(a) For purposes of this section:(1) “Federal aid” means financial assistance from the United States government, whether by grant, loan, cooperative agreement, or other means, offered or available to this state through executive order of the United States president or any act of the United States congress;(2) “Joint committee on ways and means” means the appropriations subcommittee of the senate finance, ways and means and the subcommittee of the house of representatives with jurisdiction over appropriations;(3) “Local government” means any county, municipality, city, or other political subdivision of this state, including a utility or school district; and(4) “Recipient” means the administrative office of the courts or any executive department or agency or other body of the executive branch of state government, including the office of the comptroller of the treasury and the departments of state and the treasury.
(1) “Federal aid” means financial assistance from the United States government, whether by grant, loan, cooperative agreement, or other means, offered or available to this state through executive order of the United States president or any act of the United States congress;
(2) “Joint committee on ways and means” means the appropriations subcommittee of the senate finance, ways and means and the subcommittee of the house of representatives with jurisdiction over appropriations;
(3) “Local government” means any county, municipality, city, or other political subdivision of this state, including a utility or school district; and
(4) “Recipient” means the administrative office of the courts or any executive department or agency or other body of the executive branch of state government, including the office of the comptroller of the treasury and the departments of state and the treasury.
(b) Notwithstanding another law to the contrary, the governor, acting on behalf of the state, is authorized to apply for, or accept, federal aid through any recipient only if the governor, acting through any recipient, complies with this section.
(c) (1) Except as otherwise provided in subdivision (c)(3), prior to the submission of any application for federal aid in an amount that is less than twenty-five million dollars ($25,000,000) and prior to the acceptance of federal aid in such amount, regardless of whether an application is required:(A) The recipient must notify the joint committee on ways and means of the application or acceptance; and(B) If the federal aid would be in the form of a loan or other indebtedness requiring repayment by the state, the application or acceptance of such federal aid must be submitted for review and approval by the funding board.(2) Prior to the submission of any application for federal aid in an amount that is equal to or exceeds twenty-five million dollars ($25,000,000) or, if there is no application required, prior to the acceptance of federal aid in such amount:(A) The recipient must notify the joint committee on ways and means of the application and such proposed acceptance;(B) The committee may hold a hearing to review the proposed acceptance of the federal aid or may issue notice that a hearing will not be held. If a hearing is held, then the committee must vote to approve or not approve the proposed acceptance of the federal aid. If the committee approves the proposed acceptance of the federal aid, then the recipient may accept the federal aid. If the committee does not hold a hearing or otherwise fails to disapprove the proposed acceptance within thirty (30) days of receiving notice from the recipient, then the recipient may accept the federal aid; provided, that, upon agreement of the chairs of the committee, as evidenced by written or electronic notification to the directors of the office of legislative budget analysis and fiscal review committee, the committee may extend the thirty-day period up to an additional thirty (30) days if notice is provided to the recipient and upon a determination that the extension would not adversely impact acceptance of the federal aid; and(C) If the federal aid would be in the form of a loan or other indebtedness requiring repayment by the state, the application or acceptance of such federal aid must be submitted for review and approval by the funding board.(3) (A) If the joint committee on ways and means determines that a recipient failed to satisfy the requirements of subdivision (c)(1)(A), then the committee may require that the recipient comply with the requirements of subdivisions (c)(2)(A) and (B) regardless of the amount of federal aid for one (1) year, beginning on the date that the committee makes the determination of noncompliance.(B) Upon written request by a recipient and recommendation from the staff of the office of legislative budget analysis and the fiscal review committee, the joint committee on ways and means may exempt any recipient or proposed acceptance of federal aid from the requirements of subdivisions (c)(2)(A) and (B) or subdivision (c)(3).(4) If the joint committee on ways and means requests, then the recipient shall provide the following information to the committee when providing notice or seeking approval of acceptance pursuant to this subsection (c):(A) A summary description of the proposed federal aid to be received that includes:(i) The purpose of the federal aid;(ii) The requirements or responsibilities placed on the state in order to receive the federal aid;(iii) The amount of federal aid, or the estimated amount if the amount is unknown, to be received and the amount of state matching funds, if any, to be required in connection with obtaining the federal aid; and(iv) The period of time to be covered by the federal aid;(B) An analysis of the short-term and long-term impact the federal aid would have on state budgetary and fiscal matters if the federal aid were approved and received;(C) The aggregate amount of federal aid appropriated or approved by the general assembly to the recipient for the preceding fiscal year; and(D) The percentage of the executive department, bureau, agency, or other instrumentality of the state's total budget for the preceding fiscal year that constitutes federal aid that the recipient received for the preceding fiscal year.(5) Notwithstanding subdivision (c)(1), upon agreement of the chairs of the committee, as evidenced by written or electronic notification to the directors of the office of legislative budget analysis and the fiscal review committee, the committee may hold a hearing to review the application or acceptance of federal aid reported to the committee pursuant to subdivision (c)(1)(A).
