40 hours of approved in‑service training in 2025. Training must be at a certified or recognized school. The state set aside funds so local units can make these payments.
Bonuses for EMS training in 2025
If you are EMS staff and finish 40 hours of approved in‑service training in 2025, your local employer can pay you a bonus up to $800. The training must be at a school certified by the EMS Board.
Families First income rules set 2025
Starting July 1, 2025, the Human Services Commissioner sets the Families First standard of need for each family size. The Commissioner can also create categories that get an extra grant amount by rule, in consultation with the Finance Commissioner.
Grants to expand care and wellness
The Health Access Incentive Fund gets $3 million to expand clinics, telehealth, and provider recruitment in underserved areas. Five Regional Perinatal Centers each get $100,000 for nurse educators. Meharry’s Wellness Program gets $500,000. Vanderbilt’s PAVE program gets $355,000 to improve access for people with vision needs. The YMCA alliance gets $187,500 for rural community programs.
Keeping safety-net health programs funded
Unspent safety‑net health funds (like CoverKids and Project Diabetes) can carry into next year with approval. The Finance Commissioner can shift money among safety‑net programs to keep services going. A $1.6 million payment goes to Human Resource and Community Action Agencies under Section 21 rules. The Prevention Alliance of Tennessee gets $200,000 for substance‑use prevention. HIV program funds must follow Section 21.
More food for Tennessee families
The state gives $1 million to Second Harvest of Middle Tennessee to buy and move food. The funds are split: 35% Middle TN, 25% Memphis, 20% East TN, 10% Chattanooga, 10% Northeast TN. The state also gives $100,000 each year to Society of St. Andrew Tennessee for food‑bank supplies and operations.
More insurance help for state workers
State employers pay at least 80% of the basic health plan. They pay 50% of dental. They pay 100% for long‑term disability option 3, basic term life, and basic accident. The State Insurance Committee also sets what the state pays toward retiree supplemental medical coverage within this budget.
School employees get premium help
Local education agencies must pay at least 45% of the monthly premium for instructional staff in the basic health plan and at least 10% for support staff. The Local Education Insurance Committee sets the 2026 benefits and premiums, subject to approval.
Support for mental health and disability
The Mental Health Department can reimburse up to $150,000 to licensed supportive living facilities. Crumley House gets $100,000 for traumatic brain injury services. Money from selling mental‑health or disability facilities goes into trust funds to support services and buildings.
More funding for state employee benefits
State agencies must pay the monthly employer share into the retirement system. The state funds administration of deferred comp plans and the Section 125 cafeteria plan. It also funds up to $1,000,000 for wellness or insurance programs, up to $10,000 for employee daycare (if approved), up to $154,500 for the sick leave bank’s admin costs, and the employer 401(k) match. These are employer‑provided benefits and plan admin costs, not new taxes on employees.
Advance pay for social service contractors
Human Services can use up to $3 million in federal funds to make advance payments to certain social‑service contractors. This helps providers keep services running.
Extra 2024–25 funds for key services
The law adds money to many programs for 2024–2025. Examples: $10 million for paid parental leave, $41.48 million for Children’s Services custodial costs, and $1.13 million for TBI crime scene vehicles. It also funds law enforcement death benefits ($1 million), the Education Textbook Commission ($341,800), and Veterans Services carryforwards ($860,000 and $336,000).
State must fund costly local mandates
A statewide law that makes cities or counties spend more than $1 million cannot take effect unless this act specifically pays the state’s share. This protects local budgets from large unfunded mandates.
Arts, culture, and public media grants
Public TV stations receive $2,786,800 for operations and programming. The State Museum provides a recurring $410,000 grant to the Holocaust Commission. Fisk University gets $80,000 for the Stieglitz Collection, and the Tennessee Performing Arts Center gets $100,000 for education programs. These funds support statewide cultural and educational services.
More help for family resource centers
The state provides $3,050,000 for family resource centers. This money supports their operations and services for families with young children. Funds go to centers, not directly to families.
STEM and student enrichment funding
Funding includes $1,900,000 for Governor’s Schools, $1,650,000 to the Tennessee STEM Innovation Network, $900,000 for Science Alliance museums, and $100,000 to Tennessee History for Kids. These dollars expand programs, exhibits, and learning opportunities for students and schools. Money goes to programs and providers, not to families directly.
