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.
Large document: the complete text runs about 66,000 words on this one page, so it can take a moment to load and render.
.
: ~=~ E ~~,•
: »~E
f / J State efl;fleSSee
PUBLIC CHAPTER NO. 1142
SENATE BILL NO. 2690
By Johnson, Reeves, Rose, Seal, Watson
Substituted for: House Bill No. 2631
By Lamberth, Cochran, Gary Hicks, Williams, Hulsey, Crawford, Bricken
AN ACT to make appropriations for the purpose of defraying the expenses of the state government
for the fiscal years beginning July 1, 2025, and July 1, 2026, in the administration, operation
and maintenance of the legislative, executive and judicial branches of the various
departments, institutions, offices and agencies of the state; for certain state aid and
obligations; for capital outlay, for the service of the public debt, for emergency and
contingency; to repeal certain appropriations and any acts inconsistent herewith; to provide
provisional continuing appropriations; and to establish certain provisions, limitations and
restrictions under which appropriations may be obligated and expended. This act makes
appropriations for the purposes described above for the fiscal years beginning July 1, 2025,
and July 1, 2026.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. That appropriations hereinafter set out are hereby made for the purpose of
defraying the expenses of state government for the fiscal year beginning July 1, 2026, in the
administration, operation and maintenance of the legislative, executive and judicial branches of the
various departments, institutions, offices and agencies of the state, and for certain state aid and
obligations and for capital outlay; for the service of the public debt, and for emergency and
contingency, all according to the following schedule:
I. LEGISLATIVE 2026-2027
1. Legislature 14,240,200.00
1.1 General Assembly Support Services ..................................... $ 34,380,700.00
1.2 House of Representatives ..................................................... 19,714,600.00
1.3 State Senate.......................................................................... 10,252,700.00
1.4 Legislative Administration Services ....................................... .
1.5 Tennessee Code Commission .............................................. . 68,900.00
Total Legislature ....................................................................$ 78,657,100.00
2. Fiscal Review Committee................................................................$ 3,089,300.00
Total Title I ..........................................................................$ 81,746,400.00
II. JUDICIAL 93,585,500.00
3,458,300.00
1. Appellate and Trial Courts...............................................................$ 1,263,100.00
2. Supreme Court Buildings ................................................................
3. Child Support Referees ................................................................... 11,047,500.00
4. Guardian Ad Litem .......................................................................... 66,394,700.00
5. Indigent Defendants' Counsel .........................................................
6. Civil Legal Representation Fund .................................................... . 3,327,900.00
7. Court Interpreter Services ............................................................... 2,500,700.00
8. Verbatim Transcripts ....................................................................... 5,468,400.00
9. Tennessee State Law Libraries .......................................................
10. Council of Juvenile and Family Court Judges.................................. 74,500.00
60,300.00
SB 2690,
11. Judicial Conference ........................................................................ 373,700.00
12. Judicial Programs and Commissions ............................................. . 946,800.00
13. State Court Clerks' Conference....................................................... 260,100.00
14. Administrative Office of the Courts .................................................. 60,925,600.00
15. Appellate Court Clerks .................................................................... 1,750,300.00
16. Board of Law Examiners ................................................................. 1,199,800.00
17. Board of Professional Responsibility ............................................... 4,607,800.00
18. Tennessee Lawyers Assistance Program ...................................... . 612,500.00
19. Continuing Legal Education ............................................................ 1,101,700.00
20. Client Protection Fund .................................................................... 208,500.00
Total Title II .........................................................................$ 259,167,700.00
Ill. EXECUTIVE
1. Constitutional and Quasi-Judicial Offices
1. Attorney General and Reporter
1. 1 Attorney General and Reporter ..............................................$ 59,171,900.00
1.2 Publication of Tennessee Reports ......................................... 413,600.00
1.3 Special Litigation ................................................................... 5,289,700.00
Total Attorney General and Reporter ..................................... $ 64,875,200.00
2. District Attorneys General Conference
2.1 District Attorneys General ......................................................$ 160,037,400.00
2.2 Executive Director ................................................................. 5,657,400.00
Total District Attorneys General Conference .......................... $ 165,694,800.00
3. Secretary of State
3. 1 Secretary of State ..................................................................$ 21,030,900.00
3.2 State Election Commission ................................................... . 1,641,500.00
3.3 Public Documents.................................................................. 516,400.00
3.4 State Library and Archives ..................................................... 16,600,400.00
3.5 Regional Library System ....................................................... 10,794,800.00
3.6 Bureau of Ethics and Campaign Finance ............................... 1,505,100.00
Total Secretary of State................................................ $ 52,089,100.00
4. District Public Defenders Conference
4.1 District Public Defenders .......................................................$ 87,344,500.00
4.2 Executive Director .........................................:...................... . 4,071,400.00
4.3 Shelby County Public Defender ............................................. 6,951,400.00
4.4 Davidson County Public Defender ........................................ . 3,038,100.00
Total District Public Defenders Conference ........................... $ 101,405,400.00
5. Comptroller of the Treasury
5.1 Division of Administration ......................................................$ 1,988,000.00
5.2 Office of Management Services ............................................. 4,397,100.00
5.3 Division of State Audit. ........................................................... 22,411,300.00
5.4 Division of Local Government Audit ....................................... 15,564,600.00
5.5 Communications and Public Affairs Office ............................ . 1,041,400.00
5.6 Division of State Government Finance ................................... 904,100.00
5. 7 Division of Property Assessments.......................................... 13,196,000.00
5.8 Tax Relief .............................................................................. 51,265,100.00
5.9 State Board of Equalization ................................................... 1,718,000.00
5.10 Office of Research and Education Accountability.................. . 1,925,700.00
5. 11 Office of State Assessed Properties ...................................... 1,873,100.00
5.12 Division of Technology Solutions ........................................... 11,616,700.00
5.13 Division of Investigations ....................................................... 6,570,700.00
5.14 Division of Local Government Finance .................................. 2,014,300.00
5.15 Office of General Counsel...................................................... 1,743,800.00
5.16 Division of Health Provider Reviews ...................................... 348,100.00
Total Comptroller of the Treasury ..........................................$ 138,578,000.00
6. Office of the Post-Conviction Defender ...........................................$ 4,458,500.00
7. Treasury Department
7.1 Treasury Department.............................................................$ 2,901,300.00
407,300.00
7.2 Certified Public Administrators ...............................................
2
SB 2690
7.3 TN Stars College Savings 529 Program .............................. .. 920,800.00
7.4 Electronic Monitoring lndigency Fund .................................. .. 210,500.00
7.5 LEA Public School Construction Maintenance ..................... .. 111,889,100.00
116,329,000.00
Total Treasury Department ....................................................$
8. Claims and Compensation
8.1 Criminal Injuries Compensation ............................................. $ 14,269,100.00
8.2 Unclaimed Property ............................................................... 10,537,500.00
Total Claims and Compensation ............................................ $ 24,806,600.00
Total Title lll-1 ..........................................................$ 668,236,600.00
The appropriation made under Title 111-1, Item 8.1, may be increased or decreased as
realized receipts of the Criminal Injuries Compensation Fund justify, subject to the provisions of
Tennessee Code Annotated, Title 4, Chapter 3, Part 10 and Title 9, Chapter 4, Part 51. To the
extent that receipts of the fund are insufficient to meet the fund's expenditure requirements, there is
hereby appropriated a sum sufficient to support such expenditures.
2. Executive Offices
1. Executive Department 7,401,500.00
1. 1 Governor's Office ...................................................................$ 7,401,500.00
Total Executive Department. ...................... ~ ........................... $
2. Commissions
2.1 Commission on Children and Youth .......................................$ 5,870,200.00
2.2 Health Facilities Commission ................................................. 28,871,600.00
2.3 Corrections Institute............................................................... 7,836,700.00
2.4 Tennessee Public Utility Commission .................................. .. 8,808,600.00
2.5 Advisory Commission on Intergovernmental Relations ......... . 161,400.00
2.6 Council on Developmental Disabilities ................................. .. 623,200.00
2.7 Sports Wagering Advisory Council ....................................... .. 6,955,200.00
2.8 Arts Commission ................................................................... 15,711,300.00
2.9 State Museum ....................................................................... 15,126,000.00
2.10 Inmate Disciplinary Oversight Board .................................... .. 2,079,000.00
2.11 Tennessee Housing Development Agency ........................... . 30,000,000.00
2.12 Alcoholic Beverage Commission .......................................... . 4,860,400.00
Total Commissions ................................................................$ 126,903,600.00
3. Department of Finance and Administration
3.1 Division of Administration ......................................................$ 6,499,300.00
3.2 Division of Accounts .............................................................. 4,922,400.00
3.3 Division of Budget.................................................................. 6,206,500.00
3.4 Criminal Justice Programs ..................................................... 9,467,200.00
3.5 Volunteer Tennessee............................................................. 469,300.00
3.6 Vehicle Tag and Analogous Fees ......................................... . 7,200,000.00
3. 7 Office of Evidence and Impact.. ............................................. 3,914,800.00
Total Department of Finance and Administration ................... $ 38,679,500.00
4. Department of General Services
4.1 Real Estate Asset Management ............................................ $ 8,582,300.00
4.2 Printing and Media Services ................................................ .. 1,167,400.00
4.3 Governor's Early Literacy Foundation .................................... 14,454,000.00
4.4 Capital Projects Programming ............................................. .. 1,086,600.00
4.5 Statewide Capital Maintenance ............................................. 40,191,100.00
4.6 . Motor Vehicle Management .................................................. . 1,673,200.00
4.7 Postal Services ...................................................................... 82,200.00
4.8 Megasite Authority of West Tennessee.................................. 1,053,500.00
4.9 Megasite Water and Wastewater Authority .......................... .. 1,000,000.00
4.10 Multi-Agency Law Enforcement Training Academy .............. .. 3,279,500.00
Total Department of General Services ...................................$ 72,569,800.00
5. Department of Veterans Services
5.1 Administration ..................................,......................................$ 9,479,900.00
5.2 Tennessee State Veterans Cemeteries ............................... .. 4,232,000.00
Total Department of Veterans Services .................................$ 13,711,900.00
Total Title lll-2 ..........................................................$ 259,266,300.00
3
SB 2690
3. Department of Agriculture
1. Administration and Grants...............................................................$ 62,530,200.00
2. Consumer and Industry Services ................................................... . 7,459,800.00
3. Business Development ................................................................... 3,876,400.00
4. Agricultural Resources Conservation Fund ................................... .. 7,187,500.00
5. Forestry Operations ........................................................................
6. Forestry Maintenance ..................................................................... 34,611,200.00
7. Certified Cotton Growers' Organization Fund ................................. . 1,000,000.00
8. Agricultural Regulatory Fund ........................................................... 250,000.00
9. Animal Health .................................................................................
10. Technical Services .......................................................................... 12,087,300.00
4,204,000.00
7,186,300.00
Total Title lll-3..........................................................$ 140,392,700.00
4. Department of Tourist Development
1. Administration and Marketing ..........................................................$ 51,335,200.00
2. Welcome Centers ........................................................................... 15,367,200.00
Total Title lll-4..........................................................$ 66,702,400.00
5. Department of Environment and Conservation
1. Administrative Services...................................................................$ 16,396,700.00
2. Recreation Educational Services ................................................... . 930,800.00
3. Archaeology ....................................................................................
4. Geology .......................................................................................... 1,712,800.00
5. Tennessee State Parks................................................................... 861,500.00
6. State Parks Maintenance ................................................................
7. Natural Areas .................................................................................. 79,004,700.00
8. • Historical Commission .................................................................... 12,729,100.00
9. Maintenance of Historic Sites..........................................................
10. West Tennessee River Basin Authority ......................................... .. 2,558,400.00
11. West Tennessee River Basin Authority Maintenance ..................... . 4,459,500.00
12. Environment Administration ............................................................
13. Used Oil Collection Program ........................................................... 411,500.00
14. Tennessee Dry Cleaners Environmental Response Fund ............. .. 2,387,700.00
15. Air Pollution Control ........................................................................ 1,615,500.00
16. Radiological Health ......................................................................... 1,341,800.00
17. Division of Water Resources ........................................................... 1,390,500.00
18. Solid Waste Management ............................................................... 2,004,500.00
19. Abandoned Lands ........................................................................... 4,397,000.00
20. Hazardous Waste Remedial Action Fund ....................................... . 2,803,700.00
21. Underground Storage Tanks ........................................................... 29,053,900.00
22. Solid Waste Assistance ................................................................. 3,249,200.00
23. Environmental Protection Fund .......................................................
24. Clean Water and Drinking Water State Revolving Fund ................ .. 580,900.00
25. Office of Sustainable Practices ....................................................... 6,762,500.00
26. Office of Energy Programs .............................................................. 27,409,100.00
27. State Facility Utility Management ................................................... . 7,829,200.00
28. State Lands Compensation Fund .................................................... 66,831,000.00
29. Conservation Compensation Fund ................................................. . 6,357,400.00
30. Local Parks Acquisition Fund .......................................................... 2,021,300.00
31. State Lands Acquisition Fund ......................................................... 1,381,400.00
32. Division of Mineral and Geologic Resources ...................................
850,300.00
345,000.00
12,000.00
3,900,300.00
3,067,500.00
1,398,000.00
Total Title lll-5..........................................................$ 296,054,700.00
6. Tennessee Wildlife Resources Agency
1. Wildlife Resources Agency .............................................................$ 63,974,600.00
2. Boating Safety ................................................................................ 12,585,400.00
3. Wetlands Acquisition Fund.............................................................. 21,838,000.00
4. Wetlands Compensation Fund ....................................................... . 555,900.00
Total Title lll-6..........................................................$ 98,953,900.00
4
SB 2690
The appropriation made under Title 111-6 may be increased or decreased as realized receipts
of the Wildlife Resources Fund justify, subject to the provisions of Tennessee Code Annotated, Title
4, Chapter 3, Part 10 and Title 9, Chapter 4, Part 51.
7. Department of Correction
1. Administration ................................................................................$ 68,491,600.00
2. Office of Investigations and Conduct.. ............................................. 15,010,800.00
3. Correction Academy ....................................................................... 8,710,800.00
4. Probation and Parole Field Supervision ......................................... . 138,264,700.00
5. Sex Offender Treatment Program ................................................... 2,030,200.00
6. State Prosecutions .......................................................................... 151,300,400.00
7. Correction Release Centers ............................................................ 650,000.00
8. Debra K. Johnson Rehabilitation Center ........................................ . 48,938,300.00
9. Turney Center Industrial Complex................................................... 70,599,700.00
10. Mark Luttrell Transition Center ........................................................ 25,078,900.00
11. Bledsoe County Correctional Complex .......................................... . 118,432,600.00
12. West Tennessee State Penitentiary ................................................ 120,622,600.00
13. Riverbend Maximum Security Institution ........................................ . 53,667,400.00
14. Northeast Correctional Complex .................................................... . 71,267,600.00
15. Northwest Correctional Complex..................................................... 95,873,700.00
16. Morgan County Correctional Complex ........................................... . 110,818,200.00
17. Lois M. DeBerry Special Needs Facility ......................................... . 90,949,000.00
18. Hardeman County Incarceration Agreement .................................. . 56,196,900.00
19. Hardeman County Agreement - Whiteville ..................................... 51,702,600.00
20. South Central Correctional Facility ................................................. . 62,191,000.00
21. Trousdale County Incarceration Agreement .................................... 88,278,300.00
22. Community Rehabilitative Services ................................................ . 20,965,000.00
23. Major Maintenance ......................................................................... 9,861,500.00
Total Title lll-7 ..........................................................$ 1,479,901,800.00
8. Department of Economic and Community Development
1. Administrative Services...................................................................$ 11,489,100.00
2. Business Development ................................................................... 8., 190,000.00
3. Innovation Programs ....................................................................... 51,894,000.00
4. .Policy and Federal Programs .......................................................... 740,400.00
5. Economic Development District Grants .......................................... . 3,613,900.00
6. FastTrack Infrastructure and Job Training Assistance .................... . 25,006,400.00
7. Film and Television Incentive Fund ................................................ . 28,687,100.00
8. Community and Rural Development ............................................... 45,636,900.00
9. Broadband Accessibility ................................................................... 324,700.00
Total Title lll-8..........................................................$ 175,582,500.00
9. Department of Education
1. Administrative Services
1.1 Administration ........................................................................$ 13,321,000.00
1.2 State Board of Education ....................................................... 3,476,300.00
1.3 Charter School Commission .................................................. 5,521,700.00
1.4 Textbook Commission ........................................................... 914,800.00
1.5 Education Freedom Scholarship Program ............................ . 303,920,000.00
2. Pre-Kindergarten, Kindergarten, Elementary, and Secondary
2.1 State Programs
a. Centers of Regional Excellence (CORE) .......................... $ 95,454,500.00
b. Career Ladder .................................................................. 4,958,900.00
c. Tennessee Investment in Student Achievement (TISA) ... . 7,121,228,000.00
d. Driver Education ......................... ;..................................... 1,700,000.00
e. Academic Offices .............................................................. 36,324,200.00
·f. Grants-in-Aid .................................................................... 78,891,200.00
g. Technology, Infrastructure, and Support Systems............ . 9,616,800.00
h. Data and Research ........................................................... .32,556,200.00
i. Early Childhood Education ............................................... . 106,834,400.00
j. Non-Public Education Choice Programs .......................... . 4,632,200.00
k. After-School Programs Special Account (Lottery-Funded) 19,346,300.00
5
SB 2690
2.2 Federally Funded and Supported Programs 3,395,200.00
a. Improving Schools Program ..............................................$ 4,836,300.00
b. School Nutrition Program .................................................. 1,197,200.00
c. Special Education Services .............................................. . 2,494,200.00
d. ESSA and Federal Programs ............................................
3. College, Career and Technical Education .......................................$ 14,914,400.00
4. Special Schools
4.1 Alvin C. York Institute ............................................................$ 8,773,700.00
4.2 Tennessee School for the Blind ........................................... .. 20,194,600.00
4.3 Tennessee School for the Deaf ............................................ . 27,056,800.00
4.4 West Tennessee School for the Deaf .................................... 4,262,000.00
4.5 Major Maintenance ................................................................ 239,100.00
Total Title lll-9..........................................................$ 7,926,060,000.00
The appropriation in Section 1, Title 111-9, Item 2.1f, Grants-in-Aid, to the Department of
Education for the Charter School Facilities Fund in the amount of $40,000,000 (nonrecurring), and
identified on Page 8~91 of the 2026-2027 Budget Document, shall be disbursed to charter schools
on a per-pupil basis.
10. Higher Education
1. Administration and Support Services
1.1 Tennessee Higher Education Commission ............................ $ 8,071,900.00
1.2 Contract Education ................................................................ 2,396,100.00
1.3 Tennessee Student Assistance Awards ................................ . 125,262,500.00
1.4 Tennessee Student Assistance Corporation ... H................... .. 3,180,300.00
1. 5 Loan/Scholarship Programs................................................... 1,052,500.00
1.6 THEC Grants ......................................................................... 20,651,200.00
1.7 Lottery for Education Account (Lottery-Funded) ..................... 382,916,100.00
1.8 Higher Education Capital Maintenance ................................. . 50,000,000.00
2. Excellence Initiatives
2.1 Academic Scholars Program ................ ;................................$ 1,211,800.00
2.2 Centers of Excellence ............................................................ 21,381,800.00
2.3 Campus Centers of Emphasis ............................................... 1,547,400.00
Total Administration and Support Services and
Excellence Initiatives ...........................................................$ 617,671,600.00
3. University of Tennessee System
3.1 Administrative and Other Services
a. UT University-Wide Administration ................................... $ 7,155,700.00
b. UT Institute for Public Service .......................................... . 9,461,500.00
c. UT Municipal Technical Advisory Service ........................ . 5,107,000.00
d. UT County Technical Assistance Service ........................ . 4,527,900.00
e. UT Student Success and Innovation Initiative .................. . 5,806,700.00
f. UT Space Institute ............................................................ 11,526,700.00
g. UT Research Initiatives .................................................... . 5,852,900.00
h. Tennessee Foreign Language Center............................... 1,141,900.00
3.2 Agricultural Services 39,101,800.00
a. UT Agricultural Experiment Station ..........•.........·......·.......... $ 52,428,100.00
b. UT Agricultural Extension Service ................................... .. 36,481,300.00
c. UT Veterinary Medicine.....................................................
3.3 Medical Education
a. UT Health Science Center ................................................$ 237,660,300.00
3.4 University Campuses 88,051,200.00
a. UT Chattanooga ...............................................................$ 407,006,700.00
b. UT Knoxville ......................................................................
c. UT Martin .......................................................................... 49,658,700.00
d..UT Southern ..................................................................... 8,932,700.00
Total.University of Tennessee System ................................... $ 969,901,100.00
6
SB 2690
4. Tennessee Board of Regents System
4.1 Administration and Other Services
a. Tennessee Board of Regents ...........................................$ 39,299,900.00
b. TBR and LGI Student Success and Innovation Initiative .. . 10,256,900.00
4.2 Medical Education 67,893,900.00
a. ETSU Health.....................................................................$
4.3 Locally Governed Institutions 78,179,300.00
a. Austin Peay State University ............................................. $ 107,954,600.00
b. East Tennessee State University .................................... .. 191,383,000.00
c. University of Memphis ....................................................... 152,220,200.00
d. Middle Tennessee State University ................................. ..
e. Tennessee State University ............................................. . 56,029,800.00
f. Tennessee Technological University............................... .. 96,435,700.00
4.4 • Tennessee Community Colleges ........................................... $ 422,338,700.00
4.5 Tennessee Colleges of Applied Technology .......................... $ 127,507,700.00
4.6 Agricultural Centers 1,609,200.00
a. TSU McMinnville Center ...................................................$ 7,038,000.00
b. TSU Institute of Agricultural and Environmental Research 6,328,000.00
c. TSU Cooperative Education ............................................. .
d. TSU McIntire-Stennis Forestry Research ......................... . 240,700.00
Total Tennessee Board of Regents System ...........................$ 1,364,715,600.00
Total Title lll-10 ........................................................$ 2,952,288,300.00
11. Department of Commerce and Insurance
1. Administration ................................................................................$ 2,536,000.00
2. Cemetery Consumer Protection Fund ............................................. 361,200.00
3. Pre-Need Funeral State Administrative Fund ................................. . 350,100.00
4. Fire Service and Codes Enforcement Academy ............................. . 4,859,900.00
5. Fire Fighting Personnel Standards and Education ......................... . 9,960,900.00
6. Peace Officer Standards and Training (POST) Commission .......... . 15,167,900.00
7. Tennessee Law Enforcement Training Academy .......................... .. 5,697,700.00
8. 911 Emergency Communications Fund .......................................... 159,248,400.00
9. Regulatory Boards .......................................................................... 26,357,400.00
297,500.00
9.1 Real Estate Education and Recovery Fund ......................... .. 82,800.00
9.2 Auctioneer Education and Recovery Fund ........................... ..
10. Fire Prevention .............................. :................................................ 553,400.00
11. Insurance'........................................................................................ 2,857,900.00
Total Title lll-11 ........................................................$ 228,331,100.00
12. Department of Financial Institutions .......................................$ 37,987,100.00
Total Title 111-12 .......................................................$ 37,987,100.00
13. Department of Labor and Workforce Development
1. Administration ................................................................................$ 7,085,000.00
7,621,100.00
2. Tennessee Occupational Safety and Health Administration ......... ..
303,700.00
3. Mines .............................................................................................. 9,313,900.00
1,832,000.00
4. Boilers, Elevators, and Amusement Devices ................................. .. 20,302,700.00
1,582,100.00
5. Labor Standards ............................................................................. 9,166,400.00
16,880,600.00
6. Workers' Compensation ..................................................................
447,700.00
7. Workers' Compensation Employee Misclassification ...................... . 17,408,100.00
8. Subsequent Injury and Vocational Recovery Fund ......................... .
9. Adult Basic Education .....................................................................
10. Unemployment Insurance ...............................................................
11 . Workforce Services .........................................................................
7
SB 2690
Total Title lll-13 ........................................................$ 91,943,300.00
14. Department of Mental Health and Substance Abuse Services
1. Administrative Services Division .....................................................$ 29,161,800.00
2. Mental Health Services
2.1 Middle Tennessee Mental Health Institute ............................. $ 50,382,100.00
2.2 Western Mental Health Institute ............................................ . 36,654,700.00
2.3 Moccasin Bend Mental Health Institute ................................. . 40,351,100.00
2.4 Memphis Mental Health Institute............................................ 18,354,900.00
2.5 Community Mental Health Services ...................................... . 173,308,700.00
2.6 Major Maintenance ................................................................ 900,000.00
3. Community Substance Abuse Services .......................................... $ 92,151,500.00
Total Title lll-14 ........................................................$ 441,264,800.00
15. Department of Military
1. Administration .................................................................................$ 6,706,300.00
2. Army National Guard ...................................................................... 3,832,500.00
3. Air National Guard .......................................................................... 3,510,300.00
4. Tennessee Emergency Management Agency ...... :......................... . 11,575,300.00
5. TEMA Disaster Relief Grants .......................................................... 4,000,000.00
6. Armories Utilities ............................................................................. 1,400,600.00
7. Armories Maintenance .................................................................... 1,500,000.00
8. Station Commanders Upkeep and Maintenance Fund ................... . 150,000.00
9. STRONG Act of 2017 ..................................................................... 4,141,500.00
10. STORM Act .................................................................................... 547,700.00
11. Governor's Response and Recovery Fund ..................................... 100,000,000.00
12. State Guard .................................................................................... 67,000.00
Total Title lll-15 ........................................................$ 137,431,200.00
16. Department of Health
1. Administration
1.1 Administration ........................................................................$ 28,662,100.00
1.2 Public Health Policy, Planning, and Informatics .................... . 11,967,100.00
2. Manpower Resources and Facilities
2.1 Health Licensure and Regulation ........... :...............................$ 1,522,000.00
2.2 Emergency Medical Services.......................:........................ . 7,589,500.00
2.3 Laboratory Services ............................................................... 16,806,000.00
2.4 Health Related Boards........................................................... 31,684,600.00
3. Community Health Services
3.1 Environmental Health ............................................................$ 13,858,300.00
3.2 Family Health and Wellness .. :.. ............................................. 22,628,400.00
3.3 Communicable and Environmental Disease and
Emergency Preparedness .................................................. . 54,386,500.00
3.4 Community and Medical Services .......................................... 46,103,800.00
4. Health Services...............................................................................$ 162,093,000.00
Total Title lll-16 ........................................................$ 397,301,300.00
1-7. Department of Human Services
1. Administration
1.1 Administration ...............................................................,........ $ 106,495,100.00
1.2 County Rentals ...................................................................... 12,749,000.00
1.3 Appeals and Hearings·················'.········································· 11, 187,600.00
2. Family Assistance Services
2.1 Child Support.........................................................................$ 26,883,500.00
2.2 Family Assistance Services ................................................... 122,619,300.00
8
SB 2690
2.3 • Temporary Cash Assistance ................................................. . 1,029,500.00
2.4 .Child Care Benefits................................................................ 19,900,000.00
3. Community Services .......................................................................$ 40,065,700.00
4. Rehabilitative Services
4.1 Rehabilitation Services ..........................................................$ 18,198,000.00
Total Title lll-17 ........................................................$ 359,127,700.00
18. Department of Revenue
1. Administration Division ....................................................................$ 11,061,200.00
2. Collection Services ......................................................................... 9,993,000.00
3. Tennessee Revenue Registration and Reporting System .............. . 16,272,200.00
4. Taxpayer Services Division ............................................................. 15,921,900.00
5. Processing Division......................................................................... 4,553,300.00
6. Audit Division ..................................................................................
7. Anti-Theft Unit ................................................................................ 33,198,100.00
8. Sales Tax Disaster Relief................................................................ 2,907,000.00
9. Tax Refund Interest Expense.......................................................... 250,000.00
10. Vehicle Services Division ................................................................ 2,500,000.00
11. Computerized Title and Registration System ................................. .
12. Insurance Verification ..................................................................... 26,723,600.00
7,107,100.00
3,444,400.00
Total Title lll-18 ........................................................$ 133,931,800.00
19. Tennessee Bureau of Investigation........................................$ 129,743,500.00
Total Title lll-19........................................................$ 129,743,500.00
20. Department of Safety
1. Administration ................................................................................$ 23,178,200.00
2. Driver License Issuance.................................................................. 40,351,300.00
3. Highway· Patrol ................................................................................ 303,188,900.00
4. Office of Homeland Security ........................................................... 165,809,300.00
5. Driver Education ............................................................................. 343,300.00
6. Motorcycle Rider Education ............ ;............................................... 566,900.00
7. Communications ............................................................................. 24,193,900.00
8. Tennessee Highway Safety Office ................................................ .. 255,300.00
9. Immigration Enforcement Section ................................................... 546,900.00
Total Title lll-20........................................................$ 558,434,000.00
21. Department of Finance and Administration, Strategic
Health-Care Programs
1. Cov.erKids .......................................................................................$ 47,395,400.00
2. CoverRx.......................................................:.. :.. ......... .·:..... ............. . 8,889,600.00
Total Title lll-21 ........................................................$ 56,285,000.00
22. • Miscellaneous Appropriations
1. State Employee· Benefits • 200,000.00
1.1 • ,State Employees' Unemployment Compensation, Sick 50,000.00
Leave, Death Benefit Payments and Terminal Leave
Payments ............................................................................$
1.2 Public Employees in the Military Sick Leave in Lieu of
Annual Leave ................... ,.................................................
2. Consolidated Retirement System and Insurance
2.1 Former Governors and Widows of Former
Governors - Pensions .........................................................$ 800,000.00
2.2 Retirees Health Insurance .................................................... 24,380,000.00
2.3 Retired Teachers Insurance .................................................. 22,500,000.00
2.4 TCRS - Retirement Contribution Rate Increase ................... . 22,459,500.00
2.5 , Hybrid Retirement Plan Conversion ....................................... • 82,647,600.00
9
SB 2690
3. Group Health Insurance
3.1 Long-Term Disability Claims Processing Fee ........................ $ 700,000.00
3.2 Group Health Insurance - State Employees ......................... . 20,674,200.00
3.3 Group Health Insurance - State Employees - 1/1/27 ........... . 22,152,100.00
4. State Employee Compensation
4.1 TEAM Act - Performance Bonus Pool ...................................$ 32,790,300.00
4.2 TEAM Act - Performance Pay Pool ....................................... 35,923,200.00
4.3 Non-TEAM Act - Salary Pool. ................................................ 8,179,600.00
5. Attorney's Fees - Civil Rights Cases ..............................................$ 500,000.00
6. Special Election Reimbursement to Counties.................................. 2,000,000.00
7. Intergovernmental Conference Dues ............................................. . 1,000,000.00
8. Statewide Rate Adjustments
8.1 MVM - Purchase of New Vehicles .........................................$ 5,000,000.00
8.2 FRF Rent Adjustment ............................................................ 2,183,400.00
8.3 STS- MyTN.Gov Implementation ......................................... 2,500,000.00
8.4 Risk Management.................................................................. 2,000,000.00
8.5 Internal Service Fund Billings ............................................... . 7,500,000.00
8.6 Enterprise Data Analytics ..................................................... . 1,399,700.00
8. 7 STS - Process Automation and Efficiencies .......................... 5,000,000.00
8.8 STS - Cloud Initiatives .......................................................... 5,500,000.00
8.9 IT Support and Maintenance.................................................. 1,000,000.00
8.10 STS - Cloud Billing ................................................................ 3,305,600.00
8.11 STS - BSD Cloud Optimization Support ................................ 373,600.00
8.12 ERP - Grants Management Application Implementation
Support ............................................................................... 796,700.00
8.13 Policy Management Software ............................................... . 2,443,300.00
8.14 STS - ERP Modernization ..................................................... 70,000,000.00
8.15 STS - Artificial Intelligence Enablement Program ................. . 50,000,000.00
8.16 STS - ADA Compliance ........................................................ 4,000,000.00
8.17 STS - North Data Center Relocation ..................................... 20,000,000.00
8. 18 End Point Management Services .......................................... . 717,100.00
8.19 Multi-State Information Sharing and Analysis Center
Membership ........................................................................ 516,800.00
8.20 North Data Center Relocation - Cloud Consumption ............. 1,950,000.00
8.21 Gubernatorial Transition ....................................................... . 2,250,000.00
9. Grants 693,500.00
9.1 Criminal Justice Programs .....................................................$ 100,000.00
9.2 Tennessee Association of Rescue Squads ........................... . 25,000.00
9.3 Volunteer Rescue Squad $25,000 Death Benefit.. ................ . 25,000.00
9.4 Emergency Responder Death Benefit (2017 PC 408) ........... .
9.5 Death Benefit for Certain First Responders 75,000.00
(2017-PC 445) .....................................................................
9.6 Health,lnsurance for Immediate Family Members of 8,400.00
First Responders (2017 PC 476) ........................................ .
9. 7 Death Benefit for Firefighters - 50,000.00
Leukemia/Testicular Cancer in Line of Duty 25,000.00
(2022 PC 1091) ................................................................... 350,000.00
9.8 YMCA Youth Legislature ....................................................... 100,000.00
9.9 YMCA Community Action Program ....................................... . 180,000.00
9.1 O Forensic Center at Quillen College of Medicine .................... . 300,000.00
9.11 UT CBER - Research Assistance.......................................... 250,000.00
9.12 UT CBER - State Census Data Center ................................. 500,000.00
9.13 Civil Rights Museum ..............................................................
9.14 Swipe and Ride Benefit ......................................................... 3,500.00
9.15 American Battle Monuments Commission - Maintenance
of Tennessee World War I Monuments in France ............... . 17,800.00
9.16 Motor Vehicle Registration Fee Exemption for Volunteer 15,000.00
Fire Fighters and Rescue Squad Members .......-................. . 1,000,000.00
9.17 National Foundation for Women Legislators ......................... . 2,000,000.00
9.18 Legal Expenses ..................................................................... 365,500.00
9.19 STS - Cybersecurity for Local Governments ......................... 1,500,000.00
9.20 Electronic Work Papers for Audit ........................................... 357,200.00
9.21 OCJP - Grants to Local Government -AFIS ........................ .
9.22 Support New Online Learning System .................................. .
10
SB 2690
9.23 Firefighters - Leukemia/Testicular Cancer Insurance 10,000.00
Coverage (2022 PC 1091)...................................................
1,487,000.00
9.24 The Faith Based and Community Initiatives 191,600.00
Foundation - Grant .............................................................
14,600,000.00
9.25 Line of Duty Health Insurance Claims ................................... . 50,000.00
9.26 Governor's Rural Education Foundation - Grant.. ..................
9.27 Camp Blount Park - Grant.. ................................................... 10,000,000.00
9.28 Juvenile Justice Center - West TN - Grant ........................... 10,000,000.00
9.29 Juvenile Justice Center - East TN - Grant ............................ 50,000,000.00
9.30 Memphis - Downtown Public Safety Grant ............................ 15,000,000.00
9.31 Memphis - Crime Intervention - Focused Deterrence Grants
9.32 Memphis - Crime Intervention -Work-Centered 15,000,000.00
Training Grants ...................................................................
10. Amendment and Legislation 8,000,000.00
10.1 Administration Amendment.. ..................................................$ 8,000,000.00
10.2 Legislative Initiatives..............................................................
10.3 PC 978 - Substance Abuse ................................................... 581,600.00
10.4 PC 512 - Transportation of Mental Health Patients ............... 4,000,000.00
10.5 PC 1021 - Uniform Administrative Procedures Act Revision .
10.6 PC 470 - Pharmacy Benefit Managers .................................. 10,000.00
10.7 PC 988 - Al Advisory Committee Travel Reimbursement ..... . 137,300.00
10.8 PC 480 James Dustin Samples Act ...................................... .
10.9 Tennessee Emergency Management Agency Legislation ..... . 9,500.00
10.10 2025 PC 324 - Vape Act - Set Aside .................................... 30,800.00
10.11 2025 PC 526 - Hemp Act - Set Aside ................................... 1,700,000.00
14,655,300.00
8,438,900.00
Total Title 111-22 ...................................................................$ 635,235,600.00
The appropriation in Section 1, Title 111-22, Item 9.30, for Memphis - Downtown Public Safety
Grant in the amount of $50,000,000 (nonrecurring), and identified on Page 8-21 of the 2026-2027
Budget Document, shall not be used to pay administrative costs related to the disbursement of such
grant funds by a state office or agency.
23. Department of Children's Services
1. Administration ................................................................................$ 62,568,300.00
2. Family Support Services ................................................................. 54,871,200.00
3. Custody Services ............................................................................ 324,270,400.00
4. Needs Assessment ......................................................................... 34,171,000.00
5. Adoption Services ........................................................................... 75,660,100.00
6. Child and Family Management ....................................................... 120,924,100.00
7. John S. Wilder Youth Development Center .................................... . 16,221,500.00
8. Statewide Child and Family Services ............................................. . 56,723,900.00
9. Major Maintenance ......................................................................... 500,000.00
Total Title lll-23 ........................................................$ 745,910,500.00
24. Board of Parole......................................................................$ 12,939,300.00
Total Title 111-24........................................................$ 12,939,300.00
25. Department of Disability and Aging
1. Intellectual Disabilities Services Administration ............................... $ 4,077,800.00
2. Community Intellectual Disabilities Services .................................. . 62,200,600.00
3. Protection from Harm ......................................................................
4. Harold Jordan Center...................................................................... 660,600.00
5. West Tennessee Regional Office ................................................... . 7,897,100.00
6. Middle Tennessee Regional Office ................................................ . 1,644,900.00
7. East Tennessee Regional Office ..................................................... 1,281,800.00
8. Seating and Positioning Clinics ....................................................... 1,016,600.00
9. West Tennessee Community Homes ............................................. . 4,180,100.00
10. Middle Tennessee Community Homes............................................
11. East Tennessee Community Homes .............................................. . 35,300.00
12. Major Maintenance ......................................................................... 95,900.00
13. Tennessee Early Intervention System ............................................ . 248,400.00
14. Commission on Aging and Disability ............................................... 500,000.00
61,302,400.00
41,843,900.00
11
SB 2690
Total Title lll-25 ........................................................$ 186,985,400.00
26. Department of Finance and Administration, Bureau of TennCare
1. TennCare Administration ................................................................$ 223,528,300.00
2. TennCare Medical Services ............................................................ 5,011,957,200.00
3. Supplemental Payments ................................................................. 315,212,000.00
4. Intellectual Disabilities Services ...................................................... 448,398,500.00
5. Medicare Services .......................................................................... 632,366,700.00
Total Title lll-26 ........................................................$ 6,631,462,700.00
27. Emergency and Contingency Fund ........................................ $ 1,000,000.00
Total Title 111-27........................................................$ 1,000,000.00
The Emergency and Contingency Fund may be used for any purpose authorized by law to be
allowed on Executive Order of the Governor; provided, however, the Emergency and Contingency
Fund shall not be used to fund any law requiring the expenditure of state funds unless an
appropriation is made elsewhere for the estimated first year's funding.
28. Facilities Revolving Fund
1. Facilities Operations .......................................................................$ 7,518,000.00
4,784,000.00
2. Leases and Space Planning ...........................................................
Total Title lll-28 ........................................................$ 12,302,000.00
29. Department of Transportation
There is hereby appropriated for the use of the Department of Transportation such receipts
of highway revenues as are now provided by law, or may hereafter be so provided, to accrue to that
department during the fiscal year, beginning July 1, 2026, to be expended by the Commissioner of
Transportation, all according to the following schedule:
• 2026-2027
1. Headquarters ..................................................................................$ 32,621,000.00
2. Bureau of Administration ................................................................. 113,981,600.00
3. Bureau of Operations ....................................................................... 1,270,297,000.00
4. Bureau of Engineering .................................................................... 179,833,900.00
5. Bureau of Planning ......................................................................... 291,091,300.00
Total Title lll-29 ........................................................$ 1,887,824,800.00
Grand Total ..............................................................$ 27,089,794,400.00
Said funds so appropriated shall be obligated and expended under the provisions of
Tennessee Code Annotated, Title 4, Chapter 3, Part 10 and Title 9, Chapter 4, Part 51. There is
further appropriated to the Department of Transportation such departmental revenue, expressly
including federal matching funds, as may accrue to the department.
The "Proposed Hi.ghway Program for Fiscal Year 2026-2027", prepared by the Department of
Transportation as a supplement to and as "Supporting Data for the Budget Request," is hereby
incorporated into and made a part of the Appropriations Act.
Whenever a determination is made that one or more of the projects in the approved program
cannot be proceeded with, the Commissioner of Transportation shall furnish, in written form as
prescribed by the Chairs of the Finance, Ways and Means Committees of the Senate and House
and the Chairs of the Transportation Committees of the Senate and House, the reasons for such
proposed cancellation or rescheduling of said project, together with a recommendation for a
substitute project. The notice of cancellation or rescheduling of said project shall be submitted to the
Speaker of the Senate, the Speaker of the House of Representatives, the Chairs of the Finance,
Ways and Means Committees of the Senate and House, the Chairs of the Transportation
Committees of the Senate and House and to the individual Senator and Representative in whose
districts the canceled project or proposed substitution is located.
12
SB 2690
For the fiscal year beginning July 1, 2026, the Commissioner of Transportation shall
distribute this money among the ninety-five (95) county geographical areas of the state according to
the following formula:
One-half of the funds shall be distributed equally, and one-half shall be distributed on the
basis of structural needs. Structural needs shall be determined by calculating the ratio of linear feet
of bridges with a load rating of less than ten tons, in each county geographical area, located on
public roads other than those on a federal-aid system or the state system of highways, to the total
linear feet of like bridges in the state.
30. State Funding Board
There is hereby appropriated to the State Funding Board for interest and reduction of the
state debt, for debt service expense and interest on proposed bond authorization:
2026-2027
1.. Interest on State Debt .....................................................................$ 49,710,000.00
2. Retirement of Bonds ....................................................................... 149,081,000.00
3. Debt Service Expense .................................................................... 3,500,000.00
4. Short Term Interest ......................................................................... 4,000,000.00
5. Amortization of Authorized and Unissued Construction Bonds ....... . 129,501,000.00
6. Amortization of Authorized and Unissued Highway Bonds ............. . 127,000,000.00
Total Title lll-30 ........................................................$ 462,792,000.00
The appropriation made under Section 1, Title 111-30, Items 1, 2, 3, 4, 5, and 6 is made under
the provisions of Tennessee Code Annotated, Title 9, Chapter 9, and may be increased to such
amounts as will be necessary to carry out such provisions.
31. Capital Outlay
There is hereby appropriated to each of the departments and agencies enumerated herein,
funds for major maintenance, equipment, construction, and acquisition of land, and for expansion,
improvement, betterments, and repairs to existing structures. The Commissioner -of Finance and
Administration is hereby authorized to tra.nsfer the amounts herein appropriated to the Capital
Projects Fund for the use of the said departments and agencies.
- -
1. Department of Agriculture ...............................................................$ 1,100,000.00
2. Department of Education ................................................................ 2,740,000.00 _
3. Department of Environment and Conservation................................ 107,089,000.00'
4. Department of Military ..................................................................... 80,000,000.00
5. Department of Transportation ......................................................... 165,000,000.00
6. Department of Veterans Services .................. :................................ 7,410,000.00
7. Austin Peay State University ........................................................... 1,000,000.00
8. East Tennessee State University ................................................... . 21,548,000.00
9. Tennessee Technological University .............................................. . 1,690,000.00
10. University of Memphis....................................................................... 30,000,000.00
11. Tennessee Board of Regents ......................................................... 6,990,000.00
12. University of Tennessee ................................................................. 12,980,000.00
13. Facilities Revolving Fund ................................................................ 19,050,000.00
Total Title lll-31 ........................................................$ 456,597,000.00
Said funds herein appropriated shall be used solely for improvements, betterments, and
additions to state structures and for the acquisition of additional land and space, including the
purchase of existing structures and grants, as described or re.ferred to above and as approved by
the State Building Commission; provided, further, that ~uch funds as are appropriated herein shall
be utilized to finance only those projects, improvements, betterments, or additions which are
presented in the State of Tennessee's 2026-2027 Budget Document, as amended by any changes
or additional projects contained in the Appropriations Act as passed on third and final consideration;
provided, further, that all funds appropriated in this act or other general acts of this session for
capital outlay shall be subject to the provisions of Tennessee Code Annotated, Title 4, Chapter 15,
Part 1.
32. Capital Outlay - Sinking Fund
There is hereby appropriated for the fiscal year beginning July 1, 2026, to the Sinking Fund
from the receipts of the tax levied by Tennessee Code Annotated, Title 67, Chapter 4, Part 20, "The
Excise Tax Law," an amount to be determined by the State Funding Board.
13
SB 2690
SECTION 2~ Capital Outlay and Major Maintenance.
Item 1. Any funds appropriated by this General Assembly for capital outlay, capital
maintenance, and major maintenance, shall not revert to the general fund but shall remain
available until expended. It is the intent of the General Assembly that funds of capital outlay
nature shall remain available until expended for the purpose for which the appropriations
were made.
In the fiscal years ending June 30, 2026, and June 30, 2027, the carry-forward and
reappropriation of unexpended appropriations for major maintenance shall be subject to
approval by the Commissioner of Finance and Administration based upon the availability of
revenues and reserves in the general fund at June 30, 2026, and June 30, 2027.
Item 2. Any unexpended capital outlay or capital maintenance funds appropriated by
previous General Assemblies for completed or discontinued projects shall be accumulated in
a capital account to be administered by the Department of Finance and Administration.
Expenditure of these funds is subject to approval by the State Building Commission upon
recommendation of the University of Tennessee, State Board of Regents, boards of locally
governed institutions, or Department of General Services, as applicable, and certification of
available funds by the Commissioner of Finance and Administration. After such approvals
and certification of available funds, the Commissioner of Finance and Administration is
authorized to transfer a portion of such funds allocated to the Department of General
Services from the aforementioned capital account to the state office buildings and support
facilities revolving fund.
Item 3. From the appropriations made to the State Funding Board in Section 1, Title
111-30, the Funding Board is hereby authorized to allocate and provide to the Capital Projects
Fund such funds not required for debt service during fiscal year 2026-2027 for projects duly
authorized and approved by the General Assembly; provided, however, that when the
Funding Board allocates funds under this provision, any other appropriation or bond
authorization for said purpose is hereby reduced accordingly.
