Gov. Lee focuses on innovation, prosperity in State of the State Lee proposes legislative priorities, state budget Gov. Bill Lee on Monday set out his vision for Tennessee as he delivered his seventh State of the State address during a joint session of the General Assembly. Lee outlined his legislative priorities and proposed a balanced […]
Gov. Lee focuses on innovation, prosperity in State of the State
Lee proposes legislative priorities, state budget
Gov. Bill Lee on Monday set out his vision for Tennessee as he delivered his seventh State of the State address during a joint session of the General Assembly. Lee outlined his legislative priorities and proposed a balanced $59.5 billion budget, which includes critical investments in education, economic innovation, transportation and expanded opportunities for Tennessee families.
The governor noted Tennessee’s significant contribution to the nation’s economy and proposed working to cement the Volunteer State’s status as a leader in the Southeast by attracting new companies and improving workforce participation. Lee also touted Tennessee’s legacy of fiscal responsibility and called for continued work to keep the Volunteer State one of the most prosperous states in the nation.
“2025 should be the year to think bigger and to think boldly about what’s possible, and go there,” Lee said. “If Tennessee has led the nation as a beacon of opportunity, security and freedom, why can’t we be the nation’s capital of innovation too? Somebody is going to determine what the future looks like. That should be Tennessee.”
The budget proposes investing in workforce development and economic opportunity to further strengthen Tennessee’s economy. This includes $25 million to recruit new businesses to Tennessee, $10 million to assist startups in securing competitive research and development grants, $5 million for workforce training programs tailored to specific businesses and $5 million to strengthen the state’s music and film industry.
The budget also includes $7 million to expand the Youth Employment Program, which was funded by the General Assembly in 2023 to pair Tennesseans between 14- and 24-year-olds with local employers. Approximately 4,800 people have enrolled in the program since its inception, far exceeding the goal of 3,750.
“Just like a business innovates to better serve their customer, or as science innovates to save lives, or as an athlete innovates to change the game, this is a time for us to innovate to create a brighter future for Tennesseans,” Lee said.
Lee recognized the General Assembly’s recent successes during the January special session, in which lawmakers delivered education freedom for students across the state, immigration reforms and relief for East Tennesseans impacted by Hurricane Helene. He vowed to build on these successes, including by making Tennessee’s public education system the best in the nation with key investments in teacher pay and student achievement.
Other initiatives the governor proposed include making housing more accessible and affordable. Lee highlighted Tennessee’s significant growth while cautioning about the shortage of starter homes compared to demand. He proposed a $60 million Starter Home Revolving Loan fund to enhance the ability of working Tennesseans to purchase a first home and be one step closer to achieving the American dream.
Members of the General Assembly will review Lee’s proposed budget in the coming weeks to deliver meaningful results for all Tennesseans.
Notable highlights from the proposed 2025-26 budget include:
Education
- $198.4 million for teacher bonuses
- $244 million to strengthen education, including teacher pay raises
- $52.8 million to fully fund the outcomes-based funding formula for higher education institutions
- $27.3 million for summer learning programs to support students between school years
- $25 million to support fast-growing districts
- $12 million to create the TennesseeWORKS Scholarship for TCAT students
Strong and healthy families
- $95.5 million to utilize Shared Savings to enhance long-term care for older Tennesseans and people with disabilities
- $41 million to support the Department of Children’s Services in placing children within the provider network
- $5.9 million to cover childcare for more working families
Housing and infrastructure
- $1 billion to build and maintain roads
- $30 million to fund the Rural and Workforce Housing Tax Credit, making it easier to build homes and businesses
Public safety
- $130 million to protect Tennesseans from violent crime
- $75 million to improve public safety in Tennessee downtowns
- $38 million for an additional 117 state troopers and support staff
Agriculture and conservation
- $25 million to create a Farmland Conservation Fund
- $100 million to ensure long-term water needs are met and protect the ecological health of the Duck River
- $52 million to create five new Tennessee State Parks
Economic opportunity
- $45.8 million for Rural Development Grant Fund to enhance Tennessee’s rural and distressed communities
- $35.6 million investment in Tennessee’s Rainy-Day Fund
- $10 million to attract advanced nuclear technology companies
- $25 million to expand the RevV Program to connect private companies with Tennessee’s research institutions
To read a transcript of Lee’s state of the State address, visit here. An overview of the proposed 2025-26 budget can be found here.
Constitutional amendment keeps violent offenders in custody
A proposed amendment to the Tennessee Constitution that would enhance public safety by giving judges more discretion when setting bail advanced out of the Criminal Justice Subcommittee this week.
