Rep. Bud Hulsey leads supermajority’s efforts to keep taxes low, 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 $58.3 billion budget for the 2026-27 fiscal year.
This year’s budget highlights lawmakers’ continuous efforts to keep taxes low and remain fiscally responsible while prioritizing the needs of all Tennesseans. It advances Republican efforts to strengthen public schools, streamline transportation projects, improve public health and safety, and make the Volunteer State a beacon for families.
“Tennessee is the gold standard when it comes to fiscal responsibility and living within our means,” said Hulsey. “This spending plan makes critical investments in education, roads and public safety, all while improving government efficiency and cutting spending. Managing public funds is a great responsibility that my colleagues and I don’t take lightly, and I’m confident this budget puts the interests of Tennesseans first.”
Total legislative initiatives make up $276 million in recurring and non-recurring expenditures while maintaining a strong bottom line for potential uncertainties. Even as revenues have slowed, Tennessee remains one of the most fiscally stable states in the nation with no state income tax and a low overall tax burden.
This year’s budget renews Tennessee Republicans’ commitment to boosting academic outcomes by investing $518 million new dollars for education-related initiatives, including $145.5 million for Tennessee Investment in Student Achievement (TISA) growth, increasing per student funding to $7,530, and bringing the total TISA investment to more than $7 billion. It also includes $30.6 million for school construction and maintenance grants, $10 million for additional school safety grants and $4.5 million for tnAchieves to help Tennessee students earn higher education credentials.
To continue Republicans’ efforts to make communities across Tennessee safer, the spending plan allocates $320 million for public safety initiatives, including $21 million for 50 additional state troopers and statutory step increases. Lawmakers provided $14 million to create 42 positions at the Tennessee Bureau of Investigation, $1.25 million for houses of worship security grants, $5 million for evidence-based programming funds for the Office of Criminal Justice Programs, and $44 million for the Governor’s Response and Recovery Fund, bringing the total to $100 million.
The budget seeks to build on Tennessee’s status as a top state for businesses, investing $890 million in new state appropriations for business infrastructure and economic development. Priorities include $20 million nonrecurring for the community workforce housing innovation pilot program, $15 million nonrecurring for the Rural Development Fund, $8 million for the Youth Employment Program, and $25 million nonrecurring for nuclear industry initiative grants.
Lawmakers made significant investments in health and social services, committing more than $1.4 billion in new state, federal, and other funding. This includes $125 million in shared savings to support improvements in rural hospitals, alongside $1 billion in federal funding through the Rural Health Transformation Program over the next five years.
In addition, lawmakers allocated $137 million from the general fund to help hospitals, particularly in rural areas, to cover uncompensated care. Unlike federal funds, these state dollars can be used for critical capital improvements, giving hospitals greater flexibility. This approach helps stabilize rural health care providers while strengthening their ability to expand services and meet long-term community needs. Other investments includemore than $250 million in new state funding for TennCare, $28 million to address unmet dental services and $11 million for ALS research.
As part of continued efforts to improve the Volunteer State’s infrastructure, the budget adds $400 million nonrecurring in general fund subsidies for transportation projects, $8.2 million for general aviation, $48 million nonrecurring and $25 million recurring for commercial aviation, and $165 million nonrecurring to replace and renovate welcome centers and rest areas.
Other significant investments include $42 million for community grant pools to benefit volunteer fire departments, volunteer rescue squads, emergency medical services, senior centers, museum capital improvements, fairs and courthouse renovations. The budget allocates more than $125 million for two additional state parks and the reconstruction of the David Crockett Birthplace State Park in Greene County. Lawmakers also set aside $20 million for Tennessee’s Rainy-Day fund, bringing the total to $2.2 billion.
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 from all three of the nation’s credit rating agencies, reflecting extreme confidence in the Volunteer State’s preparedness to meet financial commitments in tough economic times.
Rep. Bud Hulsey lives in Kingsport and represents District 2 in the Tennessee House of Representatives, which includes part of Sullivan County.