State projects and veterans facilities funding
The state funds specific construction, including $21.3 million for the TCAT Memphis Aviation Campus and $1.04 million for East Tennessee State Veterans Cemetery upgrades. It also provides whatever amount is needed to pay bond debt for State Veterans’ Homes. These dollars support campus growth and veterans’ facilities.
Money to implement new laws
The state sets aside funds to cover small implementation costs for new laws. If a law is expected to raise at least as much revenue as it costs, new revenue can pay for its startup costs. The Finance Commissioner can certify and earmark existing agency funds to carry out some new laws. This pool is reduced if a bill already sets aside its own funds. The Department of Transportation also sets aside money to pay for memorial highway or bridge designations when not otherwise funded.
Extra funding for schools and local grants
The law adds many one-time and ongoing state payments to agencies, schools, local projects, and nonprofits. For FY2024–25, it provides $700,000 to the Fiscal Review Committee, $3,000,000 for a Memphis City Schools audit, $29,000,000 to restore community and technical grants, $10,296,000 for school improvement grants, $3,500,000 for a youth employment program, and $3,000,000 for summer food service. It also funds other listed grants and initiatives across the state. The Finance Commissioner can allocate these funds and adjust related revenues and positions.
More flexible funding for job growth
FastTrack funds carry forward and are reappropriated to keep projects moving. The Finance Commissioner can move FastTrack money to community, rural, business development, and innovation programs. The Economic and Community Development Commissioner can shift funds between FastTrack and the Tennessee Jobs Skills Program with Finance approval. The Finance Commissioner may also move available general fund money to capital projects and move available capital funds to operating budgets for economic development. Transfers cannot cut funding for contracted projects unless the contract changes, and they cannot use bond authorizations.
Revenue collections go to general fund
The Department of Revenue’s budget covers all its activities, including motor vehicle registration. Amounts that replace collection percentages are deposited into the state’s general fund. This sets how the department’s collections and funding are handled.
Health Department fees go to state fund
The Department of Health must deposit all fees and taxes it collects into the state’s general fund. The Department cannot spend that money until the Finance Commissioner makes allotments. This can limit the Department’s immediate spending on health operations.
Cuts to programs if federal grants drop
If federal grant money falls, the state must lower related budget allotments and reduce funded positions. The state holds matching funds in a reserve. That reserve can only pay severance, required program reductions, or meet federal maintenance‑of‑effort rules. The finance commissioner must report the cuts by December 31, 2025.
State agency budgets trimmed for 2025–26
The budget deletes some base and cost increase items across state agencies for 2025–2026. The Finance Commissioner spreads the cuts, may reduce funded positions, and adjusts related federal aid and revenues. Some services may slow or shrink as a result.
Lottery scholarships and after-school funds
For 2025–2026, scholarship maximums are set: ASPIRE $750 per semester at four‑year schools ($250 at two‑year), Merit Scholar $500 per semester, Wilder‑Naifeh $2,000 per trimester, and Helping Heroes $1,000 per semester. The state also sets aside $236,300 each year through FY 2027–28 to extend the Future Teacher Scholarship to eligible WGU students, but only when that other law is in effect. Lottery money funds scholarships and after‑school programs. After‑school spending cannot be more than the June 30, 2025 account balance and only uses leftover lottery proceeds after scholarships.
State worker pay raises and pay rules
Starting July 1, 2025, the state funds pools for performance bonuses, across‑the‑board raises, and higher‑education pay increases. Pay is set under existing state salary laws, and many salary actions need approval from the Human Resources and Finance commissioners. The Attorney General and the courts set staff pay within their budgets under their rules. State employee pay is issued by direct deposit.
Property tax relief income limits change
For fiscal year 2025–2026, the law adjusts the income limits for property tax relief. It applies to elderly low‑income homeowners and to homeowners who are totally and permanently disabled. Some may newly qualify, and others may lose eligibility, depending on the new limits.
