Gov. Bill Lee on Monday set out his vision for the Volunteer State as he delivered his eighth and final State of the State address to Tennesseans and a joint session of the General Assembly.
Gov. Bill Lee delivers final State of the State address
Lee proposes legislative priorities, state budget
Gov. Bill Lee on Monday set out his vision for the Volunteer State as he delivered his eighth and final State of the State address to Tennesseans and a joint session of the General Assembly.
Lee outlined his legislative priorities and proposed a balanced $57.9 billion budget, which includes critical investments to strengthen families, boost public safety and ensure economic and educational opportunity. The governor highlighted Tennessee’s strong budgetary position after years of responsible fiscal management by the Republican supermajority.
A top priority for Lee this year is to build on Tennessee’s improving educational landscape that has enabled students to outpace the national average in math and reading. Republicans have invested $4.4 billion in new dollars for education since 2012, including $1.08 billion for teacher pay raises. By 2027, starting pay for Tennessee teachers will be $50,000.
Lee also touted the successful inaugural year of the Education Freedom Scholarship program and announced plans to add 20,000 additional scholarship slots for the 2026-27 school year. The Tennessee Department of Education has received more than 54,000 applications this year.
“Tennessee has cast a vision for what education can and should look like: strong public schools, choices for parents, and opportunity for every kid to succeed,” Lee said.
Big picture: $57.9 billion budget / $2.58 billion total available revenues
Notable highlights from the proposed 2026-27 budget include:
Budget discipline and rightsizing
- 1% budget reductions across agencies
- Review of $200 million+ in reserves
- Elimination of 67 long-term vacant positions
- Cabinet agencies will have fewer positions in FY27
Economic opportunity and tax relief
- $20 million investment in Tennessee’s Rainy-Day Fund, bringing Tennessee reserves to more than $2.2 billion, the largest in state history
- $8 million to expand the Tennessee Youth Employment Program, creating more opportunity for young adults to gain valuable job skills, especially in underserved communities
- $25 million in further investment in the Tennessee Entertainment Commission to fund incentive grants for Tennessee’s music and film industry
Infrastructure and housing
- $425 million to the Tennessee Department of Transportation to address the state’s infrastructure needs, including expediting existing road projects and funding new projects across rural and urban Tennessee
- $165 million to renovate and replace Tennessee’s rest areas and welcome centers
- $56.2 million to support infrastructure needs for commercial and general aviation
- $30 million to create the Starter Home Revolving Loan Fund to support construction of new, affordable starter homes for hardworking Tennesseans, prioritizing rural communities
- $25 million further investment in the Rural Development Fund to improve quality of life in rural communities by supporting business development and infrastructure planning
Public education
- $339 million to strengthen education in Tennessee’s public schools, including further investment in the Tennessee Investment in Student Achievement (TISA) formula funding, summer learning camps, and raising starting teacher pay to $50,000
- $20 million for K-12 facilities and maintenance grants at public schools across Tennessee
- $40 million to support facilities improvements at public charter schools
- $3 million to expand the school-based behavioral health liaison program, giving students across Tennessee schools important resources and mental health support
Expanding choices for Tennessee parents
- $155 million to deliver school choice to even more Tennessee families in the 2026-27 school year by doubling Education Freedom Scholarships, bringing the total number of scholarships in the program to 40,000
Nuclear energy and innovation
- $50 million to continue Tennessee’s efforts to lead the nation in adoption of artificial intelligence technology and make government work more efficiently for Tennesseans
- $25 million further investment in the Nuclear Energy Fund to attract advanced nuclear technology companies, ensuring Tennessee continues leading the nation as the epicenter of America’s nuclear renaissance
- $20 million to complete the relocation of the North Data Center
- $20 million to accelerate Tennessee’s quantum computing industry by attracting substantial federal and private-sector investment and to translate our scientific strengths into durable, high-wage job creation across advanced manufacturing, life sciences and logistics industries
- $2 million to aid in the expansion of agricultural technologies in rural communities
Conservation
- $81.6 million to create three new Tennessee State Parks, creating a total of 14 new state parks under Gov. Lee’s leadership, setting the Tennessee record for the most state parks created by one administration
- $1.6 million for the Subsurface Sewage Disposal Program, reducing waiting times for permitting services and oversight
- $1.1 million to support further enhancement of Tennessee’s electric grid
Safe neighborhoods
- $100 million to bolster the Governor’s Response and Recovery Fund which provides support to individuals, businesses, and communities after natural disasters
- $80 million for public safety grants to enhance crime prevention and increase public safety in Memphis
- $83 million to Tennessee Department of the Military for construction of a new Army Aviation Support Facility in Rutherford County
- $20 million for capital improvements at the West Tennessee and East Tennessee Regional Juvenile Justice Centers
- $37.5 million for salary increases and creation of an additional 50 State Troopers and related support staff positions to improve public safety across the state
- $1.7 million recurring grants to non-profit partners that combat human trafficking and support survivors
- $1 million recurring grant to non-profit partner Men of Valor, which provides faith-based reentry support for incarcerated individuals
- $250k recurring grant to Lipscomb University’s LIFE Program, which provides higher education opportunities for incarcerated individuals
- $500k recurring grant to non-profit partner Tennessee Prison Outreach Ministry, which provides faith-based reentry support for individuals and their families
Bill aims to reform non-compete clauses
Legislation aimed at establishing clear and more predictable rules involving non-compete agreements in Tennessee is moving forward in the House of Representatives.
