Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB6001 Compare Versions

Only one version of the bill is available at this time.

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2	2	<BillNo> <Sponsor>
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4	4	SENATE BILL 6001
5	5	By Johnson
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7	7
8	8	SB6001
9	9	002074
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12	12	AN ACT to amend Tennessee Code Annotated, Title 4,
13	13	Chapter 49; Title 8 and Title 49, relative to the
14	14	Education Freedom Act of 2025.
15	15
16	16	WHEREAS, publicly supported educational freedom has a long history in Tennessee,
17	17	with the Hope Scholarship providing funding that follows students to the public or private
18	18	institution of their choice; and
19	19	WHEREAS, parents should be free to choose the school that best fits the educational
20	20	needs of their specific child; and
21	21	WHEREAS, Tennessee has worked to expand choice through the successful education
22	22	savings account pilot program that is now helping primarily underserved, minority students in
23	23	three of the State's largest school districts with 99% parent satisfaction with the program; and
24	24	WHEREAS, over the past six years, Tennessee has invested a record $2 billion annually
25	25	in additional state dollars for public education; and
26	26	WHEREAS, high-quality educational facilities and high-performing teachers are vital
27	27	ingredients for a child's success; and
28	28	WHEREAS, the "Education Freedom Scholarship Act" will empower parents with the
29	29	freedom to choose the right education for their child and provide parents a say in where their
30	30	taxpayer dollars are spent; now, therefore,
31	31	BE IT ENACTED BY THE GENERAL ASSEMBLY OF TH E STATE OF TENNESSEE:
32	32	SECTION 1. This act is known and may be cited as the "Education Freedom Act of
33	33	2025."
34	34	SECTION 2. Tennessee Code Annotated, Title 49, Chapter 6, is amended by adding
35	35	the following as a new part:
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40	40	49-6-3501. Short title.
41	41	This part is known and may be cited as the "Education Freedom Scholarship
42	42	Act."
43	43	49-6-3502. Part definitions.
44	44	As used in this part, unless the context otherwise requires:
45	45	(1) "Department" means the department of education;
46	46	(2) "Eligible student" means a resident of this state who is entitled to
47	47	attend a public school, except for a student enrolled in a home school, as defined
48	48	in § 49-6-3050, or in a church-related school, as defined in § 49-50-801, with
49	49	which the student's parent is associated, registered, or is participating as a
50	50	parent-teacher for purposes of § 49-6-3050(a)(2) or (a)(3);
51	51	(3) "Parent" means the parent, guardian, person who has custody of the
52	52	child, or individual who has caregiving authority for the child under § 49-6-3001;
53	53	(4) "Private school" means a school that is:
54	54	(A) Located in this state; and
55	55	(B) A private school, as defined in § 49-6-3001(c)(3)(A), that is a
56	56	category I, II, or III school approved by the commissioner of education in
57	57	accordance with rules promulgated by the state board of education;
58	58	(5) "Program" means the education freedom scholarship program
59	59	created by this part;
60	60	(6) "Public school" means a public charter school, a school operated by
61	61	an LEA, or a school operated by this state with public funds that serves students
62	62	in any of the grades kindergarten through twelve (K-12);
63	63	(7) "Recipient" means an eligible student who enrolls in a private school
64	64	and receives a scholarship for a given school year; and
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69	69	(8) "Scholarship" means an education freedom scholarship provided
70	70	pursuant to this part.
71	71	49-6-3503. Creation.
72	72	(a) There is created an education freedom scholarship program to be
73	73	administered by the department.
74	74	(b) Subject to appropriations and other available funds, the program must
75	75	provide a scholarship to an eligible student who applies for the 2025-2026 school year or
76	76	any subsequent school year, subject to the limitations of this part.
77	77	49-6-3504. Scholarship availability – prioritization of awards.
78	78	(a) For the 2025-2026 school year, the department shall award a maximum of
79	79	twenty thousand (20,000) scholarships, to be awarded as follows, in the order in which
80	80	the department receives completed scholarship applications:
81	81	(1) Ten thousand (10,000) scholarships are available for eligible students
82	82	who meet one (1) of the following criteria:
83	83	(A) The student's annual household income does not exceed
84	84	three hundred percent (300%) of the amount required for the student to
85	85	qualify for free or reduced price lunch, as provided in the income eligibility
86	86	guidelines published by the United States department of agriculture's food
87	87	and nutrition service; or
88	88	(B) The student is an eligible student as defined in § 49-6-2602 or
89	89	§ 49-10-1402; and
90	90	(2) Ten thousand (10,000) scholarships are available for eligible
91	91	students, regardless of whether the eligible student meets one (1) of the criteria
92	92	listed in subdivision (a)(1).