(1) Except as otherwise provided in subdivision (c)(3), prior to the submission of any application for federal aid in an amount that is less than twenty-five million dollars ($25,000,000) and prior to the acceptance of federal aid in such amount, regardless of whether an application is required:(A) The recipient must notify the joint committee on ways and means of the application or acceptance; and(B) If the federal aid would be in the form of a loan or other indebtedness requiring repayment by the state, the application or acceptance of such federal aid must be submitted for review and approval by the funding board.
(A) The recipient must notify the joint committee on ways and means of the application or acceptance; and
(B) If the federal aid would be in the form of a loan or other indebtedness requiring repayment by the state, the application or acceptance of such federal aid must be submitted for review and approval by the funding board.
(2) Prior to the submission of any application for federal aid in an amount that is equal to or exceeds twenty-five million dollars ($25,000,000) or, if there is no application required, prior to the acceptance of federal aid in such amount:(A) The recipient must notify the joint committee on ways and means of the application and such proposed acceptance;(B) The committee may hold a hearing to review the proposed acceptance of the federal aid or may issue notice that a hearing will not be held. If a hearing is held, then the committee must vote to approve or not approve the proposed acceptance of the federal aid. If the committee approves the proposed acceptance of the federal aid, then the recipient may accept the federal aid. If the committee does not hold a hearing or otherwise fails to disapprove the proposed acceptance within thirty (30) days of receiving notice from the recipient, then the recipient may accept the federal aid; provided, that, upon agreement of the chairs of the committee, as evidenced by written or electronic notification to the directors of the office of legislative budget analysis and fiscal review committee, the committee may extend the thirty-day period up to an additional thirty (30) days if notice is provided to the recipient and upon a determination that the extension would not adversely impact acceptance of the federal aid; and(C) If the federal aid would be in the form of a loan or other indebtedness requiring repayment by the state, the application or acceptance of such federal aid must be submitted for review and approval by the funding board.
(A) The recipient must notify the joint committee on ways and means of the application and such proposed acceptance;
(B) The committee may hold a hearing to review the proposed acceptance of the federal aid or may issue notice that a hearing will not be held. If a hearing is held, then the committee must vote to approve or not approve the proposed acceptance of the federal aid. If the committee approves the proposed acceptance of the federal aid, then the recipient may accept the federal aid. If the committee does not hold a hearing or otherwise fails to disapprove the proposed acceptance within thirty (30) days of receiving notice from the recipient, then the recipient may accept the federal aid; provided, that, upon agreement of the chairs of the committee, as evidenced by written or electronic notification to the directors of the office of legislative budget analysis and fiscal review committee, the committee may extend the thirty-day period up to an additional thirty (30) days if notice is provided to the recipient and upon a determination that the extension would not adversely impact acceptance of the federal aid; and
(C) If the federal aid would be in the form of a loan or other indebtedness requiring repayment by the state, the application or acceptance of such federal aid must be submitted for review and approval by the funding board.
(3) (A) If the joint committee on ways and means determines that a recipient failed to satisfy the requirements of subdivision (c)(1)(A), then the committee may require that the recipient comply with the requirements of subdivisions (c)(2)(A) and (B) regardless of the amount of federal aid for one (1) year, beginning on the date that the committee makes the determination of noncompliance.(B) Upon written request by a recipient and recommendation from the staff of the office of legislative budget analysis and the fiscal review committee, the joint committee on ways and means may exempt any recipient or proposed acceptance of federal aid from the requirements of subdivisions (c)(2)(A) and (B) or subdivision (c)(3).
(A) If the joint committee on ways and means determines that a recipient failed to satisfy the requirements of subdivision (c)(1)(A), then the committee may require that the recipient comply with the requirements of subdivisions (c)(2)(A) and (B) regardless of the amount of federal aid for one (1) year, beginning on the date that the committee makes the determination of noncompliance.
(B) Upon written request by a recipient and recommendation from the staff of the office of legislative budget analysis and the fiscal review committee, the joint committee on ways and means may exempt any recipient or proposed acceptance of federal aid from the requirements of subdivisions (c)(2)(A) and (B) or subdivision (c)(3).