Item 4. From the funds appropriated for capital outlay in this act and other acts of the
legislature, the Commissioner of Finance and Administration, with the approval of the State
Building Commission, is authorized to charge the administrative costs of the construction
programs to the capital outlay appropriations or to transfer from the Capital Projects Fund to
the general fund an amount sufficient to cover those costs. Such expenditures shall be from
non-bond proceeds.
Item 5. From the funds appropriated for capital outlay in this act and other acts of the
legislature, the Commissioner of Finance and Administration is authorized to establish and
charge the costs of design and engineering positions to the capital outlay appropriations or to
transfer from the Capital Projects Fund to the general fund an amount sufficient to cover
these costs. This item is subject to approval by the State Building Commission.
Item 6. From the funds appropriated for capital outlay in this act and other acts of the
legislature, the Commissioner of Finance and Administration, with the approval of the State
Building Commission, is authorized to transfer the appropriations for capital outlay to the
Department of Finance and Administration to provide for the centralized administration of
capital outlay. It is further the legislative intent to allow for centralized administration of any
project recommended by the Commi~sioner of Finance and Administration and approved by
the State Building Commission.
Item 7. To the extent that the accumulated yearly interest and earnings of the Natural
Resources Trust Fund are available through June 30, 2026, said funds. are hereby
~ppropriated .to the Department of E.nv_ironment and Conservation to be available for projects
which are reviewed and evaluated under procedures established by the authority of
Tennessee Code Annotated, Section 11-14-308.
Item 8. There is hereby appropriated to the Department of Correction the proceeds
from the sale of any real property and facilities deposited in the reserve for correctional
facilities created by Tennessee Code Annotated, Section 12-2-120. The appropriation shall
be available for the uses provided in Section 12-2-120.
Item 9: There is hereby appropriated to the Department of Mental Health and
Substance Abuse Services the proceeds from the sale of any real property and facilities
deposited in the mental health trust fund created by Tennessee Code Annotated, Section 12-
2-117. The appropriation shall be available for the uses provided in Section 12-2-117.
14
SB 2690
Item 10. There is hereby appropriated to the Department of Military the proceeds from
the sale of any real property and facilities deposited in the reserve for military facilities
created by Tennessee Code Annotated, Section 12-2-121. The appropriation shall be
available to fund replacement facilities for the department subject to approval by the State
Building Commission.
Item 11. There is hereby appropriated to the Department of Disability and Aging the
proceeds from the sale of any real property and facilities deposited in the intellectual and
developmental disabilities trust fund created by Tennessee Code Annotated, Section 12-2-
117. The appropriation shall be available for the uses provided in Section 12-2-117.
Item 12. There is hereby appropriated to the state office buildings and support
facilities revolving fund created by Tennessee Code Annotated, Section 9-4-901, the
proceeds from the sale of any real property and facilities deposited to the fund, to be used,
pursuant to Tennessee Code Annotated, Section 12-2-119 for capital outlay requirements of
the state's office buildings and support facilities. This appropriation shall be subject to
approval of the State Building Commission.
Item 13. There is hereby appropriated to the Department of Agriculture the proceeds
from the sale of any real property and facilities deposited in the reserve for forestry
maintenance created by Tennessee Code Annotated, Section 12-2-122 for capital outlay for
replacement facilities of the department or other capital outlay of the department. The
appropriation shall be subject to approval by the State Building Commission.
Item 14. Capital improvement projects recommended for higher education institutions
in the 2026-2027 Budget Document on pages A-136 to A-137 include funding partially from
institutional sources. It is the legislative intent that such projects include a minimum matching
component for new construction projects at the following rates by type of institution: (a) R1,
Very High Research (UT Knoxville and UoM), 17%, (b) ETSU, MTSU, TTU, UT Chattanooga,
8%, (c) APSU, UT Martin, TSU, UT Southern, 6%, and (d) Community Colleges and
Specialized Units, 4%. Major renovations projects have a minimum matching component at
the following rates by type of institution: (a) R1, Very High Research (UT Knoxville and UoM),
6%, (b) ETSU, MTSU, TTU, UT Chattanooga, APSU, UT Martin, TSU, UT Southern, 4%, and
(c) Community Colleges and Specialized Units, 2%. All matching funds may include gifts,
grants, institutional funds, student fees, and other non-state sources. The match component
for new construction projects shall at a minimum consist of gifts to the institution in the
following percentage of the total pledged match: (a) R1, Very High Research Activity (UT
Knoxville and UoM), 50%, (b) Doctoral/Masters Universities, 33%, and (c) Community
CoUeges and Specialized Units, 0%.
Item 15. From the appropriations made in Section 1 and Section 4 of this act, the
Commissioner of Finance and Administration is authorized to transfer appropriation savings
resulting . from energy management projects to the major maintenance accounts of the
departments and agencies. These funds may be used to pay debt service on associated
bonds, to reimburse the general fund for appropriations made for energy management
capital projects, to pay energy management fees, and to fund energy projects approved by
the State Building Commission.
Item 16. From the appropriations made in Section 1 and Section 4 of Chapter 530,
Public Acts of 2025, and in Section 1 and Section 4 of this act, the Commissioner of Finance
and Administration is authorized to transfer appropriation savings resulting from Empower
Tennessee energy management projects to the Capital Projects Fund. Further, the funds
may be used to pay Empower Tennessee energy management fees, including interest, and
to fund add_itional Empower Tennessee energy management projects approved by the State
Building Commission. The provisions of this item take effect upon becoming a law, the public
welfare requiring it.
Item, 17. The appropriation in Section 1,. Title 111-10, to the Tennessee Higher
Education Commission, Higher Education Capital Maintenance, is subject to the following
provisions:
(a) The appropriation in the amount of $50,000,000· is hereby reappropriated
to the commission for major maintenance and capital outlay purpos~s.
(b) Any remaining unexpended balances at June 30, 2026,) are carried forward
and hereby reappropriated to be expended in the subsequent fiscal y.e~r.
15
SB 2690
(c) From any remaining reserve fund balance carried forward at June 30,
2026, there is hereby appropriated a sum sufficient to the department for major
maintenance and capital outlay purposes.
(d) Other appropriations made under this act to the Tennessee Higher
Education Commission, Higher Education Capital Maintenance, are hereby
reappropriated to the commission for major maintenance and capital outlay purposes.
Item 18. The appropriation in Section 1, Title 111-2, Item 4.5, Department of General
Services, Statewide Capital Maintenance, is subject to the following provisions:
(a) The appropriation in the amount of $40,191,100 is hereby appropriated for
statewide major maintenance and capital outlay purposes.
(b) Any remaining unexpended balances at June 30, 2026, are carried forward
and hereby reappropriated to be expended in the subsequent fiscal year.
(c) From any remaining reserve fund balance carried forward at June 30,
2026, there is hereby appropriated a sum sufficient to the department for major
maintenance and capital outlay purposes.
(d) Other appropriations made under this act to the Department of General
Services, Statewide Capital Maintenance, are hereby reappropriated to the
_department for major maintenance and capital outlay purposes.
Item 19. The Commissioner of Finance and Administration is authorized to reallocate
the appropriation in Section 1, Title 111-32, Item 5, of Chapter 1130, Public Acts of 2022 from
the benefit of the Department of Finance and Administration to the benefit of other agencies
as certain new capital projects are identified for this appropriation and submitted for approval
to the State Building Commission.
Item 20. From the funds appropriated to a public four-year college or university
located in this state in Chapter 1130, Public Acts of 2022, Section 1, Title 111-32, a sum
sufficient is hereby transferred from the Capital Projects Funds and re-appropriated to the
college or university to defray expenditures, including operating expenses, that are essential
to fulfilling the college or university's mission. The transfer and re-appropriation in this item is
subject to approval of the Commissioner of Finance and Administration and the Comptroller
of the Treasury, the college or university's compliance with a memorandum of understanding,
and written acknowledgement by the chairs of the finance, ways and means committees of
both houses of receipt of notice of the approval in accordance with Chapter 467, Public Acts
of 2025.
Item 21. In addition to any other funds appropriated by the provisions of this act, from
the existing funds appropriated in Section 1, Title 111-32, item 19 of Chapter 1130, Public Acts
of 2022, there is hereby appropriated a sum sufficient to provide for the purchase and
installation ofan audio/visual system for the War Memorial Auditorium as a part of the capital
project titled "Legislative Plaza Renovations" and described on page A-163 of the Fiscal Year
2022-2023 Budget Document.
SECTION 3. Certain Regulatory Programs and Other Dedicated Funds - Provisions,
Limitations, and Restrictions. •
Item 1. Appropriations made under Section 1, Titles 111-11 and 111-16, for the operation
of the state regulatory boards, shall be subject to allotment by the Commissioner of Finance
and Administration, and no expenditure shall be made by any said boards out of fees
collected by them unless and until such allotments have been made by the Commissioner of
Finance and Administration. Such allotments for the operation of said respective boards as
are made by the Commissioner of Finance and Administration shall be disbursed under the
provisions of Tennessee Code Annotated, Title 4, Chapter 3, Part 10 and Title 9, Chapter 4,
Part 51.
The allotment hereinabove provided shall be subject to the .condition_ that no money
shall be paid therefrom for the salary of any employee of said boards unless and until such
salary has been approved by the Commissioner of Human Resources. _The appointment of
all empioyees of said boards shall likewise be approved by the Commissioner of Human
Resources.
No member of any board or commission established by law or pursuant to law shall
receive any compensation except in accordance with Tennessee Code Annotated, Section 9-
4-611.
16
SB 2690
Item 2. Except as otherwise provided in this section, the appropriations to the Wildlife
Resources Agency under Section 1, Title 111-6, shall be paid out of the special fund
established underTennessee Code Annotated, Title 70, Chapter 1, Part 4 and Section 69-9-
203. Such appropriations shall be expended under the provisions of Tennessee Code
Annotated, Title 4, Chapter 3, Part 10 and Title 9, Chapter 4, Part 51, and shall be used only
for the expenses of the Wildlife Resources Agency pursuant to Tennessee Code Annotated,
Title 70 and Title 69, Chapter 9, Part 2, and no part of the unexpended fund left at the end of
the fiscal year shall be used for any other purpose but shall be carried over in said fund and
may be expended during the next year, and all of said fees and revenues provided by
Tennessee Code Annotated, Title 70 and Title 69, Chapter 9, Part 2, are herein specifically
apportioned and appropriated to the use and for the benefit of the Wildlife Resources Agency
to be expended under the provisions of Tennessee Code Annotated, Title 4, Chapter 3, Part
10 •and Title 9, Chapter 4, Part 51. Nothing in this item shall be construed as relieving the
Wildlife Resources Agency of the duty of policing littering of lakes and streams.
Item 3. The appropriation to the State Board of Law Examiners in Section .1, Title 11,
Item 16, shall be from funds generated by fees collected by the board under the provisions of
Tennessee Code Annotated, Title 23, Chapter 1.
In case the appropriation to the board shall prove inadequate to allow the board to
function efficiently, the Commissioner of Finance and Administration may make an additional
allotment thereto from the general fund, the total of all allotments to the board not to exceed
the revenues paid into the treasury by the board.
Item 4. The appropriation to the Department of Financial Institutions in Section 1, Title
111-12, shall be derived from banking fees assessed pursuant to Tennessee Code Annotated,
Title 45, Chapter 1, Part 1; credit union fees assessed pursuant to Tennessee Code
Annotated, Title 45, Chapter 4, Parts 9 and 1O; and from certain fees and revenues derived
from ·other non-bank entities. No part of the unexpended banking fees left at the end of the
fiscal year shall revert to the general fund.
DEPARTMENTAL REVENUES
SECTION 4. Appropriations from Departmental Revenues. All departmental revenues of
every kind, as hereinafter defined, collected by any department, institution, office, or agency, in the
course of its operations, for its own use, are hereby appropriated to it in addition to the specific
appropriations made by this act, unless otherwise provided in this act or other provisions of law.
Federal aid funds granted to the state for the use of or to be administered by any department,
institution, or agency, are likewise appropriated. For the· purpose of this section "departmental
revenues" are defined as (1) earnings or charges for goods or services; (2) donations, contributions
or participation by political subdivisions, foundations, corporations, firms or persons; and (3) certain
state revenues which for budgetary purposes, are treated as departmental revenues under the
provisions of this section, unless otherwise provided in this act or other provisions of law. State
revenues, in contradistinction to departmental revenues, are the proceeds of taxes, licenses, fees,
fines, forfeiture or other imposts laid specifically by law. •
Notwithstanding any provision of the previous paragraph, the Department of Health shall
deposit all funds generated by fees or taxes collected by such entity in the general fund of the state.
Any appropriations for the operation of such entity shall be subject to allotment·by the Commissioner
of Finance and Administration, and no expenditure shall be made by any such entity out of fees or
taxes collected by it, unless and until such allotments have been made by the Commissioner of
Finance and Administration. Such allotments for the operation of such entity as are made by the
Commissioner of Finance and Administration shall be disbursed under the provisions of Tennessee
Code Annotated, Title 4, Chapter 3, Part 10 and Title 9, Ch_apter 4, Part 51.
The departmental revenues and federal aid funds appropriated under this· act shall include
the amounts hereinafter set out:
I. LEGISLATIVE 2026-2027
1. Legislative Administration Services .........................•...-.: ................... $ 17,000.00
2. House of Representatives ....................................•........................... 28,500.00
3. State Senate ................................................................................... 22,000.00
70,000.00
4. General Assembly Support Services ............................................... 137,500.00
Total Legislature .............................................................................$
Total Title I...............................................................$ 137,500.00
17
SB 2690
II. JUDICIAL
1. Appellate and Trial Courts...............................................................$ 27,300.00
613,000.00
2. Supreme Court Buildings ................................................................ 2,572,900.00
3. Child Support Referees ................................................................... 5,000.00
67,000.00
4. Indigent Defendants' Counsel ......................................................... 40,000.00
498,200.00
5. Council of Juvenile and Family Court Judges.................................. 2,263,700.00
1,627,100.00
6. Judicial Conference ........................................................................
7. Judicial Programs and Commissions ............................................. .
8. Administrative Office of the Courts ..................................................
9. Appellate Court Clerks ....................................................................
Total Title 11 ..............................................................$ 7,714,200.00
Ill. EXECUTIVE
1. Constitutional and Quasi-Judicial Offices
1. Attorney General and Reporter
1.1 Attorney General and Reporter ..............................................$ 16,574,800.00
1.2 Special Litigation .................................................................... 788,800.00
Total Attorney General and Reporter .....................................$ 17,363,600.00
2. District Attorneys General Conference
2.1 District Attorneys General ......................................................$ 11,809,000.00
2.2 Executive Director ................................................................. 2,084,500.00
2.3 IV-D Child Support Enforcement.. ......................................... . 41,188,600.00
Total District Attorneys General Conference .......................... $ 55,082,100.00
3. Secretary of State
3.1 Secretary of State ..................................................................$ 8,835,200.00
3.2 Records Management ........................................................... 1,619,400.00
3.3 State Library and Archives ..................................................... 3,485,800.00
3.4 Regional Library System ........................................................ 791,100.00
3.5 Bureau of Ethics and Campaign Finance ............................. .. 715,100.00
3.6 Help America Vote Act. .......................................................... 27,500,000.00
Total Secretary of State .........................................................$ 42,946,600.00
4. District Public Defenders Conference
4.1 District Public Defenders .......................................................$ 994,600.00
994,600.00
Total District Public Defenders Conference ........................... $
5. Comptroller of the Treasury
5.1 Division of State Audit. ...........................................................$ 3,361,600.00
5.2 Division of Local Government Audit ....................................... 1,459,100.00
5.3 Division of State Government Finance ................................... 831,000.00
5.4 Division of Property Assessments.......................................... 1,899,500.00
5.5 State Board of Equalization ................................................... 107,400.00
5.6 Division of Technology Solutions ........................................... 222,500.00
5. 7 Division of Health Provider Review ........................................ 2,900,000.00
Total Comptroller of the Treasury ..........................................$ 10,781,100.00
6. Treasury Department
6.1 Tre·asury Department. ............................................................$ 93,826,600.00
6.2 Small and Minority-Owned Business Assistance Program .... . 250,000.00
6.3 TN Stars College Savings 529 Program ............................... . 1,000,000.00
6.4 Tuition Guaranty ................ ,................................................... 50,000.00
Total _ Tr~asury Department ....................................................$ ~5, 126,600.00
7. Claims and-Compensation
7.1 Criminal Injuries Compensation ............................................. $ 3,404,000.00
7.2 Risk Management Fund ......................................................... 99,243,500.00
Total Claims and Compensation ............................................ $ 102,647,500.00
Total Title lll-1 ..........................................................$ 324,942,100.00
18
SB 2690
2. Executive Offices
1. Commissions
1.1 Commission on Children and Youth .......................................$ 1,818,500.00
1.2 Alcoholic Beverage Commission .......................................... . 13,551,500.00
1.3 Advisory Commission on Intergovernmental Relations ......... . 4,042,700.00
1.4 Tennessee Housing Development Agency ........................... . 505,284,900.00
1.5 Arts Commission ................................................................... 2,248,400.00
1.6 Tennessee Public Utility Commission ................................... . 2,557,300.00
1.7 Tennessee Rehabilitative Initiative in Correction (TRICOR) .. . 63,665,500.00
1.8 State Museum ....................................................................... 415,000.00
1.9 Council on Developmental Disabilities ................................... 2,464,000.00
1. 10 Corrections Institute............................................................... 95,500.00
1.11 Health Facilities Commission ................................................ . 15,157,800.00
Total Commissions ................................................................$ 611,301,100.00
2. Department of Finance and Administration
2.1 Division of Administration ......................................................$ 6,856,800.00
2.2 Strategic Technology Solutions (STS) Operations ................ . 273,639,400.00
2.3 Benefits Administration .......................................................... 18,473,200.00
2.4 Division of Accounts .............................................................. 68,038,300.00
2.5 Criminal Justice Programs .................................................... . 74,311,500.00
2.6 Volunteer Tennessee............................................................. 8,318,500.00
2.7 Office of Inspector General .................................................... 6,525,200.00
2.8 Enterprise Resource Planning ............................................... 34,609,300.00
2.9 Business Solutions Delivery................................................... 104,871,000.00
2.10 STS Agency Purchasing ........................................................ 85,500,000.00
Total Department of Finance and Administration ...................$ 681,143,200.00
3. Department of Human Resources
3.1 Executive Administration .......................................................$ 2,140,900.00
3.2 HR Management Services ..................................................... 8,782,200.00
3.3 Office of Strategic Support..................................................... 6,932,400.00
3.4 Talent Management Centers of Excellence ........................... 9,921,400.00
Total Department of Human Resources ................................. $ 27,776,900.00
4. Department of General Services
4.1 Administration ........................................................................$ 9,932,400.00
4.2 Postal Services ..·.................................................................... 18,502,000.00
4.3 Motor Vehicle Management ................................................... 94,309,800.00
4.4 Real Estate Asset Management ............................................ 16,632,000.00
4.5 Printing and Media Services ................................................. . 9,328,600.00
4.6 Procurement Office ................................................................ 14,875,300.00
4. 7 Surplus Operations ................................................................ 4,010,800.00
4.8 Megasite Authority of West Tennessee.................................. 107,100.00
4.9 Megasite Water and Wastewater Authority ............................ 9,413,800.00
Total Department of General Services ................................... $ 177,111,800.00
5. Department of Veterans Services
5.1 Tennessee State Veterans Cemeteries ................................. $ 1,539,400.00
1,539,400.00
Total Department of Veterans Services ................................. $
Total Title lll-2......•....................................................$ 1,498,872,400.00
3. Department of Agriculture
1. Administration and Grants..............:................................................$ 38,126,300.00
2. Consumer and Industry Services .................................................... 16,330,400.00
3. Business Development ................................................................... 21,394,600.00
4. Forestry Operations ........................................................................ 11,597,000.00
5. Grain Indemnity Fund ..................................................................... 126,700.00
6. Agricultural Regulatory Fund ........................................................... 120,000.00
7. Animal Health ................................................................................. 1,057,200.00
8. Technical Services .......................................................................... 2,862,100.00
Total Title lll-3..........................................................$ 91,614,300.00
19
SB 2690
4. Department of Tourist Development 789,200.00
5,000.00
1. Administration and Marketing ..........................................................$
2. Welcome Centers ...........................................................................
Total Title lll-4..........................................................$ 794,200.00
5. Department of Environment and Conservation
1. Administrative Services ...................................................................$ 17,612,700.00
2. Recreation Educational Services ................................................... . 7,100,800.00
3. Archaeology .................................................................................... 60,500.00
4. Geology .......................................................................................... 629,400.00
5. Tennessee State Parks...................................................................
6. State Parks Maintenance ................................................................ 60,214,500.00
7. Natural Areas .................................................................................. 100,000.00
8. Historical Commission .................................................................... 160,100.00
9. West Tennessee River Basin Authority .......................................... . 579,600.00
10. Environment Administration ............................................................
11. Air Pollution Control ........................................................................ 10,288,500.00
12. Radiological Health ......................................................................... 5,450,700.00
1~. Division_ of Water Resources ...........................................................
14. Solid Waste Management ........... ,................................................... 15,808,700.00
15. DOE Oversight................................................................................ 7,611,400.00
16. Hazardous Waste Remedial Action Fund........................................
17. Underground Storage Tanks ........................................................... 25,775,200.00
18. Clean Water and Drinking Water State Revolving Fund ................. . 17,452,400.00
19. Used Oil Collection Program ...........................................................
20. Fleming Training Center ................................................................. 7,939,700.00
21. Office of Sustainable Practices ....................................................... 11,620,000.00
22. Office of Energy Programs ..............................................................
23. Tennessee Heritage Conservation Trust Fund ............................... . 1,973,400.00
24. Abandoned Lands........................................................................... 56,677,700.00
25. Division of Mineral and Geologic Resources .................................. .
1,000.00
1,805,900.00
886,300.00
19,261,400.00
1,000,000.00
1,111 ,400. 00
14,970,300.00
Total Title lll-5..........................................................$ 286,091,600.00
6. ..Tennessee Wildlife Resources Agency
1. Wildlife Resources Agency .............................................................$ 70,700,100.00
2. Boating Safety ................................................................................ 6,386,800.00
3. Wetlands Acquisition Fund .............................................................. 1,662,000.00
Total Title lll-6..........................................................$ 78,748,900.00
7. Department of Correction 4,487,700.00
64,900.00
1. Administration ................................................................................$
2. Correction Academy ....................................................................... 1,069,500.00
3. Probation and Parole Field Supervision .......................................... 1,800,000.00
4. State Prosecutions ..........................................................................
5. Debra K. Johnson Rehabilitation Center ......................................... 394,700.00
6. Turney Center Industrial Complex .................................................. . 615,900.00
7. • Mark Luttrell Transition Center ....................................................... . 326,500.00
8. Bleds·oe County Correctional Complex ........................................... 624,700.00
9. West Tennessee State Penitentiary ................................................ 507,600.00
10. Riverbend Maximum Security Institution ......................................... 106,600.00
11. Northeast Correctional Complex .................................................... . 314,200.00
12. Northwest Correctional Complex..................................................... 959,600.00
13. Morgan County Correctional Complex ............................................ 512,900.00
14. Lois M: DeBerry Special Needs Facility .......................................... 161,800.00
15. Hardeman County Incarceration Agreement .................................. .
16. Hardemari County Agreement - Whiteville ..................................... 18,900.00
17. South Central Correctional Facility ................................................. . 18,700.00
18. Trousdale County Incarceration Agreement. .................................. . 18,700.00
19. Community Corrections .................................................................. 13,200.00
14,795,500.00
Total Title lll-7 ..........................................................$
26,811,600.00
20
SB 2690
8. Department of Economic and Community Development
1. Administrative Services...................................................................$ 773,800.00
2. Business Development ................................................................... 975,300.00
3. Policy and Federal Programs ........................................................ .. 28,663,000.00
4. FastTrack Infrastructure and Job Training Assistance ................... .. 340,500.00
5. Film and Television Incentive Fund ................................................ . 48,600.00
6. TN Investco Tax Credits .................................................................. 1,500,000.00
7. Community and Rural Development .............................................. . 103,900.00
8. Innovation Programs ....................................................................... 11,260,900.00
9. Broadband Accessibility .................................................................. 608,100.00
Total Title lll-8 ..........................................................$ 44,274,100.00
9. Department of Education
1. Administration ................................................................................$ 3,226,000.00
2. ESSA and Federal Programs .......................................................... 458,268,500.00
3. Academic Offices ............................................................................ 8,028,100.00
4. Centers of Regional Excellence (CORE)......................................... 2,314,100.00
5. Improving Schools Program ............................................................ 2,743,900.00
6. Data and Research ......................................................................... 8,955,300.00
7. Early Childhood Education .............................................................. 9,341,700.00
8. Energy Efficient Schools Initiative .................................................. . 574,000.00
9. School Nutrition Program ................................................................ 554,276,900.00
10. Special Education Services............................................................. 321,622,800.00
11. College, Career and Technical Education ...................................... . 25,648,600.00
12. Alvin C. York Institute...................................................................... 1,529,900.00
13. Tennessee School for the Blind ...................................................... 1,044,700.00
14. Tennessee School for the Deaf....................................................... 558,600.00
15. West Tennessee School for the Deaf.............................................. 224,100.00
16. Charter School Commission ........................................................... 130,072,200.00
Total Title lll-9..........................................................$ 1,528,429,400.00
10. Higher Education
1. Tennessee Higher Education Commission ..................................... $ 11,473,800.00
2. Tennessee Student Assistance Corporation .................................. . 5,846,300.00
3. Academic Scholars Program ..... ···:·················································· 378,700.00
4. Loan/Scholarship Programs .........................;.................................. 291,000.00
5. THEC. Grants .................................................................................. 13,750,000.00
Total Title 111-10........................................................$ 31,739,800.00
11. Department of Commerce and Insurance
1. Administration ................................................................................$ 14,076,700.00
24,973,600.00
2. Insurance ........................................................................................
4,523,900.00
3. Securities ........................................................................................ 3,191,800.00
25,969,600.00
4. TennCare Oversight. ....................................................................... 1,635,900.00
5. Fire Prevention ............................................................................... 43,300.00
1,738,200.00
6. Fire Service and Codes Enforcement Academy ............................. . 5,821,800.00
7. Peace Officer Standards and Training (POST) Commission .......... . 931,900.00
5,000.00
8. Tennessee Law Enforcement Training Academy ......... '. ................ ..
9. 911 Emergency Communications Fund ..........................................
10. Regulatory Boards ..........................................................................
11. Cemetery Consumer Protection Fund ............................................ .
Total Title lll-11 .................. ,......... ,... ,.... ,..................$ 82,911,700.00
12. • Department of Financial Institutions ........... ,...........................$ 2,400.00
Total Title lll-12 ........................................................$ 2,400.00
13. Department of Labor and Workforce Development
1. Administration ................................................................................$ 8,233,700.00
2. Tennessee Occupational Safety and Health Administration (TOSHA) 4,891,000.00
21
SB 2690
3. Mines .............................................................................................. 251,600.00
115,800.00
4. Boilers, Elevators, and Amusement Devices ................................. .. 210,500.00
200,700.00
5. Workers' Compensation .................................................................. 14,129,200.00
84,525,300.00
6. Subsequent Injury and Vocational Recovery Fund ........................ .. 51,994,300.00
7. Adult Basic Education .....................................................................
8. Workforce Services .........................................................................
9. Unemployment Insurance ...............................................................
Total Title lll-13........................................................$ 164,552,100.00
14. Department of Mental Health and Substance Abuse Services
1. Administrative Services Division .....................................................$ 9,479,900.00
2. Mental Health Services
2.1 Community Mental Health Services ....................................... $ 63,340,600.00
2.2 MiddleTennessee Mental Health Institute ............................ . 23,514,300.00
2.3 Western Mental Health Institute ............................................. 12,546,300.00
2.4 Moccasin Bend Mental Health Institute ................................ .. 12,582,800.00
2.5 Memphis Mental Health Institute............................................ 7,150,000.00
3. Community Substance Abuse Services .......................................... $ 81,757,200.00
4. Tennessee Opioid Abatement Council ........................................... . 2,929,900.00
5. Opioid Abatement Fund .................................................................. 80,929,900.00
Total Title lll-14 ........................................................$ 294,230,900.00
15. Department of Military
1. Administration ................................................................................$ 887,800.00
2. Army National Guard ...................................................................... 12,332,200.00
3. Air National Guard .......................................................................... 15,675,700.00
4. Tennessee Emergency Management Agency ................................ . 13,104,900.00
5. TEMA Disaster Relief Grants .......................................................... 180,000,000.00
6. Homeland Security Grants .............................................................. 10,005,400.00
7. Armories Utilities ............................................................................. 4,041,200.00
8. Armories Maintenance .................................................................... 6,194,600.00
9. Station Commanders Upkeep and Maintenance Fund .................. .. 250,000.00
10. STORM Act ................................... .-................................................ 100.00
Total Title lll-15 ............................ :...........................$ 242,491,900.00
16. Department of Health
1. Administration
1.1 Administration ........................................................................$ 10,193,700.00
1.2 Public Health Policy, Planning, and Informatics .................... . 12,674,400.00
2. Manpower Resources and Facilities
2.1 •Emergency Medical Services................................................. 2,145,200.00
16,740,300.00
2.2 Laboratory Services ...............................................................
2,337,300.00
2.3 Health Related Boards...........................................................
3. Community Health Services
3.1 Environmental Health ............................................................ 88,600.00
3.2 Family Health and Wellness .................................................. 82,544,900.00
3.3 .. Communicable and Environmental Disease and
Emergency Preparedness ................................................... 65,514,500.00
3.4 Community and Medical Services .......................................... 140,143,700.00
3.5 Women, Infants, and Children (WIC) ................................... .. 146,167,500.00
4. H.ealth Services............................................................................... 136,872,800.00
Total Title 111-16........................................................$ 615,422,900.00
17. -Department of Human Services
1. Administration
22
SB 2690
1.1 Administration ........................................................................$ 104,159,500.00
1.2 County Rentals ...................................................................... 10,429,200.00
1.3 Appe,als and Hearings ........................................................... 5,375,900.00
2. Family Assistance Services
2.1 Child Support......................................................................... 99,140,800.00
2.2 Child Care Benefits ................................................................ 226,795,600.00
2.3 Temporary Cash Assistance ................................................. . 101,421,900.00
2.4 Supplemental Nutrition Assistance Program ......................... . 1,859,112,700.00
2.5 Family Assistance Services .................................................. . 120,989,200.00
3. Community Services ....................................................................... 227,113,200.00
4. Rehabilitative Services
4.1 Rehabilitation Services .......................................................... 84,877,000.00
76,154,400.00
4.2 Disability Determination .........................................................
Total Title 111-17 ........................................................$ 2,915,569,400.00
18. Department of Revenue
1. Administration Division ....................................................................$ 13,948,900.00
2. Collection Services ......................................................................... 3,369,900.00
3. Taxpayer Services Division ............................................................. 1,671,200.00
4. Processing Division......................................................................... 3,294,700.00
5. Audit Division .................................................................................. 12,026,700.00
6. Vehicle Services Division ................................................................ 6,145,400.00
Total Title lll-18 ........................................................$ 40,456,800.00
19. Tennessee Bureau of Investigation........................................$ 39,066,000.00
Total Title lll-19 ........................................................$ 39,066,000.00
20~ Department of Safety
1. Administration ................................................................................$ 3,732,300.00
2. Driver License Issuance.................................................................. 30,286,800.00
3. Highway Patrol. ................................................................................ 17,807,300.00
4. Auto Theft Investigations ................................................................ 349,800.00
5. Office of Homeland Security ...................................... '. .................... 565,600.00
6. Communications ............................................................................. 925,800.00
7. Tennessee Highway Safety Office ................................................ .. 28,422,200.00
Total Title lll-20 ........................................................$ 82,089,800.00
21. Department of Finance and Administration, Strategic Health-Care Programs
1. CoverKids .......................................................................................$ 139,207,100.00
2. CoverRx......... :................................................................................ 3,000,000.00
3. Health-Care Planning and Innovation ............................................ . 240,900.00
Total Title lll-21 ........................................................$ 142,448,000.00
22. Department of Children's Services
1. Administration: ................................................................................$ 48,581,200.00
2. Family Support Services .................. ,.............................................. 26,951,600.00
3. Custody Services .......................................................,................... . 408,782,500.00
4. Adoption Services ........................................................................... 86,676,100.00
5. Child and Family Management ....................................................... 186,308,800.00
6. John S. Wilder Youth Development Center .................................... . 400,800.00
7. Major Maintenance .......................................................................... 15,000.00
8. Social Security Income ................................................................... 13,737,200.00
9. Statewide Child and Family Services ............................................ .. 65,658,600.00
Total Title lll-22 ........................................................$ 837,111,800.00
23
SB 2690
23. Board of Parole......................................................................$ 1,000.00
Total Title lll-23........................................................$ 1,000.00
24. Department of Disability and Aging
1. Intellectual Disabilities Services Administration ............................... $ 44,843,700.00
2. Community Intellectual Disabilities Services .................................. . 3,678,000.00
3. Protection from Harm ...................................................................... 8,349,600.00
4. Harold Jordan Center...................................................................... 1,000.00
5. West Tennessee Regional Office ................................................... .
6. Middle Tennessee Regional Office ................................................. 11,722,100.00
7. East Tennessee Regional Office .................................................... . 12,270,100.00
8. Seating and Positioning Clinics ....................................................... 11,535,400.00
9. West Tennessee Community Homes ............................................. .
10. Middle Tennessee Community Homes............................................ 772,600.00
11. East Tennessee Community Homes ............................................... 24,522,500.00
12. Tenness~e Early Intervention System ............................................ . 20, 177,500.00
13. Katie Beckett Waiver....................................................................... 27,679,600.00
14. Commission on Aging and Disability ............................................... 45,714,200.00
58,594,100.00
34,588,400.00
Total Title 111-24 .......................................................$ 304,448,800.00
25. Department of Finance and Administration, Bureau of TennCare
1. TennCare Administration ................................................................$ 848,532,100.00
2. TennCare Medical Services ............................................................ 9,834,168,300.00
3. Supplemental Payments ................................................................. 697,796,300.00
4. Intellectual Disabilities Services ..................................................... . 754,977,800.00
5. Medicare Services .......................................................................... 449,756,800.00
Total Title lll-25........................................................$ 12,585,231,300.00
26. Department of Transportation
1. Bureau of Administration .................................................................$ 609,000.00
2. Bureau of Operations ...................................................................... 1,040,118,700.00
3. Bureau of Engineering ..................................;................................. 288,802,800.00
4. Bureau of Planning ......................................................................... 245,062,700.00
Total Title lll-26 ........................................................$ 1,574,593,200.00
27. Facilities Revolving Fund
1. Facilities Operations .......................................................................$ 64,272,700.00
2. Facilities Maintenance .................................................................... 5,132,200.00
3. Leases and Space Planning ........................................................... 62,064,700.00
4. FRF Debt Service ............................................................................ 33,416,800.00
Total Title 111~27........................................................$ 164,886,400.00
28. State Building Commission
1. Major Maintenance and Equipment.. ...............................................$ .· 150,000.00
Total Title lll-28 .......................................................$ 150,000.00
Grand Total .........................................................................$ 24,005,834,500.00
SECTION 5. Refund of Receipts; Cancellation of Unredeemed Warrants; Recovery of
Returned Checks.
ltemJ. There is hereby appropriated the necessary and sufficient sums to refund any
collection or part thereof made erroneously or illegally _for the use or benefit of the state or
any of its departments, institutions, offices or agencies. Such refunds shall be made in
accordance with existing law as applicable in any particular case.
Item 2. With respect to any revenues or receipts collected by any department or
agency with· the exception of those collected by the Department of Revenue, such amounts
24
SB 2690
as are determined to have been erroneously paid may be refunded by the procedure
established pursuant to Tennessee Code Annotated, Section 9-4-607.
Item 3. The cancellation and write-off of unredeemed warrants, drafts, and checks
drawn on the State Treasury and subsequent claims by the payee of said instruments shall
be subject to the procedures specified in Tennessee Code Annotated, Section 9-4-601 (a)(2).
Item 4. The Commissioner of Finance and Administration shall maintain a policy to
recover state funds and the state's costs associated with checks, warrants, drafts, and
electronic funds transfers deposited to a state account that are subsequently returned unpaid
by the drawer's bank.
SECTION 6. Certain Debt Service and Related Matters. In addition to the appropriations
made to the State Funding Board in Section 1, Title 111-30, of this act, there is appropriated the
following items:
Item 1. From the funds appropriated in Section 1, Title 111-30, Item 6, Amortization of
Authorized and Unissued Highway Bonds, the sum of $127,000,000 is appropriated in lieu of
issuing highway bonds under the provisions of Chapter 1062, Public Acts of 2018. The State
Funding Board shall take the necessary action to cancel the unissued bonds.
Item 2. From the appropriation made in Section 1, Title 111-30, of this act to the State
Funding Board, a sum not to exceed $3,261,800 is earmarked to pay debt service on general
obligation bonds issued under the authority of Chapter 582, Public Acts of 1996, for the
purpose of making a grant to the Metropolitan Government of Nashville and Davidson
County for the construction of a sports stadium. It is the legislative intent that said
appropriations shall be funded first from the sales tax revenues allocated under the
provisions of Tennessee Code Annotated, Section 67-6-103(d)(1), as amended by Chapter
401, Public Acts of 2021.
Item 3. To provide the debt service on the general obligation bonds authorized under
Chapter 313, Public Acts of 2003, relative to State Veterans' Homes, there is hereby
appropriated a sum sufficient from the funds available to the State Funding Board pursuant
to agreements entered into thereunder.
Item 4. From the funds appropriated in Section 1 and Section 4 of this act to the
Tennessee Board of Regents and the boards of Middle Tennessee State University and the
University of Memphis for defraying operating expenses in this act and other acts of the
legislature, with the approval of the State Building Commission a sum sufficient is
appropriated to be used for payments to the State Funding Board as required for any debt
issued in an amount not to exceed $10,700,000 under the authorization of Chapter 591,
Public Acts of 2007.
Item 5. In addition to the appropriations made in Section 1, Title 111-30, of this act to
the State Funding Board, and to the extent that the board issues any tax revenue anticipation
notes pursuant to the provisions of Tennessee Code Annotated, Section 9-9-301, there is
hereby appropriated a sum sufficient from subsequently available funds of the state to pay
debt service on such notes within the fiscal year of issuance.
Item 6. There is hereby appropriated to the Tennessee State School Bond Authority a
sum sufficient in the amount of payments allowable to the Authority from the federal
government pursuant to the qualified school construction bond program or similar programs,
for purposes of debt service on such bonds.
Item 7. The funding of the appropriations for interest on state debt and retirement of
bonds made in Section 1, Title 111-30 of this act includes an allocation of motor vehicle title
fees to the debt service fund in the amount of $2,700,000. The allocation is made from the
sum generated by the $1.50 motor vehicle title fee imposed under the provisions of
Tenn_essee Code Annotated, Section 55-6-101 (a)(1 ). . •
It is the legislative intent to recognize that the revenue generated from the $1.50 fee
is earmarked for the purpose of paying the principal and interest on bonds authorized in the
amount of $5,000,000 and issued pursuant to the provisions of Chapter 1028, Public Acts of
1992. Any funds in excess of the amount so required are earmarked for the purpose of
paying the principal and interest on general obligation bonds authorized to fund capital
projects at state parks.
Item 8. There is hereby appropriated a sum sufficient from general fund interest
earnings for the purpose of funding the State of Tennessee's liability under IRS ·regulations
for arbitrage interest earnings on proceeds from general obligation debt.
25
SB 2690
Item 9. There is hereby appropriated a sum sufficient from the construction funds trust
agreement reserve authorized pursuant to Tennessee Code Annotated, Section 9-9-103, for
purposes of the construction funds trust agreement related to financing for the construction of
a domed sports stadium in Davidson County. The provisions of this item take effect upon
becoming a law, the public welfare requiring it.
SECTION 7. Earmarked Appropriations. The appropriations made by this act under Sections
1 and 4 shall be subject to the following provisions, limitations, or restrictions. From the funds
appropriated to the:
Item 1. State Election Commission in Section 1, Title 111-1, Item 3.2, there is hereby
appropriated funds for expenses of the State Election Commission, including the printing of
election laws, the office of the Coordinator of Elections, and other expenses of administering
election laws. The salary of each member of the State Election Commission shall be six
thousand nine hundred ninety-four dollars and thirty-two cents ($6,994.32) annually. The
Secretary of State is hereby authorized to make all necessary purchases of election supplies
from funds appropriated for such purpose in accordance with state purchasing procedures.
Item 2. Comptroller of the Treasury and the Department of Finance and
Administration, there is hereby authorized to be allocated an amount not to exceed $45,000
for the purpose of meeting the State of Tennessee's participation in the cost of supporting the
National Council on Governmental Accounting or a governmental accounting standards
board in the establishment of governmental accounting standards and principles.
Item 3. Criminal Injuries Compensation in Section 1, Title 111-1, Item 8.1, there is
appropriated a sum not to exceed $302,200 for grants to the District Attorneys General for
domestic ,violence prevention and drug enforcement activities authorized under Tennessee
Code Annotated, Section 29-13-116.
Item 4. Criminal Injuries Compensation, in Section 1, Title 111-1, Item 8.1, pursuant to
Tennessee Code Annotated, Section 40-38-405 there is earmarked the sum of $100,000 for
the sole purpose of making a grant in such amount to the Tennessee Coalition Against
Domestic and Sexual Violence to support the activities of the Tommy Burks Victim
Assistance Academy.
Item 5. Treasury Department in Section 4, Title 111-1, Item 6.1, there are hereby
appropriated funds sufficient to defray the cost of administering, on behalf of state employees
compensated on the centralized state payroll system, Tennessee Code Annotated, Title 8,
Chapter 25, Part 1, the same being the "Government Employees' Deferred Compensation
Plan Act"; and Tennessee Code Annotated, Title 8, Chapter 25, Part 3, the same being the
"Profit Sharing or Salary Reduction Plans".
Item 6. Governor's Office in Section 1, Title 111-2, Item 1.1, an amount of sixty
thousand dollars ($60,000) per year for Maintenance of the Tennessee Residence
(Executive Residence) and travel expenses as certified by the Governor shall be paid by the
Commissioner of Finance and Administration, it being the legislative intent that the residence
should be maintained and operated as the official residence and office of the Chief Executive
of Tennessee in a manner required of the Office of Governor.
Item 7. Commission on Children and Youth in Section 1, Title 111-2, Item 2.1, the sum
of $2,400,000 .for making grants in equal amounts qf $40,000 to each of the 60 county Court
Appointed Special Advocates (CASA) programs, to be used for purposes related to the
operation or development of the programs.
Item 8. Arts Commission in Section 1, Title 111-2, Item 2.8, the sum of $80,000 is
hereby appropriated for the purpose of making a grant to Fisk University for the necessary
staff, services and other costs associ~ted •with maintaining and showing the Stieglitz
Collection at Fisk University. It is the legislative intent that this appropriation is a direct
appropriation grant and that it be processed accordingly by the Commissioner of Finance
and Administration. This appropriation is made under the provisions of Tennessee Code
Annotated, Section 4-20-202.
Item 9. Arts Commission in Section 1, Title 111-2, Item 2.8, an amount of $100,000 is
for the purpose of a grant to the Tennessee Performing Arts Center Management
Corporation for educational activities.
Item 1b'. Arts Commission in Section 1, Title 111-2, Item 2.8, an amount of $45,000 is
for the purpose of a grant to Africa in April Cultural Awareness Festival, Inc., to support the
Africa in April Cultural Awareness Festival.
26
SB 2690
Item 11. To the State Museum in Section 1, Title 111-2, Item 2.9, an amount of
$100,000 is for the purpose of maintenance, restoration, and operational expenses of the
Green McAdoo Cultural Center.
Item 12. Department of Finance and Administration, Criminal Justice Programs, in
Section 1, Title 111-2, Item 3.4, there is hereby earmarked a sum sufficient from the proceeds
of the $15.00 privilege tax on marriage licenses for purposes of funding family violence
shelters and shelter services. This appropriation is made under the provisions of Tennessee
Code Annotated, Section 67-4-411.
Item 13. Department of Finance and Administration, Division of Accounts, in Section
1, Title 111-2, Item 3.2, an amount of $4,922,400 is for the purpose of funding a centralized
accounting unit providing services to small agencies of state government. The Commissioner
of Finance and Administration is authorized to transfer this appropriation to the appropriate
organizational units of state government, to adjust rates to reflect this purpose, to reduce the
appropriation to an amount required by the adjusted rate, and to adjust departmental
revenue estimates accordingly. The commissioner is further authorized to transfer
accounting positions from the organizational units of the agencies to the Division of
Accounts.
Item 14. Department of Finance and Administration in Section 4, Title 111-2, Item 2.3,
pursuant to Tennessee Code Annotated, Section 8-25-401, for administering the "Cafeteria
Benefits Plan" for state employees.
Item 15. Department of Finance and Administration, in Section 1, Title 111-2, Item 3,
appropriations for the electronic monitoring indigency fund grant program shall be subject to
the provisions of Section 21 of this act.
Item 16. Department of Finance and Administration, in Section 1, Title 111-2, Item 3,
appropriations for VINE courts shall be disbursed to the Tennessee Sheriff's Association as
subject to the provisions of Section 21 of this act.
Item 17. Department of General Services in Section 1, Title 111-2, Item 4.3, shall be
paid as a direct appropriation to the Governor's Early Literacy Foundation.
Item 18. Department of Agriculture, For.estry Operations, in Section 1, Title 111-3, Item
5, the s~m of $2,000,000 is intended to fund the depreciation cost to replace bulldozers and
wildland firefighting equipment. Unexpended funds for this purpose may be carried forward
and held in· reserve until such a time as replacement is deemed necessary.
Item 19. Department of Tourist Development, in Section 1, Title 111-4, there is hereby
appropriated a sum not to exceed twelve thousand five hundred dollars ($12,500), sufficient
to defray the cost of advertising and other expenses in connection with special events in
which Tennessee is represented and/or events within the state for which Tennessee will act
as official host. Any allotment of funds made under the authority of this section shall be made
only on the approval of the Commissioner of Finance and Administration.
Item 20. Department of Tourist Development, in Section 1, Title 111-4, and Department
of Economic and Community Development, in Section 1, Title 111-8, there shall be paid
expenses .incurred by the two departments in representing the state in its. official capacity;
provided, however, that nothing herein shall authorize the expenditure by each agency for
such- purposes in excess of five thousand dollars ($5,000) per annum. The amount and
purposes of such expenses are subject to approval by the Commissioner of Finance and
Administration.