Rules and caps for Small Cities grants
The Department of Economic and Community Development runs the Small Cities Community Development Block Grant program. Eligible cities and counties that are not HUD entitlement areas can apply. Awards can be up to $600,000 for most projects, $400,000 for livability projects, and up to $1,000,000 for regional projects. ThreeStar-certified counties get a 5% bonus. The state may cut an award by up to 50% and move that money to water or sewer projects. Loan repayments and interest stay in the program for future projects.
College budgets and building matches
Public colleges follow new budget, fee, and reporting rules. Governing boards get salary authority for presidents and staff, and must send budgets through the higher‑ed commission. The commission sends a revised funding formula each year by December 1. Colleges must cover a share of building costs: for new buildings, up to 17% at top research schools (lower at others); for big renovations, up to 6%. Parts of the match can be gifts, grants, or student fees.
One-time $30M health fund transfer
The state may move $30 million from the Access Tennessee program fund to the general fund in FY 2025. This happens only if Senate Bill 1429 or House Bill 1408 becomes law.
Set-aside to fund other new laws
The state sets aside money to match the budget effects of other listed bills. Each item only takes effect if the cited bill becomes law. The Finance Commissioner may allocate funds and adjust federal aid, departmental revenues, and staff positions to carry out these reconciliations.
Tighter oversight for grants and staffing
Any group that gets money under this law can be audited by the Comptroller. A nongovernmental grantee must file a plan before payment, give a mid-year report by Feb 1, and file an audited accounting within 90 days after year end with a copy to the Comptroller. State agencies must report when they apply for a new federal grant over $100,000. Human Resources must report monthly on jobs overlapped 90+ days, and the budget must show these before transmittal. By Jan 15 and Feb 1, 2026, agencies must report salary equity balances, the Annual Facilities Revolving Fund, and capital reserve fund balances and uses.
Carry forward unspent funds with approval
Unspent grant money for local governments and nonprofits at June 30, 2025 can carry forward into FY2025–26 if the Finance Commissioner approves and funds are available. Many unspent state appropriations can also carry forward into FY2025–26, generally with Commissioner approval. For major maintenance, carry-forward in FY2025 and FY2026 needs the Commissioner’s approval based on available general fund revenues and reserves. Legislative Branch funds carry forward but require approval by both the House and Senate Speakers and do not need the Finance Commissioner’s approval. The law also treats tax revenues that statutes already allocate as appropriated for laws that take effect before July 1, 2026.
More flexibility to move state funds and jobs
State leaders get broader tools to rebalance budgets and staffing. The Finance Commissioner can shift supplemental funds, adjust positions, and reallocate insurance premiums based on actuarial studies. The Commissioner can set up salary clearing accounts, move contract dollars to payroll to replace contractors, and adjust budgets for retirement participation. Department heads can move surplus funds within their agency with high-level approvals. Certain offices (like the legislature, courts, Attorney General, DAs, public defenders, and others) can spend their appropriations without a separate fund-availability certification. The state can also transfer prior and current year appropriations among listed agencies for FY2024–25 and FY2025–26, with noted exclusions.
More investment choices in state 401(k)
The State Treasurer can hire vendors to offer investment products for the optional retirement plan in the state’s 401(k). This can expand choices for plan participants.
Grants to support foster and strong families
Carried‑forward Tennessee Strong Families funds go to nonprofits: $450,000 to CarePortal; $350,000 to Tennessee Kids Belong; $145,000 to Belmont Innovation Labs; $250,000 to Restore Hope; and $300,000 to the Governor’s Faith‑Based and Community Initiative.
Help with St. Jude travel and PTSD care
St. Jude Hospital gets $263,700 to help Tennessee patients and families pay travel costs, based on need. Centerstone Military Services gets $700,000 to provide PTSD counseling for veterans and their families in three regions.
Life insurance paid for Guard duty
When a national guardsman is called to state active duty, the Department of Military pays the cost of the group life insurance plan for that period.
Male health outreach grant
The state provides $190,000 to a long‑standing nonprofit to promote health awareness for Tennessee men.
Grant to JAG Tennessee program
The Education Department gives a grant to JAG Tennessee using Jobs for Tennessee Graduates funds. This supports JAG’s student coaching and job skills programs.
Debt payments for stadium and colleges
The state sets aside up to $3.29 million to pay debt service on Nashville stadium bonds, funded first from specific sales tax revenues. It also authorizes up to $10.7 million, with State Building Commission approval, to cover certain higher‑education debt payments.
