Shown verbatim: the complete text as captured from the official PDF posted by the Tennessee General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
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PUBLIC CHAPTER NO. 963
HOUSE BILL NO. 2532
By Representatives Lamberth, Maberry, Reeves, Davis, White, Cepicky, Slater, Kumar,
Raper, Todd
Substituted for: Senate Bill No. 2247
By Senators Johnson, Stevens
AN ACT to amend Tennessee Code Annotated, Title 49, relative to education.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-6-3502(7), is amended by adding
"any of the grades kindergarten through twelve (K-12) at" after "enrolls in".
SECTION 2. Tennessee Code Annotated, Section 49-6-3504, is amended by adding the
following as a new subsection (f):
(f) Notwithstanding subsection (b) and subject to appropriation, the department
shall make a maximum of thirty-five thousand (35,000) scholarships available to eligible
students for the 2026-2027 school year in the order required in subsection (c).
SECTION 3. Tennessee Code Annotated, Section 49-3-108(i), is amended by deleting
the subsection and substituting:
(i)
(1) For the 2026-2027 school year, if an LEA's TISA allocation for the
current school year is less than the LEA's TISA allocation for the 2025-2026
school year and the LEA experienced disenrollment, then the department shall
allocate additional funds to the LEA in the amount of the difference between the
LEA's TISA allocation for the current school year and the LEA's TISA allocation
for the 2025-2026 school year.
(2)
(A) For the 2027-2028 and 2028-2029 school years, if an LEA's
TISA allocation for the current school year is less than the LEA's TISA
allocation for the 2025-2026 school year and the LEA experienced
disenrollment, then the department shall allocate additional funds to the
LEA in the amount of the average per pupil state funds received by the
LEA in the immediately preceding school year for each student who
disenrolled from the LEA in the immediately preceding school year and, at
the time of the student's registration or enrollment, provided the LEA with
the student's social security number.
(8) The department shall require each LEA, as a condition to the
receipt of any additional funds pursuant to this subdivision (i)(2), to report
to the department the reason for disenrollment provided by each non-
virtual student who disenrolled from the LEA in the immediately preceding
school year; regardless of whether the student provided the LEA with
their social security number at the time of registration or enrollment.
(C) The sum total of any additional funds received by an LEA
pursuant to this subdivision (i)(2) must not exceed the difference between
the LEA's TISA allocation for the current year and the LEA's TISA
allocation for the 2025-2026 school year.
(3)
HB2532
(A) Beginning with the 2029-2030 school year, if an LEA's TISA
allocation for the current school year is less than the LEA's TISA
allocation for the 2025-2026 school year and the LEA experienced
disenrollment, then the department shall allocate additional funds to the
LEA in the amount of the average per pupil state funds received by the
LEA in the immediately preceding school year for each student who
disenrolled from the LEA for the immediately preceding school year and
received, for the immediately preceding school year, an education
freedom scholarship pursuant to chapter 6, part 35 of this title.
(8) The sum total of any additional funds received by an LEA
pursuant to this subdivision (i)(3) must not exceed the difference between
the LEA's TISA allocation for the current year and the LEA's TISA
allocation for the 2025-2026 school year.
(4)
(A) Any additional funds provided to an LEA pursuant to this
subsection (i) must be solely state funded.
(B) If an LEA is eligible for additional funds under subdivision (i)(1)
and subsection (b) or subsection (c), then the department shall only
award additional funds to the LEA pursuant to subdivision (i)(1) and shall
not award any additional funds to the LEA pursuant to subsection (b) or
subsection (c).
(C) If an LEA is eligible for additional funds under subdivision (i)(2)
or (i)(3) and subsection (b) or subsection (c), then the department shall
only award additional funds to such LEA pursuant to subdivision (i)(2) or
(i)(3), subsection (b), or subsection (c), whichever results in the LEA
receiving the greatest amount of additional funding.
(5) As used in this subsection (i), "disenrollment" means that the LEA's
non-virtual average daily membership for the current school year is lower than
the LEA's non-virtual average daily membership for the immediately preceding
school year.