House Bill 1034, sponsored by State Rep. Rebecca Alexander, R-Jonesborough, sets uniform standards for non-compete agreements to ensure they are consistent across industries and professions, rather than being determined by individual companies.
“The bill establishes rebuttable presumptions for how long a restrictive covenant is considered reasonable, giving courts and businesses clear guard rails instead of case-by-case uncertainty,” Alexander said.
Non-compete agreements would last up to two years for regular employees, three years for distributors, franchisees, dealers or licensees, and up to five years, or however long severance payments are made, when tied to the sale of a business.
The bill also protects lower-wage workers by banning non-competes for employees who make $70,000 or less. If a non-compete agreement is found to be overly broad, judges would be allowed to modify it to make it reasonable rather than invalidating it entirely.
House Bill 1034 is scheduled to be heard in the Commerce Committee on Feb. 11.
Secretary Robert F. Kennedy Jr. meets with TN Republicans
U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr. visited Nashville on Feb. 4, where he met with Tennessee Republicans at the State Capitol to advance his Make America Healthy Again (MAHA) agenda.
During his visit, Kennedy emphasized priorities aligned with President Donald Trump’s health reform, including improving nutrition, addressing chronic disease, strengthening rural health care, and restoring transparency and accountability for patients.
“We’re all here today because we’re facing an existential crisis in our country,” Kennedy said. “When I was a little boy and my uncle was president, we had the best health care system in the world, and we had the healthiest people in the world, the healthiest children. Today, we have the sickest.”
He praised Tennessee Republicans for being a national leader in advancing policies that promote personal responsibility, parental rights and patient choice.
Tennessee has passed several measures that promote better health, including putting more farm-fresh foods in schools, eliminating food additives such as Red 40, banning certain junk foods from SNAP benefits, putting whole milk back in schools and limiting cell phone use in classrooms.
Lawmakers and the secretary also discussed opportunities for Tennessee to further partner with the Trump administration on innovative approaches to public health, including preventive care initiatives aimed at improving long-term health outcomes. Kennedy also discussed harnessing artificial intelligence as a tool to help improve health care.
“It will transform medicine in this country with its capacity to diagnose and treat and prescribe disease, but it also helps us attack waste, fraud, and abuse,” Kennedy said. “We’re applying it right now to Medicaid. We’re going to save billions of dollars this year.”
Kennedy’s stop in Nashville was part of a broader national effort to highlight the importance of empowering individuals and families to make informed health decisions.
House passes bill allowing one-time athletic transfers
The House of Representatives this week approved legislation to enhance the ability of Tennessee students to stay on track in athletic extracurricular activities after a school transfer.
House Bill 25, by State Rep. Scott Cepicky, R-Culleoka, will give students in grades 6 through 8 and 9 through 12 a one-time opportunity to join a sports team immediately after transferring to a new school. Transfers must take place during the summer between school years and it must be the student’s first transfer within that grade span.
“I hope the (National Collegiate Athletic Association) puts the guardrails in college sports that we are doing right here,” Cepicky told colleagues on the House floor.
Immediate athletic eligibility would not apply to students who transfer during the school year or a subsequent time within the same grade. All other governing eligibility standards of the interscholastic athletic association would still apply.
House Bill 25 will now head to the Senate for a final vote.
