Rep. Bud Hulsey leads supermajority’s efforts to keep taxes low and remain fiscally conservative NASHVILLE, Tenn. – State Rep. Bud Hulsey, R-Kingsport, who serves as chair of the House Appropriations and Oversight Subcommittee, today marked the fulfillment of the General Assembly’s constitutional duty with the passage of a $59.8 billion budget for the 2025-26 fiscal […]
Rep. Bud Hulsey leads supermajority’s efforts to keep taxes low and remain fiscally conservative
NASHVILLE, Tenn. – State Rep. Bud Hulsey, R-Kingsport, who serves as chair of the House Appropriations and Oversight Subcommittee, today marked the fulfillment of the General Assembly’s constitutional duty with the passage of a $59.8 billion budget for the 2025-26 fiscal year.
This year’s budget highlights lawmakers’ continuous efforts to keep taxes low and remain fiscally responsible while prioritizing the needs of Tennesseans. The budget advances Republican efforts to strengthen families, improve public health and safety, enhance educational outcomes and further Tennessee’s efforts to create an environment for businesses to thrive.
“Tennessee’s fiscal conservatism has served us well for many years, and I’m proud to be a part of continuing this legacy,” Hulsey said. “This budget makes significant investments to improve life for all Tennesseans by increasing access to important health care services, funding programs to enhance educational outcomes and ensuring we can adequately respond to future disasters. It’s an honor to work alongside my colleagues in the House on behalf of the residents of this state to ensure Tennessee continues to prosper for years to come.”
Total legislative initiatives make up nearly $20 million in recurring investments and more than $161 million in nonrecurring expenditures. Even as revenues have slowed considerably, Tennessee remains one of the most fiscally stable states in the nation with no state income tax and a low overall tax burden. Conservative spending in recent years has left Tennessee with a significant balance of funding.
This year’s budget includes $597 million for several disaster relief initiatives, including $240 million for Tennessee Emergency Management Agency Disaster Relief Grants, which will bolster Tennessee’s existing disaster relief fund and reduce the local cost-share burden for Helene-impacted communities. Another $110 million was set aside for the Hurricane Helene Interest Payment Fund to stabilize local finances, and $125 million was allocated for the Governor’s Response and Recovery Fund to enable immediate state assistance following future disasters.
The budget adds $640 million in new state funding for K-12 education, including $198 million for one-time teacher bonuses, $148 million for Tennessee Investment in Student Achievement (TISA) growth, and $20 million for a school safety grant fund. Additionally, a total of $264 million was invested in higher education.
To continue Republicans’ priority of improving public safety across the Volunteer State, lawmakers invested more than $378 million for new law and order initiatives, including $6 million to fund 22 additional positions in the Tennessee Bureau of Investigation, $38 million to fund 116 additional Tennessee Highway Patrol positions, $175 million for public safety grants and $30 million for additional violent crime intervention grants.
Lawmakers allocated more than $1.5 billion in new investments for health and social services, including $15 million for behavioral health infrastructure improvements and training and workforce supports. Additionally, $24 million will go toward the dental pilot program to increase access to dental services and draw more dentists to Tennessee.
The budget also includes more than $1 billion for Tennessee Department of Transportation projects and operations and $213 million for several projects through the Tennessee Department of Economic and Community Development, including the rural development fund and research and innovation grants.
Other significant investments to improve Tennesseans’ lives include $42.5 million for grants across the state, including $20 million for volunteer fire departments, $5 million for emergency medical services, $2 million for senior centers, and $500,000 for food banks.
Hulsey is serving his first term leading the House Appropriations and Oversight Subcommittee, an arm of the House Finance, Ways and Means Committee that is responsible for all measures relating to the general appropriations of state funds. The subcommittee is charged with ensuring efficiency and accountability in the use of state dollars.
Tennessee Republicans remain committed to keeping taxes low. Tennessee holds the highest bond rating issued by all three of the nation’s credit rating agencies, which reflects extreme confidence in the Volunteer State’s preparedness in meeting financial commitments in tough economic times.
State Rep. Bud Hulsey of Kingsport represents House District 2, which includes part of Sullivan County.