House Joint Resolution 49, filed by House Speaker Cameron Sexton, R-Crossville, will expand the offenses for which a judge can deny bail to include capital offenses, acts of terrorism, second-degree murder, aggravated rape of a child, aggravated rape, and grave torture. Current law limits judges’ ability to deny bail to first-degree murder charges.
“HJR 49’s purpose is to keep violent criminals behind bars and off our streets,” said State Rep. Kip Capley, R-Summertown, who is guiding passage of the legislation. “I think we can all agree that the system we have now is not working. Expanding the option for a judge to deny bail for violent offenders helps ensure the safety of our general public by keeping individuals charged with violent crimes in custody.”
The legislation would also improve transparency in Tennessee’s criminal justice system by requiring judges and magistrates to explain their reasoning behind allowing or denying a defendant’s bail. House Joint Resolution 49 will now be considered in the House Judiciary Committee.
Two separate General Assemblies must first approve any proposed amendment to the Tennessee Constitution before it can be placed on the ballot for voters to decide. House Joint Resolution 49 received its first approval in the 113th General Assembly.
Bill proposes expanded availability for TennCare coverage
A proposal to expand TennCare to provide short-term benefits for Tennesseans in need and support rural hospital systems advanced out of the TennCare Subcommittee this week.
House Bill 18, sponsored by State Rep. Charlie Baum, R-Murfreesboro, would enable TennCare to establish a temporary medical assistance program, expanding the income threshold to include certain individuals not currently covered by existing state programs.
“This expansion fills a critical gap in coverage for citizens facing unemployment or unforeseen crises, while providing vital financial support to hospital systems, especially in rural areas who typically see more uninsured patients,” Baum said.
Tennessee has seen 16 hospital closures since 2010, including 13 in rural areas, largely due to financial instability, worsening the gap in health care access, according to the Tennessee Hospital Association.
The proposed program would provide medical benefits to eligible children and adults for up to 12 months within a 24-month period, with a total maximum of 60 months.
Eligible individuals include those whose income or family’s income does not exceed 138% of the federal poverty level. For example, a single person earning up to $20,140 annually or a family of four earning up to $41,520 may qualify for this program.
Ninety percent of the program would be funded from federal dollars and 10% from the state. If passed by the General Assembly and approved by the federal government, the program would become effective on July 1, 2026. House Bill 18 is scheduled to be heard in the Insurance Committee on Feb. 19.
Enhanced certification promotes private-sector security
In an effort to further enhance safety in Tennessee, House Majority Leader William Lamberth, R-Portland, has filed legislation to create a new classification for private protective services in Tennessee.
House Bill 683 creates an enhanced armed guard certification that allows qualifying candidates to carry a rifle-caliber weapon.
Eligible candidates must be registered with the Tennessee Department of Commerce and Insurance and meet several other requirements, including:
- Have a minimum of five years of experience as a full-time law enforcement officer or a minimum of four years of service as a full-time member of the United States Armed Forces
- Be retired or separated and in good standing or have received an honorable discharge
- Submit to and pass a criminal background check and psychological evaluation
- Successfully complete and pass a 16-hour training course and written examination
“This legislation provides additional options for men and women who have previous experience and training in law enforcement or in the military to apply their skills in the private sector,” Lamberth said. “Businesses and private entities utilizing armed security services will be better able to deter crimes, but also provide a greater level of security for their employees and their property.”
House Bill 683 is expected to be heard for consideration in the Business and Utilities Subcommittee on Feb. 19.
English-only driver’s license exams will improve public safety
A Republican bill aims to improve road safety across Tennessee by requiring all driver’s license tests to be administered in English.
House Bill 556, sponsored by State Rep. Kip Capley, R-Summertown, would mandate that the written portion of the driver’s license exam be given exclusively in English, without the use of dictionaries, electronic devices, or interpreters.
“This bill ensures that every driver on our roads can read, understand, and respond to traffic signs and hazards,” Capley said. “If someone cannot read or understand road signs, they not only risk their own safety but that of all drivers. It’s a safety issue, much like impaired driving.”
Tennessee currently offers the driver’s license exam in English, Spanish, Japanese, Korean, and German. The Tennessee Department of Safety and Homeland Security administered 551,313 driver tests statewide in 2024, of which 90,396 or 16% were given in a language other than English.
House Bill 556 is expected to be heard for consideration in the Transportation Subcommittee in the coming weeks.
Marsy’s Law expands rights of victims
A proposed constitutional amendment to expand the rights of victims in Tennessee has advanced in the House.