Departments can spend their own fees
Departments may use the revenues they collect—like fees, earnings, service charges, donations, and eligible funds—for their operations. This is in addition to the specific appropriations in the budget, unless another law says otherwise.
Funding for state census data work
The state funds UT-CSER and the State Census Data Center to support the Finance and Administration Department. They perform work under the state’s census contract. The excerpt does not list a dollar amount.
Grants for prosecutors and victim training
Up to $302,200 funds grants to district attorneys for domestic violence prevention and drug enforcement. Another $100,000 supports the Tommy Burks Victim Assistance Academy through the Tennessee Coalition Against Domestic and Sexual Violence. Funds come from Criminal Injuries Compensation.
More resources to fight trafficking
The state invests more in anti-trafficking work. Five groups each receive a $750,000 one-time grant, for $3.75 million total. The Tennessee Bureau of Investigation also gets funding, shown as $339,500, to add two full-time human trafficking task force positions.
Small grants for museums and groups
The state gives $45,000 to the Africa in April Festival, $100,000 for the Green McAdoo Cultural Center (carried forward if unspent), and $50,000 to Good Samaritans Camp Tanase. It provides a recurring $100,000 grant to the Stax Museum and $100,000 to the Tennessee Historical Society. It grants $19,000 to the Frank Clement Museum Foundation, $40,000 to the Rocky Mount Historical Association, and $136,500 to DISMAS, Inc. (including $25,000 for Chattanooga Endeavors and $8,000 for Better Decisions).
State pays national membership dues
The state pays annual dues to three groups. It pays $250,937 to the Council of State Governments. It pays $255,326 to the National Conference of State Legislatures. It pays $20,000 to the National Conference of Insurance Legislators.
Travel and pay rules for courts
Agencies must pay official travel claims for state employees and board members under Tennessee’s travel law. Travel costs for justices, judges, and chancellors come from Judiciary funds under state law. The Supreme Court sets marshal salaries for its divisions, paid from Appellate Court Clerks appropriations.
No spending that breaks civil rights law
The law blocks any spending under this act that violates Title VI of the Civil Rights Act of 1964. Agencies and recipients must follow Title VI rules before spending this money.
Fund state elections and supplies
The State Election Commission is funded, and each member is paid $6,994.32 per year. The Secretary of State can buy election supplies and print election laws using these funds. Coordinator of Elections costs are covered too.
Funds for statewide rescue squads HQ
The state provides $100,000 to run the Tennessee Association of Rescue Squads’ state headquarters, pay the executive director, and related costs.
Funds to maintain Governor’s residence
The state provides $60,000 each year to maintain the Executive Residence. The money also covers travel expenses the Governor certifies.
Grants to county child advocates
Each of 60 county CASA programs receives a $40,000 grant. The total is $2.4 million to support child advocacy work.
New money and rules for parks and wildlife
The state sends a one‑time $5 million transfer to wildlife projects listed in the budget. Forestry counts timber, access, and carbon credit proceeds as department revenue. The $1.50 title fee first pays $5 million on an older bond issue; any extra goes to pay state park bonds.
Bank regulator funded by industry fees
The Department of Financial Institutions is funded by banking, credit union, and certain non‑bank fees. Unused banking fees at year end do not return to the general fund.
College-in-prison and reentry program funding
The Department of Correction grants $250,000 to the Tennessee Higher Education Initiative for on‑site college programs in prisons. It may also grant up to $832,000 to Project Return for reentry services. Unspent education grant funds are carried forward in a reserve.
Education funds keep only interest earnings
The Education Trust Fund and the Tennessee Investment in Student Achievement program count only interest they earn. They cannot be charged interest expense. This is an accounting rule that protects education funds.
Grants for higher and professional programs
The Southern College of Optometry receives $363,000 for contract education. The Higher Education Commission must allot graduate medical education funds after consulting the Health Department. $400,000 is set aside for accredited interior design, architecture, engineering, and landscape programs at Tennessee colleges, with awards set by the Board.
Grants for school resource officers
Local law enforcement can get grants to place one full-time school resource officer in each public school. The grant can pay up to $75,000 per officer per year. The officer must be POST-certified, and a signed MOU in the state’s form is required. Only one officer per school is allowed. Quarterly reporting begins October 1, 2025.