(4) If the joint committee on ways and means requests, then the recipient shall provide the following information to the committee when providing notice or seeking approval of acceptance pursuant to this subsection (c):(A) A summary description of the proposed federal aid to be received that includes:(i) The purpose of the federal aid;(ii) The requirements or responsibilities placed on the state in order to receive the federal aid;(iii) The amount of federal aid, or the estimated amount if the amount is unknown, to be received and the amount of state matching funds, if any, to be required in connection with obtaining the federal aid; and(iv) The period of time to be covered by the federal aid;(B) An analysis of the short-term and long-term impact the federal aid would have on state budgetary and fiscal matters if the federal aid were approved and received;(C) The aggregate amount of federal aid appropriated or approved by the general assembly to the recipient for the preceding fiscal year; and(D) The percentage of the executive department, bureau, agency, or other instrumentality of the state's total budget for the preceding fiscal year that constitutes federal aid that the recipient received for the preceding fiscal year.
(A) A summary description of the proposed federal aid to be received that includes:(i) The purpose of the federal aid;(ii) The requirements or responsibilities placed on the state in order to receive the federal aid;(iii) The amount of federal aid, or the estimated amount if the amount is unknown, to be received and the amount of state matching funds, if any, to be required in connection with obtaining the federal aid; and(iv) The period of time to be covered by the federal aid;
(i) The purpose of the federal aid;
(ii) The requirements or responsibilities placed on the state in order to receive the federal aid;
(iii) The amount of federal aid, or the estimated amount if the amount is unknown, to be received and the amount of state matching funds, if any, to be required in connection with obtaining the federal aid; and
(iv) The period of time to be covered by the federal aid;
(B) An analysis of the short-term and long-term impact the federal aid would have on state budgetary and fiscal matters if the federal aid were approved and received;
(C) The aggregate amount of federal aid appropriated or approved by the general assembly to the recipient for the preceding fiscal year; and
(D) The percentage of the executive department, bureau, agency, or other instrumentality of the state's total budget for the preceding fiscal year that constitutes federal aid that the recipient received for the preceding fiscal year.
(5) Notwithstanding subdivision (c)(1), upon agreement of the chairs of the committee, as evidenced by written or electronic notification to the directors of the office of legislative budget analysis and the fiscal review committee, the committee may hold a hearing to review the application or acceptance of federal aid reported to the committee pursuant to subdivision (c)(1)(A).
(d) (1) The following are exempt from the requirements of subdivisions (c)(1)(A) and (c)(2)(A) and (B), and for which the governor, acting on behalf of the state, is authorized to accept federal aid through any recipient:(A) Any reimbursement account or compensation fund, including §§ 40-24-107 and 37-1-161;(B) Tennessee transportation financing authority funds;(C) Federal formula grant program funds for transportation, including, but not limited to, funds awarded pursuant to the federal aid highway program;(D) Any federal aid received as a result of a declared state of emergency pursuant to § 58-2-107;(E) [Deleted by 2026 amendment.];(F) Any federal program that the state is required to administer under federal law, including medicaid, and any federal aid received to administer the TennCare and CoverKids or successor programs;(G) Any federal entitlement program that provides benefits to any individual meeting determined eligibility criteria;(H) The women, infants, and children program administered by the United States department of agriculture; and(I) The Elementary and Secondary Education Act (20 U.S.C. § 6301 et seq.), the Individuals with Disabilities Education Act (20 U.S.C. § 1471 et seq.), the United States department of agriculture national school lunch program, and the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. § 2301 et seq.).(2) Except as provided in subdivision (d)(1):(A) A recipient of federal aid that is awarded on an annual basis and distributed in multiple installments throughout the year must comply with subdivision (c)(1)(A) or subdivisions (c)(2)(A) and (B), as applicable; provided, that notice and any review and approval by the committee is only required prior to the application and acceptance of the first installment for that year; and(B) A recipient of federal aid that is awarded, allocated, or disbursed to the state on an annual basis as part of a multi-year grant or program must comply with subdivision (c)(1)(A) or subdivisions (c)(2)(A) and (B), annually.
(1) The following are exempt from the requirements of subdivisions (c)(1)(A) and (c)(2)(A) and (B), and for which the governor, acting on behalf of the state, is authorized to accept federal aid through any recipient:(A) Any reimbursement account or compensation fund, including §§ 40-24-107 and 37-1-161;(B) Tennessee transportation financing authority funds;(C) Federal formula grant program funds for transportation, including, but not limited to, funds awarded pursuant to the federal aid highway program;(D) Any federal aid received as a result of a declared state of emergency pursuant to § 58-2-107;(E) [Deleted by 2026 amendment.];(F) Any federal program that the state is required to administer under federal law, including medicaid, and any federal aid received to administer the TennCare and CoverKids or successor programs;(G) Any federal entitlement program that provides benefits to any individual meeting determined eligibility criteria;(H) The women, infants, and children program administered by the United States department of agriculture; and(I) The Elementary and Secondary Education Act (20 U.S.C. § 6301 et seq.), the Individuals with Disabilities Education Act (20 U.S.C. § 1471 et seq.), the United States department of agriculture national school lunch program, and the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. § 2301 et seq.).