Crime data highlights need for action on illegal immigration
New data released in the 2025 Immigration Enforcement Report underscores the need for strong state-level action on illegal immigration, House Republican leaders said this week.
The report, prepared by the Tennessee District Attorneys General Conference, documented 21,648 criminal charges involving individuals confirmed to be unlawfully present in the United States or whose citizenship status could not be verified. The data was compiled from 11,344 reports submitted by local law enforcement agencies in 94 of 95 Tennessee counties between Jan. 1 and Dec. 31, 2025.
In all, 2,183 crimes were classified as the most serious of violent offenses, including 41 homicides, 145 sexual offenses and 40 cases of aggravated kidnapping. The two most common violent crimes were domestic and aggravated assaults with 1,418 total reports.
The most non-violent offenses reported were driving-related, with 12,193 violations listed including 2,920 cases of driving under the influence (DUI).
Republican leaders on Jan. 15 unveiled nine key pieces of legislation as part of their Immigration 2026 package.
The initiative aims to reduce illegal immigration in Tennessee by closing loopholes in current law, criminalizing unlawful presence as a state offense and requiring E-Verify for public employment. It also enhances road safety and professional licensing, ensures lawful status for public benefits and school enrollment, and strengthens cooperation with federal immigration authorities.
Approximately 186,000 illegal immigrants are believed to reside in Tennessee, according to a 2023 data analysis published by the Migration Policy Institute. One of the main goals of the Immigration 2026 initiative is to equip state policymakers with more precise and reliable cost data on illegal immigration in Tennessee.
Republicans propose natural-born citizenship for federal office
A proposal would require natural-born citizenship in order to run for federal office in Tennessee.
House Bill 2036, filed by State Rep. Johnny Garrett, R-Goodlettsville, sets a clear and uniform eligibility standard consistent with those established in the U.S. Constitution for the presidency. The legislation aims to reinforce longstanding American principles of citizenship and strengthen public confidence.
“Tennesseans should have full confidence that those serving at the highest levels of government put America first. If you want to represent our state in Washington, being born in the United States should be a basic qualification. That standard already applies to the presidency, and it should apply to all federal offices,” Garrett said. “This legislation ensures Tennessee is represented by leaders with an unquestioned allegiance to our nation and do not hold dual citizenship from foreign adversary nations.”
House Bill 2036 is expected to be heard for consideration in the Elections and Campaign Finance Committee in the coming weeks.
Proposal clarifies state law, safeguards Second Amendment
A Republican proposal would further protect Tennesseans’ right to keep and bear arms.
House Bill 2064, filed by State Rep. Chris Todd, R-Madison County, would strengthen Second Amendment protections in the Volunteer State by eliminating a vague provision in Tennessee law that makes it a criminal offense to carry a firearm with the intent to go armed. The current statute relies on a confusing list of exceptions and defenses.
“The God-given right to keep and bear arms has been foundational to the continued success of our state and nation,” Todd said. “This critical legislation provides needed clarity by reforming the structure of our gun laws to ensure law-abiding Tennesseans can legally carry firearms across the state. These essential changes preserve individual liberty and safeguard the ability of citizens to protect themselves, their families and their communities.”
In August, the 28th Judicial District Chancery Court in Gibson County ruled that Tennessee’s going armed statute was unconstitutional. Todd’s legislation would clarify that all eligible Tennesseans can lawfully carry firearms under applicable state and federal laws.
House Bill 2064 would also protect Tennesseans’ firearm rights in state or local parks, greenways, or other recreational properties, or in national parks, as permitted by federal law, in accordance with the same court ruling.
The proposal will be considered in the Criminal Justice Subcommittee in the coming weeks.
Bill expands insurance coverage for cancer treatment
A Republican proposal would expand health coverage for Tennesseans by increasing access to certain testing.
House Bill 484, sponsored by State Rep. Brock Martin, R-Huntingdon, would require state-regulated health insurance plans to cover biomarker testing when ordered by a health care provider for diagnosis, treatment or ongoing monitoring of a patient’s disease or condition. The legislation does not include coverage for the cost of screenings, but does offer provisions to ensure testing is supported by medical and scientific evidence.
“When faced with a cancer diagnosis, Tennesseans should not be fighting insurers while fighting for their lives,” said Martin. “Biomarker testing provides a clear path forward for care and leads to better health outcomes and significant cost savings by avoiding ineffective treatment. This legislation puts patients first by providing clarity rather than confusion and ensuring medical advancements do not outpace our health care system.”