Grants for youth mentoring and services
The state grants $250,000 to the Big Brothers Big Sisters Amachi mentoring program and $1,200,000 to Save the Children. The grant to the Tennessee Alliance of Boys & Girls Clubs is paid using rules set in state law and this act. These funds support programs for children and families; they are not direct household payments.
Let universities use capital funds for operations
Public four‑year colleges and universities may shift certain capital project funds to cover essential costs, including operations. This needs approval by the Finance Commissioner and the Comptroller and must follow written agreements. It also depends on a related law becoming effective.
More support for child welfare
The law funds several child and family programs. It gives $49,000 to A Secret Safe Place for Newborns of Tennessee for operations. It provides a $700,000 grant to Carroll Academy. It sets aside $588,000 each year to add four Safe Baby Courts and pay for training. It also directs a state payment to the Governor’s Rural Education Foundation.
Move funds for schools and conservation
The law shifts money to keep education and conservation work going. It funds IIJA matching needs, Oak Ridge monitoring, and reassigns some education funds, including a grant to The Governor’s Rural Education Foundation. These moves need approvals and must follow written agreements.
Base funding for Insurance Division
The law recognizes $7,479,700 as base funding for the Division of Insurance. Any spending above that level is paid from revenues tied to Chapter 333, Public Acts of 2001.
Funding plates and title system
The state provides $10.8 million to make license plates in the year ending June 30, 2026. For the year ending June 30, 2025, the $1.50 title fee funds the debt service allocation. In FY 2026, special plate revenues and registration fees pay to build and run a new computerized titling and registration system.
How sale money is reused
Money from selling surplus state land in the year ending June 30, 2026 follows current law on disposal and trust funds. Sale proceeds from correctional, military, and forestry properties go into their legal reserve funds. The money can pay for replacement facilities and other allowed capital needs, with State Building Commission approval where required.
Refunds and legal settlement reserves
The state pays refunds when it collected money by mistake, following current refund laws. Agencies must recover state funds and costs from bad checks and returned electronic payments. Money from settlements and judgments is kept and carried forward for its stated purpose. Funds for the Attorney General are kept in the Attorney General Litigation Settlement Reserve.
State help for local mandates
The state uses growth in shared tax revenues and new 2025 local revenues to pay the state share of costs from new general laws that require cities or counties to spend more. The County Revenue Partnership Fund receives $1.9 million in FY 2025 and $1.9 million in FY 2026 from the state sales tax share.
Conditional $50M for small modular reactors
The state sets aside a one-time $50 million payment to speed small modular reactor construction. The money is paid only after the Economic and Community Development Commissioner certifies that the Tennessee Valley Authority has secured funding from the U.S. Department of Energy. Without that federal funding, the state does not release the $50 million.
Debt and state salaries get paid first
If revenue runs short, the state pays sinking fund debt service and salaries and wages before other items. This sets a clear payment order during tight budgets.
Reinvest savings in energy projects
When state energy projects save money, the law lets those savings move to maintenance and capital accounts. The money can pay bond debt, reimburse the general fund, cover program fees, and fund more approved energy projects. Empower Tennessee savings can be shifted the same way to support more approved projects.
Reserve funds for Davidson County stadium
Reserve money can support financing for a domed sports stadium in Davidson County. This appropriation from a construction reserve takes effect when the law is in force.
Small funding for accounting standards work
The state can spend up to $45,000 to support national governmental accounting standard‑setting work. Spending cannot exceed $45,000.
Cap on state pay to counties for felons
State reimbursement to counties for housing convicted felons is capped at $41.00 per inmate per day. A higher amount applies only if a written contract requires it. Counties must cover any costs above the cap unless a contract rate is higher.
Memphis Zoo must raise $40M first
The state cannot grant money to the Memphis Zoo until the zoo raises $40 million in private funds. State funding waits until this private match is complete.
No funds until specialty plates qualify
Appropriated money for specialty and collegiate license plates is on hold until each plate meets all legal issuance requirements. Sponsors get funds only after the state’s rules are satisfied.