(A) Any reimbursement account or compensation fund, including §§ 40-24-107 and 37-1-161;
(B) Tennessee transportation financing authority funds;
(C) Federal formula grant program funds for transportation, including, but not limited to, funds awarded pursuant to the federal aid highway program;
(D) Any federal aid received as a result of a declared state of emergency pursuant to § 58-2-107;
(E) [Deleted by 2026 amendment.];
(F) Any federal program that the state is required to administer under federal law, including medicaid, and any federal aid received to administer the TennCare and CoverKids or successor programs;
(G) Any federal entitlement program that provides benefits to any individual meeting determined eligibility criteria;
(H) The women, infants, and children program administered by the United States department of agriculture; and
(I) The Elementary and Secondary Education Act (20 U.S.C. § 6301 et seq.), the Individuals with Disabilities Education Act (20 U.S.C. § 1471 et seq.), the United States department of agriculture national school lunch program, and the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. § 2301 et seq.).
(2) Except as provided in subdivision (d)(1):(A) A recipient of federal aid that is awarded on an annual basis and distributed in multiple installments throughout the year must comply with subdivision (c)(1)(A) or subdivisions (c)(2)(A) and (B), as applicable; provided, that notice and any review and approval by the committee is only required prior to the application and acceptance of the first installment for that year; and(B) A recipient of federal aid that is awarded, allocated, or disbursed to the state on an annual basis as part of a multi-year grant or program must comply with subdivision (c)(1)(A) or subdivisions (c)(2)(A) and (B), annually.
(A) A recipient of federal aid that is awarded on an annual basis and distributed in multiple installments throughout the year must comply with subdivision (c)(1)(A) or subdivisions (c)(2)(A) and (B), as applicable; provided, that notice and any review and approval by the committee is only required prior to the application and acceptance of the first installment for that year; and
(B) A recipient of federal aid that is awarded, allocated, or disbursed to the state on an annual basis as part of a multi-year grant or program must comply with subdivision (c)(1)(A) or subdivisions (c)(2)(A) and (B), annually.
(e) If the requirements of subsection (c) are satisfied, the governor or the governor's designee is authorized to enter into contracts, in accordance with all applicable laws and procedures regarding the contracts and perform all things necessary in the governor's discretion to secure to this state and citizens of this state the benefits of the federal aid.
(f) The review and approval requirements of this section are in addition to any other requirement under state or federal law for the receipt of any federal aid.
(g) In addition to the requirements of this section, on or before February 15 of each year, each recipient shall submit a written report to the joint committee on ways and means, summarizing the amount of funds allocated from federal block grants or other federal funds in the preceding fiscal year. The report must also summarize the purposes for which the funds were expended in such fiscal year, the amount of such funds that was unexpended, and any amount that was returned to the federal agency that supplied the original federal block grant or funds.
(h) (1) In addition to appropriate staff of the senate and the house of representatives, the office of legislative budget analysis, the fiscal review committee staff, and the office of legal services shall jointly staff and provide administrative support to the joint committee on ways and means.(2) The staffs of the fiscal review committee and the office of legislative budget analysis shall also be responsible for monitoring and managing information relative to all federal grants. The monitoring and information management responsibility pursuant to this subdivision (h)(2) must be administered by one (1) staff person in the office of legislative budget analysis and one (1) staff person from the staff of the fiscal review committee. The staff of the fiscal review committee and the office of legislative budget analysis shall jointly monitor, analyze, and manage information concerning federal grants programs, including, but not limited to, social services grant funds, in order to inform members of the general assembly concerning such grants. The directors of the staff of the fiscal review committee and of the office of legislative budget analysis shall jointly make such reports as are appropriate to the speakers of the house of representatives and of the senate and to the joint committee on ways and means.
(1) In addition to appropriate staff of the senate and the house of representatives, the office of legislative budget analysis, the fiscal review committee staff, and the office of legal services shall jointly staff and provide administrative support to the joint committee on ways and means.
(2) The staffs of the fiscal review committee and the office of legislative budget analysis shall also be responsible for monitoring and managing information relative to all federal grants. The monitoring and information management responsibility pursuant to this subdivision (h)(2) must be administered by one (1) staff person in the office of legislative budget analysis and one (1) staff person from the staff of the fiscal review committee. The staff of the fiscal review committee and the office of legislative budget analysis shall jointly monitor, analyze, and manage information concerning federal grants programs, including, but not limited to, social services grant funds, in order to inform members of the general assembly concerning such grants. The directors of the staff of the fiscal review committee and of the office of legislative budget analysis shall jointly make such reports as are appropriate to the speakers of the house of representatives and of the senate and to the joint committee on ways and means.