Tennessee legislation · 114th General Assembly

Tennessee HB2532: AN ACT to amend Tennessee Code Annotated, Title 49, relative to education.

Status: Chaptered, May 18, 2026

Fiscal Summary STATE GOVERNMENTEXPENDITURESGeneral Fund FY26-27$150,600,000 FY27-28$155,360,000FY28-29 & Subsequent Years>$155,360,000 OTHER FISCAL IMPACT If 5,000 additional scholarships are awarded in FY26-27 in the absence of this legislation, as is permitted under current law, the recurring increase in state expenditures as a direct result of this legislation is estimated to be $112,950,000 in FY26-27, $116,520,000 in FY27-28, and exceed $116,520,000 in FY28-29 and subsequent years. The Governor’s proposed budget for FY26-27, on page B-90, recognizes a recurring appropriation of $112,950,000 to fund 15,000 additional Education Freedom Scholarships. Further, it proposes $42,350,000 in recurring funding to provide inflationary costs for the Education Freedom Scholarship program, as well as funding the 5,000 scholarships that are projected to be established due to scholarship applications reaching the statutory requirement. Beginning in FY27-28, LEAs may not realize certain future increases in TISA funding to the extent additional EFS scholarships increase student transfers from public to private schools. Although current law provides hold harmless protections that maintain an LEA’s prior-year funding level, such protections do not account for future increases that would otherwise occur due to growth in ADM or increases in TISA funding levels. Therefore, any additional foregone revenue growth to LEAs, and corresponding state expenditure reductions, is indeterminate. Bill Summary ON APRIL 13, 2026, THE HOUSE ADOPTED AMENDMENTS #8, 2, 3, AND 9, AND PASSED HOUSE BILL 2532, AS AMENDED. AMENDMENT #8 prohibits an eligible student from receiving an education freedom scholarship if the student is enrolled in a private school that promotes or advocates for the support, adoption, or implementation of any foreign law, legal code, or system