Item 21. Department of Tourist Development, in Section 1, Title 111-4, the sum of
$500, OQO to establish a program to make grants to entities, including marinas, to improve
and maintain access to Tennessee's waterways.
Item 22. Department of Environr:nent and Conservation, Environmental Protection
Fund, in Section 1, Title 111-5, the sum of $5,280,000 is from revenues available to the
Environmental Protection Fund pursuant to Tennesse·e Code Annotated, Title 68, Chapter
203, from funds paid by the Tennessee Valley Authority (TVA) pursuant to a Consent Decree
regarding air emissions in Tennessee. Departmental revenues shall be adjusted accordingly.
These funqs shall be exempt from and shall not be considered in the calculations required by
Tennessee Code Annotated, Section 68-203-104(b), (c), or (d). These funds shall be
available for the purpose of funding energy conservation, alternative energy and/or pollution
preventior:i projects and any other projects authorized by the Consent Decree.
27
SB 2690
Item 23. Department of Environment and Conservation, Maintenance of Historic
Sites, in Section 1, Title 111-5, Item 9, an amount of $30,000 is for the sole purpose of
supplementing funding available for historic sites acquisition, improvements, maintenance,
equipment purchases, and interpretation at the Parker's Crossroads Battlefield. This item is
to be allotted as a direct appropriation grant to the City of Parker's Crossroads. Further, any
unexpended funds shall not revert to the general fund and shall be carried forward in a
reserve to be expended for purposes of this item.
Item 24. Department of Environment and Conservation, in Section 1, Title 111-5, the
sum of $50,000 for a grant to Good Samaritans Camp Tanase.
Item 25. The Historical Commission, in Section 1, Title 111-5, Item 8, an amount of
$100,000 (recurring) for the sole purpose of making a grant in such amount to the Stax
Museum of American Soul Music, to be used for defrayal of operational costs.
Item 26. Historical Commission, in Section 1, Title 111-5, Item 8, the sum of $100,000
for the sole purpose of making a grant in such amount to the Tennessee Historical Society to
be used for operational expenses.
Item 27. Historical Commission, in Section 1, Title 111-5, Item 8, the sum of $19,000 for
the sole purpose of making a grant to the Frank Clement Museum Foundation.
Item 28. Historical Commission, in Section 1, Title 111-5, Item 8, the sum of $40,000 for
a grant to the Rocky Mount Historical Association, to be used for providing educational and
community outreach programs focused upon the history of the Rocky Mount State Historic
site.
Item 29. Department of Correction, Community Corrections, in Section 4, Title 111-7,
Item 19, the department is authorized to make a grant of up to $832,000 to "Project Return."
Item 30. Department of Correction, Community Corrections, in Section 4, Title 111-7,
Item 19, the sum of $136,500 is for the sole purpose of making a grant in such amount to
DISMAS, Inc., to be used for assisting with their programs in the State of Tennessee, and for
no other purpose. From the funds appropriated to DISMAS, Inc., there is earmarked the sum
of $25,000 to Chattanooga Endeavors (formerly DISMAS House of Chattanooga) and $8,000
to Better Decisions (formerly DECISIONS, a program of the DISMAS, Inc., home office) for
the sole purpose of maintaining operations at th_eir former level.
Item 31. Department of Correction, in Section 1, Title 111-7, the sum of $250,000 for
the sole purpose of making a grant in such amount to the Tennessee Higher Education
Initiative, to be used for programs and services that provide access to on-site degree-bearing
higher education for individuals in Tennessee prisons. Any unexpended funds shall not revert
to the general fund and shall be carried forward in a reserve to be expended for purposes of
this item.
Item 32. Department of Correction, in Section 1, Title 111-7, the sum of $250,000 for
the sole purpose of making a grant in such amount to Big Brothers Big Sisters Amachi
mentoring initiative.
Item 33. Department of Education, Grants-in-Aid, in Section 1, Title 111-9, Item 2.1f,
the sum of $100,000 is to be. paid to Tennessee History for Kids, Inc., to be used for
programs, se~ices, and operational expenses.
Item 34. Department of Education, in Section 1, Title 111-9, the sum of $200,000 is to
be paid to the Arts Academy to be used for teacher professional development
Item 35. Department of Education, in Section 1, Title 111-9, the sum of $200,000 is to
be paid to the Arts Academy Foundation.
Item 36. Department of Education,· in Section 1, Title 111-9, Item, 3, College, Career
and Technical Education, the sum of $3,000,000 for Governor's Schools.
Item 37. Department of Education, in Section 1, Title 111-9, Item 2.1f, Grants-in-Aid,
the sum ~f $2,786,800 to be granted to public television stations._
Item 38. Department of Education, in Section 1, Title 111-9, Item 2.1 i, Early Childhood
Educ~tion, the sum of $3,050,000 for family resource centers.
Item 39. Department of Education, in Section 1, Title 111-9, the sum of $900,000 for
the sole purpose of making grants to the Science Alliance museums.
28
SB 2690
Item 40. Department of Education, in Section 1, Title 111-9, the sum of $1,650,000 for
the sole purpose of making a grant in such amount to the Tennessee Science, Technology,
Engineering, and Mathematics (STEM) Innovation Network (TSIN), to support STEM
education programs and outreach.
Item 41. Department of Education, in Section 1, Title 111-9, the sum of $410,000
(recurring). to the State Museum for the sole purpose of providing a grant in such amount to
the Holocaust Commission.
Item 42. Department of Education, in Section 1, Title 111-9, the grant to the Tennessee
Alliance of Boys & Girls Clubs shall be disbursed pursuant to Tennessee Code Annotated,
Section 36-6-413(b)(2)(F) and Section 21 of this act.
Item 43. Department of Education, in Section 1, Title 111-9, the sum of $1,200,000 for
making a grant to Save the Children Federation, Incorporated.
Item 44. Department of Education, in Section 1, Title 111-9, the sum of $3,588,300 for
a grant to the Niswonger Foundation.
Item 45. Higher Education, in Section 1, Title 111-10, Item 1.2, Contract Education, the
amount of $613,000 for a grant to the Southern College of Optometry.
Item 46. Higher Education, in Section 1, Title 111-10, Item 1.6, THEC Grants, the
appropriation for increased graduate medical education shall be allotted by the Tennessee
Higher Education Commission after consultation with the Department of Health.
Item 47. From funds appropriated in Chapter 418, Public Acts of 2023, Section 60,
Item 4, for the Tennessee Future Teacher Scholarship Act of 2023, there is earmarked the
sum of $236,300 (recurring through FY27-28) for the sole purpose of implementing 2024
Public Chapter 982, relative to allowing students enrolled in an approved educator program
at Western Governor University to be eligible recipients of the Tennessee Future Teacher
Scholarship, if such bill becomes a law.
Item 48. Department of Commerce and Insurance, Fire Fighting Personnel Standards
and Education, in Section 1, Title 111-11, Item 5, funds are earmarked for payment to eligible
units of local government to pay bonus supplements to firefighters who successfully
complete during calendar year 2026 an in-service training program appropriate to such
firefighter's rank and responsibility and the size and location of the department of at least
forty (40) hours duration at a school established or certified by such commission. The funds
appropriated by this item shall be disbursed in accordance with the provisions of Tennessee
Code Annotated, Title 4, Chapter 24 and Section 56-4-205(c), and no supplement to any
person shall exceed eight hundred dollars ($800). .
Item 49. Department of Commerce and Insurance, Peace Officer Standards and
Training (POST) Commission in Section 1, Title 111-11, Item 6, funds are earmarked for
payment to eligible units of local government which have required all police officers to
complete during calendar year 2026 an in-service training course appropriate to each
officer's rank and responsibility commensurate with the size and location of the department of
at least forty (40) hours duration at a school certified or recognized by the POST
Commission. The funds appropriated by this item shall be disbursed in accordance with the
provisions of Tennessee Code Annotated, Title 38, Chapter 8, Part 1, and no recipient shall
be eligible to receive a supplement of more than eight hundred dollars ($800).
Item 50. Department of Commerce and Insurance, Regulatory Boards, in Section 1,
Title 111-11, Item 9, an amount of $400,000 is earmarked from the Board of Architectural and
Engineering Examiners revenues or reserve funds for disbursement to accredited interior
design programs, accredited architectural programs, accredited engineering programs and
accrediteq landscape architectural programs of any college or· university in the state of
Tennessee, after application to and subject to. approval by the Board of Architectural and
Engineering Examiners. The Board will develop guidelines for application, award and
disbursement of the funds appropriated herein.
Item 51. Commerce and Insurance, Fire Prevention, Tennessee Association of
Rescue Squads, in Section 1, Title 111-11, Item 10, the appropriation of $100,000 is for the
sole purpose of maintaining a state headquarters of the association and to pay the salary of
an executive director of the association and other exp~nses appurtenant thereto.
Item 52. Commerce and Insurance, in Section 1, Title 111-11, the appropriation of
$10,500 for making a grant to Tennessee Fallen Firefighter's Memorial Inc'..
29
SB 2690
Item 53. Mental Health and Substance Abuse Services, Community Mental Health
Services, in Section 1, Title 111-14, Item 2.5, the department is authorized to expend up to one
hundred fifty thousand dollars ($150,000) for reimbursement of licensed supportive living
facilities for the mentally ill, pursuant to Tennessee Code Annotated, Section 12-4-308, and
such funds are specifically appropriated for that purpose.
Item 54. Department of Mental Health and Substance Abuse Services, Community
Mental Health Services, in Section. 1, Title 111-14, Item 2.5, an amount of $700,000 is to be
paid to Centerstone Military Services, in three regions of Tennessee for the purpose of
providing. professional counseling services to veterans and their families who suffer from
post-traumatic stress disorder (PTSD).
Item 55. Department of Mental Health and Substance Abuse Services, in Section 1,
Title 111-14, an amount of $200,000 for the sole purpose of making a grant in such amount to
the Prevention Alliance of Tennessee (PAT), to be used for establishing, training, and
supporting substance use prevention coalitions in Tennessee.
Item 56. Department of Health, Community and Medical Services, in Section 1, Title
111-16, Item 3.4, an amount of $263,700 is to be paid to St. Jude Hospital in Memphis to
defray, in whole or in part, the expenses of patients and their families who are citizens and
residents of Tennessee in traveling to and from St. Jude Hospital. Such payments shall be
administered by the hospital and shall be made on the basis of need. Such patients, or their
families, requesting assistance from these funds shall supply such documents supporting
need and travel expenses as the hospital may require.
Item 57. Department of Health, Health Services, in Section 1, Title 111-16, Item 4, the
sum of three million dollars ($3,000,000) for the Health Access Incentive Fund. The
commissioner of health shall direct these funds, subject to the approval of the Commissioner
of Finance and Administration, to programs designed to enhance health access. The
programs may include, but not be limited to, funding for services provided by federally
qualified health centers, recruitment incentives, community initiatives, service-linked training
opportunities, support for high technology/telecommunications efforts, prevention initiatives,
efforts to improve the built environment, strategies to improve the health of the population,
and other strategies to expand primary, obstetric and dental health care services in
underserved areas. Pursuant to a finding of need by the commissioner, the health access
program may also address the lack of adequate access in underserved areas to other health
care providers and health care services such as emergency medicine, mental health care,
and prevention treatment services for low-income, pregnant substance abusers.
Item 58. Department of Health, Community and Medical Services, in Section 1, Title
111-16, Item 3.4, there is appropriated the sum of $190,000 for the sole purpose of contracting
with a nonprofit organization for promotion of health awareness among Tennessee males.
Such nonprofit organization must have been established prior to January 1, 2004; must have
received a contract administered through the Tennessee Department of Health; must have
received funding through the vitamin supplement settlement of June 2003, administered by
the Tennessee attorney general's office; and must possess substantial experience with
general health outreach and education activities for males in Tennessee, including activities
for the general population and the underserved living in Tennessee.
Item 59. Department of Health, Community and Medical Services, in Section 1, Title
111-16, Item 3.4, the amount of $100,000 is to be paid to Crumley House, located in
Washington County, to provide programs and services on behalf of persons suffering from
traumatic brain injuries.
Item 60. Department of Health, in Section 1, Title 111-16, the sum of $500,000 for the
sple_ purpose of making grants in the amount of $100,000 each to the: five (5) Regional
Perinatal Centers: Erlanger Health System/Children's Hospital at Erlanger; -Johnson City
Medical Center; . the University ,of Tennessee Medical Center at Knoxville; Vanderbilt
University Medical Center/Monroe Carrell, Jr. Children's Hospital at Vanderbilt; and, the
Regional Medical Center at Memphis; to be used to provide additional nurse educators and
associated services.
Item 61. Department of Health in Section 1, Title 111-16, an amount of $500,000 for a
grant to the Meharry Wellness Program.
Item 62. Department of Health, Emergency Medical Services, in Section 1, Title 111-16,
Item 2.2, funds are earmarked for payment to eligible units of local government to pay bonus
supplements· to emergency medical services personnel who successfully complete during
calendar year 2026 an in-service. trc1ining program appropriate to such. personnel's rank and
30
SB 2690
responsibility and the size and location of the department of at least forty (40) hours duration
at a school established or certified by the emergency medical services board. The funds
appropriated by this item shall be disbursed in accordance with the provisions of Tennessee
Code Annotated, Title 4, Chapter 3, Part 18 and Section 68-140-335, and no supplement to
any person shall exceed eight hundred dollars ($800).
Item 63. Department of Health, in Section 1, Title 111-16, appropriations for the State
HIV Surveillance and Prevention Program shall be subject to the provisions of Section 21 of
this act.
Item 64. Department of Disability and Aging, in Section 1, Title 111-25, an amount of
$355,000 for a grant to Vanderbilt University Medical Center, to be used for the Providing
Access to the Visual Environment (PAVE) Program.
Item 65. Department of Human Services in Section 1, Title 111-17, and from revenues
receivable by the department pursuant to the appropriation of federal revenue in Section 4,
Title 111-17, an amount not to exceed three million dollars ($3,000,000) hereby is appropriated
to the department for the purpose •of making advance payments to· certain social services
contractors, pursuant to Tennessee Code Annotated, Title 71, Chapter 1, Part 2.
Item 66. Department of Human Services in Section 1, Title 111-17, Item 3, the amount
of $1,613,600 is to be paid to Human Resource Agencies and Community Action Agencies
subject to the provisions of Section 21 of this act.
Item 67. Department of Human Services in Section 1, Title 111-17, the amount of
$1,000,000 for the sole purpose of making a grant in such amount to the Second Harvest
Food Bank of Middle Tennessee, to be used for the purpose of purchasing, handling, and
transporting food for hunger relief. The Second Harvest Food Bank of Middle Tennessee
shall distribute the funds to the five (5) food banks across the state, as follows:
(a) 35% to Second Harvest Food Bank of Middle Tennessee;
(b) 25% to Memphis Food Bank;
(c) 20% to Second Harvest Food Bank of East Tennessee;
(d) 10% to Chattanooga Area Food Bank;
(e) 10% to Second Haryesf Food Bank of Northeast Tennessee.
Item 68. Department of Human Services in Section 1, Title 111-17, the sum of
$100,000 (recurring) for the sole purpose of making a grant in such amount to Society of St.
Andrew - Tennessee, to be used for food bank supplies and operational expenses related to
hunger relief.
Item 69. Department of Human Services in Section 1, Title 111-17, the sum of
$187,500 for a grant to the Tennessee state alliance of YMCAs rural communities.
Item 70. Department of Human Services in Section 1, Title 111-17, the sum of
$150,000 for a grant to the Tennessee state alliance of YMCAs.
Item 71. Miscellaneous Appropriations in Section 1, Title 111-22, Item 7, for
Intergovernmental Conference Dues, it is the legislative intent that annual dues assessed by
the Council of State Governments (CSG), the National Conference of State Legislatures
(NCSL), and the National Conference of Insurance Legislators be paid timely in the following
amounts: (a) CSG, $263,483; (b) NCSL, $273,505; and (c) National Conference of Insurance
Legislators, $20,000 ..
Item 72. Miscellaneous Appropriations, UT-CBER - Research Assistance, and UT-
CBER - State Census Data Center, in Section 1, Title 111-22, Items 9.11 and 9.12, are for
research assistance to the Department of Finance and Administration and for services
delivered under the state data contract with the -U.S. Census Bureau.
Item 73. Miscellaneous Appropriations, in Section 1, Title 111-22, Item 9.26, shall be
paid as a direct appropriation to the Governor's Rural Education Foundation.
Item 74. Miscellaneous Appropriations, PC 512 - Transportation of Mental Health
Patients, in Section 1, Title 111-22, Item_ 10.4, shall be paid subject to the provisions of Section
21 of this Act.
31
SB 2690
Item 75. Department of Children's Services, Family Support Services, in Section 1,
Title 111-23, Item 2, the amount of $49,000 is to be paid to A Secret Safe Place for Newborns
of Tennessee, Inc., to be used for operational expenses.
Item 76. Department of Children's Services, in Section 1, Title 111-23, the amount of
$700,000 for a grant to Carroll Academy.
Item 77. Emergency and Contingency Fund in Section 1, Title 111-27, there is hereby
appropriated an amount not to exceed one million dollars ($1,000,000) for the following
purposes: (1) assistance related to natural disasters, including but not limited to, forest fires,
floods, and tornadoes, (2) payment of indemnities for destruction of livestock, including
poultry, and extraordinary veterinary payrolls for cattle market fluctuations by the Department
of Agriculture, (3) payment of extraordinary expenditures for insect and pest control efforts
and for extraordinary livestock, including poultry, disease control efforts by the Department of
Agriculture, and (4) the cost of personnel and equipment needed to restore law and order in
instances arising out of civil disorders.
Item 78. The Secretary of State, Bureau of Ethics and Campaign Finance, a sum
sufficient is earmarked from the bureau's revenues and reserves to purchase and implement
a new information technology application.
Item 79. Department of Finance and Administration, in Section 1, Title 111-2, Item 3.4,
the sum of $1,200,000 (recurring) and described as "Tennessee Counter-Trafficking
Coalition Grants" on page 8-19 of the 2026-2027 Budget Document is for the purpose of
making grants to single point of contact agencies recognized pursuant to Tennessee Code
Annotated, Section 9-4-214.
Item 80. Department of Environment and Conservation, Maintenance of Historic
Sites, in Section 1, Title 111-5, Item 9, an amount of $30,000 is for the sole purpose of making
a grant to the City of Fayetteville for historic sites acquisition, improvements, maintenance,
and interpretation at the Camp Blount Historic Site.
Item 81. Miscellaneous Appropriations, in Section 1, Title 111-22, Items 9.31 and 9.32
for Memphis - Crime Intervention - Focused Deterrence Grants and Memphis - Crime
Intervention - Work-Centered Training Grants, appropriations shall be subject to the
provisions of Section 21 of this act.
Item 82. Department of Transportation, ifl Section 1, Title 111-29, from funds
appropriated for general aviation airports, an amount of $4,000,000 is for upgrades at the
Livingston Municipal Airport in Overton County.
SECTION 8. Sum-Sufficient Appropriations from State Revenues and Reserves. In addition
to the appropriations made in Section 1 of this act and subject to the provisions of Tennessee Code
Annotated, Title 4, Chapter 3, Part 10 and Title 9, Chapter 4, Part 51, there is hereby appropriated a
sum sufficient:
Item 1. To pay all lawful claims due from the state to any of the several counties
thereof on account of unpaid court costs, unpaid allotments of taxes distributable by the state
to the counties and such other sums as may be due from the state to the counties, but none
of such funds shall be distributed to the counties of the state until after the validity of the
claims has been investigated and approved by the State Comptroller and the Governor.
Provided, however, that such funds shall not include funds due to counties and cities for the
state share of costs to cities and counties as required by Section 24, Article 11, of the
Constitution of Tennessee.
Item 2. From the appropriations in Sections 1 and 4 of this act, for state agencies to
pay the professional privilege tax levied in Tennessee Code Annotated, Title 67, Chapter 4,
Part 17, on behalf of certain full-ti~e state employees. Such payments shall be limited to the
circumstances and made under the procedure established in Section 67-4-1709.
• .· . .
Item 3. For the purpose of implementing an employee mainten'ance policy by the
Department of Finance and Administration, it is the legislative intent to hold harmless,
employees affected by the maintenance policy who were employed as of June 30, 1998. The
Commissioner of Finance and Administration is authorized to allocate the appropriation to
the appropriate organizational units and programs of state government and to adjust federal
aid and departmental revenue allotments accordingly.
Item 4. Settlement and Judgment Awards and Similar Awards. To affected state
agencies, such sums as are received by the Attorney General and Reporter or other state
officials and agencies in settlements and judgments and similar awards for the purposes
32
SB 2690
received, as determined by the Attorney General and Reporter in accordance with such
settlements and judgments. The Commissioner of Finance and Administration shall classify
such funds as are received in accordance with generally accepted accounting principles and,
as advised by the Attorney General and Reporter, is authorized to allot such funds for
expenditure by the appropriate departments and organizational units of state government.
This appropriation shall not include any amounts of a settlement, judgment, or award not
required to be set-aside or expended for a specific purpose, nor any amounts intended to
reimburse or benefit the general fund, and such revenue hereby expressly is not
appropriated. The Attorney General and Reporter shall file a written quarterly report with the
Speaker of the Senate, the Speaker of the House of Representatives and the Office of
Legislative Budget Analysis upon receipt of any settlement or judgment in excess of
$1,000,000; such report shall specify the nature of the settlement or judgment, the amount of
the settlement or judgment and the purposes for which any such settlement or judgment
funds are received. In addition to the report required on the receipt by the state of settlement
and judgment awards in excess of $1,000,000, the Attorney General and Reporter shall also
file a written quarterly report with the Speaker of the Senate, the Speaker of the House of
Representatives and the Office of Legislative Budget Analysis upon the payment by any
state officials and agencies of any settlement or judgment award against the state in excess
of $1,000,000. Such report shall specify the nature of the settlement or judgment, the amount
of the settlement or judgment, and any other information deemed by the Attorney General
and Reporter to be informative and not subject to any provision of law prohibiting its
disclosure.
Item 5.
(a) In the fiscal year ending June 30, 2026, there is hereby appropriated a
sum sufficient from the unexpended balances of grants made to state agencies under
the provisions of Section 23 of Chapter 530, Public Acts of 2025, and previous
appropriation acts, and previously classified. in state accounts as deferred revenue, to
be transferred to dedicated reserves in the general fund at June 30, 2025. The
reappropriation and carry-forward of these funds is subject to approval by the
Commissioner of Finance and Administration.
(b) In the fiscal year ending June 30, 2027, there is hereby appropriated a
sum sufficient from the dedicated reserves in the general fund created at June 30,
2025, from the unexpended balances of grants made to state agencies under the
provisions of Section 23 of Chapter 530, Public Acts of 2025, and previous
appropriation acts, and previously classified in state accounts as deferred revenue.
The reappropriation and carry-forward of these funds is subject to approval by the
Commissioner of Finance and Administration.
Item 6. From general fund interest earnings for the purpose of funding the state's
liability for the exchange of interest with the federal government as provided for in the Cash
Management Act of 1990.
Item 7. From earmarked and/or dedicated agency revenues and reserves to provide
for the costs of implementing the state's Underground Storage Tanks Program. The
Commissioner of Finance and Administration shall allocate the costs to the individual
agencies and establish the appropriations required from revenues and reserves available to
the i~dividual agencies.
Item 8. From the revenues and reserves of the Electronic Monitoring lndigency Fund
created pursuant to Tennessee Code Annotated, Section 55-10-419, in the amounts
allocated to the departments of Mental Health and Substance Abuse Services, and Safety,
as foilows: • •
(a) To the Department of Safety, Tennessee Highway Safety Office, for grants
to local law enforcement agencies for obtaining and maintaining equipment and
personnel for alcohol-related offenses;
(b) To the Department of Mental Health and Substance· Abuse Services,
Community Substance Abuse. Services, for the alcohol and drug addiction treatment
fund; and •
(c) To the Department of Safety from its revenues pursuant. to the cited law, to
defray its expense of administering the program..
.
33
SB 2690
Item 9. From the revenues and reserves of the Electronic Monitoring lndigency Fund
created pursuant to Tennessee Code Annotated, Section 55-10-419, to the Treasury
Department for the ignition interlock grant fund.
Item 10. To the Tennessee Code Commission for the following purposes: (1) to
purchase pocket supplements for the state-owned sets of Tennessee Code Annotated; (2) to
purchase replacement volumes for state-owned sets of Tennessee Code Annotated; (3) to
purchase replacement sets of Tennessee Code Annotated; (4) to purchase sets of
Tennessee Code Annotated for judges of new courts created during the 2025 Session of the
General Assembly; (5) to purchase pocket supplements for the state-owned sets of the Index
to the Private Acts of Tennessee; and (6) to pay for proofreading and other expenses
involved in preparing supplements and replacement volumes for Tennessee Code
Annotated.
Item 11 : To pay the salaries and travel expenses of all persons appointed to sit as
Special Judges, Special District Attorneys General and/or District Attorneys General Pro
Tern, and Special Prosecutors under statutes relating to the state judicial system.
Item 12. To provide for indigent defendants.counsel in capital cases.
Item 13. To pay fees of special counsel who may be employed by the Governor on
recommendation of the Attorney General, in accordance with Tennessee Code Annotated,
Section 8~6-106, and to pay other expenses in special cases of litigation involving the state.
In matters involving the Tennessee Public Utility Commission, Housing Development
Agency, Wildlife Resources Agency, Department of Financial Institutions, regulatory boards
and other programs and agencies funded by earmarked or dedicated revenues, the sum
sufficient appropriation shall be provided from said earmarked or dedicated revenues. In
matters involving departments, agencies and/or programs funded in whole or in part with
federal aid and/or departmental revenues and reserves, the sum sufficient appropriation may
be provided in whole or in part from said revenues and reserves.
Item 14. From the Tennessee general fund opioid abatement fund revenues and
reserves for opioid abatement and remediation activities.
Item 15. To the Administrative Office of the Courts from revenues and reserves
available t9 the following programs:
(a) Divorcing Parent Education and Mediation Fund and the Marriage License
Tax pursuant to Tennessee Code Annotated, Section 36-6-413(b)(2).
(b) Tennessee Judicial Information System Fund pursuant to Tennessee Code
Annotated, Section 16-3-807.
(c) Board of Professional Responsibility, Tennessee Lawyers Assistance
Programs, Continuing Legal Education and Client Protection Fund. Additional
positions as required are authorized to be established.
(d) Municipal Court Judges and Municipal Court Clerks Training and
Continuing Legal Education pursuant to Tennessee Code Annotated, Section 16-18-
304.
(e) General Sessions Judges' Conference p~rsuant to Tennessee Code
Annotated, Section 16-15-5007 and Section 67-4-606(a)(9), to defray expenses of
serving the general session~ courts.
{f}- Judicial Commissioner Continuing Education Account pursuant to
Tennessee Code Annotated, Section 67-4~602(k){5).
(g) Civil Legal Representation from the earmarked litigation taxes levied
pursuant to Tennessee Code Annotated, Section 67-4-602(9) and the earmarked bail
bond tax levied pursuant to Section 67-4-806, for the purpose of providing legal
representation to low-income Tennesseans, pursuant to S_ection 16-3-808. The
Commissioner of Finance ahd Administration is authorized to adjust the appropriation
in Section 1, Title II, Item 6, as realized receipts of the program justify.
(h) Professional Bail Bonding Agents Continuing Education from the
earmarked bail bond tax levied pursuant to Tennessee Code Annotated, Section 67-
4-806, for the purpose of developing and providing the education program, pursuant
to Tennessee Code Annotated, Title 40, Chapter 11, Part 4. The Commissioner of
34
SB 2690
Finance and Administration is authorized to adjust the appropriation in Section 1, Title
II, Item 6, as realized receipts of this education program justify.
Item 16. To the Attorney General and Reporter from the revenues and reserves
available to the following programs:
(a) False Claims Act Fund established pursuant to Tennessee Code
Annotated, Section 4-18-1040). The Commissioner of Finance and Administration is
authorized to adjust the appropriation made under Section 1, Title 111-1, Item 1.1, of
this act to recognize any reimbursement for expenses already provided.
(b) Reserve for Attorney General Litigation Settlement. The Commissioner of
Finance and Administration is authorized to establish positions as may be required.
Item 17. To the District Attorneys General Conference from the revenues and
reserves of the district attorneys expunction fund created by, Tennessee Code Annotated,
Section 40-32-108(g), for the purposes therein specified.
Item 18. To provide for payment of administrative law judge services. The
Commissioner of Finance and Administration is authorized to allocate the funds to the
appropriate organizational units, adjust departmental revenues accordingly, and establish
authorized positions.
Item 19. To the Tennessee Local Development Authority, a sum sufficient from the
Underground Storage Tank Fund for the purpose of paying debt service and expenses in
connection with any debt issued pursuant to the provisions of Chapter .444,. Public Acts of
1997, relative to underground storage tanks.
Item 20. To the Office of the District Public Defenders Conference pursuant to
Tennessee Code Annotated, Section 40-14-210. Additional positions as required are
authorized to be established.
Item 21. To the District Public Defenders Conference from the revenues and reserves
of the public defenders expunction fund created by Tennessee Code Annotated, Section 40-
32-108(h), for the purposes therein specified.
Item 22. To the Comptroller of the Treasury, from the revenues and reserves,
including interest earnings, of the Utility Revitalization Fund, pursuant to Tennessee Code
Annotated, Section 7-82-708.
Item 23. To the Treasury Department, Claims and Compensation, from the reserves
of the Educator Liability Trust Fund authorized by Tennessee Code Annotated, Section 9-8-
204, for the purposes therein specified.
Item. 24. To the Treasury Department,-·from bond forfeitures as a result of federal
antitrust litigation settlements.
Item 25. To the Treasury Department, from the tuition guaranty fund established in
Tennessee Code Annotated, Section 49-7-2018(b).
Item 26. To the State Treasurer, Unclaimed Property, for payment of claims and
claims administrative expense. The provisions of this item take effect upon becoming a law,
the public welfare requiring it.
Item 27. To the State Treasurer, from a portion of the privilege tax collected pursuant
to Tennessee Code Annotated, Section 4-49-104(e).
- ,.
Item 28. To the Alcoholic Beverage Commission, a sum sufficient from the licensing
fees established pursuant to Tennessee Code Annotated, Section 57-7-106.
Item 29. To the Health Facilities Commission, a sum sufficient from the revenues and
re$erves of the agency.
Item 30. To the Health Facilities Commission from the fees charged pursuant to
Tennessee Code Annotated, Section 68-11-1620.
Item 31. To the Health Facilities Commission from the fees charged pursuant to
Tennessee Code Annotated, Section 68-11-2304(c)~
35
SB 2690
Item 32. To the Health Facilities Commission from the revenues and reserves
available to the following programs:
(a) Nursing Home Resident Protection Trust Fund pursuant to Tennessee
Code Annotated, Section 68-11-827.
(b) Medicaid Nursing Home Trust Fund pursuant to Federal Regulations,
Chapter 42, Section 488.442.
(c) Trauma System Fund created by Tennessee Code Annotated, Section 68-
59-105. Subject to approval of the Commissioner of Finance and Administration, the
appropriation may be increased or decreased as collections from the tax established
pursuant to Tennessee Code Annotated, Section 67-4-1025(e), justify.
Item 33. To the Corrections Institute, from revenues and reserves available to the
Local Correctional Officer Training Fund pursuant to Tennessee Code Annotated, Section
41-7-104.
Item 34. To the Tennessee Advisory Commission on Intergovernmental Relations
(TACIR) from the TACIR reserves authorized by Tennessee Code Annotated, Section 4-10-
107. The Commissioner of Finance and Administration is authorized to adjust departmental
revenues accordingly.
Item 35. To the Tennessee Public Utility Commission, a sum sufficient from the
revenues and reserves of the commission.
Item 36. To the Sports Wagering Advisory Council a sum sufficient from the revenues
and reserves of the council.
Item 37. From revenues collected from accounts receivable, to provide for a
consultant's services in review of accounts receivable management for the State of
Tennessee and for the implementation of those recommendations to the extent the
recommendations are approved by the Commissioner of Finance and Administration. The
Commissioner of Finance and Administration may establish such positions as may be
required to cost-effectively implement such recommendation. The Commissioner also is
authorized to allocate a portion of the revenues collected to the appropriate organizational
units and programs of state government and to adjust federal aid and other departmental
revenue accordingly. Each allocation shall be a one-time incentive to maximize accounts
receivable collections and shall be used to fund nonrecurring items only.
Item 38. To the Department of Finance and Administration to reimburse the federal
government for arbitrage on the state's general obljgation debt.
Item 39. To the Department of Finance and Administration from revenues and
reserves available to the following programs:
(a) To provide funding for the additional sexual assault program services
pursuant to Tennessee Code Annotated, Title 71, Chapter 6, Part 3, and 40-24-108.
Any unexpended funds shall not revert to the general fund balance at June 30 and
are hereby reappropriated in the subsequent fiscal year.
(b) To provide funding for family violence shelters and shelter services
pursuant to Tennessee Code Annotated, Sections 39-13-101 and 67-4-411. Any
unexpended funds shall not revert to the general fund at June 30 and are hereby
reappropriated in the subsequent fiscal year.
(c) To provide funding from the revenues apportioned to the Domestic
Violence Community Education Fund pursuant to Tennessee Code Annotated,
Section 36-3-616.
(d) To provide funding from the litigation tax apportioned to fund grants to local
governments to purchase and maintain· electronic fingerprint imaging systems
pursuant to Tennessee Code Annotated, Sections 67-4-602 and 67-4-606.
(e) To provide funding for grant awar9s, to halfway houses whose primary
focus is to assist drug and alcohol offenders pursuant to Tennessee Code Annotated,
Section 55-10-419(d)(6). Any unexpended funds shall not revert to the general fund
at June 30 and are hereby reappropriated in the subsequent fiscal year.
36
SB 2690
(f) To provide funding for grant awards to child abuse prevention services from
the Child Abuse Fund pursuant to Tennessee Code Annotated, Section 39-13-530.
(g) To provide funding for family mediation, education, and any related
services, pursuant to Tennessee Code Annotated, Section 36-6-413.
(h) To provide funding for disbursements from the sale of specialty license
plates pursuant to Tennessee Code Annotated, Section 55-4-301 and 55-4-296.
Item 40. To the Department of General Services, Real Estate Asset Management
division, to replace any real estate transaction fees waived under the provisions of
Tennessee Code Annotated, Section 4-3-1105(22). This appropriation is subject to approval
of the State Building Commission.
Item 41. To the Department of Agriculture from revenues and reserves available to
the following programs:
(a) Agricultural Resources Conservation Fund pursuant to Tennessee Code
Annotated, Section 67-4-409(1).
(b) Agricultural Regulatory Fund pursuant to Tennessee Code Annotated, Title
43, Chapter 1, Part 7.
(c) Certified Cotton Growers' Organization Fund pursuant to Tennessee Code
Annotated, Title 43, Chapter 6, Part 4.
(d) Tennessee Grain Indemnity Fund pursuant to Tennessee Code Annotated,
Title 43, Chapter 32, Part 2.
(e) Agricultural Development, Agricultural Development Fund pursuant to
Tennessee Code Annotated, Section 55-4-298.
(f) Division of Forestry, from the proceeds of revenue allocated pursuant to
Tennessee Code Annotated, Section 11-14-305(b)(3), pertaining to the sale and
replacement of real property.
_ (g) Consumer and Industry Services a sum sufficient pursuant to Tennessee
Code Annotated, Section 47-18-1311, pertaining to kerosene and motor fuels quality
inspection.
Item 42. To the Department of Environment and Conservation from revenues and
reserves available to the following programs:
(a) Local Park Land Acquisition Fund, State Lands Acquisition Fund, and
State Lands Compensation Fund pursuant to Tennessee Code Annotated, Sections
67-4-409(i) and 0).
(b) Heritage Conservation Trust Fund pursuant to Tennessee Code
Annotated, Section 11-7-103.
(c) State parks program from revenues derived from nonprofit support groups
pursuant to Tennessee Code Annotated, Title 11, Chapter 3, Part 2.
(d) State Park Fund pursuant to Tennessee Code Annotated, Title 11, Chapter
3, Part 3.
(e) State Parks Hospitality Maintenance and Improvement Fund pursuant to
Tennessee Code Annotated, Section 11-3-306.
(f) State Parks Maintenance from revenue received pursuant to Tennessee
Code Annotated, Section· 12-2-112(a)(10), from the lease of surplus state real
property for communications relay apparatus or antennae sites.
(g) From revenues derived from the sale of Tennessee Elk River Development
Agency lands. This appropriation is subject to approval by the Commissioner of
Finance and Administration. - ••
(h) Environmental Protection Fund pursuant to Tennessee Code Annotated,
Title 68, Chapter 203, Part 1. Departmental revenues shall be adjusted accordingly.
37
SB 2690
(i) Radiation Reclamation Trust Fund and the Perpetual Care Trust Fund
pursuant to Tennessee Code Annotated, Section 68-202-405.
U) Solid Waste Assistance program from revenues received pursuant to
Tennessee Code Annotated, Title 67, Chapter 4, Part 16 and Title 68, Chapter 211,
Part 8.
(k) Used Oil Collection Fund pursuant to Tennessee Code Annotated, Section
68-211-1004.
(I) Hazardous Waste Remedial Action Fund pursuant to Tennessee Code
Annotated, Title 68, Chapter 212, Part 2.
(m) Petroleum Underground Storage Tank Fund pursuant to Tennessee Code
Annotated, Title 68, Chapter 215, Part 1.
(n) Drycleaner Environmental Response Fund pursuant to Tennessee Code
Annotated, Title 68, Chapter 217, Part 1.
(o) Solid Waste Disposal Site Restoration Fund pursuant to Tennessee Code
Annotated, Section 68-211-116.
(p) Hazardous Waste Trust Fund pursuant to Tennessee Code Annotated,
Section 68-212-108.
(q) Tire Environmental Fund pursuant to Tennessee Code Annotated, Section
68-211-304.
(r) Ocoee River Recreation and Economic Development Fund pursuant to
Tennessee Code Annotated, Section 11-8-103. The provisions of this item take effect
upon becoming a law, the public welfare requiring it.
(s) Natural Areas, from donations to the program.
(t) The reserve for state IIJA matching funds.
Item 43. To the Historical Commission from the Tennessee Civil War or War Between
the States site preservation fund for the purposes provided in Tennessee Code Annotated,
Section 4-11-112.
Item 44. To the Historical Commission from the historic property land acquisition fund
for the purposes provided in Tennessee Code Annotated, Section 4-11-113.
Item 45. To the Wildlife Resources Agency from revenues available to the Wetlands
Acquisition Fund and the Wetlands Compensation Fund pursuant to Tennessee Code
Annotated, Section 67-4-409(g).
Item 46. To the Wildlife Resources Agency from the general fund for any difference
between the actual charges to the agency under the indirect cost allocation plan and the
amount the TWRA can justify and continue to receive federal funds. ·- •
Item 47. To the Wildlife Resources Agency from its own revenues to implement the
programs, _activities and projects approved by the Wildlife Resources Agency Commission.
The Commissioner of Finance and Administration is authorized to adjust departmental
revenue accordingly and to establish positions as may be required.
Item 48. To the Department of Correction from revenues and reserves available for
the following programs:
(a) Sex Offender Treatment Program pursuant to Tennessee Code Annotated,
Section 39-13-708.
(b) Probation and parole supervision and rehabilitation fees pursuant to
Tennessee Code Annotated, Section 40-28-203.
Item 49. To the Department of _Education in amounts equal to the unexpended
balances of prior year accrued liabilities in the following education programs: (a) Safe
Schools Act of 1998, (b) State te~ting programs, (c) Governor's Schools, and (d) Special
Schools.
38
SB 2690
Item 50. To the Department of Education, Charter School Commission, from the
revenues and reserves of the commission relative to the charter authorizer fee, pursuant to
Tennessee Code Annotated, Title 49, Chapter 13, Part 1.
Item 51. To the Department of Commerce and Insurance, Regulatory Boards, from
revenues and reserves available for the following purposes:
(a) To purchase examinations for regulatory boards. This appropriation is
contingent upon the fees collected for giving examinations being in excess of the
budgeted estimates.
(b) To fund data processing systems development and implementation. Said
appropriations are made pursuant to Tennessee Code Annotated, Section 9-4-5117.
(c) To the Real Estate Education and Recovery Fund, to provide for court-
ordered payments and to print and distribute to all licensees a manual of laws and
rules and regulations.
(d) To the Auctioneer Education and Recovery Fund, to provide for court-
ordered payments.
(e) To the Cemetery Consumer Protection Fund pursuant to Tennessee Code
Annotated, Section 46-1-105.
(f) To the Pre-Need Funeral Consumer Protection Fund pursuant to
. Tennessee Code Annotated, Section 62-5-414. The Commissioner of Finance and
Administration is authorized to make transfers from the Pre-Need Funeral Consumer
Protection Fund to the Burial Services program in the Division of Regulatory Boards.
(g) To the Board of Court Reporting pursuant to Tennessee Code Annotated,
Section 20-9-616.
_ (h) To fund payments through the Board for Licensing Contractors pursuant to
the Go Build Tennessee Act, Tennessee Code Annotated, Section 4-41-105.
Item 52. To the Department of Commerce and Insurance, 911 Emergency
Communicptions Fund, from the revenues collected pursuant to Tennessee Code Annotated,
Title 7, Chapter 86, Part 3.
Item 53. To the Department of Financial Institutions from the following revenues:
(a) Annual banking fee assessed pursuant to Tennessee Code Annotated,
Section 45-1-118. The appropriation from said source may be increased or
decreased as realized receipts from the 'annual banking fee justify, subject to the
provisions of Tennessee Code Annotated, Title 4, Chapter 3, Part 10 and Title 9,
Chapter 4, Part 51.
(b) Credit union annual supervision fee assessed pursuant to Tennessee
Code Annotated, Section 45-4-1002, and credit union merger fees assessed pursuant
to Tennessee Code Annotated, Section 45-4-903, and the appropriation from said
fees and reserves may be increased or decreased as realized receipts from credit
union regulation activities justify, subject to the provisions of Tennessee Code
Annotated, Title 4, Chapter 3, Part 10 and Title 9, Chapter 4, Part 51.
(c) Compliance division annual supervision fee assessed pursuant to
Tennessee Code Annotated, Section 45-1-118(i), and the appropriation from said
source may be increased or decreased .as realized receipts from the compliance
division justify, subject to the provisions· of Tennessee Code Annotated, Title 4,
Chapter 3, Part 10 and Title 9, Chapter 4, Part 51.
. Item 54. To the Departrr1ent of Labor and Workforce Development from revenues and
reserves available to the following programs:
(a) Uninsured Employers Fund program pursuant to Tennessee Code
Annotated, Section 50-6-801.
(b) Tennessee Occupational Safety and Health Administration (TOSHA)
program pursuant to Tennessee Code Annotated, Title 50, Chapter 3, Part 4.
39
SB 2690
(c) Boilers, Elevators, and Amusement Devices pursuant to Tennessee Code
Annotated, Sections 68-121-108, 68-121-110, 68-121-115, 68-121-117, 68-122-113,
and 68-122-205.
(d) Lawful Employment Enforcement Fund pursuant to Tennessee Code
Annotated, Section 50-1-708.
(e) Workers' Compensation Employee Misclassification Education and
Enforcement Fund pursuant to Tennessee Code Annotated, Section 50-6-913.
(f) Unemployment Compensation Special Administration Fund pursuant to
Tennessee Code Annotated, Section 50-7-503.
Item 55. To the Department of Mental Health and Substance Abuse Services from the
revenues and reserves available to the following programs:
(a) Alcohol and Drug Addiction Treatment Fund pursuant to Tennessee Code
Annotated, Section 40-33-211 (c)(2).
(b) Drug Court Treatment Program Resources Fund to provide funding to
establish drug courts pursuant to Tennessee Code Annotated, Title 16, Chapter 22,
Part 1.
Item 56. To the Department of Military to provide for the cost of personnel and
equipment needed to maintain law and order in instances arising out of civil disorders.
Item 57. To the Department of Military, Disaster Relief Grants, for the purpose of
matching federal funds and to the Department of Military to pay the administrative costs of
the Disaster Relief Program. Said appropriations shall be made first from the Reserve for
Disaster Relief, and they are in addition to the appropriation made in Section 1, Title 111-15,
Item 5, of this act. Federal aid and other departmental revenue may be adjusted accordingly.
Any unexpended funds remaining in the Reserve for Disaster Relief or from the appropriation
made in Section 1, Title 111-15, Item 5, of this act, other acts of this General Assembly or acts
by previous General Assemblies shall not revert to the general fund balance at June 30.
Item 58. To the Department of Military from the revenues and reserves of the
following programs:
(a) Hurricane Helene Interest Payment Fund, pursuant to Tennessee Code
Annotated, Section 9-4-215; and
(b) Governor's Response and Recovery Fund, pursuant to Tennessee Code
Annotated, Section 9-4-216.
Provided, further, pursuant to Tennessee Code Annotated, Section 9-4-216, the
Commissioner of Finance and Administration is authorized to transfer all or a portion of the
interest earnings of the Governor's Response and Recovery Fund to the Hurricane Helene
Interest Payment Fund.
Item 59. To the Department of Health from revenues and reserves available to the
following programs:
(a) Child Safety Fund pursuant to Tennessee Code Annotated, Section 55-9-
602(f).
(b) Traumatic Brain Injury Fund to allow for the provision of enhanced and/or
new services which benefit 'trauma.tic brain injury persons and their families as
authorized in Tennessee Code Annotated, Title 68, Chapter 55, Part 4. Any additional
appropriations provided under this item are nonrecurring from carry-forward funds
which__ exist in the Traumatic Brain Injury Fund and are subject to approval of the
Commissioner of Finance· and Administration. ••
(c) Health Related Boards, for data processing systems development and
implementation costs and for the cost of investigations and subsequent prosecution
of li_censees in violation of thefr practice acts. Said appropriations are made pursuant
to Tennessee Code Annotated, Section 9-4-5117.
item 60. To the Department of Revenue to pay interest, attorney f~es and other costs
which are due with certain taxpayer refund payments.
40
SB 2690
Item 61. To the Department of Revenue from the C.I.D. Anti-Theft reserve fund
pursuant to Tennessee Code Annotated, Section 55-3-206.