Limits on mass state employee newsletters
Agencies cannot use these funds for newsletters sent to all or almost all state employees (not including higher education) until the agency head contacts the two Speakers and offers equal space for legislative information. Policy and procedure notices are not restricted.
Capital funds can cover admin costs
The state may charge construction program administrative costs to capital outlay or shift money from the Capital Projects Fund to cover them. The State Building Commission must approve. These transfers must use non-bond funds.
Travel pay rules for public defenders
Public defender offices and their staff must follow the state’s travel rules to get reimbursed. The rules come from Finance and Administration and must be approved by the Attorney General. This standardizes travel pay and ties it to statewide policy.
State shifts some contractor work to staff
If the State Treasurer requests it, the Finance Commissioner can move contract funds to payroll and add state positions in the Treasury Department and Risk Management Fund. A new capital account also funds state IT projects and allows hiring staff instead of contractors, with rates and positions adjusted to run projects. This can mean more state jobs but less contractor work.
Flat board fees and spending checks
Regulatory boards now charge a flat state regulatory fee: $5 for a one‑year license or $10 for two years. Boards cannot spend collected fees until the Finance Commissioner approves allotments. The Human Resources Commissioner must approve board hires and salaries. The Board of Law Examiners uses its own fee revenues first, and any extra from the general fund cannot exceed what the board paid into the treasury.
Emergency fund help and limits
The Emergency and Contingency Fund can spend up to $1,000,000 on disasters, livestock losses, pest or disease control, and restoring order after civil disorder. The fund cannot be used to start a new law that needs state spending unless another appropriation covers the first year’s cost.
Safeguards for mental health transport funds
Payment for transporting mental health patients is subject to rules set in Section 21 of this act. If a Community Services Agency closes, its remaining money can go into a state reserve. The reserve can pay outstanding obligations or keep services running, with the Finance Commissioner’s approval.
Budget updates and capital reports
The Finance Commissioner updates budget and staff summaries to match this law and sends them to oversight offices. Spending authorizations must be cut if expected federal or departmental revenues do not arrive. The Commissioner sends a quarterly report on any changes to capital projects after the budget passes. The State Office Buildings Revolving Fund can pay allowed costs, and the Commissioner may move and carry forward money to cover leases and other needs.
Changes to building maintenance and utilities
The state can move facilities into a revolving fund, bill the transferring agency for maintenance, and shift maintenance staff to General Services. The Supreme Court Building commission can hire an Engineer‑Superintendent and helpers, and General Services provides light, heat, and water for court buildings in Nashville and Knoxville. These changes adjust who manages and pays for building upkeep and utilities.
Rules for federal homeland security grants
The Finance Commissioner must approve how federal Homeland Security grant funds are allotted. The Commissioner can move funds between agencies to meet state-match needs and adjust positions and revenue estimates. All changes must be filed with the Fiscal Review Committee and budget analysts. The Office of Homeland Security is appropriated sums sufficient from these grants.
Keep building funds focused and available
Money for capital projects does not return to the general fund; it stays until spent. Proceeds from selling state property go into a building fund for capital needs with State Building Commission approval. Spending from that fund is limited to approved projects listed in the 2025–2026 Budget Document.