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97	97	(b) Beginning with the 2026-2027 school year, and subject to the funds
98	98	appropriated for scholarships together with any available funds returned to the state
99	99	treasurer pursuant to § 49-6-3506, if the number of applications received by the
100	100	department during a program application period:
101	101	(1) Exceeds seventy-five percent (75%) of the total number of
102	102	scholarships available for the respective school year, then the department may
103	103	increase the maximum number of scholarships available for the next school year
104	104	by no more than five thousand (5,000) additional scholarships; or
105	105	(2) Does not exceed seventy-five percent (75%) of the total number of
106	106	scholarships available for the respective school year, then the maximum number
107	107	of scholarships available for the next school year must remain the same as the
108	108	maximum number of scholarships available for the prior school year.
109	109	(c) Beginning with the 2026-2027 school year, if the number of applications
110	110	received by the department exceeds the number of scholarships available for the
111	111	respective school year, then the department shall award scholarships in the following
112	112	order:
113	113	(1) An eligible student who received a scholarship in the immediately
114	114	preceding school year;
115	115	(2) An eligible student whose annual household income does not exceed
116	116	one hundred percent (100%) of the amount required for the student to qualify for
117	117	free or reduced price lunch, as provided in the income eligibility guidelines
118	118	published by the United States department of agriculture's food and nutrition
119	119	service, or an eligible student who is an eligible student as defined in § 49-6-
120	120	2602 or § 49-10-1402, in the order in which the department receives completed
121	121	scholarship applications;
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126	126	(3) An eligible student whose annual household income does not exceed
127	127	three hundred percent (300%) of the amount required for the student to qualify
128	128	for free or reduced price lunch, as provided in the income eligibility guidelines
129	129	published by the United States department of agriculture's food and nutrition
130	130	service, in the order in which the department receives completed scholarship
131	131	applications;
132	132	(4) An eligible student who, at the time of submitting a completed
133	133	application, is currently enrolled in a public school, or who is eligible to enroll in
134	134	kindergarten in a public school for the respective school year, in the order in
135	135	which the department receives completed scholarship applications; and
136	136	(5) An eligible student, in the order in which the department receives
137	137	completed scholarship applications.
138	138	(d) In order to receive a scholarship under this part, an eligible student, or the
139	139	eligible student's parent, must:
140	140	(1) Submit a completed scholarship application to the department;
141	141	(2) Ensure the provision of an education for the eligible student that
142	142	satisfies the compulsory school attendance requirement provided in § 49-6-
143	143	3001(c)(1) through enrollment in a private school; and
144	144	(3) Not enroll the eligible student in a kindergarten through grade twelve
145	145	(K-12) public school in any school year for which the eligible student receives a
146	146	scholarship.
147	147	(e) The department may award a scholarship to an eligible student in an order
148	148	that does not comply with the order prescribed in subsection (a) or subsection (c), as
149	149	applicable, if awarding the scholarship out of order is consistent with the outcome of an
150	150	administrative appeal adjudicating the denial of the student's scholarship application.
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155	155	49-6-3505. Scholarship amounts – allowable uses.
156	156	(a) A scholarship equals the base funding amount, as defined in § 49-3-104(2),
157	157	and is solely state funded.
158	158	(b) Scholarship funds must first be used to pay the recipient's tuition and fees, as
159	159	described in subdivision (c)(1). Any outstanding scholarship funds available to the
160	160	recipient after payment of tuition and fees may be used for one (1) or more of the
161	161	educational expenses described in subdivisions (c)(2) – (c)(8).
162	162	(c) Scholarship funds may only be used for the following educational expenses:
163	163	(1) Tuition and fees required by the private school in which the recipient
164	164	is enrolled;
165	165	(2) Textbooks, curricula, instructional materials, and uniforms required by
166	166	the private school in which the recipient is enrolled;
167	167	(3) Tutoring services provided by a tutor or tutoring facility that meets the
168	168	requirements established by the department;
169	169	(4) Fees for transportation to and from the private school in which the
170	170	recipient is enrolled, paid to a fee-for-service transportation provider that meets
171	171	the requirements established by the department;
172	172	(5) Computer hardware, technological devices, and other technology
173	173	fees that meet the requirements established by the department and that are used
174	174	for the recipient's educational needs;
175	175	(6) Tuition, fees, textbooks, curricula, and instructional materials for
176	176	summer academic programs and specialized afterschool academic programs
177	177	that meet the requirements established by the department. This subdivision
178	178	(c)(6) does not include afterschool childcare;
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183	183	(7) Fees for early postsecondary opportunity courses or examinations,
184	184	entrance examinations required for postsecondary admission, and industry
185	185	credentials as approved by the department; and
186	186	(8) Educational therapy services provided by therapists who meet the
187	187	requirements established by the department.