SECTION 4. Tennessee Code Annotated, Section 49-6-3504(c), is amended by deleting
"Beginning with the 2026-2027 school year" and substituting "For the 2026-2027 school year"
and by designating the existing language as subdivision (1) and adding the following as a new
subdivision (2):
(2) Beginning with the 2027-2028 school year, the department shall award
scholarships in the following order:
(A) An eligible student who received a scholarship in the immediately
preceding year, in the order in which the department receives completed
scholarship applications;
(8) If scholarships remain available after all eligible students described in
subdivision (c)(2)(A) receive a scholarship, then an eligible student whose annual
household income does not exceed one hundred percent (100%) of the amount
required for the student to qualify for free or reduced-price lunch, as provided in
the income eligibility guidelines published by the United States department of
agriculture's food and nutrition service, or an eligible student who is an eligible
student as defined in § 49-6-2602 or § 49-10-1402, in the order in which the
department receives completed scholarship applications;
(C) If scholarships remain available after all eligible students described in
subdivision (c)(2)(8) receive a scholarship, then an eligible student whose annual
household income does not exceed three hundred percent (300%) of the amount
required for the student to qualify for free or reduced-price lunch, as provided in
the income eligibility guidelines published by the United States department of
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HB2532
agriculture's food and nutrition service, in the order in which the department
receives completed scholarship applications;
(D) If scholarships remain available after all eligible students described in
subdivision (c)(2)(C) receive a scholarship, then an eligible student whose annual
household income exceeds three hundred percent (300%) of the amount
required for the student to qualify for free or reduced-price lunch, as provided in
the income eligibility guidelines published by the United States department of
agriculture's food and nutrition service who, at the time of submitting a completed
scholarship application, is currently enrolled in a public school or is eligible to
enroll in kindergarten in a public school for the respective school year, in the
order in which the department receives completed scholarship applications; and
(E) If scholarships remain available after all eligible students described in
subdivision (c)(2)(D) receive a scholarship, then an eligible student whose annual
household income exceeds three hundred percent (300%) of the amount
required for the student to qualify for free or reduced-price lunch, as provided in
the income eligibility guidelines published by the United States department of
agriculture's food and nutrition service, or an eligible student, in the order in
which the department receives completed scholarship applications.
SECTION 5. Tennessee Code Annotated, Title 49, Chapter 6, Part 35, is amended by
adding the following as a new section:
(a) The department shall annually report, in accordance with subsection (b), the
number of eligible students who applied for a scholarship, disaggregated by:
(1) The number of applications received from each county;
(2) The number of eligible students who, at the time of submitting a
completed scholarship application, were enrolled in a public school;
(3) The number of eligible students who, at the time of submitting a
completed scholarship application, were not yet enrolled in school, but who were
applying for a scholarship for kindergarten enrollment; and
(4) To the extent such data is available to the department, the number of
eligible students whose annual household income:
(A) Does not exceed one hundred percent (100%) of the amount
required for the student to qualify for free or reduced price lunch, as
provided in the income eligibility guidelines published by the United
States department of agriculture's food and nutrition service;
(8) Does not exceed three hundred percent (300%) of the amount
required for the student to qualify for free or reduced price lunch, as
provided in the income eligibility guidelines published by the United
States department of agriculture's food and nutrition service; and
(C) Exceeds three hundred percent (300%) of the amount
required for the student to qualify for free or reduced price lunch, as
provided in the income eligibility guidelines published by the United
States department of agriculture's food and nutrition service.
(b) The department shall submit the report required in subsection (a) to the
education committee of the senate and the committee of the house of representatives
having jurisdiction over kindergarten through grade twelve (K-12) education by June 1,
2026, for the 2025-2026 school year; by October 1, 2026, for the 2026-2027 school year;
and by each October 1 thereafter for the immediately preceding school year.
(c) The report must not include personally identifiable information.
SECTION 6. This act takes effect upon becoming a law, the public welfare requiring it.
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HOUSE BILL NO. 2532
PASSED: April 16, 2026
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CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
RANDYMCN
SPEAKER OF THE SEN
:1... APPROVED this ~ dayof ~ 2026
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BILL LEE, 'GOVERNOREvery fact on this page links to its source, starting with the official bill record.