HB 738 - SB 803
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 22, 2025
Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564
HB 738 - SB 803
SUMMARY OF BILL: Expands the Tennessee Promise Scholarship to eligible students
enrolled at an institution accredited by the National Accrediting Commission of Career Arts and
Sciences (NACCAS) beginning with the fall semester of the 2025-2026 academic year. Requires the
Tennessee Student Assistance Corporation (TSAC) to first determine that there are no available
enrollment slots at a Tennessee College of Applied Technology (TCAT) in the county in which the
student resides for the student's desired program of study in order for the student to be eligible for
the scholarship at the institution accredited by the NACCAS.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES Tennessee Promise Scholarship Special Reserve Account
FY25-26 $495,900
FY26-27 & Subsequent Years >$595,100
Assumptions:
• In Tennessee there are approximately 27 institutions accredited by NACCAS.
• According to TSAC, there are three TCATs with no waitlists located in counties which also
have a NACCAS-accredited institution. In those counties, students at NACCAS-accredited
institutions would not be eligible for the Tennessee Promise Scholarship if the TCAT offers
their desired program of study. For the purpose of this analysis, students at such
institutions in those counties are excluded from eligibility.
• Based on information provided by TSAC, an estimated additional 505 students will be
eligible for the Tennessee Promise scholarship in FY25-26, and an estimated 606 students
will be eligible in FY26-27 under the legislation’s provisions. The number of additional
eligible students is estimated to exceed 606 in subsequent years due to growth in the overall
student population.
• Pursuant to Tenn. Code Ann. § 49-4-708(c)(5)-(6), the Tennessee Promise Scholarship is
the average cost of tuition and mandatory fees at eligible public two-year postsecondary
institutions less all other gift aid.
• The TSAC provides that the average three-year TN Promise award per student is $982.
• The increase in state expenditure from the Tennessee Promise Scholarship Special Reserve
Account is estimated to be $495,910 (505 students x $982 award) in FY25-26, and estimated
to exceed $595,092 (606 students x $982 award)) in FY26-27 and subsequent years.
HB 738 - SB 803 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director