Often used in cancer care to help physicians identify the most effective treatment for a patient, biomarker testing is increasingly used to guide care for other serious conditions such as autoimmune and neurological diseases, cardiovascular disorders, arthritis and preeclampsia.
While comprehensive biomarker testing can carry a higher upfront cost, it leads to better outcomes and long-term savings by avoiding ineffective or unnecessary treatments.
House Bill 484 is scheduled to be considered in the Government Operations Committee on Feb. 9.
Republican proposals seek to create a healthier Tennessee
A series of legislative proposals aimed at strengthening public health protections, increasing transparency and safeguarding families from unnecessary environmental and chemical exposures have been filed by State Rep. Michele Reneau, R-Signal Mountain.
The legislation comes as Tennessee continues to draw national attention for its role in conversations around childhood health, chronic disease, and food system accountability.
During a recent visit to the state, U.S. Department of Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. highlighted the alarming rise in chronic disease among children, the importance of whole and minimally processed foods and the need for stronger oversight within the food industry.
“Each of these bills reflects a simple principle: health should not be sacrificed for convenience or profit,” said Reneau.
“Each of these bills reflects a simple principle: health should not be sacrificed for convenience or profit,” said Reneau.
The proposed bills include the following measures:
- House Bill 2396 – Bans fluoride in public water system
- House Bill 1853 – Removes all artificial dyes from school lunches
- House Joint Resolution 780 – Right to food constitutional amendment
- House Bill 2393 – Prohibits individual technology devices in elementary education
- House Bill 848 – Pesticide drone spray buffer near homes
- House Bill 2392 – Data Center Water Impact Act
At the federal level, HHSand the U.S. Food and Drug Administration have announced a national initiative to phase out petroleum-based synthetic food dyes, including steps to revoke authorization for certain dyes and to work with manufacturers to eliminate synthetic dyes from the food supply by the end of 2026.
Bill strengthens nutrition support for eligible families
House Bill 1835, sponsored by State Rep. Michael Hale, R-Smithville, would ensure Tennessee is able to participate in the Summer Electronic Benefit Transfer (SEBT) program, afederal nutrition assistance program providing grocery benefits to eligible families with school-aged children during the summer.
The proposalwould direct the Tennessee Department of Human Services (DHS) to apply for and accept available federal funding to participate in the SEBT program, ensuring continuity of nutrition assistance for eligible students. The program would be available in addition to the state’s Summer Food Service Program, administered by the DHS.
“Food insecurity looks different from one community to another, and addressing it requires a tailored approach,” said Hale. “Limited food access, particularly in rural communities, creates unique barriers for families, and this bill allows Tennessee to respond more effectively to those challenges. With federal funding available, this is a practical way to ensure children who rely on school meals are able to easily access support during the summer months.”
More than 650,000 Tennessee students participate annually in the federally funded program, which provides $120 in grocery assistance in the summer, according to the U.S. Department of Agriculture Food and Nutrition Service. House Bill 1835 will be heard in the Health Subcommittee in the coming weeks.
Poll shows support for General Assembly, future of TN
A new poll shows a majority of Tennessee voters support the Republican supermajority in the General Assembly and the direction Tennessee is headed. Fifty-three percent of voters approve of the state legislature’s work, including 74% of Republicans and 46% of independents, according to the January 2026 poll from the Beacon Center of Tennessee. President Donald Trump achieved the same approval rating in the Volunteer State.
Housing was a major topic in the poll, with 90% of respondents agreeing there should be a cap on how much local governments can raise property taxes annually. Several Republican members of the House have filed legislation to limit property taxes across the state.
Most Tennesseans, 87%, believe people should be fairly compensated when the government changes regulations like zoning laws if they restrict the use of privately owned land. Tennesseans in both parties believe residents should be able to use their land as they see fit under common-sense parameters.
Respondents also demonstrated a generally negative view toward forced membership in labor unions, with 82% believing employees should get to decide whether or not to join a union and pay dues. In 2022, Tennessee became the 10th state in the nation to add right-to-work to its constitution.
Briefly…
New majority whip: The House Republican Caucus on Monday unanimously elected State Rep. Clark Boyd of Lebanon to serve as majority whip for the 2026 legislative session. As Republican Whip, Boyd is the fourth-ranking officer in the House Republican Caucus. Boyd’s new role also includes chairing the Republican Caucus Campaign Committee. He will serve as the information channel between members and caucus leaders, and is responsible for providing communication to membership related to caucus positions on legislation.