House Joint Resolution 48, filed by House Speaker Cameron Sexton, R-Crossville, proposes to put Marsy’s Law in the state constitution to ensure crime victims’ rights are protected in Tennessee.
“In our current constitution we have a victims’ bill of rights,” said State Rep. Clay Doggett, R-Pulaski, who is guiding passage of the legislation. “What we seek to do here is to expand upon those rights to give victims more opportunities to be heard and participate in the criminal justice area and that arena.”
The legislation would amend Article 1, Section 35 of the Tennessee Constitution to establish clear and enforceable constitutional rights for victims of crime, including the rights to be: heard, informed, and treated with fairness, dignity and respect through the judicial process.
Named after Marsalee Nicholas, Marsy’s Law is part of a nationwide effort to support crime victims and prevent further trauma. Marsy was murdered in 1983 by her ex-boyfriend, who stalked and killed her while she was a student at the University of California at Santa Barbara. Marsy’s family ran into her murderer a week after her death on the way back from her funeral, unaware that he was released on bail. Marsy’s Law seeks to ensure devastating and traumatic experiences like this never happen to victims in Tennessee.
Any amendment to the Tennessee Constitution must first be approved by two separate General Assemblies before it can be placed on the ballot for voters to decide.
The proposed amendment received its first approval in the 113th General Assembly.
House Joint Resolution 48 is scheduled to be heard in the Judiciary Committee on Feb. 19.
Speaker proposes bill to hold local governments accountable
A proposal from House Speaker Cameron Sexton, R-Crossville, would hold local governments accountable by withholding state funds for evading or ignoring state law or the Tennessee Constitution.
House Bill 1097 will allow a member of the General Assembly to request the Attorney General’s office to investigate a local government suspected of violating state law. If the local government refuses to correct its violation within 30 days, the state could withhold funding.
“The Tennessee Constitution is clear—the legislature has oversight of cities and counties,” said Sexton. “If local governments refuse to follow state law or circumvent state laws, they should not expect to benefit from state resources. This legislation makes it clear that political stunts will not be tolerated at the expense of law-abiding Tennesseans.”
State funding would be restored if a local government corrects its violation and begins following state law. Arizona has a similar process to hold local governments accountable.
Republicans continue efforts to protect medical freedom
A proposed bill would protect TennCare enrollees from being denied health care services solely based on vaccination status.
House Bill 638,sponsored by State Rep. Michele Carringer, R-Knoxville,willprohibit health care providers contracted with TennCare from denying services to enrollees because of their refusal or failure to obtain a vaccine or immunization for specific infectious diseases.
“TennCare enrollees already have limited access to providers who accept state medical assistance, and they should not face further restrictions based on their beliefs about vaccinations,” Carringer said.
This legislation builds on Carringer’s previous efforts in the 113th General Assembly to make it illegal for health care providers to coerce parents or legal guardians into consenting to a vaccine for their child or misrepresenting that any vaccine or newborn testing is required by state law. Providers who violate this policy would not receive reimbursement from TennCare until they comply. There are exceptions in the bill for specialized providers in oncology and organ transplant services.
Proposed changes to STRONG Act advance
Legislation to improve the tuition assistance program for members of the Tennessee National Guard through the STRONG Act advanced out of the Higher Education Subcommittee this week.
House Bill 114, carried by State Rep. Jerome Moon, R-Maryville, increases tuition funding from 120 to 130 credit hours, shortens the deadline for submitting reimbursement requests, clarifies reimbursable fees and extends the life of the program.
“The Tennessee STRONG Act has been instrumental in strengthening our National Guard’s recruitment and retention efforts,” Moon said. “Educational opportunities empower service members for success in the uniform and beyond.”
The program has allowed more than 2,000 guardsmen to further their education at nearly 60 public and private institutions across Tennessee at no cost. House Bill 114 will be heard in the Education Committee on Feb. 18.
Legislation seeks to enhance rental property safety
State Rep. John Gillespie, R-Memphis, has introduced legislation to enhance safety and transparency for rental properties in Tennessee.
House Bill 305 would require law enforcement agencies to automatically notify registered nonprofit organizations about emergency service calls to rental homes and apartment complexes.
“By creating a direct line of communication between law enforcement, property owners, and nonprofit organizations, this bill empowers communities to proactively address safety concerns,” Gillespie said. “Together, we can ensure that every Tennessean feels safe and supported in their homes.”
The bill would require law enforcement agencies to send automatic notifications to eligible nonprofit organizations when emergency calls are made to rental properties registered with the agency. Nonprofits, defined as tax-exempt under federal law, could register rental property addresses to receive these alerts.