188	188	49-6-3506. Unspent funds – account closure.
189	189	(a) A recipient's scholarship account remains open, and all available scholarship
190	190	funds remain in the recipient's scholarship account, from one (1) school year to another
191	191	unless one (1) of the events described in subsection (b) occurs.
192	192	(b) A recipient's scholarship account must be closed, and all remaining
193	193	scholarship funds returned to the state treasurer to be used to award scholarships to
194	194	eligible students in future years pursuant to this part, upon the earlier of:
195	195	(1) The recipient's graduation from high school or obtainment of a high
196	196	school equivalency credential approved by the state board of education;
197	197	(2) The recipient's enrollment in a kindergarten through grade twelve (K-
198	198	12) public school;
199	199	(3) The recipient's completion of thirteen (13) school years as a
200	200	kindergarten through grade twelve (K-12) student;
201	201	(4) The recipient's voluntary withdrawal from the scholarship program; or
202	202	(5) The department disqualifying the recipient from participating in the
203	203	program due to the recipient's noncompliance with program requirements.
204	204	49-6-3507. Administration of assessments for recipients.
205	205	(a) As a condition of receiving a scholarship pursuant to this part, recipients in
206	206	grades three through eleven (3-11) must be annually administered:
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211	211	(1) A nationally standardized achievement test that is aligned to the
212	212	respective private school's instructional plan, as determined by rules promulgated
213	213	by the state board of education; or
214	214	(2) The Tennessee comprehensive assessment program test required for
215	215	the grade in which the recipient is enrolled.
216	216	(b) Each private school that enrolls recipients shall annually administer the test
217	217	required pursuant to subsection (a) to the recipients enrolled in the school. Each private
218	218	school shall provide the results of the test administered to a recipient pursuant to
219	219	subsection (a) to the recipient's parents.
220	220	(c) By June 30, 2026, and by each June 30 thereafter, each private school shall
221	221	provide the results of the tests administered to recipients pursuant to subsection (a) to
222	222	the office of research and education accountability in the office of the comptroller of the
223	223	treasury. A private school may provide the test results required pursuant to this
224	224	subsection (c) using aggregated, deidentified data; provided, that the data must be
225	225	provided on a form developed by the office of research and education accountability in a
226	226	manner that allows the office of research and educational accountability to group and
227	227	analyze the results by recipient grade level, household income level, sex, and race. The
228	228	office of research and education accountability shall submit an annual report to the
229	229	education committees of the senate and house of representatives detailing the results of
230	230	the tests administered to recipients pursuant to subsection (a).
231	231	49-6-3508. Autonomy of schools that have recipients enrolled.
232	232	(a) A private school that enrolls recipients is autonomous and not an agent of
233	233	this state.
234	234	(b) The creation of the education freedom scholarship program does not expand
235	235	the regulatory authority of this state, the officers of this state, or the authority of any LEA
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240	240	to impose any additional rules, regulations, or requirements on private schools that enroll
241	241	recipients beyond the rules narrowly tailored to enforce the requirements of the program.
242	242	(c) Private schools that enroll recipients must have the maximum freedom to
243	243	provide for the educational needs of recipients without governmental control. A private
244	244	school that enrolls recipients is not required to alter its creed, practices, admission
245	245	policies, hiring policies, or curriculum in order to accept recipients.
246	246	49-6-3509. Limitations on participation – connection to other education programs.
247	247	(a) Notwithstanding another law to the contrary, the department shall deny a
248	248	scholarship to an eligible student for the same school year in which the student is
249	249	participating in the Tennessee education savings account pilot program, compiled in part
250	250	26 of this chapter, or the individualized education account program, compiled in chapter
251	251	10, part 14 of this title.
252	252	(b) A recipient does not retain the right to receive special education and related
253	253	services from the LEA in which the recipient resides, through an individualized education
254	254	program. Recipients have the same rights under the Individuals with Disabilities
255	255	Education Act (IDEA) (20 U.S.C. § 1414) to receive equitable services through an
256	256	individualized service plan as all other students enrolled in non-public schools.
257	257	49-6-3510. Payment – state or local public benefit.
258	258	(a) A scholarship awarded under this part:
259	259	(1) Shall not be paid directly to a recipient or recipient's parent; and
260	260	(2) Is a state or local public benefit under § 4-58-102.
261	261	(b) Funds received pursuant to this part do not constitute income taxable to the
262	262	parent of the recipient or to the recipient under title 67, chapter 2.
263	263	49-6-3511. Denial of scholarship application.
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268	268	Notwithstanding § 49-6-3504, the department shall deny the scholarship
269	269	application of an eligible student who cannot establish the eligible student's lawful
270	270	presence in the United States.
