The Tennessee General Assembly adjourned its 114th session yesterday, following the passage of a $59.8 billion state budget that received bipartisan support, including reallocating approximately $180 million of funding from Gov. Bill Lee’s proposed budget amendment in order to fulfill their own legislative priorities.

The budget for Fiscal Year 2025-2026 that passed the General Assembly included $78 million for TennCare, $4.5 million to expand staffing and raise salaries within the attorney general’s office, and $37.5 million to replace the Tennessee College of Applied Technology (TCAT) campus in Robertson County. The budget also committed an additional $35.6 million to the Rainy Day Fund and $597 million in disaster-related expenditures, including funds for Hurricane Helene relief and local Federal Emergency Management Agency (FEMA) match requirements. Lawmakers also established a $42.5 million grant pool to support essential community organizations and services such as volunteer fire departments, EMS providers, senior centers, museums and the Second Harvest Food Bank.

The final budget preserved key initiatives from the governor’s original proposal, including $17 million to overhaul the state’s Indigent Representation Program, $1 billion for transportation infrastructure, $62.7 million for K–12 facility upgrades and $25 million in grants to attract new businesses and grow the state’s workforce, and $145.9 million in Education Freedom Scholarships. A controversial proposal that would have allowed Tennessee school districts to deny enrollment or charge tuition to noncitizen students has stalled for the year. HB793/SB836, which sought to challenge the landmark 1982 Supreme Court ruling Plyler v. Doe — guaranteeing all children access to free public education regardless of immigration status — was paused after lawmakers raised concerns about possible violations of federal law and financial consequences. Additionally, legislation seeking to implement a takeover of the Memphis-Shelby County School Board will be taken up next year, as House and Senate leadership could not reach an agreement on the bill.

Gov. Bill Lee thanked the General Assembly “for its partnership and continued commitment to responsible fiscal stewardship and innovation to improve the lives of the people we serve.”