News

This week was highlighted by Governor Lee’s State of the State address and his budget proposal.  Additionally, committees finally got underway. 

Below is my video update for the week and the breakdown of Governor Lee’s budget proposal by the Republican Caucus.

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.