Item 62. To the Department of Revenue, Administration Division, from proceeds
resulting from investigation and enforcement of state tobacco laws.
Item 63. To the Department of Revenue for sales tax disaster relief payments made
pursuant to Tennessee Code Annotated, Section 67-6-396. Said appropriations shall be
made first from the Department of Revenue unencumbered balance reserve for sales tax
disaster relief, and they are in addition to the appropriation made in Section 1, Title 111-18,
Item 8, of this act.
Item 64. To the Department of Revenue, in addition to the appropriation in Section 1,
Title 111-18, Item 9, Tax Refund Interest Expense, for interest due to taxpayers on tax refunds
pursuant to Tennessee Code Annotated, Section 67-1-801(b)(1).
Item 65. To the Department of Revenue from the revenues and reserves of the
Insurance Verification program, pursuant to Tennessee Code Annotated, Section 55-12-213,
for the uninsured motorist identification restricted fund.
Item 66. To the Department of Safety from revenues and reserves available to the
following programs:
(a) Motorcycle Rider Safety reserve fund pursuant to Tennessee Code
Annotated, Section 55-51-104.
(b) Driver Education reserve fund pursuant to Tennessee Code Annotated,
Section 67-4-606(a)(2)(8).
Item 67. To the Department of Safety from the revenues and reserves of the
Immigration Enforcement Local Grant Fund, pursuant to Tennessee Code Annotated,
Section 7-68-1 06.
Item 68. To the Department of Transportation for payments to the Risk Management
Fund. Said appropriation shall be made from the highway fund balance.
Item 69. To the Department of Transportation, for the Air, Water, and Rail
Transportation program, from the Transportation Equity Fund. This appropriation is subject to
the availability of revenue in the fund.
Item 70. To the Department of Transportation, in addition to the appropriations made
in Section 1, Title 111-29, for highway maintenance and state highway construction, such
amount ~s the Commissioner of Finance and Administration shall determine is available from
tax revenues allocated to the highway fund and from the highway fund balance.
SECTION 9. Sum-Sufficient Appropriations from Departmental Revenues and Reserves. In
addition to the appropriations made in Section 4 of this act and subject to the provisions of
Tennessee Code Annotated, Title 4, Chapter 3, Part 10 and Title 9, Chapter 4, Part 51, there is
hereby appropriated a sum sufficient: ••
Item 1. To the Attorney General and Reporter, if the appropriation made in Section 4,
Title 111-1, Item 1.1, shall prove inadequate to allow the Attorney General and Reporter to
repres~nt the state agencies and officials before the Claims Commission, or state agencies
and officials in' other cases of litigation or other legal matters. The Commissioner of Finance
and Administration, upon the request of the Attorney General and Reporter, is hereby
authorized to increase the departmental reven~e estimate by an amount sufficient to provide
for such representation and to establish positions as may be required.
Item 2. To the Attorney General and ReP,orter, a sum sufficient from the Risk
Management Fund for the purposes of implementing the provisions of Tennessee Code
Annotated, Title 8, Chapter 42, relative to legal representation for state employees. The
Commissioner of Finance and Administration, upon the request of the Attorney General and
Reporter, is authorized to establish positions as may be required to implement the provisions
of Tennessee Code Annotated, Title 8, Chapter 42, Part 1.
Item 3. To the Attorney General and Reporter for the Consumer Affairs program from
departmental revenues and reserves of the program.
lte!TI 4. To the District Attorneys General Conference, from funds confiscated
pursuant to Tennessee Code Annotated, Section 40-3-207.
41
SB 2690
Item 5. To the Bureau of Ethics and Campaign Finance from fees collected by the
bureau.
Item 6. To the Secretary of State, Help America Vote Act program, in Section 4, Title
111-1, Item 3.6, from the state reserve for the Help America Vote Act for the purpose of
matching federal funds.
Item 7. To the Comptroller of the Treasury, Division of Property Assessments, from
revenues and reserves derived from the annual assessor's training session.
Item 8. To the State Treasurer, with the concurrence of the Speaker of the Senate
and the Speaker of the House of Representatives, for the purpose of developing and
implementing programs designed to enhance investment and pensions administration
performance, including programs designed to recruit, hire, and retain qualified •investment
and administrative staff. The State Treasurer, with approval from the Commissioner of
Finance and Administration, is further authorized to establish additional positions and funding
for such positions needed to effectuate the purposes of this section.
Item 9. To the State Treasurer from the revolving account created pursuant to
Tennessee Code Annotated, Section 9-4-603(9).
Item 10. To the State Treasurer from revenues and reserves available to the Financial
Literacy Program pursuant to Tennessee Code Annotated, Section 49-6-1706.
Item 11. From the fund created in Tennessee Code Annotated, Section 65-5-113, to
the State Treasurer for purposes of conducting a purchasing disparity study. It is the
legislative intent that such study include the University of Tennessee system and the state
university and community college system; provided, however, the costs of such study shall
not exceed amounts previously set aside therefor. Should available funds be insufficient to
conduct a valid purchasing disparity study, funds appropriated by this item may be used to
conduct a review to determine best practices related to increasing purchasing opportunities
with small and minority-owned businesses and to implement recommendations arising from
the study.
Item 12. To the State Treasurer, Small and Minority-Owned Business Assistance
Program, from funds allocated to the program pursuant to Tennessee Code Annotated,
Section 65-5-113. •
Item 13. To the State Treasurer, TN Stars College Savings 529 Program, from funds
transferred into the program from the college savings trust fund program pursuant to
Tennessee Code Annotated, Section 49-7-824(c).
Item 14. To the State Treasurer, TN Stars College Savings 529 Program, from funds
transferred into the program from the Small and Minority-Owned Business Assistance
Program pursuant to Tennessee Code Annotated, Section 65-5-113(c).
Item 15. To the State Treasurer, TN Stars College Savings 529 Program, from
financial management fees in the program.
Item 16. To the State Treasurer from the earnings of the funds of the Tennessee
Retiree Group Trust to the Tennessee Department of Treasury, a sum sufficient for
implementation of Chapter 780, Public Acts of 2022; provided, however, that said sum
sufficient • shall be subject to the approval of the Commissioner of Finance and
Administration. The State Treasurer shall file a request to establish such sum sufficient with
the Commissioner of Finance and Administration and the Chair and Vice Chair of the Council
on Pensions and Insurance. The Commissioner of Finance and Administration shall not act
upon such request until in receipt of a letter from the Chair and Vice Chair of the Council on
Pensions and Insurance .acknowledging receipt of the State Treasurer's request. Within the
appropriation approved pursuant to this item the State Treasurer, with the approval of the
Speaker of the Senate and the Speaker of the- House of Representatives, is authorized to
establish positions and funding needed to effectuate the provisions of Chapter 780, Public
Acts of 2022: -
Item 17. To the Alcoholic Beverage Commission from departmental revenues
av~ilable to defray the expenses of outstanding: litigation.
lt~·m ,18. To the Alcoholic Beverage Commission from the revenues and reserves of
the Responsible Vendor Certification Fund, pursuant to Tennessee Code Annotated, Section
57-5-609.
42
SB 2690
Item 19. To the Health Facilities Commission from the revenues and reserves of the
Temporary Health Care Staffing Registry.
Item 20. To the Health Facilities Commission from the revenues and reserves
authorized by Tennessee Code Annotated, Section 68-11-278 for plans review.
Item 21. From federal funds available to the Tennessee Housing Development
Agency, there is hereby appropriated a sum sufficient to meet obligations incurred by the
agency, pursuant to the federal Section 8 program and the Hardest Hit Fund (HHF) Program.
Item 22. To the Tennessee Housing Development Agency from the sale or rental of
housing and other property rehabilitated by the Neighborhood Stabilization Program.
Item 23. To Tennessee Rehabilitative Initiative in Correction Board (TRICOR), in an
amount equal to the balance in the revolving fund, for benefit of the program.
Item 24. To the Tennessee State Museum from (a) deferred revenue and
departmental revenues available to the museum to be used for the purchase of artifacts, and
(b) donations made to the State Museum. Any unexpended revenues shall not revert to the
general fund balance at June 30 and such revenues shall be carried forward in a reserve at
June 30 and are hereby reappropriated in the subsequent fiscal year.
Item 25. To the Tennessee State Museum from departmental revenues from gift shop
sales and rentals of museum space. Any unexpended revenues shall not revert to the
general fund balance at June 30 and are hereby reappropriated in the subsequent fiscal
year.
Item 26. To the Department of General Services for equipment and supplies ordered
but not delivered at June 30, 2026.
Item 27. To the Department of General Services, Surplus Operations program, from
available revenues and reserves.
Item 28. To the Department of General Services, Megasite Authority of West
Tennessee, from the revenues and reserves of the authority.
Item 29. To the Department of General Services, Megasite Water and Wastewater
Authority from the revenues and reserves derived from the megasite water and wastewater
fund.
Item 30. To the Department of Veterans Services, Tennessee State Veterans
Cemeteries, from the revenues and reserves of donations made to the cemeteries pursuant
to Tennessee Code Annotated, Section 46-6-102.
Item 31. To the Department of Agriculture from monies received for reimbursement
for expenses incurred while providing firefighting personnel and services to other states.
Item 32. To the Department of Agriculture, Carbon Sequestration Program, from
available revenues and reserves.
Item 33. To the Department of Agriculture, Forestry Operations, from federal aid and
other departmental revenues for natural disasters, including wildfire emergencies. Subject to
this appropriation, authorized positions may be increased as required for wildfire
emergencies. This item is subject to approval by the Commissioner of Finance and
Administration.
Item 34. To the Department of Agriculture from departmental revenues from
merchandise sales and rentals of agriculture space. Any unexpended revenues shall not
revert to the general fund balance at June 30 and are hereby reappropriated in the
subsequent fiscal year.
Item 35. To the Department of Agriculture from the reserves of the Riparian Buffer
Incentive Program.
Item 36. To the Department of Tourist Development from revenues received from
communities, businesses, non-state organizations,. federal funds, and other sources of
departmental revenue to be used for marketing programs of the department. Any
unexpended balances at June 30 shall be carried forward in a reserve and are hereby
reappropriated in the subsequent fiscal year.
-43
SB 2690
Item 37. To the Department of Environment and Conservation, West Tennessee
River Basin Authority, from funds provided by the counties within the authority area.
.Item 38. To the Department of Environment and Conservation, Tennessee State
Parks, from revenues collected by the parks system.
Item 39. To the Department of Environment and Conservation, Office of Energy
Programs and Energy Loan Programs, from the revenues and reserves of the Petroleum
Violation Escrow Fund.
Item 40. To the Department of Environment and Conservation, Natural Areas, from
revenues generated from the disposal of invasive and/or non-native species from lands
under department management undergoing ecological restoration and donations received for
such purpose.
Item 41. To the Department of Environment and Conservation, Office of Energy
Programs, from the revenues and reserves of the Volkswagen Environmental Mitigation
Trust Fund.
Item 42. To the Department of Environment and Conservation, Clean Water and
Drinking Water State Revolving Fund, for administrative expense reimbursement from the
Comptroller of the Treasury.
Item 43. To the Department of Environment and Conservation, Office of Energy
Program, from available revenues from settlements entered into by the Department.
Item 44. To the Department of Environment and Conservation from the Oak Ridge
Monitoring fund reserve.
Item 45. To the Department of Correction all monies collected as contraband from the
inmate population at any of the facilities operated by or under authority of the department.
Any unexpended revenue shall not revert to the state general fund balance pursuant to
Tennessee Code Annotated, Section 4-6-147.
Item 46. To the Department of Correction for the federal State Criminal Alien
Assistance Program.
item 47. To the Department of Correction for revenues and reserves from the fees
collected by inmate telephone calls.
Item 48. To the Department of Economic and Community Development from
revenues received from communities, businesses, non-state organizations, federal funds,
and other .sources of departmental revenue to be used for marketing programs of the
department. Any unexpended balances at June 30 shall be carried forward·· in a reserve and
are hereby reappropriated in the subsequent fiscal year.
Item 49. To the Department of Economic a,nd Community Development:
(a) To meet community development block grant expenditure requirements.
This appropriation shall be from federal aid funds.
(b) From monies received from conferences, trade missions, trade shows and
. other activities· which reimburse the state for expenses.
(c) From interest earnings allocated to the FastTrack Program; Job Skills
.. Fund; Broadband Fund, and Small Cities Community Development Block Grant
(CDBG).. • - ,.. • ••
Item 50. To the Department of Economic and Community Development, for
TNlnvestco liquidation events, pursuantto Tennessee Code Annotated, Title 4, Chapter 28.
Item 51. To the Tenn~ssee_ Film, Entertainment and Music Commission from
departmental revenues received by and interest earnings allocated to the commission. This
appropriation· is subject to approval by the Commissioner of Finance and Administration.
Item 52. To the Department of Education from student fees collected by the
department and Special Schools.
Item 53. To the Department of Education from donations to the Commission on
Education Recovery and Innovation.
44
SB 2690
Item 54. To the Department of Education, Charter School Commission, from the
revenues and reserves collected by the commission from the Tennessee Investment in
Student Achievement program, pursuant to Tennessee Code Annotated, Title 49, Chapter
13, Part 1.
Item 55. To the Department of Education, from the revenues, including local
revenues, and reserves of the following programs in the Department of Education:
(a) Education Savings Accounts (ESA); and
(b) Individualized Education Accounts (IEA).
Item 56. To the Department of Education, from the revenues, including local
revenues, and reserves of the following programs in the Department of Education: (a)
Tennessee Investment in Student Achievement program.
Item 57. To the Department of Education from reserves created for unexpended
balances of donations from non-governmental entities. Any new grants or donations from
such entities shall be subject to the provisions of Section 23, Item 3 of this act.
Item 58. To the Department of Commerce and Insurance:
(a) Insurance, from revenues and reserves of the Insurance Education Fund.
(b) Securities, from the revenues and reserves of the Securities Enforcement
and Legal Training reserve and the Securities Education Fund.
(c) Fire Prevention, for administration and payment of electrical inspections.
This appropriation is contingent upon the fees collected for making electrical
inspections being in excess of the budgeted estimate.
(d) Fire Service and Codes Enforcement Academy, from departmental
revenues for administration and training purposes.
(e) Tennessee Law Enforcement Training Academy, from departmental
revenues and reserves for administration and training purposes.
Item 59. To the Department of Labor and Workforce Development from federal aid
funds and other departmental revenues. Subject to this appropriation, authorized positions
may be increased up to one hundred (100) positions.
Item 60. To the Department of Labor and Workforce Development from federal
National Emergency Grant funds.
Item 61. To the Department of Mental Health and Substance Abuse Services from
revenue received from managed care organizations and other non-state organizations for
inpatient mental health services provided for publicly funded or potentially publicly funded
persons.
Item 62. To the Department of Mental Health and Substance Abuse Services from the
revenues and reserves of the Tennessee Opioid Abatement Council, pursuant to Tennessee
Code Annotated, Title 9, Chapter 4, Part 13. The council is further authorized to establish
additional positions, pursuant to Tennessee Code An.notated, Section 33-11-104.
•item 63. To the Department of Mental Health and Substance Abuse Services from the
revenues and reserves of the Tennessee Opioid Abatement Fund, pursuant to Tennessee
Code Annotated, Title 9, Chapter 4, Part 13.
Item 64. To the Department of Mental Health and.Substance Abuse Services from the
revenues and reserves of the _K-12 mental health special reserve account, pursuant to
Tennessee Co.de Annotated, Section 49-3-502.
Item 65. To the Department of Mental Health and Substance Abuse Services from
revenues collected from TennCare managed care organizations.
Item· 66. To the Department of Military, TEMA and Disaster Relief Grants, from
federal aid disaster relief funds.
Item 67. To the Department of Military, Station Commanders Upkeep and
Maintenance Fund :and Armories Maintenance, from the station commanders upkeep and
45
SB 2690
maintenance fund created pursuant to Tennessee Code Annotated, Section 58-1-512, to be
used for purposes specified therein.
Item 68. To the Department of Health from departmental revenues related to
premiums and drug rebates for the purpose of carrying out the provisions of the Ryan White
program.
Item 69. To the Department of Health from departmental revenues received pursuant
to Tennessee Code Annotated, Section 68-11-1307, to provide for contracts with qualified
experts relative to hospital cooperative agreements.
Item 70. To the Department of Human Services, subject to the financial reporting
requirement that the value of federal supplemental nutrition assistance be recognized in the
state's accounting system, there is hereby appropriated a sum sufficient from federal funds to
recognize the value of supplemental nutrition assistance.
Item 71. To the Department of Human Services from the revenues and reserves of
the Tennessee Blind Enterprises program.
Item 72. To the Department of Human Services, Disability Determination Services,
from federal aid provided by the federal Social Security Administration. Subject to this
appropriation, the number of authorized positions may be increased to respond to changes in
caseload. This item is subject to approval of the Commissioner of Finance and
Administration.
Item 73. To the Tennessee Bureau of Investigation from revenues and reserves
available to the following programs:
(a) To conduct records and background checks for handgun carry permits
pursuant to Tennessee Code Annotated, Section 39-17-1351.
(b) To conduct criminal history records checks on purchasers of firearms
(Tennessee Instant Check System - TICS) pursuant to Tennessee Code Annotated,
Section 39-17-1316.
(c) To conduct criminal history checks for employment requirements pursuant
to Tennessee Code Annotated, Sections 33-2-1201, 37-5-502, 49-5-406, 68-11-233,
68-11-234, and 71-2-403.
(d) To certify endorsement of transporting hazardous material on commercial
driver licenses pursuant to 49 CFR Part 1572.
(e) To provide criminal history information through the Tennessee Online
Records Information System (TORIS) pursuant to Tennessee Code Annotated,
Section 38-6-120.
Item 74. To the Department of Safety, Driver License Issuance, from revenues and
reserves available to· defray expenses of handgun carry permit program pursuant to
Tennessee Code Annotated, Section 39-17-1351.
Item 75. To the Department of Safety from any donations received from any non-profit
organization created pursuant to Tennessee Code Annotated, Section 4-3-2017.
Item 76. to the Department of Safety, the Department of Revenue, the Tennessee
Bureau of Investigation, the Tennessee National Guard, the Alcoholic Beverage
Commission, and the Office of Inspector General in the Department of Finance and
Administration from the proceeds of property seized and forfeited under federal procedures
which are shared with_ the departme~ts or the commission.
Item 77. To the Department of Safety, the Department of Military - Tennessee
Emergency Management Agency, and the Department of Environment and Conservation
from the revenues and reserves of the· nuclear safety fund, pursuant to Tennessee Code
Annotated, Section 65-15-114.
Item 78. To the Department of Children's Services, for departmental revenues from
the federal Social Security Administration for the benefit of children in the department's care.
Item 79. To the Department of Children's Services from revenues collected from
TennCare managed care organizations.
46
SB 2690
Item 80. To the Department of Transportation from local government funds, federal
aid and other departmental revenues.
SECTION 10. Provisions, Limitations, and Restrictions on Appropriations; The appropriations
made by this act shall be subject to the following provisions, limitations, or restrictions:
Item 1. Pursuant to Tennessee Code Annotated, Section 8-4-109 and Section 8-4-
116, any entity which receives state funds appropriated by the provisions of this act shall be
subject to audit by the Comptroller of the Treasury as to the expenditure and obligation of
such funds.
Item 2. In case revenues are not adequate to meet in full all appropriations made by
this act, the appropriations made for Sinking Fund Debt Service and the amounts necessary
to cover the salary and wage obligations of the state shall have preferential payment.
Item 3. No expenditure of public funds pursuant to this act shall be made in violation
of the provisions of Title VI of the Civil Rights Act of 1964, as codified in 42 United States
Code, 2000(d).
Item 4. No funds appropriated by this act shall be obligated and/or expended for any
newsletter, periodical, or other material which is to be distributed to all, or substantially all,
state employees (excluding higher education) until the agency head proposing to make such
distribution contacts the two Speakers and makes available equal space for legislative
information -in such newsletter, periodical, or other material. This item shall not apply to policy
and/or procedural directives.
Item 5. It is the legislative intent to encourage that all conferences, workshops,
meetings, seminars, programs, and similar endeavors conducted for officials and/or
employees of the legislative, executive, or judicial branch of state government be conducted
in state facilities whenever practicable.
Item 6. From the appropriations made by this act, claims for official travel expenses of
state employees and members of boards and commissions shall be paid in accordance with
Tennessee Code Annotated, Section 8-26-116.
Item 7. From the appropriations in Sections 1 and 4 for the Appellate and Trial Courts
and other relevant programs of the Judiciary, travel expenses of the state justices, judges,
and chancellors shall be paid in accordance with Tennessee Code Annotated, Section 8-26-
101 (1) and ,other applicable law.
Item 8. The Supreme Court shall fix the salaries of the marshals for the Eastern,
Middle, and Western Divisions, which salary shall be payable out of the, appropriations for
Appellate Court Clerks.
Item· 9. The commission in charge of the Supreme Court Building in Nashville,
established by Tennessee Code Annotated, Section 16-3-701, is authorized to employ an
experienced Engineer-Superintendent to supervise the air-conditioning and heating of the
Supreme Court Building at Nashville and to employ the necessary assistants to keep and
maintain the building. Payment for said services shall be paid out of the appropriations made
by this act.· •
Light, heat, and water for the Supreme Court Building in Nashville and for the
Supreme Court Building in Knoxville is to be provided by the Department of General Services
out of the appropriation herein made for it.
Item 10. Employees of the office of the Executive Director to the District Public
Defenders Conference, District Public Defenders_ and employees of a District Public
Defenders Office, as created pursuant to Tenn,essee ~ode Annotated, Title 8, .Chapter 14,
shall only travel and shall be reimbursed for travel expenses in accordance with the
provisions of the comprehensive travel regulations promulgated by the Department of
Finance and Administration and approved by the Attorney General.
Item 11. The appropriation made in Section 1, Title 111-1, Item 5.8, for the Tax Relief
Program, is made for the purpose of providing tax re.lief for elderly low-income homeowners,
disabled homeowners, and disabled veteran homeowners, as provided by law. The income
eligibility limit for elderly low-income homeowners and for homeowners totally and
perman~ntly disabled shall be adjusted for the fiscal year 2026-2027 under the provisions of
Tennessee Code Annotated, Section 67~5-702 and Section 67-5-703..
47
SB 2690
Item 12. From the funds appropriated to the TennCare program, the state shall
comply with applicable federal law.
Item 13. Subject to the concurrence of the Commissioner of Finance and
Administration, the Commissioner of Human Resources is authorized to _develop and
implement a system whereby the cost of the Board of Appeals created by Tennessee Code
Annotated, Section 8-30-108, and of services rendered to the Department of Human
Resources by the Administrative Procedures Division of the Department of State is
recovered from those departments, boards and commissions to whom services are rendered.
Item 14. The funds appropriated in Section 4, Title 111-3, Item 4, to Forestry
Operations, shall include the proceeds from timber, communication access, and carbon
credit sales conducted by the Department of Agriculture. It is the legislative intent that said
proceeds shall be accounted for as departmental revenue.
Item 15. The appropriation to the Department of Correction, Sex Offender Treatment
Program in Section 1, Title 111-7, Item 5, is made pursuant to Tennessee Code Annotated,
Section 39-13-708.
Item 16. From the appropriation made to State Prosecutions in Section 1, Title 111-7,
Item 6, payments to reimburse counties for housing convicted felons shall not exceed $41.00
per inmate per day. Provided, however, the $41.00 per inmate per day limitation on
reimbursement payments shall be inapplicable to the extent the state is obligated by the
specific terms of a written contract to provide reimbursement at a rate in excess of $41.00
per inmate per day, but only to the extent of that contractual obligation.
Item 17. The General Assembly recognizes that demands on available state revenue
are such that it may be necessary to establish priorities among state services and programs
and to revise the methods of allocating state resources. Therefore, it is the legislative intent
that local governments should consider in undertaking long-term obligations based on state
payments, specifically state per diem payments for housing state inmates in local jails, that
existing payments may be reduced or eliminated in the future and such not be regarded as
the principal source of funding for debt repayment obligations.
Item 18. From the appropriation to the Department of Correction, State Prosecutions,
in Section 1, Title Ill-7, Item 6, payments for boarding jurors shall be made in accordance
with Tennessee Code Annotated, Section ·40-18-107.
Item 19. Within the amount appropriated in Section 1, Title 111-17, and in Section 4,
Title 111-17, for Temporary Assistance to Needy Families, the Commissioner of Human
Services shall establish by rule or regulation, pursuant to the provisions of Tennessee Code
Annotated, Section 71-3-105, to be effective July 1, 2026, the standard of need for each
family .size in the Families First program; and, provided further, that the .Commissioner of
Human Services, in consultation with the Commissioner of Finance and Administration, may
by rule to be effective on July 1, 2026, establish certain categories of Families First recipients
to whom an additional grant differential may be paid.
Item 20. The appropriations to the Department of Revenue under Section 1, Title 111-
18, provide for all the activities_ of the department and include amounts in lieu of percentages
allowed by law on collection of certain taxes and revenues; such percentage shall be
covered into and made a part of the .general fund. Appropriations also include amounts for
motor vehicle registration and any other activities which may be administered by the
Department of Revenue.
Item 21. No funds appropriated by the provisions of this act for any cultural, specialty
earmarked, new specialty earmarked, and collegiate license plate shall be allocated by the
Department of Finance and Administration to the Department of Revenue until such plate
has met all-statutory requirements for issuance, as provided in Tennessee Code. Annotated,
Title 55, Chapter 4.
Item 22. It is the legislative intent that the appropriation in Section 1, Title 111-20, for
the Statewide School Resource Officer (SRO) Program, provides a pool of funding for grants
to _local law enforcement entities through local governments for the purpose of placing one
full-time, POST-certified school resource officer position in each public school. The funding
amount per SRO shall not exceed $75,000 per year. The Department of Safety shall make
gran~ funds available to a local law enforcement entity ~fter that local law· enforcement entity
presents to the department an executed memorandum of understanding (MOU) between the
entity and the LEA, public charter sch9ol, or alternative school, pursuant to which the local
law enforcement entity shall provide full-time SROs to schools in the LEA, public charter
48
SB 2690
school, or alternative school. The MOU shall be in a form prescribed by the department.
Further, this pool of funding shall not be awarded for more than one SRO per public school
and is subject to periodic audit and reporting as deemed necessary by the department. The
Department shall submit a report to the Chairs of the Finance, Ways and Means Committees
of the Senate .and the House of Representatives and the Office of Legislative Budget
Analysis at least quarterly, beginning October 1, 2025, detailing the following information
concerning the School Resource Officer Program: the number of LEAs, public charter
schools, and alternative schools that have executed an MOU with a law enforcement entity
as part of the program; the number of LEAs, public charter schools, and alternative schools
that have executed an MOU with a law enforcement entity as part of the program and have
been provided a full-time SRO; the percentage of public elementary schools that have an
executed MOU and the percentage of those that have been provided a full-time SRO; the
percentage of public secondary schools that have an executed MOU and the percentage of
those that have been provided a full-time SRO;. and a breakdown by county of the
percentage of public schools in the county that have an executed MOU and the percentage
of those that have been provided a full-time SRO.
Item 23. From the funds appropriated to the State Treasurer in Section 4, Title 111-1,
Item 6.1 and 7.2, for the Treasury Department and Risk Management Fund, the
Commissioner of Finance and Administration, upon the request of the State Treasurer, is
authorized to transfer amounts budgeted for contract services to payroll, and to increase the
number of authorized positions to replace contractors with state employees.
Item 24. The base reduction in the Commission on Children and Youth as
recommended on page A-29 of the 2026-2027 Budget Document may be made from either
the personnel or operational budgets of the Commission.
Item 25. From the funds appropriated to the Department of Correction in Section 1,
Title 111-7, the Department of Correction shall grant access to the Board of Parole for the
department's offender management system.
Item 26. The Commissioner of Economic and Community Development is authorized
to utilize existing staff resources to administer the appropriation in Section 1, Title 111-8, Item
3, and in Section 55, Item 1-24 relative to the quantum infrastructure initiative.
SECTION 11. Department of Education. The appropriations made by this act under Sections
1 and 4 to the Department of Education shall be subject to the following provisions, limitations, or
restrictions: .
Item 1. The appropriation made in Section 1, Title 111-9, Item 2.1 c, for the Tennessee
Investment. in Student Achievement (TISA) funding formula, shall be administered pursuant
to the provisions of Title 49, Chapter 3, Part 1 and any rules promulgated for the
implementation of the funding formula. The TISA formula shall be calculated for the fiscal
year using the following criteria:
(a) The state shall provide seventy percent (70%) of the statewide funds
generated for the base funding amount .and weighted allocations. The state shall
provide one hundred percent (100%) of the statewide funds generated for the direct
funding amounts and outcomes bonuses. For the weighted allocations for
economically disadvantaged provided for the 2026-2027 school year, allocations shall
ensure no district experiences a reduction of economically disadvantaged ADM as
compared to those funded in the 2025-2026 school year.
(b) The dollar value of the base funding amount shall be seven thousand five
hundred thirty dollars ($7,530) per member student, inclusive of state and required
local funds. •
(1) Of the total funds generated in the base by all students, one
hundred and twenty-five million dollars ($125,000,000) of these funds,
inclusive of state and required local funds, shall be restricted pursuant to 49-3-
105(e) for purpose of providing salary increases to existing educators.
(c) The dollar values of the direct funding amounts, to be fully state-funded,
shall be as follows:
(1) Pursuant to 49-3-105(c)(1), a rising fourth grade student who is
:determined to not be proficient in English language arts (ELA) based on the
· student achieving a performance level rating of "below" or "approaching" on
the f=.LA portion of the student's most recent TCAP test shall generate five
hundred dollars ($500) to be allocated through the formula.
49
SB 2690
(2) Pursuant to 49-3-105(c)(2) - student members in career and
technical programs shall generate funding aligned with following levels and
year progressions:
(A) A student member assigned to the first year of a level one
(1) career and technical program shall generate five thousand dollars
($5,000) to be allocated through the formula.
(B) A student member assigned to the second year of a level
one (1) career and technical program shall generate five thousand fifty
dollars ($5,050) to be allocated through the formula.
(C) A student member assigned to the third year of a level one
(1) career and technical program shall generate five thousand one
hundred fifty dollars ($5, 150) to be allocated through the formula.
(D) A student member assigned to the fourth year of a level
one (1) career and technical program shall generate five thousand
three hundred dollars ($5,300) to be allocated through the formula.
(E) A student member assigned to the first year of a level two
(2) career and technical program shall generate five thousand two
hundred dollars ($5,200) to be allocated through the formula.
(F) A student member assigned to the second year of a level
two (2) career and technical program shall generate five thousand two
hundred fifty dollars ($5,250) to be allocated through the formula.
(G) A student member assigned to the third year of a level two
(2) career and technical ·program shall generate five thousand three
hundred fifty dollars ($5,350) to be allocated through the formula.
(H) A student member assigned to the fourth year of a level two
(2) career and technical program shall generate five thousand five
hundred dollars ($5,500) to be allocated through the formula.
(I) A student member assigned to the first year of a level three
(3) career and technical program shall generate five thousand four
hundred dollars ($5,400) to be allocated through the formula.
(J) A student member assigned to the second year of a level
three (3) career and technical program shall generate five thousand
four hundred fifty dollars ($5,450) to be allocated through the formula.
(K) A student member assigned to the third year of a level three
(3) career and technical program shall generate five thousand five
hundred fifty dollars ($5,550) to be allocated through the formula.
(L) A stud~nt member assigned to the fourth year of a level
three (3) career and technical program shall generate five thousand
seven hundred dollars ($5,700) to be allocated through the formula.
(M) A student member assigned to a level two (2) or a level
three (3) career and technical program that is also identified as a high-
cost program shall generate funding equal to the student member's
proportional share of two million dollars ($2,000,000) to support
additional resources needed in such programs.
(3) Pursuant to 49-3-105(c)(3), a junior or senior in high school who
has not previously taken a postsecondary readiness assessment or a junior or
senior in high school who has previously taken a postsecondary readiness
assessment, but only once, shall generate forty-three dollars ($43) to fund an
opportunity for each the original test attempt and the retake attempt (eighty-six
dollars ($86) per student in total) to be allocated through the formula;
(4) Pursuant to 49-3-105(c)(4), a student in any of the grades
kindergarten through three (K-3) shall generate five hundred dollars ($500) to
be allocated through the formula;
50
SB 2690
(5) Pursuant to 49-3-105(c)(5), a student who attends a public charter
school shall generate funding equal to the student's ADM proportional share
of twenty-two million dollars ($22,000,000) representing the total of the charter
school facilities funding shifted into the TISA formula to be allocated through
the formula to all students identified pursuant to 49-3-105(c)(5);
(d) The dollar value of the outcomes bonuses shall be eighty million dollars
($80,000,000) to be disbursed pursuant to 49-3-106 and any rules promulgated for
this purpose.
(e) Pursuant to 49-3-104(13), the fiscal capacity calculation shall be
determined as the average of the fiscal capacity estimates generated by the formula
established by the Boyd Center for Business and Economic Research at the
University of Tennessee and the formula established by the Tennessee advisory
commission on intergovernmental relations.
Item 2. From the appropriation made in Section 1, Title 111-9, Item 2.1 c, for the
Tennessee Investment in Student Achievement (TISA), additional funding for local education
agencies shall be administered pursuant to the provisions of Title 49, Chapter 3, Part 1 and
any rules promulgated for the implementation of these purposes:
(a) From the appropriation made in Section 1, Title 111-9, Item 2.1 c, TISA, an
amount not to exceed forty million dollars ($40,000,000) is appropriated for the
purpose of providing fast growth and infrastructure stipends to eligible local education
agencies pursuant to 49-3-107 and rules promulgated for the implementation of this
purpose. From this amount, a maximum of five million dollars ($5,000,000) may be
used for the purposes of issuing infrastructure stipends.
(b) From the appropriation made in Section 1, Title 111-9, Item 2.1 c, TISA, an
amount not to exceed thirteen million dollars ($13,000,000) is appropriated for the
purpose of:
(1) providing additional funding for local education agencies identified
pursuant to 49-3-108(b) related to transitioning from the Basic Education
Program to TISA; and,
(2) providing additional funding for local education agencies identified
pursuant to 49-~-108(c) related to ensuring no local education agency
experiences a decrease more than five percent (5%) in funding between two
fiscal years.
(c) From the appropriation made in Section 1, Title 111-9, Item 2.1c, TISA, an
amount not to exceed ten million dollars ($10,000,000) is appropriated for the
purpose of providing additional funding for local education agencies identified
pursuant to 49-3-108(d)(1)(A)(i) related to distressed or at-risk counties for which
local education agencies experience an increase in maintenance of effort
requirements.
(d) From the appropriation made in Section 1, Title 111-9, Item 2.1 c, TISA, an
amount not to exceed eight million dollars ($8,000,000) is hereby appropriated for the
purpose of making distributions to local education agencies as identified pursuant to
49-3-108(d)(1)(A)(ii) relate_d to active tourism development zones.
(e) From the appropriation made in_Section 1, Title 111-9, Item 2.1c, TISA, an
amount not to exceed zero dollars ($0) is appropriated for the purpose of providing
additional funding for local education agencies identified pursuant to 49-3-108(d)(2)
related to cost differential factor grants.
(f) From the appropriation made in Section 1, Title 111-9, Item 2.1 c, TISA, an
amount not to exceed fourteen million five hundred thousand dollars ($14,500,000) is
appropriated for the purpose of addressing teacher compensation disparity, and such
funds shall be distributed pursuant to 49-1-3q2, to the extent available.
(g) From the appropriation made in Section 1, Title 111-9, Item 2.1 c, TISA, an
amount not to exceed seventeen million dollars ($17,000,000) is appropriated for the
purpose of providing direct payments as financial incentives for high-performing local
education agencies, where fifty percent (50%) or more of the eligible schools in the
LEA received an "A" letter .grade, pursuant to 49-1-228. Any funds disbursed to high-
performing LEAs that were previously appropriated by Section 11, Item 2(g) of
Chapter 530, Public Acts of 2025, and any funds disbursed pursuant to the
51
SB 2690
appropriation made in this sub-item (g), may be budgeted and expended by the LEA
in the fiscal year in which those funds are received.
(h) For any funds appropriated within Item 2, should the formula generated
funds exceed the appropriated funds for the state's K-12 education funding formula,
the department, with approval from the Commissioner of Finance and Administration,
may utilize unused or pro-rated amounts of funds from these appropriations to avoid
pro-rating overall formula funds.
Item 3. Pursuant to 49-3-106(e), funds appropriated that remain unexpended at the
end of a fiscal year shall not revert to the general funds but must be used to supplement
future allocations of outcome incentive dollars.
Item 4. Under the provisions of Tennessee Code Annotated, Section 49-3-357 and
Section 49-3-358, pertaining to interest accruing on investments and deposits to the
Education Trust Fund and the TISA, it is the legislative intent that only interest earnings be
recognized and that no interest expense be charged to the fund and the program.
Item 5. From the appropriations made to the Department of Education under Section
1, Title 111-9, of this act or through other funds received by local education agencies, local
education agencies are required to contribute a portion of the premium of participation in the
basic health plans as authorized by Tennessee Code Annotated, Section 8-27-302, at the
following levels:
(a) Pursuant to Tennessee Code Annotated, Section 8-27-303(a)(1 )(8), each
local education agency shall pay on behalf of each instructional employee
participating in the health insurance coverage authorized by- Tennessee Code
Annotated, Sections 8-27-302 and 303 a minimum of forty-five percent (45%) of the
monthly premium for the coverage elected by the instructional employee.
(b) Pursuant to Tennessee Code Annotated, Section 8-27-303(a)(1)(D), each
local education agency shall pay on behalf of each support staff employee
participating in the health insurance coverage authorized by Tennessee Code
Annotated, Section 8-27-302 and 303 a minimum of ten percent (10%) of the monthly
premium for the coverage elected by the support staff employee.
The Local Education lnsuranc~ Committee shall determine a calendar year 2027 plan
of benefits, related services, and monthly premiums for each of the health care options
offered through the "basic plan" it authorizes pursuant to Tennessee Code Annotated,
Section 8-27-302, which results, with reasonable certainty, in the provision of sufficient
revenues to pay plan expenses a11d to provide for the funding of reserves, as approved by
the Local Education Insurance Committee, for estimated incurred but unreported claims. The
monthly premiums shall be subject to the approval of the Commissioner of Finance and
Administration pursuant to Tennessee Code Annotated, Section 4-3-1006.
SECTION 12. Certain Legislation - Appropriations and Provisions for Funding.
Item 1. It is the legislativ'e intent to recognize a revenue loss from bills that result in no
expenditure increase but forgo revenue which has not been collected previously.
Item 2. In addition to any other funds appropriated by the provisions of this act, there
is hereby appropriated to the Department of Finance and Administration for distribution to the
appropriate entities a sum sufficient to fund any bill on which the fiscal note indicates that the
cost of implementation of the bill as enacted is not significant. It is the legislative intent that if
funding is earmarked for implementation in such. bills that the funds appropriated in this item
be reduc_ed accordingly.
!tern 3. In addition to any other funds appropriated by the provisions of this act, if the
fiscal note· on any bill states that state revenues would be increased in an amount equal to or
greater than state expenditures. as a result of the enactment of such bill, then there is
appropriated a sum sufficient from such incre~sed revenue to the appropriate entity, as
determined by the Commissioner of Finance and Administration, to implement such bill.
Item 4. The provisions of this item take effect upon becoming a law, the public welfare
requiring it. From the appropriations made in this act, there hereby is appropriated a sum
sufficient for implementation of any legislation cited or otherwise described by category in
this act or in the Budget Document transmitted by the Governor that has an effective date
prior to July 1 of the current calendar year, provided that such legislation is funded in the
Budget Document as submitted by the Governor or in the final . legislativ~ balancing
schedules summarizing enacted amendments incorporated into this act or other
52
SB 2690
appropriations acts of this legislative session and that the fiscal impact of implementing the
legislation, as indicated in the final cumulative fiscal note of the Fiscal Review Committee on
enacted legislation, is less than or equal to the amounts indicated in the Budget Document or
the amendment balancing schedules. The final legislative balancing schedules may
incorporate in summary form the amounts included in the amendment(s) submitted by the
Governor, to the extent adopted, as indicated on the balancing schedule accompanying the
Governor's recommended amendment(s).
Item 5. From funds available to any department, commission, board, agency, or other
entity of state government, there is earmarked a sum sufficient to fund any bill or resolution,
that becomes law or is adopted, respectively, for which the Commissioner of Finance and
Administration certifies in writing that the cost of implementation of the bill or resolution will
be funded within existing appropriations of the entity, within the availability of revenues
received by the entity, or within other existing budgetary resources. The certification shall
include the source of obtaining the funds to provide for such appropriations. It is the
legislative intent that such funding be earmarked for implementation of any such bills or
resolutions in the fiscal years ending June 30, 2026 and June 30, 2027. This item takes
effect upon becoming a law, the public welfare requiring it.
Item 6. From the funds appropriated to the Department of Transportation, there is
earmarked a sum sufficient for the sole purpose of funding any general bill or resolution that
is not otherwise funded in this act and becomes a law designating an interstate, United
States highway or state highway as a memorial highway or as a memorial bridge for certain
individuals killed in the line of duty, pursuant .to Tennessee Code Annotated, Section 54-1-
133.
SECTION 13. Board of Claims, Property Insurance, and Risk Management.
Item 1. The Commissioner of Finance and Administration is authorized to reallocate
appropriations for Board of Claims premiums and property insurance premiums among state
agencies and programs, based on the actuarial study provided by the State Treasurer, and to
adjust federal and other departmental revenues accordingly. There is further appropriated for
this purpose sums sufficient from dedicated and earmarked revenues to provide for the
allocation of appropriations to those agencies and programs funded by dedicated and
earmarked revenues. The Commissioner of Finance and Administration also shall reduce
~ppropriations from the general fund and from dedicated and earmarked revenues where
necessary, to reflect the allocations of the actuarial study.
Item 2. From the appropriation made in Section 4, Title 111-1, Item 7.2, Risk
Management Fund, funds may be expended for purposes outlined in Tennessee Code
Annotated, Section 9-8-109(d), including, but not limited to, contracting with a third party for
claims management services.
SECTION 14. Provisions, Limitations, and Restrictions on Obligation and Expenditure of
Appropriations.
Item 1. The appropriations made by this act and all other appropriations, including
appropriations of departmental revenues as set forth in Section 4 of this act, shall be
obligated and expended under the provisions of Tennessee Code Annotated, Title 4, Chapter
3, Part 10, and Title 9, Chapter 4, Part 51, which shall remain in full force and effect; and in
case of conflict with any other law, the. provisions of such laws shall prevail. All
appropriations, except those made by acts authorizing bond issues and expenditures thereof,
though made •by other statutes, shall likewise be obligated and expended under the
provisions of Tennessee Code Annotated, Title 4, Chapter 3, Part 10, and Title 9, Chapter 4,
Part 51. Pursuant to Tennessee Code Annotated, Section 9-4-5113(b), obligation and
expenditure of appropriations made to the following agencies are exempt from the
requirement that agencies first obtain certification of availability of funds by the
Commissioner of Finance and Administration: the General Assembly, Court System, Attorney
General and Reporter, District Attorneys General, Public Defenders, Office of the Post-
Conviction Defender, Secretary of State, Comptroller of the Treasury, and the State
Treasurer.
Item 2. Contracts, agreements, and obligations involving the expenditure of money by
the General Assembly, Court System, Attorney General and Reporter, District Attorneys
General, District Public Defenders, Office of the Post-Conviction Defender, Secretary of
State, Comptroller of the Treasury, and the State Treasurer shall be made under the
provisions of Tennessee Code Annotated, Section 9-4-5113(b).
53
SB 2690
Item 3. The Department of Finance and Administration may examine and approve or
refuse to approve requisitions for purchases made from the appropriations in this and other
acts, in ~ccordance with Tennessee Code Annotated, Section 4-3-1006(8). Pursuant to such
law, requisitions from the following are excluded from this examination: The General
Assembly, Court System, Attorney General and Reporter, Secretary of State, Comptroller of
the Treasury, and the State Treasurer.
SECTION 15. Provisions, Limitations, and Restrictions on Appropriations.
Item 1. No part of the funds appropriated to any department, office, instrumentality, or
agency of the state government shall be expended in any other such entity, but if the head of
any department, office, commission _or instrumentality of the state government finds that
there is a surplus in any classification, division, or unit under such entity, and a deficiency in
any other division, unit or classification, then in that event the head of such department,
office, commission or instrumentality of the state government may transfer such portion of
such funds as may be necessary for the one division, unit or classification where the surplus
exists to the other, except as otherwise provided herein, provided such transfer is approved
by the Commissioner of Finance and Administration. Such transfer of funds pursuant to this
item shall be subject to the approval of a majority of a committee comprised of the Speaker
of the Senate, the Speaker of the House and the Comptroller of the Treasury.
Item 2. The Commissioner of Finance and Administration may establish in any
department, office, commission or instrumentality of the state government a clearing account
through which all salaries and wages, including the state's portion of retirement, insurance,
Social Security, etc., may be disbursed. In the event such accounts are established,
department records shall be maintained showing the distribution of such amounts among the
various appropriation codes, and any financial reports shall present expenditures as if such
expenditures had been made through the individual appropriation accounts.
Item 3. In case any division or function of government for which an appropriation is
provided in this act or otherwise, shall be transferred from an existing department, to any
. .other department, such transfer shall automatically result in the appropriation for such
transferred division or function becoming available to the department to which such transfer
is made for the purposes of such transferred division or function.
Item 4. From the appropriations made to the various state departments and agencies
under this act, and other general acts appropriating money, there may be paid any expenses
incurred_ by s.aid departments and agencies for the purpose of conducting and serving as
host for· regional or national conferences of. _which such departments or agencies may be
members. Before any funds shall be expended under this authorization, the amount and
purpose of the proposed expenditure shall be approved by the Commissioner of Finance and
Administration.
Item 5. No department or agency in the executive branch of state government shall
make organizational changes within such department or agency except with the prior
approval of the Commissioner of Finance and Administration pursuant to Tennessee Code
Annotated, Section 4-4-101 (b). Where an organizational change requires a transfer of funds
between organizational accounts and would constitute a change in the purpose of the
appropriation, the Commissioner of Finance and Administration shall not approve the
organizational change until the transfer of funds has been approved by the committee
established by Section 4-4-101 (b).