Rental property owners or managers could also sign up with nonprofits to stay informed about emergency calls at their properties, helping them respond to crime patterns and improve tenant safety.
House Bill 305 is expected to be heard for consideration in the Criminal Justice Subcommittee in the coming weeks.
Gov. Bill Lee signs Education Freedom Act into law
Gov. Bill Lee was joined by lawmakers, students and school choice advocates on Feb. 12 to sign the Education Freedom Act of 2025 into law. Families across the Volunteer State will now have the freedom to choose the education that best fits the needs of their children beginning in the 2025-26 school year. The General Assembly approved the new law during a special session in late January.
Briefly…
Tax relief: State Rep. Greg Martin, R-Hixson, has proposed permanently eliminating the sales tax on essential baby products. House Bill 784 would apply specifically to items for infants and children, including diapers, wipes, and formula. The United States Surgeon General estimates that formula costs families more than $1,200 annually, while diapers can reach nearly $1,000. The legislation seeks to ease the financial burden on families. House Bill 784 will be considered in the Finance, Ways and Means Committee in the coming weeks.
Honoring Service Members: The General Assembly honored the 134th Air Refueling Wing of the Tennessee Air National Guard this week. House Joint Resolution 36, sponsored by State Rep. Lowell Russell, R-Vonore, recognizes the service members for their decades of service and urges the Air Force to select the unit to house the KC-46 Pegasus, a new generation of air refueling aircraft. The unit is based at McGhee Tyson Air National Guard Base in Knoxville.
Alpha-gal syndrome reporting: A Republican lawmaker is working to raise awareness and reporting for a health condition across the Volunteer State. House Bill 383, introduced by State Rep. Ed Butler, R-Rickman, would require health care providers to report cases of alpha-gal syndrome (AGS) to the Tennessee Department of Health. AGS is a life-threatening allergic reaction triggered by tick bites, causing sensitivity to red meat and other mammal-derived products. The bill aims to help doctors, patients, and the Department of Health better manage the growing health issue. The CDC reported more than 110,000 suspected AGS cases in the United States between 2010-2022. House Bill 383 is scheduled to be heard in the Health Committee on Feb. 18.
Eliminating faxes forever: House Bill 321 by House Majority House William Lamberth, R-Portland, defines the meaning of electronic transmission as it applies to Tennessee state law. It further removes the terms “fax” or “facsimile” in state law and replaces the terms with “electronic transmission.” The bill requires each state department, agency, office, commission, institution, or instrumentality of the executive branch to accept electronic transmissions. House Bill 321 will be heard in the State and Local Government Committee on Feb. 19.
Drug and alcohol awareness: A new Republican proposal seeks to raise awareness of the dangers of using drugs and alcohol. House Bill 382, sponsored by State Rep. Ed Butler, R-Rickman, would give school districts the option to use the Law Enforcement Against Drugs and Violence (LEAD) program in lieu of or in addition to the DARE program. LEAD focuses on building self-confidence, decision-making, and resistance to substance abuse and peer pressure. Supported by law enforcement and the National Association of School Resource Officers, the program is already in 45 Tennessee counties. The proposal will help combat drug abuse and violence and give students the tools to make better choices. House Bill 382 is scheduled to be heard in the Education Committee on Feb. 18.
TDOT: The Tennessee Department of Transportation on Tuesday updated members of the House Transportation Committee on the department’s work in 2024 and the state’s response to Hurricane Helene. The department informed the committee that the devastating storm closed 49 routes and 14 bridges in Upper East Tennessee, but TDOT quickly responded and had 25 routes and seven bridges reopened within seven days of the storm. Forty-two of 49 routes are now open thanks to nearly 156,0000 hours worked. Commissioner Butch Eley credited the General Assembly’s 2023 Transportation Modernization Act with the department’s ability to quickly respond to the disaster, including by having a washed-away bridge in Greene Co. under contract within 72 hours through a progressive-design build contract made possible through the law.
Pointing a laser beam: The Federal Aviation Administration reported 564 incidents of laser beam strikes aimed at aircraft flying in Tennessee air space in 2023. Laser strikes on aircraft and motorists are a serious threat to public safety. House Bill 191 by House Majority Leader William Lamberth, R-Portland, creates a Class B misdemeanor for intentionally activating and pointing a laser or other device utilizing a laser beam at a person operating an automobile, boat, aircraft, or any other motor vehicle. Pointing a laser at an aircraft is already a federal crime; House Bill 191 strengthens state law penalties. House Bill 191 is expected to be heard for consideration in the Judiciary Committee on Feb. 19.
State offices will be closed Monday, Feb. 17 to observe Presidents Day.
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