Sponsors & Cosponsors
Sponsor
William Lamberth
Republican • House
Cosponsors
Rush Bricken
Republican • House
Mark Cochran
Republican • House
Gary Hicks
Republican • House
Bud Hulsey
Republican • House
Ryan Williams
Republican • House
Roll Call Votes
Senate vote • 4/16/2025
FLOOR VOTE: Motion to Table Amend# 10 by Senator Campbell Third Consideration 4/16/2025
Yes: 27 • No: 5
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR PREVIOUS QUESTION AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 69 • No: 24
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 30 BY PEARSON PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 22 • No: 72
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 79 • No: 16
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 31 BY PEARSON PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 25 • No: 69
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 29 BY PEARSON PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 24 • No: 69
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 28 BY PEARSON PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 23 • No: 67
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 22 BY JONES J PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 21 • No: 72
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 21 BY JOHNSON PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 23 • No: 71
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 16 BY FAISON PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 82 • No: 11
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 15 BY HEMMER PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 23 • No: 73
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 12 BY WILLIAMS PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 75 • No: 22
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 12 BY WILLIAMS PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 69 • No: 20
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 9 BY CLEMMONS PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 24 • No: 61
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 7 BY HARRIS PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 24 • No: 68
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 27 BY PEARSON PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 24 • No: 69
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 26 BY PEARSON PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 22 • No: 70
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 25 BY POWELL PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 22 • No: 70
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 24 BY BROOKS PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 24 • No: 68
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 23 BY SALINAS PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 22 • No: 71
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 20 BY MCKENZIE PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 23 • No: 71
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 18 BY POWELL PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 22 • No: 73
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 16 BY FAISON PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 75 • No: 17
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 14 BY GLYNN PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 26 • No: 71
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 13 BY DIXIE PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 23 • No: 72
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 11 BY BEHN PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 24 • No: 68
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 10 BY HARDAWAY PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 24 • No: 68
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO CONSIDER AMENDMENT # 8 BY MILLER PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 24 • No: 63
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 6 BY BEHN PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 24 • No: 69
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 5 BY SALINAS PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 27 • No: 66
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR MOTION TO ADOPT AMENDMENT # 4 BY WILLIAMS PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 57 • No: 30
Senate vote • 4/16/2025
FLOOR VOTE: Third Consideration 4/16/2025
Yes: 30 • No: 2
Senate vote • 4/16/2025
FLOOR VOTE: Motion to Table Amend# 8 by Senator Yarbro Third Consideration 4/16/2025
Yes: 27 • No: 5
House vote • 4/16/2025
HOUSE CALENDAR & RULES COMMITTEE
Yes: 0 • No: 0
House vote • 4/15/2025
HOUSE FINANCE, WAYS, AND MEANS COMMITTEE
Yes: 27 • No: 0
House vote • 4/15/2025
HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE
Yes: 13 • No: 0
Actions Timeline
Pub. Ch. 530
5/27/2025Effective date(s) 05/21/2025, 07/01/2025
5/27/2025Signed by Governor.
5/21/2025Transmitted to Governor for his action.
5/9/2025HouseSigned by Senate Speaker
5/8/2025SenateSigned by H. Speaker
4/30/2025HouseEnrolled; ready for sig. of H. Speaker.
4/29/2025HouseH. adopted am. (Amendment 2 - HA0440)
4/16/2025HouseH. adopted am. (Amendment 3 - HA0445)
4/16/2025HouseH. adopted am. (Amendment 4 - HA0446)
4/16/2025HouseFailed to adopt am (Amendment 5 -HA0447), Ayes 27, Nays 66, PNV 0
4/16/2025HouseFailed to adopt am (Amendment 6 -HA0448), Ayes 24, Nays 69, PNV 0
4/16/2025HouseH. adopted am. (Amendment 12 - HA0456)
4/16/2025HouseH. adopted am. (Amendment 16 - HA0460)
4/16/2025HouseAm. withdrawn. (Amendment 17 - HA0461)
4/16/2025HouseAm. withdrawn. (Amendment 19 - HA0465)
4/16/2025HouseAm. withdrawn. (Amendment 1 - HA0439)
4/16/2025HouseSponsor(s) Added.
4/16/2025HousePassed H., as am., Ayes 79, Nays 16, PNV 1
4/16/2025HouseEngrossed; ready for transmission to Sen.
4/16/2025HouseReceived from House, Passed on First Consideration
4/16/2025SenateSenate substituted House Bill for companion Senate Bill.
4/16/2025SenateAmendment withdrawn. (Amendment 2 - SA0420)
4/16/2025SenateAmendment withdrawn. (Amendment 3 - SA0421)
4/16/2025SenateAmendment withdrawn. (Amendment 5 - SA0427)
4/16/2025Senate
Bill Text
Enrolled / Public Chapter
HA0439
HA0440
HA0445
HA0446
HA0447
HA0448
HA0449
HA0450
HA0452
HA0453
HA0454
HA0456
HA0457
HA0458
HA0459
HA0460
HA0461
HA0464
HA0465
HA0466
HA0467
HA0468
HA0469
HA0474
HA0475
HA0476
HA0477
HA0478
HA0479
HA0480
HA0481
Introduced
SA0419
SA0420
SA0421
SA0425
SA0427
SA0428
SA0429
SA0431
SA0432
SA0433
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