Item 6. The Commissioner of Finance and Administration is authorized to draw down
disputed federal funds and to reserve the funds to prevent their expenditure until the dispute
is settled; and the Commissioner of Finance and Administration in consultation with the State
Treasurer is authorized to allocate interest earnings on the draw-down of disputed federal
funds and to pay interest earnings to -the federal government in those instances when
expenditures are ultimately disallowed.
Item 7. From the appropriation made in Section 4, Title 111-2, Item 4..4, to General
Services, Real Estate Asset Management, the Commissioner of Finance and Administration
is authorized to establish new positions for property management for new buildings the state
maintains.
Item 8. Financial Systems Billings. From the funds appropriated in this act, the
Commissioner of Finance and Administration is authorized to approve adjustments in rates
charged by the Department of Finance and Administration for enterprise resource planning
(ERP, or Edison) and the Division of Accounts, the Department of Human Resources, and
the Department of General Services; to reserve any funds needed to rebate savings to the
54
SB 2690
federal government; and to reallocate state appropriations between departments and reduce
appropriations, and adjust federal aid and other departmental revenue accordingly.
Item 9. From the appropriations made for accounting functions and other fiscal
activities in this act and other acts of the legislature, the Commissioner of Finance and
Administration is authorized to establish and charge the costs of accounting positions and
other fiscal positions to said appropriations. The Commissioner of Finance and
Administration is further authorized to transfer between departments and agencies existing
accounting positions, other fiscal positions and the funding provided in this act for transferred
positions.
Item 10. From the appropriations made in Section 1, Titles 111-2 through 111-29 and in
Section 4, Titles 111-2 through 111-28, to the Executive Branch departments and agencies, the
Commissioner of Finance and Administration is authorized to transfer amounts budgeted for
contract services to payroll and to increase the number of authorized positions to replace
contractors with state employees.
Item 11. The Commissioner of Finance and Administration is authorized to maintain
an indirect cost recovery plan to recognize overhead costs associated with the operations of
the Tennessee Public Utility Commission, Wildlife Resources Agency, Department of
Financial Institutions, Housing Development Agency and the regulatory boards and
commissions not under the administration of the Department of Commerce and Insurance or
the Department of Health. The Commissioner is further authorized to charge the departments
and agencies covered by the indirect cost recovery plan for their individual overhead costs.
Item 12. The state regulatory fee shall be assessed at the rate of five dollars ($5.00)
for one (1) year and ten dollars ($10.00) for two (2) years. The fee shall be in lieu of any
allocation of indirect costs which would otherwise be allocated to the regulatory boards
covered by the provisions of Tennessee Code Annotated, Section 9-4-5117.
Item 13. If any appropriation in this act fails to designate a department or agency of
state government to be responsible for the administration of the appropriation, then the
Commissioner of Finance and Administration is hereby directed to designate the state
department or agency to administer the appropriation.
Unless otherwise directed by language in this act, appropriation grants to agencies
outside of state government shall be administered in such manner as the Commissioner of
Finance and Administration shall determine. Direct appropriation grants for the benefit of
agencies outside of state government may be administered by the Department of Finance
and Administration.
Item 14. The Commissioner of Finance and Administration is hereby authorized to
adjust departmental revenue and reserve estimates and related expenditures:
(a) for internal service funds and enterprise funds to record fees received for
services provided to departments, agencies, boards, and commissions, and
(b) to record payment for services provided to state agencies by another state
agency.
Item 15. The Commissioner of Finance and Administration is hereby authorized to
adjust departmental revenue and related expenditures to recognize (a) the carry-over of
federal funds and other departmental revenues that were budgeted and allotted but
unexpended or unobligated at June 30; (b) an increase in the federal rate of reimbursement
or match in federal programs so that there is less state expense or the additional federal
funds are available to meet increasing costs without improving programs; and (c) an
unexpected •increase in federal grant funds so that there is less . state expense or the
additional federal funds are available to meet increasing costs without improving programs.
Item 16. The Commissioner of Finance and Administration is hereby authorized to
adjust the estimates of federal block grant funds and other federal grant-in-aid funds
estimated in Section 4 and Section 31 of this act to reflect the actual. allocations of federal
revenues made available to the State of Tennessee by the federal gov~mment.
Item 17. The Commissioner of Finance and Administration is authorized to transfer
procurement positions from departments and agencies funded by _this _act to the central
procurement office attached to the Department of G~:meral Services, upon the request of the
chief procurement officer, and to adjust departmental revenue estimates: and authorized
positions accordingly. The plan for centralization of such procurement functions is subject to
approval° of the Commissioner of Finance and Administration.
55
SB 2690
Item 18. From the appropriations made for human resources functions and other
personnel activities in this act and other acts of the legislature, the Commissioner of Finance
and Administration is authorized to charge the costs of human resources positions and other
personnel positions to said appropriations. The Commissioner of Finance and Administration
is further authorized to transfer between departments and agencies existing human
resources positions, other personnel positions and the funding provided in this act for
transferred positions.
Item 19. From the appropriations made for radio communications functions in this act
and other acts of the legislature, the Commissioner of Finance and Administration is
authorized to transfer between departments and agencies existing radio communications
positions and the funding provided in this act for transferred positions. The Commissioner of
Finance and Administration is further authorized to adjust departmental revenues as may be
required.
SECTION 16. Payments to Consolidated Retirement System.
Item 1. Each department, division or agency for the benefit of which an appropriation
is made herein and which participates in the Consolidated Retirement System, shall pay from
such appropriation monthly such sums as may be due such Consolidated Retirement System
as the state's contribution from such department, division or agency.
Item 2. From the funds appropriated in this act for the purpose of funding the state's
liability for employee participation in the state retirement system, the Commissioner of
Finance and Administration is authorized to adjust departmental allotments to reflect active
participation in the various programs of the retirement system, to reallocate appropriations
between departments and reduce appropriations, and to adjust federal aid and other
departmental revenue accordingly.
SECTION 17. Group Health Insurance, Long Term Disability Insurance, Dental Insurance,
and Life Insurance Program for State Employees.
Item 1. From the appropriations made herein, the various departments, agencies,
boards and commissions of state government shall pay on behalf of each participating
covered individual within the respective departments, agencies, boards and commissions,
not less than eighty percent (80%) of the cost of the coverage option for employees and
employees' dependents, determined by the state insurance committee to be the basic health
plan ·for funding purposes in the basic group ryiedical insurance program, one hundred
percent (100%) of the cost of the state-funded long term disability coverage as approved by
the state insurance committee for employees, fifty percent (50%) of the cost of all dental
insurance coverage options for employees and employees' dependents, one • hundred
percent (100%) of the cost of basic term life insurance coverage, and of basic accident
insurance coverage for each participating covered individual; such coverages to be
established pursuant to Tennessee Code Annot~ted, Title 8, Chapter 27, Part 2. In addition
to this basic health plan for funding purposes, the state insurance committee may offer other
plan options. Such appropriations made herein shall not prohibit the state insurance
committee from offering other benefit options as permitted by Tennessee Code Annotated,
Title 8, Chapter 27, Part 2.
The employer contribution amounts established by the State Insurance Committee for
eligible participating employees shall not exceed, in the aggregate, the amounts appropriated
in this act. The State Insurance Committee shall determine a calendar year 2026 plan of
benefits, related services, and monthly premiums for each of the health care options it
authorizes pursuant to Tennessee Code Annotated, Section 8-27-202, which result, with
reasonable certainty, in the provision of sufficient revenues to pay plan expenses and to
provide for the.funding of reserv~s for. estimated incurred but unreported claims. The monthly
premiums and the employer contribution amounts shall be subject to the approval of the
Commissioner of Finance and Administration -pursuant to Tennessee ,Code Annotated,
Section 4-.3-1006.
, The State Insurance Committee shall recognize the annualized rate and benefits
adjustments intended to be effective on January 1, 2026, which are required so that the plan
of b~nefits, on an annualized basis, shall not exceed the recurring revenues and any
reserves deemed necessary to pay plan expenses.
:Item 2. From the appropriations made herein the Department of Military is hereby
authorized to pay, on behalf of each participating national guardsman called up to state
active duty, the cost of each indiyidual's participation in the state-approved Group Life
56
SB 2690
Insurance Plan for national guardsmen called up to state active duty. The provisions of
Tennessee Code Annotated, Title 8, Chapter 27, Part 2, shall apply.
Item 3. The State Insurance Committee shall establish and maintain, within the
appropriations made in this act for supplemental medical insurance for retired state
employees and retired teachers and in accordance with Tennessee Code Annotated, Section
8-27-209 and Title 8, Chapter 27, Part 3, the respective contribution levels to be made by the
state on behalf of the eligible participating retirees. The annualized contribution rate
established by the Committee for the eligible participating employees shall not exceed the
amount appropriated in this act, and the rate established is subject to approval by the
Commissioner of Finance and Administration.
Item 4. It is the legislative intent that the State Insurance Committee establish a
schedule of premium payments for retirees participating in the group insurance plan under
the provisions of Tennessee Code Annotated, Section 8-27-205(b).
Item 5. The Commissioner of Finance and Administration is hereby authorized to
establish positions and make appropriate adjustments to the Benefits Administration budget
to reflect changes in the contractual arrangements for medical and other insurance coverage
provided to state insurance plan participants. The establishment of additional positions and
the allotment of additional departmental revenue are subject to approval by the State
Insurance Committee.
Item 6. From the funds appropriated in this act for the purpose of funding the state's
liability for employee participation in the state group health insurance program, the
Commissioner of Finance and Administration is authorized to adjust allotments to the various
departments, agencies, boards and commissions of state government and to the institutions
of higher education in order to recognize nonrecurring savings which may be generated by
actions of the state insurance committee. The Commissioner is further authorized to adjust
federal aid and other departmental revenues, to adjust appropriations to dedicated and
earmarked sources, and to reallocate general fund appropriations.
SECTION 18. Appropriation of Tax Revenue Allocated by Statute. There are appropriated all
tax revenues which are allocated by statute in accordance with the provisions of such statutes. The
provisions of this section shall apply to all statutes becoming a law prior to July 1, 2027.
SECTION 19. Duplicate and Similar Appropriations. Whenever similar or duplicate
appropriations are made in this act to those carried in any other act, such appropriation herein shall
not be deemed as a supplemental appropriation, it being the legislative intent that there shall be no
overlapping appropriations for equivalent amounts; but if this act simply supplements the
appropriations made by the other act, then such supplemental appropriation shall be valid. The
same shall apply to similar or duplicate appropriations made solely within this act.
SECTION 20. Proceeds of Surplus Real Property Sales. Whenever the State of Tennessee
has any surplus lands or other surplus real properties which are sold or conveyed during the fiscal
year ending June 30, 2027, the proceeds from the sale of such lands or other real property shall be
subject to the provisions of Tennessee Code Annotated, Section 12-2-112, relative to disposal of
interests in real property, and Title 11, Chapter 14, Part 3, relative to the natural resources trust
fund, and other applicable law.
SECTION 21. Direct Appropriations to Non-Governmental Entities - Provisions.
Notwithstanding any provision of this act to the contrary, a direct appropriation to a non-
governmental agency or entity shall not be disbursed until the recipient has filed with the head of the
agency through which such disbursement is being made a plan specifying the proposed use of such
funds and the benefits anticipated to be derived therefrom, and has agreed to file an interim status
report to be delivered by February 1 of the use of such funds. As a prerequisite to the receipt of such
direct appropriation, the recipient shall agree to provide to the agency head, within ninety (90) days
of the close· of the fiscal year within which such direct appropriation was received, an accounting of
the actual expenditure of such funds, and benefits derived, including a notarized statement that the
report isJrue and correct in all material respects; provided, however, that the head of the agency
through which' such gisbursement is being made may require, in lieu of the ~ccounting as provided
above, an audited financial statement of the non-governmental agency or entity. A copy of such
accounting or aLI<;m, as the case may be, shall be filed with the Office of the Comptroller of the
Treasury.
SECTION. 22. Division of Insurance Reyenut3s and Base Funding Level. From the
appropriation made in Section 4 of this act, to the Department of Commerce and Insurance, Division
of Insurance, it is the legislative intent to recognize a base level funding of $7,479,700. It is further
the legislative intent that expenditures in excess of the $7,479,700 base level shall be funded from
57
SB 2690
the increase in revenues generated by Chapter 333, Public Acts of 2001, which established funding
appropriated to the Division of Insurance in the fiscal year ending June 30, 2001, as the base level.
SECTION 23. Budget and Positions Reconciliatio_n, Allotment, and Reporting.
Item 1. Budget and Authorized Positions Reconciliation and Reporting; Allotments. It
is hereby declared to be the legislative intent that the Commissioner of Finance and
Administration revise the funding recommendations and personnel summaries contained in
the Budget Document to conform with this act, other general acts of this Session and any
other actions which affect the level of departmental or other such revenue. The
commissioner is directed to make all necessary adjustments to revenues, appropriations,
authorized positions, and totals to effectuate the provisions of this act as amended by the
General Assembly. Said revised summaries shall be provided to the Office of Legislative
Budget Analysis, Finance, Ways and Means Committees of the Senate and House of
Representatives and to the Office of the Comptroller of the Treasury and Fiscal Review
Committee.
In establishing allotments from the appropriations herein made, the Commissioner of
Finance and Administration may establish total spending authorizations in the amount of the
specific appropriation from state revenues herein made, plus the federal and departmental
revenues estimated to be available as presented in the revised funding •summaries cited
above. In the event federal and departmental revenues for any particular program,
appropriation code, or other classification are less than the amount estimated to be available
under the allotments then and to that extent the spending authorizations are hereby reduced;
to the extent that federal or departmental revenues in excess of the amounts allotted are
realized, such excess shall not constitute increased spending authorizations, except under
the conditions herein specified.
In establishing the allotments herein authorized, the Commissioner of Finance and
Administration shall divide the total spending authorizations by allotment code, into two
subdivisions, as follows: (1) Personal Services and Benefits and (2) Other Operating
Expenses.
Item 2. Appropriation Adjustments Required for Proper Revenue Accounting. The
Commissioner of Finance and Administration is authorized to establish state appropriations
and reduce .appropriations of departmental revenue made in Section 4 and other sections of
this act to the extent required to reflect proper accounting of state revenues under generally
accepted accounting principles. To the extent that state appropriations are established,
departmental revenue estimates shall be reduced.
The Commissioner of Finance and Administration also is authorized to establish
departmental revenue estimates and reduce state appropriations made in Section 1 and
other sections of this act to the extent required to reflect proper accounting of departmental
revenues under generally accepted accounting principles. To the extent that departmental
revenue estimates are established, state appropriations shall be reduced.
In no instance shall the adjustments made under the provisions of this item result in a
greater allotment of funds than is otherwise provided by this act.
Item 3. Program Expansion Reports (Federal and Other Departmental Revenue). No
state revenues shall be expended by any state agency unless such revenues are
appropriated by the General Assembly, as reflected in the provisions of this act and the
revised summaries cited above. No state agency shall establish any new programs or
expand any existing programs, beyond the-scope of those already established, recognized
and approved by the General Assembly, as reflected in this act and the revised summaries
cited _above, . unless each such new or expanded program is funded entirely from
unanticipated or excess departmental revenues or federal revenues. However, no such
expenditure of unanticipated or excess departmental revenues or fed,eral revenues shall
occur until written notice of the program and the availability of unanticipated or excess
departmental revenues or federal revenues is submitted by the Commissioner of Finance
and Aoministration to the Chairs of the Finance, VVays- and Means Committees of the Senate
and House of Representatives and until said committee chairs have acknowledged in writing
receipt of such written notice; provided, however, that capital outlay program projects,
whether capital improvements or capital maintenance, shall be submitted to the State
Building Commission to be acknowledged. When submitted, a copy of operational budget
expansion reports shall be provided to the Fi~cal Review Committee executive director and
the Office of Legislative Budget Analysis directors for information purposes. For the purposes
of this paragraph, the term "departmental revenues" means earnings or charges for goods or
services:; or donations, contributions or part.icipation by political subdivisions, foundations,
58
SB 2690
corporations, firms or persons; and the term "state revenues" means the proceeds of taxes,
licenses, fees, fines, forfeiture or other imposts laid specifically by state law.
An expansion report shall not be acknowledged by the Chairs of the Finance, Ways
and Means committees during a time that the General Assembly is in regular, annual session
until each Finance, Ways and Means Committee has held a hearing on the proposed
program expansion, or the committees have held a joint hearing.
Item 4. Reporting on Certain Federal Grant Applications. Each state agency shall
report to the Chairs of the Finance, Ways and Means Committees of the Senate and the
House of Representatives and to the Office of Legislative Budget Analysis when the agency
applies for a new federal grant of more than $100,000.
Item 5. Time-Limited Federal Criminal Justice Grant-Funded Positions. The
Commissioner of Finance and Administration shall report to the Chairs of the Senate and
House Finance, Ways and Means Committees on positions funded by federal criminal justice
grants that are time-limited. The report shall include the number of positions and costs by
federal program and by state agency and program, the period of the grant, the outlook for
federal continuation of the grant beyond the expiration date, and any conditions of the grant
indicating a state obligation upon expiration of the grant. A copy of the report also shall be
provided to the Office of Legislative Budget Analysis directors and the Fiscal Review
Committee executive director.
Item 6. Capital Outlay Projects Change Reporting. The Commissioner of Finance and
Administration shall provide a written quarterly report to the directors of the Office of
Legislative Budget Analysis and to the executive director of the Fiscal Review Committee
identifying additions, deletions or other modifications of capital improvement and capital
maintenance projects occurring subsequent to enactment of the annual budget through the
appropriations and bond authorization acts.
Item 7. Overlapped Positions Reports. The Commissioner of Human Resources shall
submit a monthly report to the Office of Legislative Budget Analysis regarding positions that
have been overlapped for ninety (90) days or more. In addition, the budget as introduced
shall indicate the number of positions overlapped for ninety (90) days or more at a time no
more than thirty (30) days before transmittal of the budget.
Item 8. On or before February 1, 2027, the Commissioner of General Services shall
submit to the Office of Legislative Budget Analysis the Annual Facilities Revolving Fund
Report.
Item 9. On or before February 1, 2027, the Departments of General Services and
Finance and Administration shall each submit a report to the Chairs of the Finance, Ways
and· Means Committees of the Senate and the House of Representatives and the Office of
Legislative Budget Analysis regarding the balance in each department's capital reserve fund,
including information on the dates. on which such funds have or will be expended and the
purposes of those expenditures, or alternatively, if such funds have not and will not be
expended, then such report shall include the dates on which such funds will be returned to
the general fund.
Item 10. On or before January 15, 2027, the Department of Finance and
Administration shall submit to the Office of Legislative Budget Analysis a report detailing
each state agency's salary equity balance as of December 30, 2026.
Item 11. All intra-agency transfers within organizational units of state government
shall be reported by the Department of Finance and Administration to the Directors of the
Office of Legislative Budget Analysis on a quarterly basis.
Item 12. It is the intent of the General Assembly that any new or expanded program
or system that uses vendors and is funded through the Rural Healthcare Transformation
(RHT) Program must be procured, to the extent _permitted under federal law, through a
competitive bidding process when the use of such a process will not jeopardize federal
funding. Beginning July 1, 2026, the Department of Health shall submit a monthly report to
the Chairs of the Finance, Ways and Means Committees of the Senate and the House of
Representatives and the Office of Legislative Budget Analysis detailing the following
information concerning the Rural Health Transportation (RHT) Program:
(a) Each RHT-funded program or syste_m procured during the prior month;
(b) Whether such program or sy~tem was competitively bid; •
59
SB 2690
(c) If not competitively bid, then an explanation of why a noncompetitive
procurement method was used;
(d) Any new vendors selected for each program or system;
(e) Whether the selected vendor was the lowest-cost bidder and the number
of bidders for each competitively bid procurement;
(f) The total cost of each program or system;
(g) The estimated number of state employees that would be required to
continue each program or system upon the expiration of federal funding; and
(h) The estimated annual amount of state funding required to continue each
program or system once federal funding is fully expended.
SECTION 24. Certain Non-Executive Agencies - Approval of Work Program, Personnel
Authorization, and Revisions, and Administration of Certain Appropriations.
Item 1. The work program and personnel authorization of the General Assembly,
Court System, Attorney General and Reporter, Secretary of State, Comptroller of the
Treasury, and the State Treasurer shall be approved in accordance with Tennessee Code
Annotated, Section 9-4-511 0(b).
Item 2. Revisions to the work program of the Secretary of State, Comptroller of the
Treasury, and the State Treasurer shall be approved in accordance with Tennessee Code
Annotated, Section 9-4-5112(b).
Item 3. Appropriations to the Secretary of State, Comptroller of the Treasury, and the
State Treasurer shall be administered in a ministerial capacity by the Commissioner of
Finance and Administration, pursuant to Tennessee Code Annotated, Section 9-4-5113(c).
SECTION 25. Sovereign Immunity. All appropriations of state revenues and departmental
revenues made in this act and in prior acts shall be protected by the state's sovereign immunity, as
provided in Tennessee Code Annotated, Section 9-1-103(a).
SECTION 26. General Assembly Provisions. From the appropriation made for the General
Assembly under Section 1, Title I, payment shall be made for, but not limited to, the following items:
Item 1. Any lawful expenses of the One Hundred Fourteenth General Assembly, for
which funds have not been obligated on June 30, 2026, such funds herein appropriated as
are required may be made available during the fiscal year ending June 30, 2026.
Item 2. The lawful expenses of the One Hundred Fourteenth General Assembly.
Item 3. The cost of staffing, maintaining and operating the offices of the Speaker of
the Senate and the Speaker of the House of Representatives, including necessary travel and
other expenses incident to said offices, not covered by Section 1, Title I, Items 1.2 and 1.3, of
this act.
Item 4. Such expenses as may be incurred for maintaining legislative facilities
including the maintenance and staffing and such other expenses as may be necessary to
provide offices and other services to members of the ·General Assembly and their staff in
state facilities in Nashville.
Item 5. Expenses and travel pay to legislators for each day when attending
conferences, workshops, and other official meetings, both within and without the State of
Tennessee, when said travel is approved by the Speaker of the Senate and/or the Speaker
of the House of Representatives. Payments shall be at the same rate provided for members
of the ~tanding committees of the General Assembly when meeting between sessions.
Provided, further, that reimbursement may be made to legislators for registration fees
incurred while attending conferences and meetings as may be approved by the Speaker of
the Senate and/or the Speaker of the House of Representatives.
Item 6. Expenses and trav~I pay allowed to members of the Joint Legislative Services
Committee at the same rates and in the same manner provided by Tennessee Code
Annotated, Section 3-1-106, and to members of the Fiscal Review Committee, as authorized
under Tennessee Code Annotated, Section 3-7-102.
60
SB 2690
Item 7. The Speakers may transfer to the· Office of Legal Services for the General
Assembly and to the Fiscal Review Committee sufficient funds to enable them to complete all
studies assigned to them by the One Hundred Fourteenth General Assembly, and to furnish
such help as may be required by standing, select and joint committees of the General
Assembly.
Item 8. Membership dues to the National Conference of State Legislatures, similar
service organizations, and such other conferences as may be approved by the Speaker of
the Senate and the Speaker of the House of Representatives.
Item 9. Any expenditures for legislative purposes called for by resolutions or joint
resolutions properly adopted by either or both Houses of the General Assembly.
Item 10. Payment of expenses to any member, as provided by law, for attendance at
any meeting of any standing, special, or select committee of the General Assembly, whether
such meeting occurs during or between sessions of the General Assembly. Such expenses
for meetings held between sessions shall be paid at the same rate as provided in the general
law for meetings held while the General Assembly is in session.
Item 11. In addition to appropriations made under Section 1, Title I, there is hereby
appropriated a sum sufficient to cover any increase automatically occurring under mandate
of law in any compensation, benefits, or expenses funded under Section 1, Title I.
Item 12. From funds available to the General Assembly, there is earmarked a sum
sufficient for the sole purpose of funding expenses of members of the General Assembly for
meetings of study committees of the General Assembly on which they serve; provided, that
such expense payment is subject to approval by the Speaker of the House of
Representatives and the Speaker of the Senate in accordance with Tennessee Code
Annotated, Section 3-1-106.
All items listed above, together with any other expenses for the General Assembly, upon the
approval of the Speaker of the Senate and/or the Speaker of the House of Representatives, shall be
paid through the Office of Legislative Administration, who shall also be authorized to make
arrangements for, and incur obligations incident to, any convening of the One Hundred Fourteenth
General Assembly.
Provided, further, that during any period when the Offices of the Speaker of the Senate or the
Speaker of the House of Representatives are vacant, or otherwise upon authority of the Speakers,
the Director of the Office of Legislative Administration is hereby authorized to do any act which the
Speaker might do under the provisions of this section.
The provisions of the section shall not be construed to countermand any general act passed
by the One Hundred Fourteenth General Assembly:
SECTION. 27. General Assembly Provisions - Speakers. The Speaker of each House of the
General Assembly shall be paid from funds appropriated to the General Assembly the following
sums:
Seven hundred fifty dollars ($750) for their ex officio services during any session of
the General Assembly; plus the sum of five thousand seven hundred dollars ($5,700)
annually for local office expenses in their county of residence which will be in addition to the
cost of maintaining and operating offices in the State Capitol. In addition, each Speaker shall
be allowed the same amount for expenses and travel pay as that provided for members of
the standing committees of the General Assembly when meeting between sessions, for
attending meetings of standing, select, or joint committees of the General Assembly or when
absent from their county of resictence on official duty as Spe~ker.
The allowance for ex officio duties authorized by this section shall be paid at the
request of each Speaker at any time after adjournment of a session. The amount authorized
hereby for local office expenses s~all be paid annu.ally on or after November 1st of each year
at the request of each Speaker. Requests for payments shall be addressed to the Director of
the Office of Legislative Administration and need· not be accompanied by a list of
expenditures for which allowances the reimbursements are claimed. Payments for attending
meetings between sessions or when absent from county of residence shall be paid from time
to time on request of each Speaker.
SECTION 28. Internal Audit Coordination and Standards. In order to prevent duplication of
effort and to establish professional standards, audits to be performed by internal audit staffs or
grantees .of departmental activities funded from appropriations made in this act shall be coordinated
with the Office of the Comptroller of the Treasury, and such reports as may be issued shall be
61
SB 2690
prepared in accordance with standards established as required by law by the Comptroller of the
Treasury. No department, agency, institution, board, or commission shall cause internal auditing to
be performed by persons who do not meet the job specifications for internal auditors established by
the Commissioner of Human Resources and approved by the Commissioner of Finance and
Administration and the Comptroller of the Treasury, pursuant to Tennessee Code Annotated,
Section 4-3-304.
SECTION 29. Higher Education. The appropriations to public institutions of higher education
set forth in Section 1 of this act shall be subject to the conditions and limitations set forth in this
section, and shall not be subject to other provisions of this act except as otherwise expressly stated.
Item 1. Salaries to be paid from the appropriations made to educational institutions
shall be fixed as follows:
The President and the staff of the University of Tennessee, by the Board of
Trustees; the Presidents and staffs of the institutions within, and the Chancellor and
staff of, the State University and Community College System of Tennessee, by the
Board of Regents and the boards of the locally governed institutions; and the
Presidents and staffs of the colleges of applied technology by the Board of Regents;
all of which shall be within the appropriations provided and available for said
purposes.
Item 2. Each higher education institution, including colleges of applied technology,
shall report to the Commissioner of Finance and Administration, the Tennessee Higher
Education Commission, and the Office of Legislative Budget Analysis, the actual amount of
expenditures for maintenance and operation of the physical plant, exclusive of utilities, for the
fiscal year, and any deviation in these expenditures from the amounts recommended in the
funding formula for these purposes, prorated to reflect actual funding levels appropriated in
this act.
Item 3. All institutional revenues of any kind collected by the institutions in the course
of their operations are hereby appropriated, in addition to the specific appropriations made by
this act, for use as deemed necessary or appropriate by the governing board of the institution
and shall be subject to the conditions and limitations set forth in this Section 29, and shall not
be subject to other provisions of this act except as otherwise expressly stated.
Item 4. It is the intent of the General Assembly that the fee charges among the public
institutions of ·higher education of the state, be subject to the nature and scope of the
institutions~ and that the State Board of Regents, the boards of the locally governed
institutions, and the Board of Trustees of the University of Tennessee shall adjust fee
schedules for universities, community colleges, and colleges of applied technology within or
lower than ranges set by the Higher Education Commission.
Item 5. The appropriations herein for higher education and appropriations of all higher
education departmental and institutional revenue. are subject to the provisions of Tennessee
Code Annotated, Title 9, Chapter 4, and Section 4-3-1006(4) and (5). Within the general
requirements of these provisions, the Commissioner of Finance and Administration, in
consultation with the Comptroller of the Treasury and the Higher Education Commission,
shall specify the content and procedures for submitting operating budgets and revisions
thereto. The operating budgets shall be submitted to the Higher Education Commission by
the respective governing boards. The Higher Education Commission shall then submit such
operating budgets with their comments to the Department of Finance and Administration for
approval. In addition, the appropriations in this-act to institutions of higher education shall be
subject to. the requirements, restrictions and controls of the State Board of Claims and the
State Building Commission in the same manner as other agencies of the state. The
governing boards shall submit to the Office of Legislative Budget Analysis both the original
and revised operating budgets proposed. The Tennessee Higher Education Commission
shall submit to the Office of Legislative Budget Analysis the revised higher education funding
formula for the ensuing fiscal year no later than December 1 of each year.
. . .
Item 6. From the appropriations made herein, institutions of higher education are
hereby authorized to pay, on behalf of each participating employee, a percentage amount
equal •to the amount paid by other agencies of the state of the cost of each employee's
participation in the state-approved Group Insurance Plan for state employees.
Item 7. All appropriations of state revenues and institutional and program revenues
made in this act and in prior acts to institutions and programs of higher education shall be
protected by the state's sovereign immunity, as provided in Tennessee Code Annotated,
Section 9-1-1 03(b).
62
SB 2690
Item 8. From the appropriations made in this act and other appropriations acts, the
budgetary units in higher education shall pay to the Tennessee Consolidated Retirement
System the employer's share of retirement and shall pay to the Social Security Administration
the Social Security costs including the additional benefit costs associated with pay, pay
raises funded from fees, revenues, payroll savings or any other funding source.
Item 9. The appropriations in this act for Centers of Excellence and Campus Centers
of Emphasis are subject to allocation by the Higher Education Commission and the
Commissioner of Finance and Administration. In allocating the appropriation for Centers of
Excellence, a consideration shall be planned reductions to existing expenditures to
supplement funding for the centers.
Item 10. In addition to any other funds appropriated by the provisions of this act, there
is appropriated to the Student Assistance Corporation all reserve balances now held by the
Corporation for the Student Assistance Program authorized by Tennessee Code Annotated,
Title 49, Chapter 4, Part 3. It being the legislative intent that these reserves may be used to
cover any expenditures resulting from over-awards of assistance to students enrolled during
the 2026-2027 academic year under the Student Assistance Program. The allotment of funds
appropriated by this item shall be subject to the provisions of Tennessee Code Annotated,
Title 4, Chapter 3, Part 10 and Title 9, Chapter 4, Part 51.
Item 11. In the Tennessee· Student Assistance Awards Program any prior year
appropriations recovered from prior recipients by June 30, 2026, shall not revert to the fund
balance but shall be added to the reserve balances now held by the Student Assistance
Corporation for the Student Assistance Program authorized by Tennessee Code Annotated,
Title 49, Chapter 4, Part 3.
Item 12. There is hereby appropriated a sum sufficient to the Tennessee Student
Assistance Corporation from accumulated interest earnings in the Academic Scholars
Program (Tennessee Code Annotated, Section 49-4-203).
Item 13. From the appropriations in Section 1, Title 111-10, Item 1.3, there is hereby
appropriated a sum sufficient to fund scholarships for the Dependent Children program
authorized pursuant to Tennessee Code Annotated, Section 49-4-704.
Item 14. In the fiscal year ending June 30, 2027, there is appropriated a sum
sufficient to the Tennessee Student Assistance Corporation from revenues received pursuant
to Tennessee Code Annotated, Section 49-4-702(c) for the loan-scholarship program for
graduate students in professional nursing. Said funds shall not revert to the general fund, but
shall be carried forward for future student awards.
Item 15. There is hereby appropriated a sum sufficient from the departmental
revenues .and reserves of the Tennessee Higher Education Commission for the Post-
Secondary Authorization Program.
Item 16. It is hereby declared to be the legislative intent that the Tennessee Higher
Education Commission shall, as part of the budget recommendation to the Governor each
year, provide estimates of likely increases in student fees at various levels of state
appropriations varying from zero increase in state appropriations to full funding of the
Commission's recommendations. It is further the intent of the General Assembly that the
Commission include within its recommendations the total revenues expected to be available
to each higher education institution for educational and general purposes (including state
appropriations, student fees and any other available funds), compared to total educational
and general revenues recommended for each institution under the Commission's formula at
f.ull funding.
Item 17. State appropriations to higher education institutions will be budgeted and
expende~ in a manner that advances the priorities and goals of the approved higher
education master plan.
Item 18. From the appropriation to UT Martin in Section 1, Title 111-10, the following
sums are for the purpose of supporting the operations of higher education centers: $200,000
recurring at Parsons; $250,000 recurring at Selmer; $250,000 recurring at Somerville; and
$250,000 recurring at Ripley. It is the legislative intent that such funds shall not be distributed
by mea·ns of the higher education· formula.
Item 19.
(a) From funds previously appropriated for such purpose, it is the intent of the
General Assembly that there is established the Jimmy Naifeh Center for Effective
63
SB 2690
Leadership at the University of Tennessee to prepare elected and appointed officials
for the challenges of serving the public; to provide leadership and management
programming for government officials from across the state and the nation; and to
provide studies and research in public service on any and all matters relating to the
development of professional skills to enhance effectiveness as representatives of the
people.
(b) It is the intent of the General Assembly that in addition to or as part of the
services provided pursuant to subsection (a), the Center shall administer the
Tennessee Government Executive Institute, the Tennessee Government
Management Institute, and the Local Government Leadership Program as well as
other such programs or initiatives that promote leadership development and public
service.
Item 20. From the appropriation to the University of Tennessee, Institute for Public
Service, in Section 1, Title 111-10, the sum of $500,000 is earmarked for the Law Enforcement
Innovation Center for the purpose of technology transfer, management best practices, and
training for law enforcement agencies.
Item 21. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $2,500,000 (recurring) to East Tennessee State University for
state operating support of the Gatton College of Pharmacy.
Item 22. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $2,000,000 (recurring) to Tennessee Tech University for the sole
purpose of operating and maintaining the university's wind tunnel system.
Item 23. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $200,000 (recurring) to the University of Tennessee for the sole
purpose of providing assessor education and technical assistance through the County
Technical Assistance Service (CTAS).
Item 24. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $6,739,500 (recurring) to the University of Tennessee for the sole
purpose of funding operations and core instructional programs at the University of
Tennessee Health Science Center.
Item 25. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $1,400,000 (recurring) to Middle Tennessee State University
(MTSU) for the sole purpose of providing scholarships for the joint public-private partnership
in the Medical School Early Acceptance Program (MSEAP) with Meharry Medical College.
Item 26. From the funds appropriated to Tennessee Technological University in
Section 1, Title 111-10, there is earmarked the sum of $1,000,000 (recurring) for Rural
Reimagined.
Item 27. In addition to any other funds appropriated by the provisions of this act, there
is hereby appropriated to the Tennessee Student Assistance Corporation in the fiscal year
ending June 30, 2027, all reserve balances now held by the Corporation from the TSAC
operating fund of the Federal Family Education Loan Program referenced in 20 U.S.C.
§ 1072b. It is the legislative intent that such reserve funds be used for agency operating and
program expenditures permitted under Section 1072b.
Item 28. In the fiscal year ending June 30, 2027, the Commissioner of Finance and
Administration is authorized to transfer, upon the joint recommendation of the Treasurer and
Commis.sioner of Finance and Administration, from. the Lottery for Education Account
established in Tennessee Code Annotated, Section 4-51-111(b), an amount exceeding the
required balance in the general shortfall reserve subaccount established in Tennessee Code
Annotated, Section 4-51-.111(b)(3) to the Tennessee Promise special reserve account for the
purpose of funding the Tennessee Promise scholarships. Such transfer. shall occur after all
othe.r required _expenses for the _lottery scholarship program are made.
It is the legislative intent that the unexpended earnings of the Tennessee Promise
endowment account and special reserve account shall not revert to the general fund at June
30, _2026 bu~ be carried forward each June 30 and .added to the funds appropriated in the
succeeding year for expenditure as awards in the Tennessee Promise scholarship program.
Item 29. There is hereby appropriated a sum sufficient to the Tennessee Higher
Education _Commission and Tennessee Student Assistance Corporation from existing (a)
64
SB 2690
departmental revenues available to the commission or corporation granted from non-profit
entities, and (b) donations made to the commission or corporation. Any unexpended
revenues shall not revert to the general fund balance at June 30 and such revenues shall be
carried forward in a reserve at June 30 and are hereby reappropriated in the subsequent
fiscal year. Any new grants or donations from such entities shall be subject to the provisions
of Section 23, Item 3 of this act.
Item 30. From the appropriation made in Chapter 758, Public Acts of 2016, Section 1,
Title 111-10, Item 4.1a, an amount of $28,742,600 was appropriated for a Community Colleges
Shared Services Initiative. An amount up to, but not more than, one half of said appropriation
shall be reimbursed by the Tennessee Board of Regents to the general fund according to the
provisions of a memorandum of understanding between the Board of Regents and the
department of Finance and Administration. Said reimbursement to the general fund shall not
occur until two fiscal years after the Community Colleges Shared Services Initiative is fully
operational; provided further, that said reimbursement shall occur over ten fiscal years.
Item 31. From the funds appropriated in Section 1, Title 111-31, for capital outlay, the
Commissioner of Finance and Administration is authorized, subject to approval of the
Tennessee Board of Regents, the presidents of the locally governed institutions, and the
Tennessee Higher Education Commission, to transfer appropriations from the locally
governed institutions to the Tennessee Board of Regents.
Item 32. From the funds appropriated to the Tennessee Higher Education
Commission in Chapter 405 of the Public Acts of 2019, Section 61, Item 17, there is
appropriated the unexpended balance of such recurring appropriation to the Tennessee
Higher Education Commission to be used for the purposes of this item. The previously
appropriated funds shall be for the sole purpose of making grants to The Washington Center
for Internships and Academic Seminars, in Washington, D.C., for the University of
Tennessee system and the six (6) locally governed state universities, to be used for
scholarships for students from the University of Tennessee, Knoxville; the University of
Tennessee at Martin; and the University of Tennessee at Chattanooga; and such state
universities to participate in the internship program provided by The Washington Center for
Internships and Academic Seminars. The Washington Center shall decide on the scholarship
level and a plan for distributing the scholarships. The Washington Center shall invoice THEC
three times a year for scholarship dollars based on the number of _students who are
participating in the internship program in each of its three terms. The Washington Center
shall submit a written report by August 1, 2026, and by August 1 of each year thereafter, that
shows where the state money was used to provide the educational opportunities for the
students.
Item 33. From the appropriation made in Chapter 418, Public Acts of 2023, Section
60, Item 4, there is hereby appropriated a sum sufficient for scholarships in the Tennessee
Future Teacher Scholarship Program (Tennessee Code Annotated, Section 49-4-701).
Item 34. From the unexpended balance of funds appropriated in Chapter 418, Public
Acts of 2023, Section 60, Item 4, for the Tennessee Future Teacher Scholarship Act of 2023,
there is earmarked the sum of $1,101,900 nonrecurring for the sole purpose of implementing
Chapter 488, Public Acts of 2025, relative to allowing eligible students enrolled in an
approved educator preparation program as a post.:.baccalaureate student to be eligible
recipients of the Tennessee Future Teacher Scholarship, if such bill becomes a law. It is the
legislative intent that the sum of $1,442,400 nonrecurring be earmarked from such
unexpended balance in fiscal years 2026-2027 and 2027-2028 for the sole purpose of
implementing such act.
..ltern 35'. The capital 9utlay projects listed in the 2026-2027 Budget Document and
which are identified with ·the heading "Proposed Capital Projects from School Bonds and
Other Sources, Fiscal Year 2026-2027," are presented for informational purposes only. The
projects are subject to recommendation and a·pproval procedures involving the higher
education· institutions and their governing boards, the Tennessee Higher Education
Commission, Finance and Administration, the Tennessee State School Bond Authority, the
State Funding Board, and the State Building Commission.
The following proposed capital outlay projects, to be funded from school bonds,
institutional/auxiliary and other funds, are in addition to those projects listed on page A-141 in
the: 2026~2027 Budget Document:
Locally Governed Institutions
University of Memphis •
65
SB 2690
Wilson Hospitality Improvements - P3 $ 18,000,000
38,840,000
Tennessee Technological University 561840,000
Parking Garage $ 70,000,000
72,000,000
Total Locally Governed Institutions $ 253,380,000
58,800,000
University of Tennessee 15,000,000
469, 180,090
UT Health Science Center
Energy and Utility Systems Modernization - P3 $
UT Institute of Agriculture
College of Veterinary Medicine Renovation & Addition $
UT Knoxville
Housing Redevelopment $
UT Martin
Housing Project $
UT Southern
New Student Housing $
Total University of Tennessee $
Grand Total $ 526,020,000
The request for University of Tennessee Chattanooga South Campus Housing
Acquisition in the amount of $108,000,000, as identified on page A-141 of the 2026-2027
Budget Document, is to be canceled.
SECTION 30. Salary Administration.
Item 1. Salaries provided under the appropriations made in Sections 1 and 4 of this
act to the respective departments, institutions, offices and agencies shall be fixed as under
the provisions of Tennessee Code Annotated, Title 8, Chapter 23.
Item 2. Within the appropriations made for the Office of the Attorney General and
Reporter under this act, the salaries of the attorneys, legal and clerical staff and other
employees shall be fixed by the Attorney General. The expenditures provided for herein shall
not exceed the amount of the appropriation to the Office of the Attorney General and
Reporter.
Item 3. The salaries of all employees of the Judicial Branch, except those whose
salaries are set by law, shall be fixed by the Director of the Administrative Office of the
Courts with the approval of the Chief Justice of the Supreme Court. The compensation of the
judges, chancellors, and justices of the state's trial and appellate courts shall be set in
accordance with Tennessee Code Annotated, Section 8-23-103.
Item 4, Within the appropriations herein made, the salaries of the subordinates and
employees of the Treasurer, Comptroller, and Secretary of State shall be fixed by the heads
. thereof, respectively, and the salaries of the employees and subordinates of the Fiscal
- Review Committee and the Joint Legislative Services Committee shall be fixed in
accordance with Tennessee Code Annotated, Title 3.
Item 5. All other salaries and wages in departments, institutions, offices, and
agencies, other than the Legislative Branch and agencies enumerated in Items 2, 3, and 4 of
this section and in Section 29, Item 1, shall be approved by the Commissioner of Human
Resources, provided, however, that the establishment of salary ranges within such
departments, institutions, offices and agencies shall be subject to the approval of the
Commissioner of Finance and Administration. To the extent that additional funds are
appropriated or are generated within a department or agency by abolishing vacant and
funded pe>sitions, subject to ~eview and approval of the Commi_ssioner of Finance and
66
SB 2690
Administration and the Commissioner of Human Resources, salary increases may be
granted from such funds.
Item 6. Salaries of state employees shall be paid in accordance with the direct-
deposit policy established in accordance with Tennessee Code Annotated, Section 8-23-
202(c).
SECTION 31. Federal Block Grant Programs. The provisions of this section take effect upon
becoming a law, the public welfare requiring it. Under the provisions of Section 4 and Section 23 of
this act, it is the legislative intent to _appropriate the proceeds of federal block grant programs, as
assumed by the State of Tennessee, in the following manner:
Item 1. Social Services block grant in the amount of $36, 135, 100 to the Department
of Human Services.
Item 2. Mental Health Services block grant in the amount of $23,053,300 to the
Department of Mental Health and Substance Abuse Services.
Item 3. Child Care Development Funds block grant in the amount of $232,786,400 to
the Department of Human Services.
Item 4. Maternal and Child Health block grant in the amount of $2,621,700 to the
Department of Health.
Item 5. Preventive Health block grant in the amount of $950,000 to the Department of
Health.
Item· 6. Community Services block grant in the amount of $13,918,200 to the
Department of Human Services.
Item 7. Low-Income Energy Assistance block grant in the amount of $62,850,300 to
the Tennessee Housing Development Agency.
Item 8. Substance Abuse Prevention and Treatment block grant in the amount of
$35,437,100 to the Department of Mental Health and Substance Abuse Services.
Item 9. Temporary Assistance to Needy Families (TANF) block grant in the amount of
$228,705,700 to the Department of Human Services.
Item 10. Small Cities Community Development block grant in the amount of
$55,563,200 to the Department of Economic and Community Development. Said sum being
the estimated allocation of funds for the fiscal years 2025-2026 and 2026-2027 combined.
Provided, however, that all expenditures of any community development block grant
funds in addition to those appropriated and enumerated in this section shall be subject to the
following limitations and restrictions:
The Housing and Community Development Act of 1981 made it possible for states to
assume administration of the Small Cities Community Development Block Grant (CDBG)
previously administered by the U.S. Department of Housing and Urban Development (HUD).
In Tennessee, the CDBG Program shall be administered by the Department of Ecor)omic
and Community Development (ECO).
There shall be appropriated by the General Assembly to ECO such funds as may be
allocated to Tennessee by the federal government for the CDBG Program. The state-
administered CDBG Program shall be developed within the parameters of the CDBG
legislation,. applicable federal regulations, and consultation with citizens and elected officials
in Tennessee.
The CDBG goals shall be three-fold: (1) target on areas of economic distress; (2)
stimulate the growth of jobs and income in these areas; and (3) maxrmize the number of
grantees. Additionally, all CDBG projects must meet one of the three national objectives of
(1) principally benefiting persons of low and moderate income; (2) elimination or prevention
of slums and blight; or (3) elimination of conditions detrimental to health, safety or public
welfare. ECO shall be authorized to make grants and/or loans of CDBG monies to eligible
city and county governments in Tennessee to achieve these goals. Loan payments and
interest shall be reserved for reappropriation and shall not revert to the general fund balance
at year end.
67
SB 2690
Eligible applicants shall be all city and county governments in Tennessee except
those cities and counties designated by HUD as CDBG entitlement areas. Cities and
counties excluded from the state-administered CDBG Program include Nashville (Davidson
County), Shelby County, Knox County, Memphis, Chattanooga, Knoxville, Clarksville, Bristol,
Johnson City, Oak Ridge, Murfreesboro, Kingsport, Morristown, Cleveland, Franklin,
Jackson, Smyrna, and Spring Hill. These cities and counties will receive their CDBG funds
directly from HUD.