271	271	49-6-3512. Promulgation of rules.
272	272	The department shall promulgate rules to effectuate this part. The rules must
273	273	include an administrative appeal procedure for the denial of scholarship applications.
274	274	The rules must be promulgated in accordance with the Uniform Administrative
275	275	Procedures Act, compiled in title 4, chapter 5.
276	276	SECTION 3. Tennessee Code Annotated, Section 49-3-108, is amended by adding the
277	277	following as a new subsection:
278	278	(i)
279	279	(1) Beginning with the TISA allocation for the 2025-2026 year, and
280	280	except when subdivision (i)(2) applies, if an LEA's TISA allocation for the current
281	281	school year is less than the LEA's TISA allocation for the immediately preceding
282	282	school year, and if the LEA experienced disenrollment, then the department shall
283	283	allocate additional funds to the LEA such that the LEA's TISA allocation for the
284	284	current school year combined with the amount of any additional funds received
285	285	by the LEA pursuant to this subdivision (i)(1) is equal to the LEA's TISA allocation
286	286	for the immediately preceding school year.
287	287	(2) Beginning with the TISA allocation for the 2026-2027 school year, if
288	288	an LEA has ever received additional funds under this subsection (i), and if an
289	289	LEA's TISA allocation for the current school year is less than the sum total of the
290	290	LEA's TISA allocation for the immediately preceding school year and the amount
291	291	of any additional funds received by the LEA pursuant to this subsection (i) for the
292	292	immediately preceding school year, and if the LEA experienced disenrollment,
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297	297	then the department shall allocate additional funds to the LEA such that the
298	298	LEA's TISA allocation for the current school year is equal to the sum total of the
299	299	LEA's TISA allocation for the immediately preceding school year and the amount
300	300	of any additional funds received by the LEA pursuant to this subsection (i) for the
301	301	immediately preceding school year.
302	302	(3) Any additional funds provided to an LEA pursuant to this subsection
303	303	(i) must be solely state funded. If an LEA is eligible for additional funds under
304	304	this subsection (i) and subsection (b) or (c), then the department shall only award
305	305	additional funds to the LEA pursuant to this subsection (i) and shall not award
306	306	any additional funds to the LEA pursuant to subsection (b) or (c).
307	307	(4) As used in this subsection (i), "disenrollment" means that the LEA's
308	308	non-virtual average daily membership for the current school year is lower than
309	309	the LEA's non-virtual average daily membership for the immediately preceding
310	310	school year.
311	311	SECTION 4.
312	312	(a) Subject to appropriation, the department of education shall award a one-time
313	313	bonus in the amount of two thousand dollars ($2,000) to each teacher employed in a
314	314	kindergarten through grade twelve (K-12) public school in this state for the 2024-2025
315	315	school year.
316	316	(b)
317	317	(1) A bonus awarded pursuant to this section is solely state funded.
318	318	(2) Bonuses paid to teachers pursuant to this section are not part of the
319	319	TISA, as defined in § 49-3-104, and must not be considered salary payments or
320	320	supplements for purposes of § 49-3-306.
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325	325	(c) For purposes of this section, "teacher" has the same meaning as "existing
326	326	educator," as that term is defined in § 49-3-104.
327	327	SECTION 5. Tennessee Code Annotated, Section 4-49-104(e)(1), is amended by
328	328	deleting the subdivision and substituting instead:
329	329	(1) Eighty percent (80%) of the privilege tax collected under this section must be
330	330	distributed by the council to the state treasurer for deposit into an account administered
331	331	by the state treasurer for use by local education agencies, as defined in § 49-1-103, for
332	332	the construction and maintenance of public school buildings. When allocating funds for
333	333	such purpose, the state treasurer shall consider:
334	334	(A) Whether the local education agency is located in a county that is
335	335	designated as an economically distressed or at-risk county by the department of
336	336	economic and community development;
337	337	(B) The occurrence of any emergency or natural disaster that has
338	338	resulted in significant damage to an existing public school building or facility; and
339	339	(C) Other demonstrated need, as identified by the local education
340	340	agency.
341	341	SECTION 6. If any provision of this act or its application to any person or circumstance
342	342	is held invalid, then the invalidity does not affect other provisions or applications of the act that
343	343	can be given effect without the invalid provision or application, and to that end, the provisions of
344	344	this act are severable.
345	345	SECTION 7. The headings in this act are for reference purposes only and do not
346	346	constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
347	347	requested to include the headings in any compilation or publication containing this act.
348	348	SECTION 8. Section 5 of this act takes effect July 1, 2025, the public welfare requiring
349	349	it. All other sections of this act take effect upon becoming a law, the public welfare requiring it.