Legal immigration reform: A resolution urging the federal government to streamline the legal immigration system is advancing through the House of Representatives. House Joint Resolution 180, sponsored by State Rep. Lee Reeves, R-Franklin, reaffirms the importance of immigration enforcement for national security and public safety while calling for a more efficient legal immigration system. If passed, a certified copy of the resolution would be sent to President Donald Trump and Tennessee’s congressional delegation.
Traditional marriage: New Republican legislation would clarify that private citizens and organizations are not bound by the Fourteenth Amendment or by the U.S. Supreme Court’s 2015 decision in Obergefell v. Hodges, which legalized marriage between members of the same sex. House Bill 1473 by State Rep. Gino Bulso, R-Brentwood, recognizes that while Obergefell is the law of the land, it applies only to public actors. In 2006, more than 81% of Tennesseans voted in favor of amending the Tennessee constitution to add that marriage is only between a man and a woman. House Bill 1473 will be considered in the Judiciary Committee on Feb. 11.
Enhanced handgun carry permit: The Civil Justice Subcommittee this week advanced a proposal to extend the fee waiver for lifetime enhanced handgun carry permits to include retired law enforcement officers who served less than 10 years. House Bill 1508, sponsored by State Rep. Todd Warner, R-Chapel Hill, would offer fee waivers to officers who retired from service due to an injury received in the line of duty. The proposal will be heard in the Judiciary Committee on Feb. 11.
Site development grants: The Tennessee Department of Economic and Community Development (TNECD) this week announced more than $13 million in Site Development Grants for 13 locations across the state. These funds help improve local economies by preparing industrial sites for business investment through infrastructure and engineering improvements. More information on this round of funding can be found on TNECD’s website.
Career and technical education: The Tennessee Department of Education announced that February is Career and Technical Education (CTE) Month in the Volunteer State. Gov. Bill Lee issued a proclamation to recognize the importance of CTE initiatives in increasing opportunities for students across Tennessee. During the first session of the 114th General Assembly, Republican lawmakers made significant investments to advance workforce development training and CTE in schools across Tennessee.
Safe at home law: A bill making several changes to Tennessee’s Safe at Home Law advanced out of the Criminal Justice Subcommittee this week. The law allows victims of domestic violence and other crimes to use a substitute address to keep their home address hidden from their abusers. House Bill 1552, sponsored by State Rep. Dennis Powers, R-Jacksboro, would allow an adult sibling living with the victim to be a co-applicant and clarify that a Tennessee order of protection is not required for victims moving from another state. The proposal would also add the state’s first-in-the-nation domestic violence offender registry, created by Savanna’s Law, to the official offender registry system, barring those offenders from participating in the program. House Bill 1552 will be heard in the Judiciary Committee on Feb. 11.
Summer food assistance programs: The Tennessee Department of Human Services (DHS) opened applications this week for the 2026 Summer Food Service Program (SFSP). The program ensures children 18-years-old and younger who rely on school meal programs continue to have access to nutritious meals throughout the summer months. Each year, local food partners across the state provide meals from the end of May to August when the new school year begins. While the SFSP has historically operated in most areas of the state, this year the program is focused on serving rural counties that have little to no SFSP meal sites. The last day for organizations to apply is May 1, 2026. Local organizations interested in becoming an SFSP sponsor or becoming a meal site should reach out to the DHS at TNSFSP.DHS@tn.gov.
Centrus expansion: A nuclear industry leader recently announced a major expansion in East Tennessee. Nuclear fuel supplier Centrus will be expanding its Oak Ridge facility to become a high-rate manufacturing plant. The project will create 430 new jobs and invest more than $560 million in Anderson County. The facility is the only uranium enrichment centrifuge in the U.S., making the expansion significant for both domestic nuclear energy production and national security. Centrus is the eighth company to utilize funding from Tennessee’s Nuclear Energy Fund, a $70 million initiative approved by the General Assembly to expand the state’s nuclear development and manufacturing ecosystem.
Go Red for Women: Members of the General Assembly wore red Thursday to raise awareness for women’s heart health. The Go Red for Women campaign and National Wear Red Day are initiatives by the American Heart Association aimed at educating women on heart health and addressing clinical care gaps. Cardiovascular disease is the leading cause of death among women, claiming the lives of one in three each year, according to the association.