Based upon anticipated CDBG allocations of $28,091,200 in fiscal year 2025-2026
and of $27,472,000 in fiscal year 2026-2027, the following target funding levels shall be
established:
2025-2026 2026-2027
Administrative Costs ........................... $ 869,600 $ 924,800
Public Health and Safety ................... . 8,692,500 8,733,500
Community Infrastructure .................. . 6,274,800 4,875,000
Community Revitalization .................. . 2,937,000 6,021,700
Water/Sewer ...................................... . 8,109,300 5,917,000
Set-Aside ........................................... . 1,000,000 1,000,000
Miscellaneous .................................... . 0
208,000
A fifty percent (50%) reduction in any category will be permitted to facilitate proper
program management and allow administrative flexibility. The funds so reduced shall be
allocated to other categories.
Selection criteria for project approvals shall be uniform within categories, objective
and quantitative, and shall be based on project need, project impact, community need, the
percent of project beneficiaries that have family incomes below the low and moderate income
(LMI) levels. Additionally, public health and safety projects, community infrastructure
projects, and community revitalization projects are also scored for project feasibility and
project essentialness.
Project application materials will be supplemented, as appropriate, by site visits and
by informed opinions of state agencies knowledgeable about particular projects.
The level of CDBG assistance for individual projects shall be dete"rmined by the
following factors: (1) a maximum grant of $1,000,000 for individual projects involving
construction or $420,000 for individual projects for equipment only; and (2) the grantee's
ability to pay.
U modifications in the expenditure plan for the CDBG Program are required, said
modifications shall be accomplished in the following manner: (1) If the General Assembly is
in session{, such modifications shall be approve9 by the General Assembly; or (2) if the
General Assembly is not in session, the Governor may either (a) submit such modifications
to the State Funding Board for approval or (b) call a special session of the General Assembly
for approval.
SECTION 32. FastTrack Infrastructure Development and Job Training Assistance. The
provisions of this section are relative to appropriations made in Section 1 of this act and previous
appropriations acts to the FastTrack Infrastructure and Job Training Assistance program.
Item 1. The appropriation made in Section 1, Title 111-8, Item 6, to the Department of
Economic· and Community Development for the FastTrack Infrastructure and Job Training
Assistance program shall be expended pursuant to Tennessee Code Annotated, Section 4-3-
716 and Section 4-3-717.
lte·m 2. There hereby are reappropriated sums sufficient from any amounts carried
forward in the FastTrack fund at the end of each fiscal year pursuant to Tennessee Code
Annotated, Section 4-3-716(d).
Item 3. The Commissione_r of Finance and Administration: is authorized to transfer
sums sufficient from the appropriation for FastTrack Infrastructure and Job Training
Assistance to Community and Rural Development, Business Development, and Innovation
Programs for economic development projects, and the unexpended balances of the amounts
trari~ferred also may be transferred back to the FastTrack program.
Item 4. The Commissioner of Economic and Community Development is authorized
to reallocate sums sufficient from the appropriations for FastTrack Infrastructure and Job
Training Assistance and Tennessee Jobs Skills Program, subject· to the approval of the
68
SB 2690
Commissioner of Finance and Administration, and the unexpended balances of the amounts
transferred also may be transferred back to the FastTrack program.
Item 5. The Commissioner of Finance and Administration is authorized to transfer
from the general fund to the capital projects fund available appropriations made in this act
and previous appropriations acts to the Department of Economic and Community
Development for economic development projects, including amounts allotted to the
FastTrack Infrastructure and Job Training Assistance program and Business Development
program. A transfer may not be made if it would result in a deficiency in available funds for
any FastTrack or Business Development project for which a contractual agreement has been
made, unless such agreement has been amended to reduce the amount required to be
expended in the amount to be transferred or unless appropriations are available otherwise.
Transfers also may be made from the capital projects fund to the two operating
budget programs from available funds appropriated to the Department of Economic and
Community Development for economic development capital outlay projects. Transfers are
authorized only from available current funds in the capital projects fund and may not include
any amounts from bond authorizations. Before transfers from the capital projects fund may
occur, the Commissioner of Finance and Administration shall determine that the current
funds are available, that any associated grant agreement for the capital outlay project has
been amended to reduce the capital outlay grant in the amount to be transferred or that an
agreement has not been made for the capital outlay grant, and that the State Building
Commission has approved the capital outlay project current-funds reduction. Such transfers
may not be made if they would result in a deficiency in available funds for any capital outlay
project previously funded, except under the conditions of this item.
Transfers authorized in this item are subject to the approval of the Commissioner of
Finance and Administration.
Item 6. At the close of each fiscal year, the Commissioner of Economic and
Community Development shall report to the directors of the Office of Legislative Budget
Analysis any transfers or reallocations made in Items 3 and 4 of this Section.
SECTION 33. On or before January 31 of each calendar year, the Boyd Center for Business
and Economic Research of the University of Tennessee shall cause to be published a
comprehensive report on the state's economy. Said report shall be based on projections from the
Tennessee Econometric Model and such other information as the Center may deem appropriate.
The report shall contain projections for ten years (beginning with the calendar year preceding the
year in which the report is due) of the annual economic activity (level and percent change over prior
year) for each of the state's major economic sectors; shall include ten-year projections of selected
economic indicators, as specified by the State Funding Board; and shall also include a narrative
description of the short-term and long-term prospects for economic and business .activity in the state
based on these indicators. Quarterly projections shall also be published if available.
Said report shall be distributed to the Governor and the other members of the State Funding
Board. The State Funding Board shall report to t~e Ger:,eral Assembly as provided in Tennessee
Code Annotated, Section 9-4-5202.
SECTION 34. Authorization to Transfer Appropriations in 2025-2026. The provisions of this
section take effect upon becoming law, the public welfare requiring it. From the appropriations made
in Chapter 530, Public Acts of 2025, the Commissioner of Finance and Administration is authorized
to make transfers from the appr~priations made:
Item 1. To the Attorney General and Reporter in Section 1, Title 111-1, Item 1.
Item: 2. To the District Attorneys General in Section f, Title 111-1, Item 2.
Item 3. To the Public Defenders Conference in Section 1, Title 111-1, Item 4, but
excluding the appropriations to Shelby County Public Defender and Davidson County Public
Defender.
Item 4. To the Department of Finance and Administration in Section 1, Title 111-2, Item
3, and to adjust federal aid and other departmental revenue accordingly.
Item 5. To the Department of Veterans Services in Section 1, Title 111-2, Item 5, and to
~djust federal aid and departmental revenue accordingly.
Item 6. To the Department· of Agriculture in Section 1, Title 111-3, and to adjust federal
aid and other departmental_ revenue ac_cordingly.
69
SB 2690
Item 7. To the Department of Tourist Development in Section 1, Title 111-4, and to
adjust federal aid and other departmental revenue accordingly.
Item 8. To the Department of Economic and Community Development in Section 1,
Title 111-8.
Item 9. To the Department of Commerce and Insurance in Section 1, Title 111-11, and
to adjust federal aid and other departmental revenue accordingly.
Item 10. To the Department of Safety in Section 1, Title 111-20, and to adjust federal
_aid and other departmental revenue accordingly.
Item 11. From the unexpended balance of the Miscellaneous Appropriations in
Section 1, Title 111-22, a sum sufficient is authorized to be transferred for reimbursement of
the Tennessee Consolidated Retirement System, if the appropriation in Item 2.1 of the cited
title is insufficient for payment of pensions of former governors and widows of former
governors.
Item 12. From the unexpended balance of the Miscellaneous Appropriations in
Section 1, Title 111-22, a sum sufficient is authorized to be transferred for payment of dues to
the National Governor's Association, National Conference of State Legislatures, Council of
State Governments, Southern Governors Association, National Association of State Budget
Officers, and National Conference of Insurance Legislators, if the appropriation in item 7 of
the cited title is insufficient for payment of intergovernmental conference dues to the
organizations cited in this item.
SECTION 35. Authorization to Transfer Appropriations in 2026-2027. The Commissioner of
Finance and Administration is authorized to make the following transfers from the appropriations
made in this act:
Item 1. To the Judicial Branch in Section 1, Title II, but excluding the appropriations
for Board of Law Examiners, Board of Professional Responsibility, Tennessee Lawyers
Assistance Program, Continuing Legal Education, and Client Protection Fund. Transfer of
appropriations to or between Guardian Ad Litem, Indigent Defendants' Counsel, Civil Legal
Representation, Court Interpreter Services, and Verbatim Transcripts are sanctioned, but
transfers from these programs to other programs are excluded.
Item 2. To the Department of General Services, Division of Motor Vehicle
Management Internal Service Fund, from the funds appropriated to state agencies and
programs by this act, a sum sufficient for the acquisition of motor vehicles.
Item 3. From the funds appropriated in Section 1, Title 111-3, to the Department of
Agriculture for the agricultural enhancement program.
Item 4. To the Department of Agriculture in Section 1, Title 111-3, to recognize
administrative reorganization and to adjust authorized positions, federal aid, and other
departmental revenue accordingly.
Item 5. In Section 1, Title 111-3, Title 111-4, Title 111-5, and Title 111-8, a reallocation of
appropriations between the Departments of Agriculture, Tourist Development, Environment
and Conservation, and Economic and Community Development is authoriz.ed to implement
the Tennessee Outdoor Partnership. The Commissioner of Finance and Administration is
authorized to adjust federal aid and other departmental revenue accordingly.
Item 6. Subject to the approvai of the Commissioner of Finance and Adt11inistration, in
Section 1, Title 111-4, and Title 111~8, a reallocation of appropriations between the Departments
of Tourist Development and Economic and Community Development, is authorized to
economic development ,and. tourism development initiatives, includJng but not limit~d to
grants to the Nashville raceway, the music scene certified program, and tourism
enhancement grants for rural communities. The Commissioner of Finance and Administration
is authorized to adjust federal aid and other departmental revenue accordingly.
Item 7. Subject to the approval of the Commissioner of Finance and Administration, in
Section _1, Title 111-5, and Title 111-8, a reallocation of appropriations between the Departments
of Environment and Conservation and Economic and Community Development is authorized
to environment and conservation and economic and community development initiatives,
including, but not limited to, Transportation .Network Growth Opportunity grants, rural
development grants, and other economic development grants. The Commissioner of Finance
and Administration is authorized to adjust federal and other departmental revenue
accordingly.
70
SB 2690
Item 8. To the Department of Environment and Conservation in Section 1, Title 111-5,
to recognize administrative reorganizations and to adjust authorized positions, federal aid,
and other departmental revenue accordingly.
Item 9. To the Department of Correction in Section 1, Title 111-7, and to adjust the
number of authorized positions within the department's authorized level.
Item 10. To the Department of Economic and Community Development, in Section 1,
Title 111-8, from Community and Rural Development and Policy and Federal Programs to
Economic Development District Grants to comply with the requirements of Chapter 521,
Public Acts of 2007.
Item 11. To the Department of Economic and Community Development in Section 1,
Title 111-8, to recognize administrative reorganizations. The Commissioner of Finance and
Administration is authorized to adjust authorized positions, federal aid, and other
departmental revenue accordingly.
Item 12. Subject to the approval of the Commissioner of Finance and Administration,
in Section 1, Title 111-8, and Title 111-13, a reallocation of appropriations between the
Departments of Economic and Community Development and Labor and Workforce
Development is authorized for workforce development initiatives. The Commissioner of
Finance and Administration is authorized to adjust federal aid and other departmental
revenue accordingly.
Item 13. To the Department of Education in Section 1, Title 111-9, to recognize
administrative reorganizations and to adjust the authorized positions, federal aid, and other
departmental revenue accordingly.
· Uem 14. To the administration and support services programs in Section 1, Title 111-
10, Item 1, which are administered by the Tennessee Higher Education Commission or the
Tennessee Student Assistance Corporation, to implement administrative reorganizations
upon recommendation of the Executive Director of the Tennessee Higher Education
Commission.
Item 15. In Section 1 for Financial Literacy, a reallocation of funds between the
Department of Financial Institutions and the Tennessee Financial Literacy Commission is
authorized, pursuant to Tennessee Code Annotated, Section 45-12-126. The Commissioner
of Finance and Administration is further authorized to adjust departmental revenues as may
be required.
Item 16. To the Department of Labor and Workforce Development in Section 1, Title
111-13, and to adjust federal aid and other departmental revenue accordingly.
Item 17. To the Department of Mental Health and Substance Abuse Services in
Section 1, Title 111-14, and to adjust federal aid and other departmental revenue accordingly.
Item 18. To the Department of Military, but excluding Disaster Relief Grants and the
Governor's Response and Recovery Fund, in $action 1, Title 111-15, and to adjust federal aid
and other departmental revenue accordingly.
Item 19. To the Department of Health iri Section 1, Title 111-16, and to adjust federal
aid and other departmental revenue accordingly.
Item 20. In Section 1 for .Targeted Case Management Services, a reallocation of
funds between the Department of Disability and Aging and the Department of Children's
Services is authorized. The Commissioner of Finance and Administration is further
authorized to adjust departmental revenues as may be required.
Item 21. To the Department of Human Services in Section 1, Title 111-17, and to adjust
federal aid and other departmental revenue accordingly.
Item 22. To the Department of Reve'nue in Section 1, Title 111-18, and to adjust
departmental revenue accordingly.
Item 23. To the Department. of Finance and Administration, Strategic Health-Care
Programs, in Section 1, Title 111-21, and to adjust federal aid and other departmental
revenues accordingly.
Item 24. The appropriations made in Section 1, Title 111-22, Miscellaneous
Appropriations, are authorized to be allocated and transferred to the appropriate
71
SB 2690
organizational units and programs of state government by the Commissioner of Finance and
Administration. For each appropriation so allocated and transferred, there is further
appropriated sums sufficient from dedicated and earmarked revenues_ to provide for the
comparable. allocation of appropriations to those agencies and programs funded by
dedicated and earmarked revenues.
In addition to the appropriations made in Section 4 of this act, there is hereby
appropriated to the organizational units and programs of state government all federal aid
funds and departmental revenue earnings associated with the allocation and transfer of
Miscellaneous Appropriations authorized under the preceding paragraph in this item.
Item 25. To the Department of Children's Services in Section 1, Title 111-23, and to
adjust federal aid and other departmental revenue accordingly.
Item 26. To the Department of Disability and Aging in Section 1, Title 111-25, and to
adjust federal aid and other departmental revenue accordingly.
Item 27. To the Department of Finance and Administration, TennCare program, in
Section 1, Title 111-26, and to adjust federal aid and other departmental revenue accordingly.
Item 28. To the Department of Transportation in Section 1, Title 111-29, to provide
additional funds for resurfacing as determined by the Commissioner of Transportation.
Item 29. To the Department of Transportation in Section 1, Title 111-29, to recognize
administrative reorganizations and to adjust authorized positions, federal aid, and other
departmental revenue accordingly.
Item 30. To the Department of Transportation in Section 1, Title 111-29, to reorganize
programs for better accounting and personnel management practices made possible by the
enterprise resource planning system and to adjust authorized positions, federal aid, and
other departmental revenue accordingly.
SECTION 36. Carry-forward and Appropriation of Certain Unexpended Balances. The
provisions of this section take effect upon becoming a law, the public welfare requiring it. Subject to
the availability of funding at June 30, 2026, any unexpended balances of appropriations made under
Chapter 530, Public Acts of 2025, other acts of.this General Assembly or acts by previous General
Assemblies', listed in this section are hereby reappropriated to be expended in the 2026-2027 fiscal
year and such appropriations shall be carried forward in a reserve into the fiscal year beginning July
1, 2026. The reappropriation and carry-forward of these •funds is subject to approval by the
Commis.sioner of Finance and Administration. Unless otherwise noted, the unexpended balances
reappropriated are authorized under Chapter 530, Public Acts of 2025, and they are the
appropriations made:
Item 1. For data processing services, systems development, dat~ processing
equipment purchases and leases and telecommunication systems purchases and leases.
The Commissioner of Finance and Administration is authorized to transfer from the amounts
carried forward sums sufficient for the Computer Equipment Replacement Fund and to the
Systems· Development Fund.
Item 2. Settlement and Judgment Awards and Similar Awards. From the
appropriations in this act and previous appropriations acts, from funds received by the
Attorney General and Reporter or other state officials and agencies in settlements and
judgments and similar awards, the unexpended balance of such funds shall be reserved and
carried forward until expended_ for the intended purposes; and such funds as are carried
forward hereby are appropriated for the intended purposes. The provisions of this item shall
not require the reserving of such funds in cases in which the settlement or judgment does not
require the set-:aside or expenditure of funds for a specific purpose or in amounts that are
intended to benefit the general fund, provided, however, that funds designated for the
Attorney General and Reporter shall be _reserved in the Attorney General Litigation
Settlement Reserve.
Item 3. All funds appropriated to the Legislative Branch which remain unobligated and
unexpended at the end of any fis-cal year shall not revert to the general fund but shall be
carried forward in a reserve to be expended in accordance with the approval of the Speaker
of the House of Representatives and the Speaker of the Senate. This item shall not be
subject to the approval of the Commissioner of Finance and Administration.
Item 4. To the Judicial Branch in Section 1, Title II, but excluding the appropriations
for Guardian Ad Litem, Indigent Defendants' Counsel, Civil Legal Representation, Court
Interpreter Services, Verbatim Transcripts, Council of Juvenile and Family Court Judges,
72
SB2690
Board of Law Examiners, Board of Professional Responsibility, Tennessee Lawyers
Assistance Program, Continuing Legal Education, and Client Protection Fund. The
reappropriated funds shall be expended for the integrated computer system for the
Tennessee Court System under the provisions of Tennessee Code Annotated, Section 16-3-
807. This item shall not be subject to the approval of the Commissioner of Finance and
Administration.
Item 5. To the Judicial Branch, Administrative Office of the Courts, in Section 1, Title
II, Item 14, to defray expenses of serving the General Sessions Courts and the General
Sessions Judges' Conference pursuant to Tennessee Code Annotated, Section 16-15-5007
and Section 67-4-606(a)(9).
Item 6. To the Administrative Office of the Courts from the unexpended balance of
revenue from the gift received to benefit the Hillman Taylor Library in Memphis.
Item 7. To the Judicial Branch, Board of Law Examiners in Section 1, Title II, Item 16.
The carry-forward amount shall be the difference between expenditures and revenues,
including any reserve balance.
Item 8. To the Judicial Branch, Council of Juvenile and Family Court Judges in
Section 36, Item 8, and in Section 65, Item 6, of Chapter 554, Public Acts of 2009, the
nonrecurring appropriation to provide for juvenile mental health evaluations.
Item 9. To the Judicial Branch, Appellate and Trial Courts, in Section 36, Item 9, the
unexpended balance of the $4,000,000 appropriation for courtroom security.
Item 10. To the Judicial Branch, Administrative Office of the Courts, in Section 36,
Item 10, the unexpended balance of the $1,000,000 nonrecurring appropriation to provide
continuin•g· ·Iegal education for attorneys providing representation to individuals before safe
baby courts.
Item 11. To the Judicial Branch, Indigent Defendants' Counsel in Section 1, Title II,
Item 5.
Item 12. To the Judicial Branch, Guardian Ad Litem in Section 1, Title II, Item 4.
Item 13. To the Attorney General and Reporter, in Section 1, Title 111-1, Item 1.3, for
Speqial Litigation and ongoing litigation and settlements.
Item 14. To the Secretary of State for publication of the Blue Book pursuant to
Section 1, Title 111-1, Item 3.3 and Section 36, Item 15.
Item 15. To the Secretary of State in Section 36, Item 16, and in Section 4, Title 111-1,
Item 3.1. The unexpended balances of departmental revenue are hereby reappropriated to
fund a charitable solicitations systems development project.
Item 16. To the Secretary of State, State Library and Archives, the unexpended
balances of multi-year library construction grants.
Item 17. To the Comptroller of the Treasury, Division of Property Assessments, in
Section 4, Title 111-1, Item 5.4, and Section 36, Item 18, the unexpended revenue derived
from the annual assessor's training session. •
Item 18. To the Comptroller of the Treasury, Property Tax Relief, in Section 36, Item
19, and Section 1, Title 111-1, Item 5.8, for property tax relief.
. Item 19. To the Comptroller of the Treasury, the ·unexpended balance of the
nonrecurring appropriation in Section 36, Item 20 for the Certified County and Municipal
Financial Officers training programs.
Item 20. To the Treasury Department,· in Section 36, Item 21, the unexpended
balance of the $2,000,000 nonrecurring appropriation for the Electronic Monitoring lndigency
Fund, including program administrative costs. • •
Item 21. To the Office of the Post-Conviction Defender, the unexpended balance of
the appropriation made in Section 36, Item 23, for the sole purpose of providing expert
witness funding.
Item 22. To the Treasury Department for college savings incentive initiatives and a
college savings plan in Section 36, Item 24, and Section 1, Title 111-1, Item 7.3.
73
SB 2690
Item 23. To the Treasury Department for the TN Achieving a Better Life Experience
(ABLE TN) savings plan for disabled individuals, in Section 36, Item 25.
Item 24. To the Alcoholic Beverage Commission from the unexpended balance of
departmental revenues of the Alcohol Server Responsibility and Training Program authorized
by Tennessee Code Annotated, Title 57, Chapter 3, Part 7.
Item 25. To the Alcoholic Beverage Commission from the unexpended balance of
departmental revenues of the Responsible Vendor Certification fund authorized by
Tennessee Code Annotated, Section 57-5-609.
Item 26. To the State Museum in Section 36, Item 30, and Section 1, Title 111-2, Item
2.10, the unexpended balance of the nonrecurring appropriations for the semi quincentennial
celebration.
Item 27. To the State Museum in Section 36, Item 31, the unexpended balance of the
$5,000,000 nonrecurring appropriation for grants to museums with a 501 (c)(3) nonprofit
organization or affiliated with a governmental entity for capital maintenance and
improvements.
Item 28. To the State Museum in Section 61, Item 20, the unexpended balance of the
$5,000,000 nonrecurring appropriation for grants to museums with a 501 (c)(3) nonprofit
organization or affiliated with a governmental entity for capital maintenance and
improvements.
Item 29. To the Department of Finance and Administration, in Section 36, Item 34, for
transportation of mental health patients.
. Item 30. To the Department of Finance and Administration, Office of Criminal Justice
Programs, in Section 36, Item 35, the unexpended balance of the $25,000,000 nonrecurring
appropriation for Evidence-Based Programming Seed Grants.
Item 31. To the Department of Finance and Administration, Office of Criminal Justice
Programs, in Section 36, Item 36, the unexpended balance of the $100,000,000 nonrecurring
appropriation for Violent Crime Intervention Grants.
Item 32. To the Department of Finance and Administration, in Section 36, Item 37, the
unexpended balance of the nonrecurring appropriation for crisis pregnancy center grants. No
amount of the unexpended balance of the nonrecurring appropriation for crisis pregnancy
center grants shall be used to pay administrative costs related to the disbursement of such
grant funds by a state office or agency.
Item 33. To the Department of Finance and Administration, in Section 36, Item 38, the
unexpended balance of the $10,000,000 nonrecurring appropriation for evidence-based
grants for jails - mental health focus.
Item 34. To the Department of Finance and Administration, in Section 36, Item 39, the
unexpended balance of the $13,000,000 nonrecurring appropriation for Victims of Crime Act
funds.
Item 35. To the Department of Finance and Administr~tiqn, Office of Criminal Justice
Programs, in .Section _55, lt~m 1-55, the unexpended balance of the $20,000,000
nonrecurring appropriation for Victims Services grants.
Item 36. To the Department of General Services any unexpended real estate fees
collected by the Real Estate Asset Management Division and the unexpended balance of
appropriation in Chapter 453, Public Acts of 2013, Section 38, Item 5.1, and carried forward
pursuant to Chapter 9,19, Public Acts of 2014, Section 36, Item 22.
Item 37. To the Department of General Services, Real Estate Asset Management
Division, the proceeds from the sale of surplus personal property assigned to the division.
Item· 38. To the Department •of General Services, in Section 4, any unexpended
revenues received for conducting conferences for the Governor's Office of Diversity and
Busine~s Enterprise shall not revert to the gener~I fund.
Item 39. To the Department of General Services, in Section 36, Item 44, for capital
projects programming.
74
SB 2690
Item 40. To the Department of General Services, the unexpended balance of all
nonrecurring appropriations in Section 1, Title 111-2, Item 4, and Section 36, Item 45, for TN
Serves.
Item 41. To the Department of General Services, Megasite Authority of West
Tennessee, in Section 36, Item 46.
Item 42. To the Department of General Services, in Section 1, Title 111-2, Item 4.11, an
amount not to exceed $1,200,000 for MALETA staffing and operations increase.
Item 43. To the Department of Veterans Services in Section 36, Item 48, and Section
1, Title 111-2, Item 5.2, and Section 4, Title 111-2, Item 5.1 for operational expenses, excluding
payroll, related to cemetery construction and maintenance.
Item 44. To the Department of Veterans Services, Tennessee State Veterans
Cemeteries, the unexpended balance of donations made to the program.
Item 45. To the Department of Veterans Services, in Section 36, Item 51, the
unexpended balance of the $75,000 nonrecurring appropriation for the honor guard grant
program.
Item 46. To the Department of Veterans Services, in Section 36, Item 52, the
unexpended balance of the $15,000 nonrecurring appropriation for the honor guard grant
program for the sole purpose of making grants in accordance with Tennessee Code
Annotated, Section 4-3-2505.
Item 47. To the Department of Agriculture, the unexpended balance of revenues from
timber, communications access, and carbon credit sales at state and federal forests and
state parks.
Item 48. To the Department of Agriculture, the unexpended balance of revenues from
timber sales at federal forests.
Item 49. To the Department of Agriculture for the agricultural enhancement program
in Section 36, Item 55, and in Section 1, Title 111-3, Items 1, 2, 3, and 5.
Item 50. To the Department of Agriculture, the unexpended balance of funds from the
Agriculture Enterprise Fund for agribusiness grants.
Item 51. To the Department of Agriculture, in Section 36, Item 59, the unexpended
balance of nonrecurring appropriations for the Wine and Grape Board.
Item 52. To the Department of Agriculture, in Section 36, Item 61, the unexpended
balance of the $2,000,000 nonrecurring appropriation for forestry supplies and equipment.
Item 53. To the Department of Agriculture, in Section 1, Title 111-3, Item 1, the
unexpended balance of the $25,000,000 nonrecurring appropriation for the Farmland
Preservation Fund.
Item 54. To the Department of Tourist Development, the unexpended balance of
funds from the Tourism Marketing Task Fon~e.
Item 55. To the Department of Tourist Development, the unexpended bala17ce of
funds from the Rural Development Fund for tourism enhancement grants.
Item 56. To the Department of Tourist Development in Section 36, Item 64, the
unexpended balance of the nonrecurring $25,000,000 appropriation for the special event
gra~program: •
Item 57. To the Department of Tourist Development, in Section 36, Item 65, the
unexpended balance of the $17,000,000 nonrecurring appropriation for raceway grants.
Item 58. To the Department of Tourist" Development in Section 1, Title 111-4, Item 1,
the unex·pended balance of the $500,000 nonrecurring appropriation for the Tennessee
sports hall ·of fame operational funding.
. Item 59. To the Department of Environment and Conservation, Water Resources, for
land reclamation, in Section 1, Title 111-5, Item 17, and Section 36, Item 67.
75
SB 2690
Item 60. To the Department of Environment and Conservation, State Parks, in
Section 1, Title 111-5, Item 5, for operational expenses, and in Section 36, Item 68, for parks
modernization.
Item 61. To the Department of Environment and Conservation, the unexpended
balance of revenues generated from the disposal of invasive and/or non-invasive species
from lands under department jurisdiction undergoing ecological restoration and donations
received for such purpose.
Item 62. To the Department of Environment and Conservation, Natural Areas, the
unexpended balance of donations made to the program.
Item 63. To the Department of Environment and Conservation in Section 36, Item 72,
the unexpended balance of the $9,348,700 nonrecurring appropriation for megasite and area
development.
Item 64. To the Department of Environment and Conservation in Section 36, Item 73,
the unexpended balance of the $3,000,000 nonrecurring appropriation for solid waste
assistance grants.
Item 65. To the Department of Environment and Conservation in Section 36, Item 74,
the unexpended balance of the $9,000,000 nonrecurring appropriation for solid waste
management site cleanup.
Item 66. To the Department of Environment and Conservation, in Section 36, Item 76,
the unexpended balance of the $1,000,000 nonrecurring appropriation for comprehensive
planning for solid waste disposal.
Item 67. To the Department of Environment and Conservation in Section 36, Item 77,
the unexpended balance of the $10,000,000 nonrecurring appropriation for water
regionalization.
Item 68. To the Department of Environment and Conservation in Section 1, Title 111-5,
Item 16, the unexpended balance of the $628,000 nonrecurring appropriation for a nuclear
fusion regulatory framework.
Item 69. To the Department' of Environment and Conservation in Section 1, Title 111-5,
lte~ 17, the unexpended balance of the $24,500,000 nonrecurring appropriation for Duck
River planning.
Item 70. To the Tennessee Historical Commission in Section 1, Title 111-5, Items 8 and
9, and Section 36, Item 78, for the Tennessee Wars, Commission.
•• item 71. To the Tennessee Historical Commission, the unexpended funds from any
prior appropriations for publications, historical markers and other historical activities.
Item 72. To the Department of Correction, Community Corrections, in Section 1, Title
111-7, Item 5, and Section 36, Item 81, pursuant to Tennessee Code Annotated, Section 40-
36-304(c)(1 ).
Item 73. To the Department of Correction, in Section 36, Item 82, the unexpended
balance of the $5,000,000 nonrecurring appropriation for Violent Crime Intensive Intervention
Unit Pilot program.
Item 74. To the Department of Correction, in Section 1, Title 111-7, the unexpended
balance of the $21,722,900 nonrecurring appropriation for Hepatitis C Treatment Standards.
Item 75. To the Department of Economic and Community Development in Section 36,
Item 83, and from the appropriations made in Section 1, Title 111-8, to support the Three-Star
community program, the Main Street program, and other community development programs.
Item 76. •To the Department of Economic and Community Development for non-
FastTrack economic development project grants made in the Business Development
program.
Item 77. To the Department of Economic and Community Development, Tennessee
Film and Television Incentive Fund, pursuant to Tennessee Code Annotated, Section 4-3-
4903(e), the. Commissioner of Finance and Administration is authorized to carry forward
unexpended balances of any appropriations made for the incentive fund, and the
unexpended grant balances of the Tennessee Entertainment Commission.
76
SB 2690
Item 78. To the Department of Economic and Community Development for rural
development project grants made from the Rural Development Fund.
Item 79. To the Department of Economic and Community Development for the
unexpended balance of funds for LiftTN Urban Competitive Grants.
Item 80. To the Department of Economic and Community Development, the
unexpended balance of all nonrecurring appropriations for historic property development
grants, not to exceed $25,000,000.
Item 81. To the Department of Economic and Community Development, Section 36,
Item 90, the unexpended balance not to exceed $70,000,000 for nuclear energy supply chain
investment fund.
Item 82. To the Department of Economic and Community Development, in Section
36, Item 91, the unexpended balance of the $1,500,000 nonrecurring appropriation for
workforce development initiative.
Item 83. To the Department of Economic and Community Development, in Section
36, Item 92, the unexpended balance of the $1,000,000 nonrecurring appropriation for
marketing funds.
Item 84. To the Department of Economic and Community Development in Section
1
36, Item 93, the unexpended balance not to exceed $7,500,000 for TNGO Tennessee
Mobility Innovation Initiative.
Item 85. To the Department of Economic and Community Development, in Section
61, Item 22, the unexpended balance of the $2,000,000 nonrecurring appropriation for grants
to counties and municipalities for capital projects related to, and maintenance of, county
courthouse buildings located within the county or municipality. A municipality that receives an
allocation of sales tax revenue derived from a courthouse square revitalization zone pursuant
to Tennessee Code Annotated, Section 67-6-103(h)(2) is not eligible to receive such funds.
Item 86. To the Department of Economic and Community Development, in Section 1,
Title 111-8, the unexpended balance of the $50,000,000 nonrecurring appropriation for the
small modular reactor grant fund.
Item 87. To the Department of Economic and Community Development in Section 4,
Title 111-8, Item 9, the unexpended balance of the $63,000,000 nonre~urring funding for
Research _and Development (R&D) and Innovation Grants.
Item 88. All funds appropriated to the Department of Education for the purposes of
the state testing programs which remain unobligated and unexpended at the end of any fiscal
year shall not revert to the general fund but shall be carried forward in a reserve to be
expended for the purposes of such programs.
Item 89. To the Department of Education in Section 36, Item 96, and in Section 1,
Title 111-9, Item 2.1e, of Chapter 603, Public Acts of 2007, in a nonrecurring amount of
$2,000,000 for the Teach Tennessee Program.
. Item 90. To the Department of Education, the unexpended balance of appropriations
for the Safe Schools Act of 1998, in Section 36, Item 97; Section 1, Title 111-9, Item 2.2(a);
and Section 8, Item 47(a).
. Item 91. To the Department of Education, the unexpended balance of grants received
from non-state entities for the provision of program services. •
Item 92. To the Department of Education, State Board of Education, Section 36, Item
102, for K-12 Academic Standards Review Process. •
Item 93.· To the Department of Education, Special Education Services, in Section 36,
Item 103, for the Individualized Education Act.
Item 94. To the Department of Education, in Section 36, Item 106, and in Section 1,
Title 1_11-9,. Item 2.2d, for priority school grants, pursuant to Tennessee__ Code Annotated,
Section 49-6-2605(b)(2). • ••
Item 95. To the Department of Education, in Section 36, Item 101, the unexpended
balance of the $3,000,000 appropriation for seat belt grants.
77
SB 2690
Item 96. To the Department of Education, in Section 36, Item 108; for the Charter
Schools Facility Fund.
Item 97. To the Department of Education, in Section 36, Item 110, College, Career,
and Technical Education, the unexpended balances of the nonrecurring appropriations for (a)
Early Post-Secondary Opportunities, (b) Occupational License Teacher Loan Forgiveness,
(c) Middle School CTE start-up grants, (d) Work-Based Learning Coordinators, (e) STEM
Expansion Program, and (f) National Career Readiness Certificate Pilot Program.
Item 98. To the Department of Education, in Section 36, Item 111, Academic Offices,
the unexpended balances of the nonrecurring appropriations for (a) Rural Principal
Development, and (b) Governor's Civics Initiative.
Item 99. To the Department of Education, in Section 36, Item 113, and in Section 1,
Title 111-9, the unexpended balance of nonrecurring appropriation relative to learning loss
initiatives.
Item 100. To the Department of Education, in Section 36, Item 114, the unexpended
balance of appropriations for summer camps and summer transportation grants.
Item 101. To the Department of Education, in Section 36, Item 115, the unexpended
balance of the $529,000,000 nonrecurring appropriation for Innovative Middle and High
School Career and Technical Education grants.
Item 102. To the Department of Education, in Section 36, Item 116, from the
unexpended balances of nonrecurring appropriations for school safety grants.
Item 103. To the Department of Education, the unexpended balances of Education
Savings Accounts for participating students, pursuant to Tennessee Code Annotated,
Section 49-6-2603(d).
Item 104. To the Department of Education, the unexpended balance of the $50,000
nonrecurring appropriation for 2024 Public Chapter 954 relative to therapy dogs.
Item 105. To the Department of Education, for local education agency reimbursement
of paid leave.
Item 106. To the Department of Education, the unexpended balances of Education
Freedom Scholarship Accounts for eligible students, pursuant to Tennessee Code
Annotated, Section 49-6-3503(c).
Item 107. To the Department of Education, state special schools, from donations
made to said special schools.
Item 108. To the Department of Education, the unexpended balances of nonrecurring
appropriations for the school turnaround program.
Item 109. To Higher Education, Tennessee Higher Education Commission, in Section
1, Title 111-10, the unexpended balance of revenues, including any associated reserve
balances, received from federal college access initiative grants, for the same purpose.
Item 110. To Higher Education, THEC Grants, in Section 1, Title 111-10, Item 1.6 and
in Section 36, Item 123, for the Veteran Reconnect program.
Item 111. To Higher Education, THEC Grants, in Section 36, Item 124 and in Section
1, Title 111-,10, Item 1.6, for Tennessee Promi$e Forwarq grants.
. Item 112. To Higher Education, THEC Grants, in Section 36, Item 125, for the
unexpended balance of the $25,000,000 •appropriation for Governor's Investment in
Vocational Ed~~ation - Community Grants.
Item 113. To Higher Education, THEC Grants, for Supporting Postsecondary Access
in Rural Communities micro grants.
• Item 114. To Higher Education, in Section 36, Item 133, the unexpended balance of
the $14,500,000 nonrecurring appropriation for the tnAchieves Knox Promise program.
. Item 115. To the Department of Commerce and Insurance for the volunteer firefighter
equipment and training grant program, pursuant to Tennessee Code Annotated, Section 68-
102-154.
78
SB 2690
Item 116. To the Department of Commerce and Insurance in Section 36, Item 135,
the unexpended balance of the nonrecurring appropriations for law enforcement hiring,
training, and recruitment program recruiting bonuses.
Item 117. To the Department of Commerce and Insurance in Section 36, Item 136,
the unexpended balance of the $24,000,000 nonrecurring appropriation for law enforcement
hiring, training, and recruitment program recruiting cost sharing.
Item 118. To the Department of Commerce and Insurance in Section 36, Item 138,
the unexpended balance of the $1,600,000 nonrecurring appropriation for the purchase of a
fire truck for the Tennessee Fire Services and Codes Enforcement Academy.
Item 119. To the Department of Commerce and Insurance in Section 36, Item 139,
the unexpended balance of all nonrecurring appropriations for competitive grants to rescue
squads across the state in an amount not to exceed $5,000,000.
Item 120. To the Department of Commerce and Insurance, in Section 36, Item 140,
the unexpended balance of the $2,250,000 nonrecurring appropriation for a codes
enforcement system modernization.
Item 121. To the Department of Commerce and Insurance, in Section 36, Item 141,
the unexpended balance of the $1,500,000 nonrecurring appropriation for a manufactured
housing system modernization.
Item 122. To the Department of Commerce and Insurance, in Section 61, Item 17, the
unexpended ,balance of the $20,000,000 nonrecurring appropriation for competitive grants to
volunteer fire departments across the state, to be used for equipment, supplies, or training
provided by the Tennessee Fire Service and Codes Enforcement Academy.
Item 123. To the Department of Commerce and Insurance, in Section 61, Item 18, the
unexpended balance of the $5,000,000 nonrecurring appropriation for competitive grants to
rescue squads across the state, to be used for equipment.
Item 124. To the Department of Labor and Workforce Development in Section 36,
Item 144, and in Section 1, Title 111-13, Item 8, for the Subsequent Injury and Vocational
Recovery Fund.
Item 125. To the Department of Labor and ·workforce Development in Section 36,
Item 145, and Section 1, Title 111-13, Item 11, the unexpended balance of the $20,000,000
nonrecurring appropriations for a summer youth employment program.
Item 126. To the Department of Labor and Workforce Development in Section 1, Title
111-13, Item 11, the unexpended balance of the $4,000,000 nonrecurring appropriations for a
state workforce board.
- Item 127. To the Department of Mental Health and Substance Abuse Services in
Section 1, Title 111-14, Item 2.5, and Section 36, Item 146, for housing initiatives for persons
with mental illness or substance use disorder.
Item 128. To the Department of Mental Health and Substance Abuse Services, the
unexpended balance of the appropriation made in Section 61, Item 70, of Chapter 1130,
Public Acts of 2022, for the use of long-acting, injectable naltrexone. and any wraparound
treatment services necessary to provide opioid relapse treatment or alcohol use disorder
treatment to adult clients of mental health providers contracted with the Department of
Mental Health and Substance Abuse Services. This funding may also be granted by the
department for the same purposes to serve clients i_n recovery or treatment court programs
or adults in local or state custody in ,a county jail. Funding awarded by the department must
be used to follow best practices in providing a continuum of care and to purchase long-
acting, injectable naltrexone. The Commissioner of Mental Health and Substance Abuse
Services shall report all measures taken to implement this item to the Chairs of the Finance,
Ways.and Means Committees by July ,15, 2026, and December 15, 2026.
Item 129. To the Department of Mental Health and Substance Abuse Services in
Section 36, Item 148, the unexpended balances of the nonrecurring appropriations from
Chapter 4, Public Acts of the first extraordinary session of the 113th General Assembly,
including:·
(a) Retention and sign-on bonuses for public health workers in the amount of
$12,131,000; and
79
SB 2690
(b) Community mental health grants in the amount of $50,000,000.
Item 130. To the Department of Military in Section 36, Item 150, for tuition assistance.
Item 131. To the Department of Military, in Section 36, Item 151, Tennessee
Emergency Management Agency, the unexpended balance of appropriations for state match
on federal emergency preparedness management grants.
Item 132. To the Department of Military in Section 36, Item 152, the unexpended
balance of the $5,565,100 nonrecurring appropriation for the lease of a warehouse for the
Tennessee Emergency Management Agency.
Item 133. To the Department of Military in Section 36, Item 153, the unexpended
balance of the $5,000,000 nonrecurring appropriation for the STORM Act.
Item 134. To the Department of Military, in Section 36, Item 154, the unexpended
balance of the $2,000,000 nonrecurring appropriation for a TEMA incident management
vehicle.
Item 135. To the Department of Military, in Section 36, Item 155, the unexpended
balance of the $1,400,000 nonrecurring appropriation for border deployment.
Item 136. To the Department of Health, in Section 36, Item 156, and in Section 1,
Title 111-16, Item 4, for the Health Access Incentive Fund program.
Item 137. To the Department of Health in Section 1, Title 111-16, and Section 36, Item
158, the unexpended balance of all nonrecurring appropriations for the Dental Services Pilot
Program.
Item 138. To the Department of Health, in Section 36, Item 159, the unexpended
balance of the $1,000,000 nonrecurring appropriation for Tennessee Strong Families doula
program grants.
Item 139. To the Department of Health, in Section 61, Item 19, the unexpended
balance of the $5,000,000 nonrecurring appropriation for grants in equal amounts and on a
competitive basis to licensed emergency medical services organizations across the state, to
be used for equipment.
Item 140. To the Department of Disability and Aging in Section 36, Item 162,
Community Intellectual Disabilities Services, for the unspent balance of appropriations in the
enabling technology program. •
Item 141. To the Department of Disability and Aging, any unexpended state
appropriations, not to exceed five percent (5%) of the total appropriated funds for the
Tennessee Early Intervention System program in both the Department of Disability and
Aging and the Department of Children's Services and transferred from the Department of
Education to the Department of Disability and Aging. Said reserve is subject to the approval
of the Commissioner of Finance and Administration.
Item 142. To the Department of Disability •and Aging in Section 36, Item 164, the
unexpended balance of the $1,000,000 nonrecurring appropriation for adult changing tables.
The department shall award grants up to $10,000 each for the installation of the adult
changing tables.
Item 143. To the Department of Disability and Aging in Section 36, Item 165 and
Section 1, Title 111-25, the unexpend_ed balance of the appropriations made for the
implementation of the pilot project requiring the Commission on Aging and Disability to
provide grants in equal amounts, to each of the nine (9) Area Agencies on Aging and
Disability (AAAD) for the Alzheimeris and dementia care respite pilot program.
Item 144. To the Department of Disability and Aging, in Section 36, Item 167, the
unexpended balance of the $5,000,000 nonrecurring appropriation for Tennessee Strong
Families Network Development. •
Item 145. To the Department of Disability and Aging, in Section 61, Item 21, the
unexpended balance of the $5,000,000 nonrecurring appropriation for competitive grants to
senior centers across the state. • -
80
SB 2690
Item 146. To the Department of Human Services, in Section 36, Item 171 and Section
1, Title 111-17, the unexpended balance of the $45,000,000 nonrecurring appropriation for the
Child Care Improvement Fund.
Item 147. To the Department of Human Services, in Section 61, Item 23, the
unexpended balance of the $500,000 nonrecurring appropriation for grants in such amount to
the Second Harvest Food Bank of Middle Tennessee, to be used for the purpose of
purchasing, handling, and transporting food for hunger relief. The Second Harvest Food
Bank of Middle Tennessee shall distribute the funds to the five (5) food banks across the
state, as follows: (a) 35% to Second Harvest Food Bank of Middle Tennessee; (b) 25% to
Memphis Food Bank; (c) 20% to Second Harvest Food Bank of East Tennessee; (d) 10% to
Chattanooga Area Food Bank; (e) 10% to Second Harvest Food Bank of Northeast
Tennessee.
Item 148. To the Department of Revenue for the production of license plates.
. Item 149. To the Department of Revenue in Section 36, Item 174, and Section 1, Title
111-18, Item 8, for sales tax disaster relief pursuant to Tennessee Code Annotated, Section
67-6-396.
Item 150. To the Department of Revenue, Insurance Verification, for the uninsured
motorist identification restricted fund pursuant to Tennessee Code Annotated, Section 55-12-
213.
Item 151. To the Department of Revenue, in Section 36, Item .205, the unexpended
balance of the $300,000 nonrecurring appropriation in Section 61, Item 12 for Chapter 1017,
Public Acts of 2024, the MOTION Act.
Item 152. To the Department of Safety and the Tennessee Bureau of Investigation
from the handgun carry permit fees paid pursuant to Tennessee Code Annotated, Section
39-17-1351.
Item 153. To the Department of Safety, the unexpended balance of donations from
any non-profit organization created pursuant to Tennessee Code Annotated, Section 4-3-
2017.
Item 154. To the Department of Safety, the unexpended balance of nonrecurring
appropriations for TACN radio system infrastructure.
Item 155. To the Department of Safety, in Section 36, Item 180, the unexpended
palance of the $8,282,500 nonrecurring appropriation for communications infrastructure
replacement.
.Item 156. To Miscellaneous Appropriations in Section 36, lte'T' 183, for wildfire
suppression costs.
Item 157. The Commissioner of Finance and Administration is authorized to carry
forward the unexpended balance of the appropriation made to Miscellaneous Appropriations
in Section 36, Item 184, for the completion of a weighted caseload study to analyze the
distribution of judicial, district attorney general and public defender positions ,throughout the
state.
Item 158. To Miscellaneous Appropriations, in Section 36, Item 185, for
consulting/study - governor's efficiency initiatives.
Item 159. To Miscellaneous Appropriatio11s, in Section 36, Item 186, the unexpended
balance of local government cybersecurity grants.
Item 160. To Miscellaneous Appropriations, in Section 36, Item 187, the unexpended
balance of the $5,000,000 appropriation for governor's initiatives.
Item 161. To Miscellaneous Appropriations in Section 36, Item 189, the unexpended
balance of the ·$170,000,000 nonrecurring appropriation for Higher Education - ERP
Replacer:nent.
Item 162. To Miscellaneous Appropriations in Section 36, Item 193, the unexpended
balance of the $75,000,000 nonrecurring appropriation for Statewide E-Filing System -
Courts.
81
SB 2690
Item 163. To Miscellaneous Appropriations in Section 36, Item 194, the unexpended
balance of the $10,250,000 nonrecurring appropriation for Tennessee Strong Families - TN
Fosters Hope.
Item 164. To Miscellaneous Appropriations in Section 36, Item 195, the unexpended
balance of the $8,100,000 nonrecurring appropriation for STS efficiency project.
Item 165. To Miscellaneous Appropriations, in Section 1, Title 111-22, Item 8.16, the
unexpended balance of the $5,000,000 nonrecurring appropriation for STS-ERP
Modernization Initial Phase.
Item 166. To Miscellaneous Appropriations, in Section 1, Title 111-22, Item 8.17, the
unexpended balance of the $1,150,000 nonrecurring appropriation for STS-Artificial
Intelligence Enablement.
Item 167. To Miscellaneous Appropriations, in Section 1, Title 111-22, Item 8.18, the
unexpended balance of the $3,000,000 nonrecurring appropriation for STS-Business
Gateway.
Item 168. To Miscellaneous Appropriations, in Section 1, Title 111-22, Item 8.19, the
unexpended balance of the $5,000,000 nonrecurring appropriation for STS-ADA
Compliance.
Item 169. To Miscellaneous Appropriations, in Section 1, Title 111-22, Item 8.20, the
unexpended balance of the $1,950,000 nonrecurring appropriation for STS-Data Center
Operations.
Item 170. To Miscellaneous Appropriations, in Section 1, Title 111-22, Item 8.21, the
unexpended balance of the $20,000,000 nonrecurring appropriation for STS-North Data
Center Relocation.
Item 171. To Miscellaneous Appropriations, in Section 1, Title 111-22, Item 8.22, the
unexpended balance of the $750,000 nonrecurring appropriation for STS-TN Track
Enhancements.
Item 172. To Miscellaneous Appropriations, in Section 1, Title 111-22, Item 9.34, the
unexpended balance of the $65,000,000 nonrecurring appropriation for Water
Regionalization Project.
Item 173. To Miscellaneous Appropriations, in Section 1, Title 111-22, Item 9.35, the
unexpended balance of the $175,000,000 nonrecurring appropriation for Public Safety Crime
Prevention Grants.
Item 174. To Miscellaneous Appropriations, ii') Section 55, Item 1-54, the unexpended
balance of the $5,000,000 nonrecurring appropriation for Artificial Intelligence
Implementation.
Item 175. To the Department of Children's Services in Section 36, Item 199, Subject
to the availability of revenue, the Commissioner of Finance and Administration is authorized
to carry forward funds to provide for a statewide needs assessment of child welfare services.
Item 176. To the Department of Transportation in Section 1, Title 111-30, ltel'll 3, for
equipment purchases.
Item 177. To the Department of Transportation for any appropriations which are
reserved at June 30, 2026.
Item 178. To the Military Department, in Section 1, Title 111-15, Item 4, the
unexpended balance of the $2,729,500 nor'1recurring appropriation for regional response
vehicle fleet.
Item 179. To the Military Department, in Section 1, Title 111-15, Item 4, the
unexpended balance of the $3,000,000 nonrecurring appropriation for enhanced flood
preparedness.
Item 180. To the Military Department, in Section 1, Title 111-15, Item 4, the
unexpended balance of the $120,000 nonrecurring appropriation for southeast region
generator.
82
SB 2690
Item 181. To the Military Department, in Section 1, Title 111-15, Item 4, the
unexpended balance of the $228,000 nonrecurring appropriation for radiological detection
vehicle upgrades.
Item 182. To the Department of Health, in Section 55, Item 1-62, the unexpended
balance of the $2,500,000 smoking cessation initiative.
Item 183. To the Tennessee Bureau of Investigation, in Section 4, Title 111-19, the
unexpended balance of the $3,000,000 departmental revenue appropriation for wastewater
testing pilot project.
Item 184. To Miscellaneous Appropriations, in Section 55, Item 1-105, the
unexpended balance of the $10,000,000 nonrecurring appropriation to Unicoi County for
hospital relocation and rebuild.
Item 185. To Miscellaneous Appropriations, in Section 61, Item 68, the unexpended
balance of the $8,000,000 nonrecurring appropriation for providing reimbursements to county
election commissions for primary elections.
Item 186. To Higher Education, in Section 55, Item 1-52, the unexpended balance of
the $512,700 nonrecurring appropriation for the tnAchieves Summer Bridge Institute.
SECTION 37. Carry-forward of Unexpended Balances for Local Government Agencies and
Third-Party Nonprofit Agencies. The provisions of this section take effect upon becoming a law, the
public welfare requiring it. Subject to the availability of revenue at June 30, 2026, any unexpended
balances of appropriations made under Chapter 530, Public Acts of 2025, other acts of this General
Assembly or acts by previous General Assemblies for benefit of an agency of local government or a
third-party nonprofit organization for which there is a grant agreement/contract approved by the
Commissioner of Finance and Administration are hereby reappropriated to be expended in the 2026-
2027 fiscal year and such appropriations shall be carried forward in a reserve into the fiscal year
beginning July 1, 2026. The Commissioner of Finance and Administration shall provide a list of any
unexpended balances carried forward to the Director of Accounts, the Division of State Audit, and
the Office of Legislative Budget Analysis. The reappropriation and carry-forward of these funds is
subject to approval by the Commissioner of Finance and Administration, and expenditure and
reporting requirements are adjusted accordingly to the fiscal year in which the funds are received by
the grant recipient, notwithstanding any provision in the grant agreement to the contrary.
SECTION 38. Supplemental Appropriations 2025-2026. The provisions of this section take
effect upon becoming a law, the public welfare requiring it. There is hereby appropriated the
following amounts which shall be in addition to the approp-riations provided under Chapter 530,
Public Acts of 2025:
1. Treasury Department
1. 1. LEA Public Construction Maintenance - General Fund
•. Subsidy ...............................................................................$ 10,616,000.00
2. Claims and Compensation 2,250,000.00
2.1 Unclaimed Property- Service Contract ....... ;........................ .
3. Veterans Services 250,000.00
3.1 Emergency Cemetery Repairs ...............................................
4. Economic and Community Development 538,900.00
4.1 Development District Grants ................................................. .
5. Education
5.1 Paid Parental Leave ............................... ~ .............................. $ 1,273,400.00
5.2 Grade A Schools ......................................:................... :....... . 11,000,000.00
Total Education..........................:..............:............................$ 12,273,400.00
6. Commerce and Insurance
6.1 POST Pay Supplements ........................................................$ • 326,400.00
6.2 Emergency Responder Death Benefits ................................. . 1,500,000.00
. Total Commerce and Insurance................:............................$ 1,826,400.00
7. Human Services 3,000,000.00
7.1 Summer Nutrition Program·:· ..................................................$ 5,000,000.00
7.2 Summer Food Assistance .......................................................
83
SB 2690
7. 3 Data Analysis Contract .......................................................... 8,000,000.00
Total Human Services ...........................................................$ 16,000,000.00
8. Tennessee Bureau of Investigation 1,035,500.00
8.1 Restore Crime Scene Vehicle Funds .................................... .
9. Children's Services
9.1 Recalculate Residential Custodial Budget ............................. $ 36,811,400.00
9.2 Align Eligibility Requirements ............................................... .. 16,291,800.00
Total Children's Services ....................................................... $ 53,103,200.00
10. Environment and Conservation 5,000,000.00
10.1 Cumberland Mountain State Park Lodge Planning ................ $
TOTAL. .................................................................$ .... 102,893,400.00
The appropriation in Item 10.1 to the Department of Environment and Conservation is
intended to support a P3 development project for the Lodge at Cumberland Mountain State Park that
has an expected total cost of up to $66,000,000.
The Commissioner of Finance and Administration is authorized to allot and transfer these
appropriations to the appropriate expenditure account within each department, agency or branch of
government and to adjust authorized positions accordingly. The Commissioner of Finance and
Administration is further authorized to adjust federal aid and departmental revenues accordingly.
SECTION 39. Program Expansions from Federal and Other Departmental Revenue. The
provisions of this section take effect upon becoming law, the public welfare requiring it. At June 30,
2026, any unexpended balances of departmental revenues and federal aid funds appropriated in this
section are hereby reappropriated in the fiscal year beginning July 1, 2026. •
There is hereby appropriated from departmental revenues and federal aid funds the amounts
hereinafter set out:
2025-2026 2026-2027
Finance and Administration $ 609,600 $ 1,219,000
1. OCJP - Opioid Abatement Grant 105,000 0
2. Volunteer Tennessee - Community
Emergency Response Team Trailers
Mental Health and Substance Abuse Services 422,800 422,800
26,000 74,000
1. Opioid Abatement Council - Quality Director
2. Community Mental Health Services -
Bonnaroo Music and Arts Festival Grant
Total $ 1,163,400 $ 1,71_~,800
The Commissioner of Finance and Administration is authorized to establish one (1) full-time
position and to allocate it to the Department of Mental Health and Substance Abuse Services.
SECTION 40. Accrued Liabilities and Obligations Between State Agencies. There is hereby
?lppropriated a sum sufficient to recognize any accrued liability of the state and any obligations
between state agencies at June 30, 2027, and federal aid and departmental revenues may be
adjusted accordingly. This appropriation is subject to certification .. of the accrued .liability and
obligations between state agencies by the Commissioner of Finance and Administration to the State
Comptroller. The commissioner shall provide a copy of th~ certification to the Office of Legislative
Budget Analysis.
SECTION 41. The provisions of this section take effect upon becoming a law, the public
welfare requiring it.
Item 1.
(1) From the appropriations made i~ Sections 1 and 4 of this act, there are
appropriated sums sufficient to fund the following programs:
84
SB 2690
(a) An amount sufficient to implement and pay the cost of
administering the Section 125 cafeteria plan established for state employees
is hereby appropriated for that purpose. From the appropriation made in this
item and any annual forfeited contributions, the Commissioner of Finance and
Administration is authorized to establish positions and funding for such
positions to fund recurring and nonrecurring costs of administering the
cafeteria plan established for such employees. There is hereby appropriated a
sum sufficient to pay additional costs of administering the State Employee
Cafeteria Plan as a result of increased participation in the plan by state
employees; and
(b) An amount up to but not exceeding $1,000,000 for the wellness
program or •other state employee insurance programs administered by the
Department of Finance and Administration; and
(c) An amount up to but not exceeding $10,000 for the daycare
program for children of state employees as administered by the Department of
Human Services, provided, that allotment of funds under this sub-item is
subject to approval of the Commissioner of Finance and Administration; and
(d) An amount up to but not exceeding $154,500 to fund the
administrative costs of the state employee sick leave bank administered by
the Department of Human Resources; and
(e) An amount to provide for the employer match to the state's 401 (k)
plan for state employees compensated on the centralized state payroll system
pursuant to Tennessee Code Annotated, Title 8, Chapter 25.
(2) The State Treasurer shall have the authority to contract with the optional
retirement plan vendors to provide investment products to optional retirement plan
participants under the state's 401 (k) program.
Item 2. The Commissioner of Finance and Administration is hereby authorized to
establish a reserve account for Community Services Agency (CSA). If any CSA ceases to
operate, any fund balances may be deposited to this account. There is hereby appropriated a
sum sufficient from the reserve account to provide for outstanding obligations of any CSA or
the ongoing operational cost of any .CSA. Disbursement from this fund is subject to the
approval of the Commissioner of Finance and Administration.
Item 3. In the fiscal year ending June 30, 2026, the Commissioner of Finance and
Administration is authorized to transfer the unexpended balances of the amounts transferred
from the Secretary of State in Section 62, lte_m 2(b) of Chapter 460, Public Acts of 2017 and
Section 2, Item 22 of Chapter 1061, Public Acts of 2018 to the state office buildings and
support facilities revolving fund reserve back _to the Secretary of State._
Item 4. In addition to the revenues appropriated in Chapter 530, Public Acts of 2025,
there is hereby appropriated a sum sufficient to the Department of Mental Health and
Substance Abuse Services from revenues collected from TennCare managed care
organizations. •
Item 5. In addition to the revenues appropriated in Chapter 530, Public Acts of 2025,
there is hereby appropriated a sum sufficient to the Department of Children's Services from
revenues collected from TennCare managed care organizations.
Item 6. From the funds appropriated in Chapter 530, Public Acts of 2025, Section 1,
Title 111-8, Item 2 and transferred to Section 1, Title 111-8, Item 3, for the small modular nuclear
reactor grant fund, an amount of $25,000,000 is hereby reappropriat~d- to contribute to the
completion of a companion facility for the University of Tennessee, Knoxville and Y-12
National Security Prototype Center. Provided, further, that the funds shall be disbursed only
upon certification by the Commissioner of Economic and Community Development to the
Commissioner of Finance and Administration that the project has secured federal matching
funding of equal to or more than $25,000,000.
Item 7. From the funds appropriated in Chapter 418, Public Acts of 2023, Section 1,
Title 111-22, Item 10.39, Tennessee Strong Families - TN Fosters Hope, and carried forward
in the reserve for unencumbered· balances purs·uant to Section 36, Item 194, a portion of the
appropriation shall be for the following purposes:
(a) A grant to CarePortal in the amount of $550,000;
85
SB 2690
(b) A grant to Tennessee Kids Belong in the amount of $600,000;
(c) A grant to Belmont Innovation Labs in the amount of $150,000;
(d) A grant to Contingent in the amount of $1,650,000;
(e) A grant to Restore Hope in the amount of $350,000; and
(f) A grant to Thistle Farms, Inc., for $400,000, for statewide re-entry,
workforce, and housing initiatives that serve justice-involved survivors of human
trafficking.
SECTION 42. Legislation Requiring Local Government Expenditures - Appropriations and
Provisions.
Item 1. No law of general application which imposes increased expenditure
requirements on cities and courities in excess of one million dollars ($1,000,000) shall take
effect unless the state share of the cost of such law is specifically appropriated by the
provisions of this act.
Item 2. From the growth in state-shared taxes apportioned to cities and counties and
from the increase in local revenue generated from passage of any general law during the
2026 annual session of the 114th General Assembly not otherwise appropriated pursuant to
this act, a sum sufficient hereby is appropriated to fund the state share of the cost of any law
of general application which requires, without local discretion, that incorporated municipalities
or county governments increase expenditures as a direct consequence of passage of any
general law.
Item 3. In addition to any other funds appropriated by the provisions of this act, there
is hereby appropriated a sum sufficient to cities and counties for the sole purpose of funding
the state share of the mandated local cost of implementing the provisions of Senate Bill 225 I
House Bill 29, relative to changing the payment methodology for services rendered by a
chiropractic physician to be the same as a medical physician, if such bill becomes a law. The
state share shall be an amount equal to ten percent (10%) of the mandated local cost of
implementing such bill.
SECTION 43. Over-Appropriation, Reserve Designations, Fund Transfers, and Revenue
Allocations. The provisions of this section take effect upon becoming a law, the public welfare
requiring it. •
Item 1. It is the legislative intent to recognize over-appropriation reversion savings in
the general fund in the following amounts:
(a) In fiscal year 2025-2026 to recognize an over-appropriation of
$205,8081500, including a base recurring over-appropriation of $76,808,500 and a
nonrecurring over-appropriation of $129,000,000.
(b) In fiscal year 2026-2027 to recognize an over-appropriation of
$76,808,500, including a base recurring over-appropriation of $76,808,500 and a
nonrecurring over-appropriation of $0.
(c) It is the legislative intent tha( ·any reversion from higher education
appropriations to the general fund balance at June 30, 2027, be drawn from the
unexpended balance in the Tennessee Higher Education Commission and the
Tennessee Student Assistance Corporation, but not from the Tennessee Student
Assistance Awards.
(d) It is the legislative intent that ,any departmental revenue received by the
Department of Mental Health ·and Substance Abuse Services from certified public
expenditures shall revert to the general fund at June 30, 2026.
Item 2. In the fiscal year ending June 30, 2026, there shall be reserved or designated
a sum in the general fund balance to provide for nonrecurring appropriations and other
appropriations intended to be funded in the 2026-2027 fiscal year from the general fund
balance at June 30, 2026. The Commissioner of Finance and Administration shall determine
the amount to be reserved or designated.
Item 3. Under the provisions of Tennessee Code Annotated, Section 55-6-107(a), the
sum. of $10,800,000 shall be allocated to the general fund for the cost of issuing motor
vehicle registration plates in the fiscal year ending June 30, 2027.
86
SB 2690
Item 4.-Unexpended appropriations or unreserved fund balances in an amount to be
determined by the Commissioner of Finance and Administration shall be transferred from the
debt service fund to the general fund in the fiscal year ending June 30, 2026.
Item 5. In the fiscal year ending June 30, 2026, tax revenues allocated to the debt
service fund, including motor vehicle title fees, in excess of $389,600,000 shall be transferred
to the general fund. If said allocation to the debt service fund is less than $389,600,000, then
the allocation of excise tax revenues to the debt service fund shall be increased in an amount
to provide the allocation of $389,600,000 to the debt service fund.
Item 6. In the fiscal year ending June 30, 2026, the allocation of motor vehicle title
fees to the debt service fund shall be the sum generated by the $1.50 fee under the
provisions of Tennessee Code Annotated, Section 55-6-101 (a)(1 ).
Item 7. Pursuant to Tennessee Code Annotated, Section 67-6-103, there is
apportioned from the general fund share of the sales and use tax into cities and counties
state shared taxes for the County Revenue Partnership Fund the sum of $1,900,000 in the
fiscal year ending June 30, 2026, and the sum of $1,900,000 in the fiscal year ending June
30, 2027. These apportionments recognize the state share of certain laws imposing costs on
local governments, to include: (a) Chapter 531, Public Acts of 2009, Section 30, relative to
commitment of children to state custody at a rate above 300 percent of the average
commitment rate from counties, in the amount of $400,000; (b) Chapter 987, Public Acts of
2012, relative to domestic assault, in the amount of $600,000; (c) Chapter 1057, Public Acts
of 2022, relative to retirement benefits for certain military veterans, in the amount of
$500,000; (d) Chapter 1070, Public Acts of 2022, relative to pharmacy benefit managers, in
the amount of $200,000, and (e) Chapter 399, Public Acts of 2023, relative to requiring LEAs
to grant six work weeks of paid leave to certified personnel, in the amount of $200,000.
SECTION 44. State Office Buildings and Support Facilities Revolving Fund.
Item 1. There is hereby appropriated a sum sufficient from the State Office Buildings
and Support Facilities Revolving Fund to provide for expenditures authorized under
Tennessee Code Annotated, Title 9, Chapter 4, Part 9. There is appropriated a sum sufficient
to the revolving fund in recognition of the lease cost of space for which recovery is not in the
state's best interest. The Commissioner of Finance and Administration is authorized to allot,
from the amount carried forward under Tennessee Code Annotated, Title 9, Chapter 4, Part
9, to provide funding for state office buildings and support facilities, and is further authorized
to make appropriation transfers between the revolving fund and state departments and
agencies.
Item- 2. Funds herein appropriated for capital outlay of the state office building and
support facilities revolving fund shall be used solely for improvements, betterments, and
additions to state structures and for the acquisition of additional land and space, including the
purch~se of existing structures, as approved by the State Building Commission; provided,
further, that such funds as are appropriated herein shall be utilized to finance only those
projects, improvements, betterments, or additions which are presented in the State of
Tennessee's 2026-2027 Budget Document, as amended by any changes or additional
projects contained in the Appropriations Act as passed on third and final consideration;
provided, further, that all funds appropriated in this act or other general acts of this session
for capital outlay of the state office buildings and support facilities revolving fund shall be
subject to the provisions of Tennessee Code Annotated, Title 4, Chapter 15, Part 1.
Item 3. The appropriation made to the state. office building and support facilities
revolving fund pursuant to Chapter 554, Public Acts of 2009, Section 68, Item 8(b), for
purposes authorized by Chapter 529, Public Acts of.2009, "The Tennessf3e Glean Energy Act
of 2009," and reappropriated in Chapter 1029, Public Acts_ of 2012, Section 41, Item 28, is
hereby reappropriated for the same purpose.
Item 4. The Commissioner of Finance and Administration is authorized to reallocate
appropriations and revenues to transfer the maintenance of state facilities not previously in
the state office building and support facilities revolving -fund to the state office building and
support facilities revolving fund, subject to a signed agreement for the transfer of facilities
between the department head of the transferring agency and the commissioner of the
Department of General Services. Provided, further, the state office building and support
facilities revolving fund shall bill the transferring agency for maintenance of said facilities
transferred. The Commissioner of Finance and Administration is further authorized to transfer
property maintenance positions from the organizational units of the agencies to the
Department of General Services, adjust departmental revenue estimates, and adjust rates
accordingly.
87
SB 2690
SECTION 45. Strategic Technology Solutions; Information Systems Development. The
provisions of this section take effect upon becoming a law, the public welfare requiring it.
Item 1. There is hereby created a Capital Projects Account in the Strategic
Technology Solutions program for the administration of the Information Systems Capital
Projects Budget. This account is established to provide for: (a) implementation of the
statewide Management Information Systems (MIS) Plan; (b) ability to separate the
operational budget of the Strategic Technology Solutions program and the system
development projects contained in the MIS Plan; and (c) financial control of the system
development projects, including equipment replacement for the various agencies of state
government.
Item 2. There is hereby authorized the transfer of those sums appropriated for
Information Systems Capital Projects in Sections 1 and 4 and in Section 36, Item 1, of this
act. Federal aid funds and other departmental revenues shall be adjusted accordingly to
reflect the transfer of state appropriations.
Item 3. The Commissioner of Finance and Administration is authorized to transfer to
the Capital Projects Account any appropriations made in Sections 1 and 4 of this act
resulting from operating savings derived from implementation of information systems funded
through this section.
Item 4. From the appropriations made for systems development and other data
processing activities in this act and other acts of the legislature, the Commissioner of
Finance and Administration is· authorized to establish and charge the costs of information
systems analyst positions, workstation support positions, and other data processing positions
to said appropriations. The Commissioner of Finance and Administration is further authorized
to transfer between departments and agencies existing information systems analyst
positions, workstation support positions, and other data processing positions and the funding
provided in this act for transferred positions.
Item 5. Expenditure of any funds, subject to the jurisdiction of the Information
Systems Council, appropriated for systems development, the purchase of computer software
or the purchase of computer hardware shall be subject to the policies of such Council.
Item 6. From the appropriations made for information systems activities in this act and
other acts of the legislature, the Commissioner of Finance and Administration is authorized to
transfer from professional services to payroll amounts budgeted for contractors. Additionally,
the Commissioner of Finance and Administration is authorized to increase authorized
positions .in order to replace contractors with state employees.
Item 7. The Commissioner_ of Finance and Administration is authorized to approve an
adjustment in rates charged by tt)e Strategic Technology Solutions program and to reserve
any funds needed to rebate savings to the federal government and to reallocate state
appropriations between departments and to adjust federal aid and other departmental
revenue accordingly. Any adjustment of rates or reserve of funds pursuant to the provisions
of this act shall be reported to the Information Systems Council.
Item 8. The Commissioner of Finance and Administration shall have the authority to
allocate savings generated from rate reductions. from the Strategic Technology Solutions
program to support modifications needed to be made to existing applications resulting from
technology obsolescence or product nonperformance to extend the life of a system.
SECTION. 46. Appropriations from Dedicated Special License Plate and Motor Vehicle
Registration Fees.
Item 1. The revenues allocated under the provisions of Tennessee Code Annotated,
Title 55, Chapter 4, Parts 2 and 3, Special License Plates, are hereby appropriated in a sum
sufficien·t amount as provided in Parts 2 and 3.. • •
. Item 2. From the motor vehicle registration fees imposed pursuant to Tennessee
Code Annotated, Section 55-4-132, there is hereby appropriated a sum sufficient in the fiscal
year ending June 30, 2027, to be used solely for the development, acquisition, and updating
of a computerized titling and registration system, and for the operation of the titling and
registration system. The Commissioner of Finance and Administration is authorized to
allocate the funds to implement the intent of the act.
SECTION 47. Revenue Fluctuation Reserve, Reserve for Future Requirements (General
Fund Surplus), and Other General Fund Reserves. The provisions of this section take effect upon
becoming a law, the public welfare requiring if. • ••
88
SB 2690
Item 1. From state revenues and other funds available to the general fund in excess
of requirements for the fiscal year ending June 30, 2026, the Commissioner of Finance and
Administration shall establish the Revenue Fluctuation Reserve in such amount as may be
available under the provisions of Tennessee Code Annotated, Section 9-4-211. Provided, it
is the legislative intent that the Revenue Fluctuation Reserve be set at a level of not less than
$2,185,600,000 on June 30, 2026.
Item 2. From state revenues and other funds available to the general fund in excess
of requirements for the fiscal year ending June 30, 2027, the Commissioner of Finance and
Administration shall establish the Revenue Fluctuation Reserve in such amount as may be
available under the provisions of Tennessee Code Annotated, Section 9-4-211. Provided, it
is the legislative intent that the Revenue Fluctuation Reserve be set at a level of not less than
$2,205,600,000 on June 30, 2027.
Item 3. It is the legislative intent that at June 30, 2026, any surplus general fund
revenue, after fulfilling the requirements of Chapter 530, Public Acts of 2025; and of this act,
including all requirements of the closing of accounts at June 30, 2026, be deposited in a
reserve for future requirements.
SECTION 48. TennCare Program. The provisions of this section take effect upon becoming
a law, the public welfare requiring it.
Item 1. The Commissioner of Finance and Administration is authorized to transfer all
federal and state health care funds, except those funds appropriated to support the State
Group Insurance Program, the Local Education Insurance Program and the Local
Government Health Insurance Program, to the TennCare Program for the purpose of
implementing any program approved by waiver, state plan amendment and/or state and
federal legislation pursuant to the provisions of health care services to Tennesseans
designated as eligible by TennCare. In addition, any premiums collected by the TennCare
Program are explicitly authorized to be appropriated to the program for the purpose of
carrying out the provisions of TennCare.
The Commissioner of Finance and Administration is further authorized to transfer
state funds and positions, as required, between TennCare and the following agencies and
programs: Community Mental Health Services and mental health institutes in the Department
of Mental Health and Substance Abuse Services; Disability and Aging; Children's Services;
Human Services; Strategic Health-Care Programs; Commerce and Insurance, Division of
TennC_are Oversight; and other health services.
Item 2. From the appropriations made to the TennCare Program in this act in Section
1, Title 111-26 and Section 4, Title 111-25, for the Program Integrity Unit, the Commissioner of
Finance and Administration is authorized to transfer positions from TennCare to the Attorney
General and Reporter and to adjust departmental revenue estimates accordingly.
Item 3. Subject to the availability of funding at June 30, 2026, the Commissioner of
Finance and Administration is authorized to carry forward into the fiscal year beginning July
1., 2026, any unexpended balances of appropriations made under Chapter 530, Public Acts
of 2025, for the TennCare program, and such funds as are carried forward hereby are
reappropriated to be expended in the 2026-2027 fiscal year. The Commissioner of Finance
and Admi_nistration is authorized to adjust federal aid and other departmental revenues
accordingly.
Item 4. For fiscal year 2026-2027, in addition to all other appropriations to the
TennCare Program, the Commissioner of Finance and Administration is authorized to use
certified public expenditures and/or intergovernmental transfers from all government-related
TennCare service providers and local governments for the purpose of matching funds under
federal law for the TennCare Program. The use of the certified public expenditures and/or
intergovemmenta:I transfers shall be, in accordance with federal law-and regulations.
Item 5. The Commissioner of F_inance and Administration is hereby authorized to
a,djust revenue estimates and related expenditures in Section 4, Title 111-25, related to
premiums and d~ug rebates for the purpose of carrying out the provisions of TennCare.
Item 6. The Commissioner of Finance and Administration is hereby authorized to
exp~nd •or lenq from the funds - appropriated such sums as the Commissioner deems
appropriate to assist TennCare managed care organizations (MCO) in their operations and
obtain services from contractors, consultants, and other third parties to give such assistance,
such being determined by the ..General Assembly .to be for a public purpose. The
Commissioner shall provide prompt notification to the Speakers of the_Senate and ~ouse of
89
SB 2690
Representatives and to the Chairs of the Finance, Ways and Means Committees regarding
any such expenditure or loan with complete details of the amounts and recipients involved in
such transactions.
Item 7. It is the intent of the General Assembly that the Commissioner of Finance and
Administration shall have the authority to promulgate, as emergency rules pursuant to
Tennessee Code Annotated, Section 4-5-208, those rules and regulations which concern the
Medicaid/TennCare program, including Medicare Crossover payments, and which require
promulgation in order for the state to fiscally function within the appropriations provided for
the Medicaid/TennCare program or within the availability of revenues received for the
Medicaid/TennCare program.
Item 8. The Commissioner of Finance and Administration is authorized to impose
service limitations, to reduce optional eligibility categories, mandate standardized
reimbursement levels, and/or reduce, or limit, optional benefits in the TennCare Program as
necessary to control program expenditures in the fiscal years ending June 30, 2025, and
June 30, 2026.
Item 9. On or before July 15, 2026, and December 1, 2026, the Division of TennCare
shall submit to the Office of Legislative Budget Analysis a report detailing shared savings
spending for ~ach program, including those identified on page A-35 of the 2026-2027 Budget
Document.
SECTION 49. Salary Policy for State. and Higher Education Employees.
Item 1. Executive Branch Employees - Salary Pool.
(a) From the appropriation made in Section 1, Title 111-22, Item 4.1, TEAM Act
- Performance Bonus Pool, it is the legislative intent to provide a pool of funds for
salary bonuses for executive branch employees as defined in Tennessee Code
Annotated, Section 8-30-102(a), effective July 1, 2026. The salary bonuses are not
applicable to employees in positions which come under the provisions of a statutorily
mandated pay plan; provided, however, that employees who come under the
provision of a statutorily mandated plan shall be paid in accordance with the
provisions of such plan. The salary increases shall be according to the following
provisions:
(1) The pool of funds shall be used to provide bonus pay based on
increased performance as measured by employee reviews.
(b) From the appropriation made in Section 1, Title 111-22, Item 4.2, TEAM Act
- Performance Pay Pool, it is the legislative intent to provide a pool of funds for salary
increases for executive branch employees as defined in Tennessee Code Annotated,
Section 8-30-102(a), effective July 1, 2026. The salary increase is not applicable to
employees in positions which come under the provisions of a statutorily mandated
pay plan; provided, however, that employees who come under the provision of a
statutorily mandated plan shall be paid in accordance with the provisions of such
plan. The salary increases shall be according to the following provisions:
(1) A portion of the pool of funds shall be used to provide increased
pay based on performance as measured by employee reviews.
(2) A portion of the pool of funds may be used to adjust salary ranges.
Item 2. Non-Executive Branch Employees, Other Employee Classes - Salary
Increase.
(a)(1) Except as provided in sub-item (a)(2), from the appropriation made in
Section 1, Title 111-22, Item 4.3, Non-TEAM Act - Salary Pool, it is the
legislative intent to provide funds for an across-the-board salary increase
effective July 1, 2026,. for employees as defined in Tennessee Code
Annotated, Section 8-30-102(b). The salary increase is not applicable to
employees in positions which come under the provisions of a statutorily
mandated pay plan; provided, however, that employees who come under the
provision of a statutorily mandated plan shall be paid in accordance with the
.. provisions of such plan. •
(2) From the appropriation made in Section 1, Title 111-22, Item 4.3,
Non-TEAM Act - Salary Pool, it is the legislative intent to provide funds for a
salary increase effective July 1, 2026, for employees as defined in Tennessee
90
SB 2690
Code Annotated, Section 8-30-102(b)(3) - (5). The amount of each
employee's salary increase, if any, shall be determined by the respective
appointing authority of each employee's agency. The salary increase is not
applicable to employees in positions which come under the provisions of a
statutorily mandated pay plan; provided, however, that employees who come
under the provision of a statutorily mandated pay plan shall be paid in
accordance with the provisions of such plan.
Item 3. Higher Education Employees - Salary Pool.
(a) From the appropriations made in Section 1, Title 111-10, Items 2.2, 2.3, 3,
and 4, it is the legislative intent to provide a pool of funds for higher education
employee salary increases effective July 1, 2026, at a level determined by each
governing board.
Item 4. Survey Portion of Commissioned Officer Pay Plan and Wildlife Resources
Agency Pay Plan.
(a) From the appropriations made in Section 1, Title 111-11, and Title 111-20, it is
the legislative intent to provide funding for a salary increase for the survey portion of
the commissioned officer pay plan in the Department of Safety, Tennessee Law
Enforcement Training Academy, and POST Commission, as referenced in Tennessee
Code Annotated, Section 4-7-205, effective July 1, 2026.
(b) From the appropriations made in Section 1, Title 111-6, it is the legislative
intent to provide funding for a salary incre~se for the survey portion of the Tennessee
Wildlife Resources Agency pay plan effective July 1, 2026.
SECTION 50. Education Lottery-Funded Programs.
Item 1. From the Lottery for Education Account, the After-School Programs Special
Account, and other accounts and sub-accounts established pursuant to Tennessee Code
Annotated, Title 4, Chapter 51, the Tennessee Education Lottery Implementation Law, sums
sufficient hereby are appropriated for the higher education scholarship programs and other
education programs authorized by that law and by Title 49, Chapter 4, Part 9, relative to
higher education scholarships; Title 49, Chapter 6, Part 7, relative to after-school educational
programs. The appropriation from these sources for after-school programs pursuant to Title
49, Chapter 6, Part 7, shall not exceed the balance available in the After-School Programs
Special Account at June 30, 2026, and such balance hereby is appropriated for expenditure
in the fiscal year beginning July 1, 2026; provided, that the appropriation is contingent upon
the availability of funds in the proper account and upon the availability of excess funds from
net lottery proceeds, after the funding of higher education scholarships. The availability of
excess funds shall be determined by the Commissioner of Finance and Administration prior
to the distribution of any excess funds. A copy of such determination shall be filed with the
Chairs of the Education Committees of the Senate and House of Representatives and the
Office of Legislative Budget Analysis.
Item 2. It is hereby the legislative intent that the scholarship and grant levels
enumerated below be reconciled to conform with this act and other Public Acts of this
session and any other actions which affect the scholarship and grant levels for the various
scholarship and grant programs.
(a) The amounts for the Tennessee Promise scholarships in the 2026-2027
academic year shall be determined pursuant to Tennessee Code Annotated, Section
49-4-708;
(b) The maximum award amounts under Tennessee Code Annotated, Title 49,
Chapter 4, Part 9, in the 2026-2027 academic year shall be:
(1) Determined pursuant to Tennessee Code Annotated, Section 49-4-
914 for the HOPE Scholarship and HOPE nontraditional scholarship;
(2) Determined pursuant to Tennessee Code Annotated, Section 49-4-
943, for the STEP UP scholarship;
(3) For the ASPIRE need-based supplemental award pursuant to
Tennessee Code Annotated, Section 49-4-915:
(A) $750 per semester at four-year institutions;
91
SB 2690
(B) $250 per semester at two-year institutions;
(4) $500 per semester for the General Assembly Merit Scholar
supplemental award pursuant to Tennessee Code Annotated, Section 49-4-
916;
(5) Determined pursuant to Tennessee Code Annotated, Section 49-4-
923 for the Tennessee Wilder-Naifeh reconnect grant;
(6) $2,000 for the Wilder-Naifeh Technical Skills Grant pursuant to
Tennessee Code Annotated, Section 49-4-921;
(7) Determined pursuant to Tennessee Code Annotated, Section 49-4-
933 for the Tennessee HOPE foster child tuition grant;
(8) $1,000 per semester for the Helping Heroes Grant pursuant to
Tennessee Code Annotated, Section 49-4-938;
(9) Determined pursuant to Tennessee Code Annotated, Section 49-4-
930, for the dual enrollment grant program;
(10) Determined pursuant to Tennessee Code Annotated, Section 49-
4-944, for the Tennessee Reconnect grant; and
(11) Determined pursuant to Tennessee Code Annotated, Section 49-
4-909, for the Tennessee Middle College scholarship.
Item 3. A sum sufficient, not to exceed the available balance in the Lottery for
Education After-School Programs Grant Fund (LEAP Grant Fund}, is appropriated from the
fund for the purpose of awarding 3-year grants in accordance with the provisions of
Tennessee Code Annotated, Title 49, Chapter 6, Part 7.
Item 4. A sum sufficient, not to exceed the available balance in the Energy Efficient
Schools Council Fund, is appropriated from the fund for the purpose of the Energy Efficient
Schools Initiative in accordance with the provisions of Tennessee Code Annotated, Title 49,
Chapter 17.
Item 5. In any year in which the net lottery proceeds deposited into the lottery for
education account are not sufficient to meet the amount appropriated for educational
programs and purposes pursuant to Tennessee Code Annotated, Section 4-51-111(c), a sum
sufficient is appropriated from the disbursement fund created in Tennessee Code Annotated,
Section 4-49-104. Provided, further, that the amount appropriated from the disbursement
account is hereby reduced in an equal amount, pursuant to Tennessee Code Annotated,
Section 4-49-104(f). The provisions of this item take effect upon becoming a law, the public
welfare requiring it.
SECTION 51. Health-Care Safety Net - Provisions and Appropriations from Revenues and
Reserves.
Item 1. The provisions of this item take effect upon becoming a law, the public welfare
requiring it.
(a) In the fiscal year ending June 30, 2026, the unexpended balances of
health-care safety net appropriations, including Project Diabetes, in Chapter 530,
Public Acts of 2025, Section 51, Item 1(a) and Section 1, Titles 111-14, 111-16, and 111-
21, may be carried forward and hereby are "reappropriated for expenditure in the year
beginning July 1, 2026, subject to approval of the Commissioner of Finance and
Administration. • •
(b) From the health-care safety net reserves carried forward at June 30, 2026,
the Commissioner of Finance and Administration is authorized to transfer funds
between health-care safety net programs and to Strategic Tennessee Health-Care
Programs.
Item 2. In addition to the appropriations elsewhere in this act, sums sufficient hereby
are approprlated to the appropriate programs from the revenues and reserves of CoverRx,
CoverKids, Project Diabetes, and health care safety net programs.
SECTION 52. Federal Homeland Security Grant Programs - Provisions.
92
SB 2690
Item 1. The departmental revenues appropriated in this act from federal Homeland
Security grant programs are subject to the following provisions:
(a) The allotment of these funds is subject to approval of the Commissioner of
Finance and Administration, and the distribution among state and local agencies shall
be subject to approval of or under procedures of the state Homeland Security
Council.
(b) The Commissioner of Finance and Administration is hereby authorized to
reallocate appropriations within the affected state agencies and to reallocate
homeland security appropriations among the affected agencies for the purpose of
providing the required state match to these and other federal homeland security and
bioterrorism grants; to adjust position authorizations among affected departments,
offices, and programs for that purpose; and to adjust federal and other departmental
revenue estimates accordingly. The commissioner shall file any such reallocations or
adjustments with the Fiscal Review Committee and the Office of Legislative Budget
Analysis.
Item 2. There are appropriated sums sufficient to the Department of Safety, Office of
Homeland Security, from federal grant funds and to other agencies of state government
receiving homeland security federal grant funds.
Item 3. In the fiscal year ending June 30, 2026, the unexpended balance of the state
appropriation to the Department of Safety in Chapter 530, Public Acts of 2025, Section 52,
Item 3 and in Section 1, Title 111-20, Item 4, may be reserved to be carried forward into the
next fiscal year, and such amounts as may be carried forward hereby are appropriated. Said
reserve is subject to the availability of revenue and to the approval of the Commissioner of
Finance and Administration. The provisions of this item take effect upon becoming a law, the
public welfare requiring it.
Item 4. In the fiscal year ending June 30, 2026, the unexpended balance of the state
appropriation to the Miscellaneous Appropriations in Chapter 530, Public Acts of 2025,
Section 52, Item 4, may be reserved to be carried forward into the next fiscal year, and such
amounts as may be carried forward hereby are appropriated. Said reserve is subject to the
availability of revenue and to the approval of the Commissioner of Finance and
Administration. The provisions of this item take effect upon becoming a law, the public
welfare requiring it.
SECTION 53. Federal Program Reductions. The General Assembly recognizes that
reductions in federal grants-in-aid of federal programs by the United States government will require
extraordinary actions by the Commissioner of Finance and Administration to manage the state
budget within avai,lable resources and without detrimental effect on state finances. It is the legislative
intent that the reduced programs not be maintained at their former level by substituting state funds
for the reduced federal aid.
Item 1. Accordingly, the Commissioner of Finance and Administration shall reduce the
federal and other departmental revenue estimates and reduce the allotment of funds in an
amount equal to the revenue reductions, in accordance with Section 23, Item 1, it being the
legislative intent that such withdrawal of federal aid necessitates a reduction of spending
authorization in order to protect the state finances.
Item 2. The commissioner also shall reduce the number of authorized positions of
each program affected by the federal aid reductions, to the extent positions were funded by
the federal aid being reduced.
Item 3. State funds appropriated to match federal aid that has been reduced shall be
set aside in an allotment reserve of the affected program and shall not be expended except
to the extent necessary to provide for severance be.nefits and othe. r actions necessary to
reduce programs; provided, however, that the allotment of state funds shall be authorized to
the extent necessary to fulfill state maintenance-of-effort (MOE) requirements under federal
law. To the extent that state MOE requirements are reduced by the federal programs, state
funds in the amount of the allowable MOE reduction also shall be reserved and not
expended, except as provided above in this. item. The provisions of this item shall not
operate tq require the reserving of state funds that have been appropriated in excess of the
previous level of required state match or MOE in order to enhance the affected joint federal-
state program.
Item 4. It is the legislative intent that the state matching funds held in allotment
reserve as a result of these actions revert to the appropriate fund balance at June 30, 2027,
93
SB 2690
in addition to the amounts estimated in the over-appropriation in Section 43 of this act, and
that such funds as may be estimated at mid-year, when the 2026-2027 Budget is transmitted,
be available for the Governor's budget recommendations for the maintenance of any priority
program services, if approved in the 2026 appropriations bill enacted by the General
Assembly.
Item 5. The Commissioner of Finance and Administration, by December 31, 2026,
shall report to the Senate and House Finance, Ways and Means committees and the
directors of the Office of Legislative Budget Analysis on the reductions made by department
and by state program, including the amounts of federal and other departmental revenue and
allotments reduced, the matching state appropriations held in reserve and not allotted, the
number of positions reduced, and a general summary of the impact on program services.
After the report date, the commissioner shall provide any updated information in a fiscal year-
end report encompassing the same categories of information, if the program reductions have
changed from the earlier report.
SECTION 54. From the appropriations in Section 1, Title 111-26 and Section 56 of this act, the
following nonrecurring amounts are appropriated to the TennCare Program.
Item 1.
(a) If Senate Bill No. 1939 / House Bill No. 1867, the annual coverage
.assessment act, becomes a law, there hereby is appropriated from the appropriations
in Section 1, Title 111-26 and Section 56 of this act, the sum of $1,560,588,500
(nonrecurring) to the TennCare Program, and the Commissioner of Finance and
Administration is authorized to adjust federal and other departmental revenue
accordingly; provided, however, that if the federal government disallows the coverage
assessment as a valid source to match federal Medicaid funds, the appropriations in
this Item 1(a) shall be null and void, and the appropriations in Section 1, Title 111-26
and Section 56 shall be reduced accordingly. If the cited bill does not become a law,
the appropriations in Section 1, Title 111-26 and Section 56 of this act are hereby
reduced in the amount of $1,560,588,500.
(b) There is further appropriated to the TennCare Program, in addition to the
appropriation for directed hospital payments, a sum sufficient from any amount in
excess of $1,560,588,500 collected from the coverage assessment for the purpose of
•hospital payments for unreimbursed costs.
(c) To the extent that revenue:collected from the coverage assessment is less
than $1,560,588,500, the appropriation for directed hospital payments, hereby is
reduced in the amount of the under-collection.
(d) From the funds available in TennCare maintenance of coverage trust fund
at June 30, 2026, there hereby is appropriated to the TennCare program a sum
sufficient for the purposes authorized in law. The Commissioner of Finance and
Administration is authorized to adjust federal and other departmental revenue
accordingly. The allotment of funds under this item is subject. to approval of the
Commissioner of Finance and Administration. •
Item 2.
(a) If Senate Bill No. 2023 I House Bill No. 1864, the annual nursing home
assessment fee, becomes a law, there is hereby appropriated from the appropriations
in Section 1, Title 111-26 and Section 56 of this act, the sum of $198,498,900
(nonrecurring) to the TennCare Program for nursing home reimbursement. Further,
the Commissioner of Finance and Administration is authorized to adjust federal and
other departmental revenue accordingly. If the cited bill does not become law, the
appropriations in Section 1, Title 111-26 and Section 56 of this act, are hereby reduced
in the amount of $198,498,900.
(b) There is further appropriated to theTennCare Program, in addition to the
appropriation for nursing home reimbursement, a sum sufficient from any amount in
excess of $198,498,900 collected fro·m th~ coverage assessment for the purpose of
nursing home reimbursement.
(c) From the funds available in.TennCare nursing home assessment trust fund
at June 30, 2026, there hereby is appropriated to the TennCare program a sum
sufficient for the purposes authorized in law. The Commissioner of Finance and
Administration is authorized to adjust federal .and other departmental revenue
94
SB 2690
accordingly. The allotment of funds under this item is subject to approval of the
Commissioner of Finance and Administration.
Item 3.
(a) If Senate Bill No. 2221 / House Bill No. 2097, the annual ambulance
assessment fee, becomes a law, there is hereby appropriated from the appropriations
in Section 1, Title 111-26 and Section 56 of this act, the sum of $13,218,300
(nonrecurring) to the TennCare Program for ambulance provider reimbursement.
Further, the Commissioner of Finance and Administration is authorized to adjust
federal and other departmental revenue accordingly. If the cited bill does not become
law, the appropriations in Section 1, Title 111-26 and Section 56 of this act, are hereby
reduced in the amount of $13,218,300.
(b) There is further appropriated to the TennCare Program, in addition to the
appropriation for ambulance provider reimbursement, a sum sufficient from any
amount in excess of $13,218,300 collected from the coverage assessment for the
purpose of ambulance provider reimbursement.
(c) From the funds available in TennCare ambulance assessment trust fund at
June 30, 2026, there hereby is appropriated to the TennCare program a sum
sufficient for the purposes authorized in law. The Commissioner of Finance and
Administration is authorized to adjust federal and other departmental revenue
accordingly. The allotment of funds under this item is subject to approval of the
Commissioner of Finance and Administration.
SECTION 55. Other Additions to Budget. In addition to the amounts appropriated in Sections
1 and 4 of this act, the following amounts are appropriated, and the Commissioner of Finance and
Administration is authorized to allocate the appropriations to the appropriate organizational units and
to adjust federal aid and other departmental revenues and position authorizations accordingly. Full-
time (FT) and part-time (PT) position authorizations are estimated in the text of the following line
items.
Item 1. General Fund and Education Fund Appropriations. The following
appropriations are from the general fund and education fund, as applicable.
Recurring___ Nonrecurring
1. Agriculture - Urban Roots of TN - Grant $ 0$ 250,000
2. Arts Commission - Contemporary Arts 0 25,000
0
Memphis (CAM) - Grant 0 3,000,000
3. Children's Services - Agape - Grant 0 500,000
4. Children's Services - Coalition 4 Kids - 0 250,000
0 500,000
Grant 540,000
5. Children's Services - Lambi Learns - 1,529,600
0 0
Grant 0 1,000,000
6. Children's Services - Viable, Inc. .:.. Grant 0
7. Children's Services - Wendy's Wonderful 0 Qi
0
Kids- Grant 95,000
8. Commerce & Insurance - POST 0 500,000
0 500,000
Commissi_on Law Enforcement Officer 0
Pay Supplements 0 0
9. Correction - Dismas House - Grant 100,000
10. Corrections Institute - Training Positions 1,000,000
(3 FT) - Funded from Existing Budget 1,000,000
11. Court System -TN Juvenile Court-
Services Training Program
12. Disability and Aging - Cookeville .
lnclusiveYouth Soccer Facility - Grant
13. Disability and Aging - Crossville Inclusive
Playground - Grant
14. Disability and Aging - Housing
· Assistance Pilot Grant - $1 M from Real
. Estate Trust Fund
15. Disability and Aging - Special Olympics -
Grant
16. Disability and Aging - TN Believes -
Grant
17. Disability ~nd Aging - Transitional
95
SB 2690 0 1,000,000
Funding for Regional Office Buildings 0 2,500,000
Coming Offline 0 1,000,000
18. Economic and Community Development 0 1,500,000
- Choose 901 Alumni Initiative - Grant 0 1,200,000
19. Economic and Community Development 0
- John Sevier Center Development - 0 150,000
Grant 0 23,000,000
20. Economic and Community Development 0
- MUSE Knoxville - Grant 0 500,000
21. Economic and Community Development 0 1,000,000
- Pigeon River Adventure Park - Grant 0
22. Economic and Community Development 0 325,000
- SME PRIME Program - Grant 0 1,000,000
23. Economic and Community Development 450,000 10,000,000
- Stax Music Academy - Grant 50,000 1,000,000
24. Economic and Community Development 0 1,000,000
- Quantum Infrastructure - Increase 0
25. Education - Code Crew - Grant 456,500 0
26. Education - Memphis Teacher Residency 0 0
- Grant 0 6,000,000
27. Education - Milk Dispensers in Schools 0 10,000,000
28. Education - Niswonger Foundation - 0 0
Grant 0 1,000,000
29. Education ~ School Safety Grants 0 500,000
30. Education - Star Academy- Grant 1,000,000
31. Education - Teach for America - Grant 0 2,190,000
32. Environment - Office of Energy Programs 0 500,000
- Operational Costs 0 500,000
33. Environment - Outdoor Recreation - 0
Operational Costs 0 0
34. F&A - Evidence-Based Programming in 0 2,882,000
OCJP 0 5,000,000
35. F&A - TN Strong Families - Pregnancy 250,000 1,000,000
Center Grants 1,000,000
36. General Services - Gov. Early Literacy 0 3,000,000
Foundation - Imagination Library 0
37. Health.- Clinica Medicos - Grant 0 300,000
38. Health - Funding for Funerals for Stillborn 0 0
Children
39. Health - Geriatric Center of Excellence at 500,000
Methodist South Hospital - Grant 500,000
40. Health - Lab Services Information 5,000,000
Management System 5,620,000
41. Health- Siloam Health - Grant
42. Health - TN Poison Center - Grant
43. Health Facilities Commission - Staffing
Campaign - $5.7M from Civil Penalties
Fund
44. Higher Education - Moore Tech - Grant
45. Higher Education - MTSU Cybersecurity
and Cyber Range
46. Higher Education - TN Achieves - Grant
47. Historical Commission - Andrew Jackson
Foundation I The Hermitage - Grant
48. Historical Commission - East TN
Historical Society - Grant
49. Historical Commission - Milo Lemert
Statue and War Memorial Park - Grant
50. Historical Commission - Staffing
Reclassifications
51. Human Services - 211 TN CoHaborative
-- Community Services Help Line~
Grant
52. Human Services - Big Brothers Big
Sisters - Grant
53. Human Services - Boys & Girls Club -
Grant
54. Human Services - Customer-Facing and
Operational Support Artificial
96
SB 2690
Intelligence 0 160,000
55. Human Services - Family Justice Center 0 1,000,000
- Grant 0 13,700,000
56. Human Services - Human Coalition - 0 40,000
0
Grant 200,000
57. Human Services - Technology 0
400,000
Enhancements and User Acceptance 0
Testing 0 500,000
58. Labor - Flight Foundation - Grant 0 250,000
59. Labor- The Forge - Grant 9,000,000
60. Mental Health and Substance Abuse 0
Services - 21st Judicial District 500,000
Recovery Court - Grant 0
61. Mental Health and Substance Abuse 0 9,750,000
Services - Northeast TN Regional 1,000,000
Recovery Center - Grant 0
62. Military -Armories Maintenance 3,500,000
63. Miscellaneous Appropriations - East 0
Knoxville Area Ministry Complex - Grant 1,000,000
64. Miscellaneous Appropriations - Grant to 351,000
City of Kingsport - Dental Clinic 995,700
Expansion - Grant 1,300,000
65. Miscellaneous Appropriations - Grant to 0 0
Cumberland Co. - Water and 1,250,000
Infrastructure Grant 24,618,500
66. Miscellaneous Appropriations - Grant to 445,500 0
Hardin Co. - Medical Center Grant 0
67. Miscellaneous Appropriations - Grant to 0
Hawkins Co. - Community Facility/ 6,244,500 0
Farmer's Market 3,473,000
68. Miscellaneous Appropriations - Grant to 0 5,000,000
Smith Co. - Relocation of Emergency 0 20,000,000
Response Facilities 0 40,000,000
69. Miscellaneous Appropriations - Human 0
Resources - Recruiting Software - 0 600,000
$1.6M Other Funding 500,000
70. Miscellaneous Appropriations - STS - 0
Enterprise Customer Relationship 10,000,000
Management - $2M Other Funding 0
71. Safety - Houses of Worship Security 0 (10,000,000)
Grants 2,000,000
72. TennCare - Intermediate Care Facilities
for Individuals with IDD
73. TennCare - Rate Increase for Home-
Delivered Meals
74. TennCare - Rural Health Clinics -
$20,572,500 from Shared Savings and
$36M Federal Funding
75. Tennessee Bureau of Investigation - TN
Safe Initiative (32 FT)
76. Tourist Development - Knoxville Zoo -
Grant
77. Tourist Development - Nashville Zoo -
Grant
78. Transportation - General Fund Subsidy -
Bridge Repair
79. Treasury - Electronic Monitoring
lndigency Fund:
80. Veterans Services - The Honor
Foundation - Grant
81. Miscellaneous Appropriations -Transfer
TWRA General Fund Subsidy to
Miscellaneous Appropriations
82. Wildlife Resources Agency - Transfer
TWRA General Fund Subsidy to
Miscellaneous Appropriations
83. Tourist- Development- Marketing Funding
- Increase to $15.5M NR
97
SB 2690
84. Tourist Development - Direct Marketing 0 (2,000,000)
Organizations and Regional Grant
Funding - Decrease to $5.5M NR
Total $ 35,69!;,600 $ 213,745,700
The appropriation in Section 55, Item 1, line Item 35, to the Department of Finance and
Administration for TN Strong Families - Pregnancy Center Grants, shall not be used to pay
administrative costs related to the disbursement of such grant funds by a state office or agency.
SECTION 56. Legislation. In addition to the appropriations in Sections 1 and 4 of this act, the
following amounts hereby are appropriated for the purpose of implementing the cited bills, and such
additional or lesser amounts indicated in the final fiscal note on the bills as enacted are hereby
appropriated. The Commissioner of Finance and Administration is authorized to allocate the
appropriations to the appropriate organizational units and to adjust federal aid and other
departmental revenues and authorized positions accordingly. Federal and other departmental
revenue adjustments may be made in reconciliation to said fiscal notes and to available federal aid
and other departmental revenue. Adjustments to the number of authorized positions indicated in the
line items as full-time (FT), part-time (PT), and seasonal shall be reconciled to the fiscal notes. The
negative amounts in line-items of this section are appropriation reductions, and the positive amounts
are appropriation increases. The appropriation in each item of this section is subject to the bill cited
in that item becoming a law, except as otherwise provided.
Item 1. General Fund and Education Fund Appropriations. The following
appropriations are from the general fund and education fund, as applicable.
Recurring Nonrecurring
1. SB 671 / HB 555- Correction - 670,600 $ 0
Incarceration - Burglary of a Conveyance $
206,900 106,000
2. SB 520 I HB 220- Environment and 34,300 0
Conservation - West TN River Basin
Authority (2 FT) (6,044,600) 6,500
0 (38,000)
3. SB 1656 / HB 1649- Correction -
Incarceration - Matthew Davenport's Law 2,685,200 0
4. SB 1868 / HB 2526 - Children's Services - 887,300 (383,100)
Safe Environments for Children - Fiscal 11,300 0
Note Reconciliation
(1,713,800) 0
5. SB 1882 / HB 1643 - Safety - Insurance . (102,400) 0
Minimum
0 0
6. SB 1900 I HB 2428 - Correction - (3,365,200)
Incarceration -Assault on First $ (308,600)
Responders
' 7. SB 2205 I HB 2450 - Subterranean
Transportation Infrastructure
Coordination Authority (3 FT)
8. SB 2232 I HB 2543- Disaster Relief-
Fiscal Note Reconciliation
9. SB 2238 I HB 2550-TWRA Licenses for
TN National Guard - Fiscal Note
Reconciliation
10. SB 2248 / HB 2560 - TEMA - Fiscal Note
Reccmciliation (12 FT)
11. SB 2691. / HB 2629 - Budget
, Implementation Law- Sum Sufficient
estimated @ ~O
$
Item 2. Dedicated Source and Earmarked Appropriations. The following
appropriations are from dedicated state revenue sources and departmental revenues.
Recurring Nonrecurring
$ (121,058,600)
1. SB 1939 / HB 1867-TennCare- Hospital $ 0
Assessment.~ Fiscal Note Reconciliation 13,621,700
0
2. SB 2023 I HB 1864 - TennCare - Nursing
.Home Assessment - Fiscal. Note
98
SB 2690
Reconciliation
3. SB 2221 / HB 2097 - TennCare - 0 2,982,900
Ambulance Assessment - Fiscal Note
Reconciliation
Total $ 0 $ (104,454,000)
SECTION 57. Base and Cost Increase Reductions. The appropriations in Section 1 of this
act, except as otherwise provided herein, hereby are reduced in the following amounts for the
purpose of deleting base and cost increase appropriations and positions that had been
recommended in the 2026-2027 Budget Document. The negative amounts in line-items of this
section are appropriation reductions, and the Commissioner of Finance and Administration is
authorized to allocate the appropriation reductions to the appropriate organizational units and to
adjust federal aid and other departmental revenues and authorized positions accordingly.
Item 1. General Fund and Education Fund Appropriations. The following
appropriations reductions are from the general fund and education fund, as applicable.
Recurring___ Nonrecurring
1. District Attorneys General - Sexual Assault
Kit - $1,500,000 Federal Grant - Delete $ 0$ 0
0
2. Comptroller - State Board of Equalization 0
Positions - Abolish 6 FT 0 0
3. Education - TISA - Reconcile to Updated {5,000,000}
(5,000,000)
Enrollment (24,500,000)
4. Health - Rural Health Transformation
Resiliency Grants - $20,572,500 (NR)
from TennCare Shared Savings - Reduce 0
5. Miscellaneous Appropriations -
Administration Amendment- Delete Cost
Increase {3,000,000}
Total $ {27,500,000) $
SECTION 58. Other 2025-2026 Supplemental Appropriations. The provisions of this section
shall take effect upon becoming a law, the public welfare requiring it. There is hereby appropriated
the following amounts, which shall be in addition to the appropriations provided under Chapter 4,
Public Acts of 2025 (1st Extraordinary Session), Chapter 530, Public Acts of 2025, and in Section 38
of this act.
Item 1. From the appropriations made in Chapter 4, Public Acts of 2025 (1st
Extraordinary Session}, a sum sufficient not to exceed $2,500,000 is hereby appropriated to
the Comptroller of the Treasury from the Hurricane Helene Relief Fund for making a grant to
Erwin Utilities Authority for costs rela~ed to replacing the waste water treatment plant
severely damaged by Hurricane Helene.
Item 2. To the Comptroller of the Treasury, the amount of $1,700,000 for an audit of
Shelby County Schools.
Item 3. To the Department of Finance and Administration, the amount of $1,717,800
to restore crisis pregnancy grants funds that reverted. No amount of the •restored crisis
pregnancy grants funds shall be used to pay administrative costs related to the disbursement
of such grant funds by a state office or agency.
Item 4. To the Department of Commerce and Insurance, the amount of $1,529,600
for POST Commission law enforcement officer pay supplements.
Item 5: To the Tennessee Bureau of Investigation, the amount of $3,000,000 for the
Memphis Safe task force.
Item 6. To Miscellaneous Appropriations, the amount of $5,000,000 for the federal
child care funding replacement.
,SECTION 59. Capital Outlay Additional Provisions. The following provisions are in addition to
other provisions of this act concerning the capital outlay budget and the facilities revolving fund
capital outlay. budget.
99
SB 2690
Item 1. In addition to the capital outlay projects listed on pages A-136 and A-137 of
the 2026-2027 Budget Document and in Section 1, Title 111-31 of this act, the following hereby
are funded. Positive amounts are additional appropriations and negative amounts are
reductions. Further, other revenue is detailed in the table.
Appropriation Other Revenue
1. Environment and Conservation - $ 12,500,000 $ 0
Bicentennial Capitol Mall State Park 26,700,000
History Wall 0
s 39.200.000
2. Environment and Conservation - David s 0
Crockett Birthplace SP Reconstruction -
Funding Swap
Total
Item 2. In addition to the Facilities Revolving Fund capital outlay projects listed on
page A-153 of the 2026-2027 Budget Document and in Section 1, Title 111-31 of this act, the
following hereby are funded. Positive amounts are additional appropriations and negative
amounts are reductions. Further, other revenue is detailed in the table.
A~riation Other Revenue
$ 3,748,400
1. National Civil Rights Museum Expansion $ 0
Design
Total $ 3,748,40_Q $ 0
The appropriation in this item is subject to approval of the expansion design by the
Executive Director of the State Museum. The approval by the Executive Director shall be
reported in writing to the Commissioner of Finance and Administration with a copy of the
approval provided to the Chairs of the Finance, Ways and Means Committees of the Senate
and the House of Representatives.
Item 3. In addition to any other funds appropriated by the provisions of this act, there
is appropriated a sum sufficient (recurring) to the Department of Correction to be used solely
to fund the capital project funded by Section 58, Item 4, of Chapter 418 of 2023, which sum
is equal to the difference between the amo'unt by which Senate Bill 2247 I House Bill 2532 is
funded on Page 8-90 of the 2026-2027 Budget Document, and the fiscal impact of
implementing Senate Bill 2247 I House Bill 2532, as indicated in the final cumulative fiscal
note of the Fiscal Review Committee on such bill, if such bill becomes a law. The
Commissioner of Finance and Administration is authorized to transfer such sum as described
in this item from the Department of Education to the Department of Correction. This
appropriation is subject to such bill becoming a law, and the fiscal impact of such bill being
less than the amount indicated in the Budget Document.
SECTION 60.
Item 1. From the funds appropriated or available to any department, commission,
board, agency, or other entity of state government, there is earmarked or appropriated, as
applicable, a sum sufficient to fund any bill or resolution that becomes law, having an
estimated first year's cost of $50,000 or less, that is attributable to a specific entity or from a
specific fund, and is not otherwise funded in this act. .
Item 2. The appropriation in Section 1, Title 111-8, Item 8, to the Department of
Economic and Community Development for AgLaunch, and identified on Page 8-330 of the
2026-2027 Budget Document, is reduced by the recurring sum of $1,000,000 and the
nonrecurring sum of $1,000,000. . .
Item 3. The appropriation in Section 1, Title 111-10, Item 1.1, to the Tennessee Higher
Education Commission for a Correction Education, arid identified on Page 8-92 of the 2026-
2027 Budget Document, is reduced by the recurring sum of $250,000. Such position is not
authorized to be established.
Item 4, The appropriation in Section 1, Title 111-22, Item 9.27, to Miscellaneous
Appropriations for Camp Blount Park - Grant, and identified on Page 8-24 of the 2026-2027
Budget Document, is reduced by the nonrecurring sum of $50,000.
_100
SB 2690
Item 5. The appropriation in Section 1, Title 111-22, Item 9.32, to Miscellaneous
Appropriations for Memphis - Crime Intervention - Work-Centered Training Grants, and
identified on Page 8-22 of the 2026-2027 Budget Document, is reduced by the nonrecurring
sum of $15,000,000.
Item 6. The appropriation in Section 1, Title 111-22, Item 9.31, to Miscellaneous
Appropriations for Memphis - Crime Intervention - Focused Deterrence Grants, and
identified on Page 8-22. of the 2026-2027 Budget Document, is reduced by the nonrecurring
sum of $15,000,000.
Item 7. The appropriation in Section 1, Title 111-22, Item 10.10, to Miscellaneous
Appropriations for 2025 PC 324 - Vape Act - Set Aside, and identified on Page 8-24 of the
2026-2027 Budget Document, is reduced by the nonrecurring sum of $14,655,300.
Item 8. The appropriation in Section 1, Title 111-22, Item 10.11, to Miscellaneous
Appropriations for 2025 PC 526 - Hemp Act - Set Aside, and identified on Page 8-24 of the
2026-2027 Budget Document, is reduced by the nonrecurring sum of $8,438,900.
Item 9. The appropriation in Section 1, Title 111-5, Item 26, to the Department of
Environment and Conservation for the State Energy Policy Council in the sum of $250,000
(of which $246,200 is recurring), and identified on Page 8-279 of the 2026-2027 Budget
Document, is reduced by the recurring sum of $246,200 and the nonrecurring sum of $4,000.
Such positions are not authorized to be established.
Item 10. The appropriation in Section 55, Item 1, line item 37, to the Department of
Health for Clinica Medicos - Grant, is reduced by the nonrecurring sum .of $1,000,000.
Item 11. The appropriation in Section 55, Item 1, line item 41, to the Department of
Health for Siloam Health- Grant, is reduced by the nonrecurring sum of $500,000.
Item 12. The appropriation in Section 55, Item 1, line item 66, to Miscellaneous
Appropriations for Hardin Co. - Medical Center Grant, is reduced by the nonrecurring sum of
$1,000,000.
Item 13. The appropriation in Section 55, Item 1, line item 5, to the Department of
Children's Services for Lambi Learns - Grant, is reduced by the nonrecurring sum of
$250,000.
Item 14. The appropriation in Section 55, Item 1, line item 3, to the Department of
Childrenis Services for Agape - Grant, is reduced by the nonrecurring sum of $1,500,000.
Item 15. The appropriation in Section 55,. Item 1, line item 26, to· the Department of
Education fo~ Memphis Teacher Residency - Grant, is reduced by the nonrecurring sum of
$250,000.
Item 16. The appropriation in Section 55, Item 1, line item 30, to the Department of
Education for Star Academy - Grant, is reduced by the nonrecurring sum of $1,000,000.
Item 17. The appropriation in Section 55, Item 1, line item 27, to the Department of
Education for Milk Dispensers in Schools, is reduced by the nonrecurring sum of $325,000.
Item 18. The appropriation in Section 55; Item 1, line item 18, to the Department of
Economic and ·community Development for Choose 901 Alumni Initiative - Grant, is reduced
by the nonrecurring sum of $1,000,000.
. .Item 19. The appropriation in Section 55, Item 1, line item. 44, to the Tennessee
Higher Education Commission for Moore Tech - Grant, is reduc~d by the nonrecurring sum
of $1,482,000,
Item 20. The appropriation in Section 55, Item 1, line item 59, to the Department of
Labor and Workforce Development for The Forge - Grant, is reduced by the nonrecurring
sum of $200,000.
, Item 21. The appropriation in Section 55, Item 1, line item 9, _to the Department of
Correction for Dismas House - Grant, is reduced by the nonrecurring sum of $500,000.
_Item 22. The appropriation in' Section 55, Item 1, line item 34, to the Department of
Finance and Administration for Evidence-Based Programming in OCJP, is reduced by the
nonrecurring sum of $1,000,000.
101
SB 2690
Item 23. The appropriation in Section 55, Item 1, line item 21, to the Department of
Economic and Community Development for Pigeon River Adventure Park - Grant, is
reduced by the nonrecurring sum of $1,500,000.
Item 24. The appropriation in Section 55, Item 1, line item 19, to the Department of
Economic and Community Development for John Sevier Center Development - Grant, is
reduced by the nonrecurring sum of $2,500,000.
Item 25. The appropriation in Section 55, Item 1, line item 12, to the Department of
Disability and Aging for Cookeville Inclusive Youth Soccer Facility - Grant, is reduced by the
nonrecurring sum of $500,000.
Item 26. The appropriation in Section 55, Item 1, line item 13, to the Department of
Disability and Aging for Crossville Inclusive Playground - Grant, is reduced by the
nonrecurring sum of $500,000.
Item 27. The appropriation in Section 55, Item 1, line item 67, to Miscellaneous
Appropriations for Grant to Hawkins Co. - Community Facility/ Farmer's Market, is reduced
by the nonrecurring sum of $3,500,000.
Item 28. The appropriation in Section 59, Item 1, line item 1, to the Department of
Environment and Conservation for Bicentennial Capitol Mall State Park History Wall, is
reduced by the nonrecurring sum of $10,000,000.
Item 29. The appropriation in Section 55, Item 1, line item 75, to the Tennessee
Bureau of Investigation for TN Safe Initiative (32 FT), is reduced by the recurring sum of
$6,244,500 and the nonrecurring sum of $3,473,000.
Item 30. The appropriation in Section 1, Title 111-2, Item 2.11, to the Tennessee
Housing Development Agency for the Starter Home Revolving Loan Fund, is reduced by the
nonrecurring sum of $30,000,000.
Item 31. The appropriation in Section 1, Title 111-22, Item 9.24, for the Faith Based and
Community Initiatives Foundation - Grant, is reduced by the recurring sum of $1,487,000. Of
such appropriation, the recurring sum of $1,487,000 is hereby designated as a nonrecurring
appropriation such that the entire $1,487,000 appropriation described in such item shall be
nonrecurring.
Item 32. The appropriation in Section 1, Title 111-22, Item 9.26, for the Governor's
Rural Education Foundation - Grant, and identified on Page 8-24 of the 2026-2027 Budget
Document, is reduced by the recurring sum of $100,000. Of such appropriation, the recurring
sum of $100,000 is hereby designated as a nonrecurring appropriation of $100,000.
Item 33. The appropriation in Section 1, Title 111-29, Item 3, for the General Fund
Subsi~y -Transportation Project~ and Operations, and identified on Page 8-331 of the 2026-
2027 Budget Document, in the recurring sum of $25,000,000 is hereby transferred to the
Transportation Equity Fund - Commercial Aviation, to be used for grants to commercial
aviation authorities for capital improvements.
Item 34. The appropriation in Section 1, Title 111-31, Item 3, to the Department of
Environment and Conservation for capital outlay for Cumberland Mountain State Park Lodge
Planning, and identified on Page A-136 of th.e 2026-2027 Budget Document, is reduced by
the nonrecurring sum of $5,000,000.
Item 35. The appropriation in Section 1, Title 111-15, Item 11, to the Department of
Military for the Governor's Response and Recovery Fund, and identified on Page B-220 of
the 2026-2027 Budget Document, is reduced by the nonrecurring sum of $55,800,000.
Item 36. The appropriation in Section 1, Title 111-8, Item 8, to the Department of
Economic and Community Development for Rural Development Fund Grants, and identified
on Page B-330 of the 2026-2027 Budget Document, is reduced by the nonrecurring sum of
$10,000,000.
Item 37. The appropriation in Section 1, Title 111-22, Item 8.14, to Miscellaneous
Appropriations for STS-ERP Modernization, and identified on Page 8-23 of the 2026-2027
Budget Document, is reduced by the nonrecurring sum of $11,500,000.
Item 38. The appropriation in Section 1, Title 111-22, Item 8.15, to Miscellaneous
Appropriations for STS-Artificial Intelligence Enable_ment Program, and identified on Page B-
22 of the 2026-2027 Budget Document, is reduced by the nonrecurring sum of $12,000,000.
102
SB 2690
Item 39. The appropriation in Section 38, Item 7.2, to the Department of Human
Services for Summer Food Assistance, and identified on Page A-27 of the 2026-2027 Budget
Document, is reduced by the nonrecurring sum of $5,000,000.
Item 40. From funds available to the Department of Human Services, there is
earmarked the sum of $40,300 (nonrecurring) for the sole purpose of implementing Senate
Bill 879 / House Bill 684, relative to requiring the provision of a pre-release form application
for food assistance for inmates, if such bill becomes a law.
Item 41. From the funds appropriated in Section 1, Title 111-2, Item 4.9, to the
Department of General Services for the Megasite Water and Wastewater Authority, there is
earmarked the sum of $6,500 (nonrecurring) for the sole purpose of implementing Senate Bill
1578 / House Bill 1535, relative to designating the facility providing water and wastewater
services to the authority as the "Michael Banks Water Treatment Facility", if such bill
becomes a law.
Item 42. From funds available to the Department of Military, there is earmarked the
sum of $42,100 (recurring) for the sole purpose of implementing Senate Bill 1888 / House Bill
1635, relative to expanding eligibility for interment in a state veteran cemetery to a member
of a reserve component of the armed forces of the United States, if such bill becomes a law.
Item 43. From funds available to the Department of Military, there is earmarked the
sum of $12,500 (nonrecurring) for the sole purpose of implementing Senate Bill 1468 / House
Bill 1764, relative to designating the national gu_ard armory in McNairy County as the
"Brigadier General Donald F. Hawkins Army National Guard Armory", if such bill becomes a
law.
Item 44. From funds available to the Department of Military, there is earmarked the
sum of $7,800 (nonrecurring) for the sole purpose of implementing Senate Bill 1632 / House
Bill 1526, relative to designating the national guard armory in the City of Maryville as the
"CSM William 0. Gregory National Guard Armory", if such bill becomes a law.
Item 45. From funds available to the Department of Environment and Conservation in
the Local Parks Acquisition Fund, there is earmarked the sum of $500,000 (nonrecurring) for
the sole purpose of making a grant in such amount to the municipal government of the City of
Cookeville, to be used for construction of an inclusive youth soccer facility. Funds
appropriated in this item are not required to be matched by local funds.
Item 46. From funds available to the Department of Environment and Conservation in
the Local Parks Acquisition Fund, there is earmarked the sum of $500,000 (nonrecurring) for
the sole purpose of making a grant in such amount to the municipal government of the City of
Crossville, to be used for construction of an inclusive playground. Funds appropriated in this
item are not required to be matched by local funds.
Item 47. From funds available to the Department of Environment and Conservation in
the Local Parks Acquisition Fund, there is earmarked the sum of $500,000 (nonrecurring) for
the sole purpose of making a grant in such amount to the municipal government of the City of
Monterey, to be used for development of trails at Meadow Creek Park. Funds appropriated in
this item are not required to be matched by local funds. •
Item 48. From funds available to the Department of Environment and Conservation in
the Local Parks Acquisition Fund, there is earmarked the sum of $1,500,000 (nonrecurring)
for the sole purpose of making a grant in such amount to the municipal government of the
Town of Huntingdon, to be used for construction of recreation facilities. Funds appropriated
in this it~m are not required to be matched by local funds.
Item 49. From funds available to the Tennessee Emergency Management Agency in
the Governor's Response and Recovery Fur;ld, there is earmarked the sum of $3,740, 150
(nonrecurring) for the sole purpose of providing grants to the cities of Elizabethton, Erwin,
Mountain. City, and Newport to be used for general expenses and recovery efforts from
Hurricane Helene. Grants must be distributed to the cities no later than September 1, 2026.
Item 50. From funds available to the. Department of Economic and Community
Development in Section 61, Item 23, for the purpose of providing grants to counties and
municipalities for capital projects and maintenance of county courthouses, there is
earmarked the sum of $200,000 (nonrecurring) for the sole purpose of n,aking a grant in
such amount to the county government of Grainger County, to be used for relocating the first
Grainger County courthouse.
103
SB 2690
Item 51. From funds available to the Department of Economic and Community
Development in Section 61, Item 23, for the purpose of providing grants to counties and
municipalities for capital improvements for courthouses, there is earmarked the sum of
$250,000 (nonrecurring) for the sole purpose of making a grant in such amount to the county
government of Cannon County, to be used for improvements to the county courthouse.
Item 52. From funds available to the Tennessee Emergency Management Agency in
the Governor's Response and Recovery Fund, there is earmarked the sum of $1,500,000
(nonrecurring) for the sole purpose of making a grant in such amount to Pigeon River
Outfitters Association, to be used for a federal grant match.
Item 53. From funds available to the Department of Economic and Community
Development in the Rural Development Fund, there is earmarked the sum of $3,500,000
(nonrecurring) for the sole purpose of making a grant in such amount to the county
government of Hawkins County, to be used to build a 4-H Livestock Event Center that
includes a farmers' market and extension offices for the University of Tennessee and
Tennessee State University. The appropriation in this item is subject to Hawkins County
acquiring the property upon which the event center will be built prior to the grant being
disbursed. Hawkins County shall report in writing to the Commissioner of Finance and
Administration when such property is acquired, with a copy provided to the Chairs of the
Finance, Ways and Means Committees of the Senate and the House of Representatives.
Funds appropriated in this item are not required to be matched by local funds.
Item 54. From the unexpended balance of funds appropriated to Miscellaneous
Appropriations in Section 1, Title 111-22, Item 9.34, of Chapter 530, Public Acts of 2025, for
Water Regionalization Project, and carried forward pursuant to Section 36, Item 172 of this
act, there is. earmarked the sum of $500,000 (nonrecurring) to the Department of
Environment and Conservation for the sole purpose of making a grant in such amount to the
Giles County Water Alliance, to be used for a countywide water infrastructure study.
Item 55. From the funds appropriated to the Department of Economic and Community
Development in Section 1, Title 111-8, Item 6, for FastTrack Infrastructure and Job Training
Assistance, and identified on Page 8-343 of the 2026-2027 Budget Document, there is
earmarked the sum of $5,000,000 (nonrecurring) for the sole purpose of making a grant in
such amount to the City of Bartlett, to be used for sewer infrastructure projects. Funds
appropriated in this item are not required to be matched by local funds.
Item 56. From funds available to the Tennessee Emergency Management Agency in
the Governor's Response and Recovery Fund, there is earmarked the s_um of $500,000
(nonrecurring) for the sole purpose of making a grant in such amount to the Roan Mountain
Volunteer Fire Department, to be used to purchase a fire engine to replace the one
destroyed by Hurricane Helene.
Item 57. From funds available to the Tennessee Emergency Management Agency in
the Governor's Response and Recovery Fund,_ there is earmarked the sum of $500,000
(nonrecurring) for the sole purpose of making a grant in such amount to the Elk Mills-Poga
Volunteer Fire Department, to be used to purchase a fire engine to replace the one
destroyed by Hurricane Helene.
Item 58. From funds available to the Tennessee Emergency Management Agency in
the Governor's Response and Recovery Fund, there is earmarked the .sum of $500,000
(nonrecurring) for the sole purpose of making a grant in such amount to the Hampton-Valley
Forg_e Volunteer_ Fire Department, to be used to purchase a fire engine to replace the one
destroyed by Hurricane Helene.
. Item 59. From funds available to the State Museum in Section 61, Item 21, for the
purpose ot.:· providing grants to museums, • there is earmarked the sum of $10,000
(nonrecurring) for the sole purpose of making a grant in such amount to the Museum of
Appalachia, to be used for supporting the preservation of historic buildings and collections
and the development of educational programs about Appalachian history and heritage.
Item 60_. From funds available to the Health Facilities Commission for licensing
healthcar~ facilities, the Commissioner of Finance and Administration, upon the request of
the_ Executive Director of the Health. facilities Commission, is authorized to .transfer the
amount of $288,000 (recurring) budgeted for contractors from its operating budget to payroll.
Item 61. From reserves available to the Tennessee Public Utility Commission, there is
earmarked the sum of $4,000,000 (nonrecurring) for the sole purpose of providing a grant to
the county government of Williamson County for the _purpose of constructing wastewater
104
SB 2690
infrastructure, to be used solely in the reconstruction of the deteriorating Grasslands STP
wastewater system in Williamson County in order to address related health environmental
risks. The county shall submit a report to the Tennessee Public Utility Commission semi-
annually, beginning January 1, 2027, detailing the progress on the Grasslands STP project
and other information as requested by the commission.
Item 62. From the funds appropriated in Section 61, Item 20 to the Department of
Agriculture for the purpose of providing grants to county and regional agricultural fairs, there
is earmarked the sum of $10,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the county
government of Jackson County, to be used for improvements to the Jackson County
Fairgrounds.
Item 63. From the funds appropriated to the Department of Safety in Chapter 530,
Public Acts of 2025, Section 60, Item 78, for the purchase of body-worn cameras for Oak
Ridge Police Department personnel, in the sum of $2,500,000 (nonrecurring), there is
earmarked the unexpended balance of such funds to the Department of Safety, for the sole
purpose of making a grant in such amount to the government of the City of Oak Ridge, to be
used for the purchase of the following for the Oak Ridge Police Department personnel: body-
worn cameras and the required and necessary systems, equipment, and technologies
necessary to implement and deploy them, including the in-car video camera system and
less-:lethal energy weapons system.
Item 64. From the funds appropriated to the Department of Environment and
Conservation in Chapter 966, Public Acts of 2024, Section 60, Item 39, in the sum of
$1,750,000 (nonrecurring) for purchasing the Mountain Creek Quarry for use as a park, there
is earmarked the unexpended balar:tce of such funds to the Department of Environment and
Conservation, for the sole purpose of making a grant in such amount to the municipal
government of the City of Chattanooga, to be used for the renovation of, construction of, or
other improvements to a building for use as a public facility.
Item 65. From the funds appropriated to the Department of Finance and
Administration in Chapter 1130, Public Acts of 2022, Section 61, Item 55, in the sum of
$3,000,000 (nonrecurring) for construction of a greenbelt connector bridge spanning the Wolf
River, there is earmarked the unexpended balance of such funds to the Department of
Finance and Administration, for the sole purpose of making a grant in such amount to the
Town of Collierville, to be used for the Wolf River Boulevard sidewalk extension and
Robbins-Halle Nature Preserve trail extension.
Item 66. From the funds appropriated to the Department of Transportation, Bureau of
Planning, in Section 1, Title 111-29, Item 5, for General Fund Subsidy - General Aviation, and
identified on Page 8-331 of the 2026-2027 Budget Document, there is earmarked the sum of
$1,200,000 (nonrecurring) for the sole purpose of making a grant in such amount to the City
of Crossville for capital projects at the Crossville Memorial Airport.
Item 67. From TennCare Shared Savings, for the estimated allocations for the Diaper
Program in FY28, FY29, FY30, and FY31, as identified on Page A-35 of the 2026-2027
Budget Document, there is earmarked the sum of $43,200,000 (nonrecurring) for the sole
purpose of buying back TennCare services funded through the annual hospital assessment.
Item 68. From the unexpended balance of funds appropriated to the Department of
Environment and Conservation in Chapter 530, Public Acts of 2025, Section 1, Title 111-5,
Item 17, for Duck River Planning, as identified on Page 8-303 of the 2025-2026 Budget
Document, there is earmarked the sum of $7,000,000 (nonrecurring) to the Department of
Economic and Community Development, and from the unexpended balance of funds
appropr_iated to the Department .of Environment and Conservation in Chapter 966, Public
Acts of 2024, Section 1, Title 111-5, ,Item 17, for Water Regionalization, as identified on Page
8-267 of the 2024-2025 Budget Document, there is also earmarked the sum of $3,000,000
(nonrecurring) to the Department of Economic and Community Development, for the sole
purpose of making a grant in the amount of $10,000,000 (nonrecurring) to the county
government of Bedford County, . to be used for a . sewer line project ta support the
development of an automotive sports complex located on U.S. Highway 231.
Item 69. From salary equity funds available to the District Public Defenders
Conference, the District Public Defenders Conference is authorized to allocate the amount of
$153,630 (nonrecurring) budgeted for one (1) assistant public defender position to one (1)
social worker position. Such position is authorized to be established for a period of one (1)
year.
105
SB 2690
Item 70. From the unexpended balance of funds appropriated to the Department of
Economic and Community Development in Section 60, Item 76, of Chapter 530, Public Acts
of 2025, for making a grant to the municipal government of the City of Milan for purchasing
an industrial park, there is earmarked the sum of $551,000 (nonrecurring) for the sole
purpose of making a grant in such amount to the City of Milan, to defray the costs related to
the purchase. Any unexpended funds shall revert to the general fund balance at June 30,
2027.
Item 71. From funds available to the Department of Environment and Conservation in
the Local Parks Acquisition Fund, there is earmarked the sum of $500,000 (nonrecurring) to
the Department of Finance and Administration for the sole purpose of making a grant in such
amount to the county government of Hancock County, to be used for county park
infrastructure completion. Funds appropriated in this item are not required to be matched by
local funds.
Item 72. The appropriation made in Section 1, Title 111-22, Item 10.2, Legislative
Initiatives, is hereby reduced by $8,000,000, with $3,000,000 being recurring and $5,000,000
being nonrecurring.
Item 73. Funds earmarked to the Department of Military in Item 42 of this section, to
implement Senate Bill 1888 / House Bill 1635, relative to expanding eligibility for interment in
a state veteran cemetery to a member of a reserve component of the armed forces of the
United States, are reduced by the sums of $22,600 (nonrecurring) in fiscal year 2026-2027
and $12,000 (nonrecurring) in fiscal year 2027-2028.
Item 74. Funds appropriated in Section 61, Item 7, to implement Senate Bill 846 /
House Bill 1268, relative to creating in the 30th judicial district two additional criminal courts,
are reduced by the sum of $72,400 (nonrecurring).
SECTION 61.
Item 1. In addition to any other funds appropriated by the provisions of this act, there
is appropriated a sum sufficient to implement all bills and resolutions having an estimated
first year's cost of $50,000 or less that become law. It is the legislative intent that if such bills
and resolutions are otherwise funded by the provisions of this act, then the funds
appropriated in this item shall be reduced acc_ordingly.
Item 2. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $9,044,400 (of which $5,340,000 is recurring) for the sole purpose
of implementing Senate Bill 2405 / House Bill 2157, relative to creating the Tennessee Safe
Initiative Task Force, if such bill becomes a law..
Item 3. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $1,055,200 (of which$1,025,400 is recurring) for the sole purpose
of implementing Senate Bill 2330 / House Bill 2281, relative to requiring state governmental
entities to make information and records available to the staff of the Fiscal Review
Committee, if such bill becomes a law.
Item 4. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $1,000,000 (nonrecurring) for the sole purpose of implementing
Senate Bill 2338 I House Bill 2446, relative to establishing the volunteer firefighter vehicle
grant program, if such bill becomes a law.
• Item 5. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $56,300 (which shall be allocated for incarceration costs) for the
sole purpose of implementing Senate Bill 1737 I House Bill 1668, relative to the offense of a
person to travel with intent to commit theft, if such bill becomes a law. •
Item 6. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $273,600 (of which $248,600 is recurring) for the sole purpose of
implementing Senate Bill 2223 I House Bill 2219, relative to requiring the sheriff of each
county to enter into a memorandum of agreement with federal officials concerning
enforcement of federal immigration law, if such bill becomes a law.
Item 7. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $811,200 (recurring) for the sole purpose of implementing Senate
Bill 846 /, House Bill 1268, relative to creating in the 30th judicial district two additional
criminal courts, if such bill becomes a law.
106
SB 2690
Item 8. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $200,000 (nonrecurring) for the sole purpose of implementing
Senate Bill 1777 I House Bill 1443, relative to the "Caring for Caregivers Act", if such bill
becomes a law.
Item 9. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $50,000 (recurring) for the sole purpose of implementing Senate
Bill 1907 / House Bill 1464, relative to the "Chance Carlton Act", if such bill becomes a law.
Item 10. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $1,000,000 (recurring) for the sole purpose of implementing
Senate Bill 1645 / House Bill 1536, relative to the "Tennessee Agricultural Innovation and
Education Initiative", if such bill becomes a law.
Item 11. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $55,000 (nonrecurring) for the sole purpose of implementing
Senate Bill 2072 / House Bill 2121, relative to the "Better Spending, Better Schools Act of
2026", if such bill becomes a law.
Item 12. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $1,000,000 (nonrecurring) for the sole purpose of implementing
Senate Bill 714 / House Bill 662, relative to state interventions for certain underperforming
school districts, if such bill becomes a law. •
Item 13. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $82,300 (nonrecurring) for the sole purpose of implementing
Senate Joint Resolution 1022, relative to the installation of the bust of Anne M. Davis,
founding mother of Great Smoky Mountains National Park, if such bill becomes a law.
Item 14. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $20,000,000 (nonrecurring) for the sole purpose of implementing
.Senate Bill 2410 / House Bill 2509, relative to creating the Community Workforce Housing
Innovation Pilot Program, if such bill becomes a law.
Item 15. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $3,081,500 (recurring and of which $303,700 shall be from federal
funds) for the sole purpose of implementing Senate Bill 225 I House Bill 29, relative to
changing the payment methodology for services rendered by a chiropractic physician to be
the same as a medical physician, if such bill becomes a law.
Item 16. In addition to any other funds appropriated by the provisions of this act, there
is appropriated a sum sufficient for the sole purpose of implementing Senate Bill 354 / House
Bill 338, relative to state government, if such bfll becomes a law.
Item 17. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $20,000,000 (nonrecurring) to the Department of Commerce and
Insurance, Office of the State Fire Marshal, for the sole purpose of making grants on a
competitive basis to volunteer fire departments across the state, to be used for equipment,
supplies, or training provided by the Tennessee Fire Service and Codes Enforcement
Academy. The Commissioner shall endeavor to distribute this funding proportionally based
on the number of recognized volunteer fire departments serving each of the three (3) grand
divisions of the state. Any unexpended funds shall not revert to the general fund balance at
June 36 and shall be carried forward in a reserve at June 30 and are hereby reappropriated
in the subsequent fiscal year.
Item 18. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $5,000,000 (nonrecurring) to the Department of Commerce and
Insurance, Office of .the State Fire Marshal, for the sole purpose of making grants on a
competitive basis to volunteer rescue squads across the state, to be used for equipment. To
be eligible for a volunteer rescue squad grant, rescue squads must hold a valid recognition
certificate, from the Office of the State Fire Marshal and have a staff comprised by less than
51 % full-time career rescue squad personnel. Any unexpended funos shall not revert to the
general fund balance at June 30 and shall be carried forward in a reserve at June 30 and are
hereby reappropriated in the subsequent fiscal year. •
Item 19. In addition to any. other funds appropriated by the pro'(isions of this act, there
is appropriated the sum of $5,000,000 (nonrecurr_ing) to the Department of Health, for the
sole purpose of making grants in equal amounts and on a competitive basis to licensed
emergency medical services organizations across the state, to be used for equipment. Any
unexpended funds shall not revert to the general fund balance at June 30 and shall be
107
SB 2690
carried forward in a reserve at June 30 and are hereby reappropriated in the subsequent
fiscal year.
Item 20. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $1,500,000 (nonrecurring) to the Department of Agriculture for the
sole purpose of making a grant in such amount to Tennessee Association of Fairs,
Incorporated, to be used to provide grants to county and regional agricultural fairs to be used
for capital improvements.
Item 21. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $5,000,000 (nonrecurring) to the State Museum for the sole
purpose of providing grants to museums with a 501 (c)(3) nonprofit organization or affiliated
with a governmental entity for capital maintenance and improvements. Any unexpended
funds shall not revert to the general fund balance at June 30 and shall be carried forward in a
reserve at June 30 and are hereby reappropriated in the subsequent fiscal year.
Item 22. In addition to any other funds appropriated by the provisions of'this act, there
is appropriated the sum of $5,000,000 (nonrecurring) to the Department of Disability and
Aging for the sole purpose of making grants on a competitive basis to senior centers across
the state. Any unexpended funds shall not revert to the general fund balance at June 30 and
shall be carried forward in a reserve at June 30 and are hereby reappropriated in the
subsequent fiscal year.
Item 23. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $500,000 (nonrecurring) to the Department of Economic and
Community Development for the sole purpose of making grants to counties and
municipalities for capital projects related to, and maintenance of, county courthouse buildings
located within the county or municipality. Any unexpended funds shall not revert to the
general fund balance at June 30 and shall.be carried forward in a reserve at June 30 and are
hereby reappropriated in the subsequent fiscal year. A municipality that receives an
allocation of sales tax revenue derived from a courthouse square revitalization zone pursuant
to Tennessee Code Annotated, Section 67-6-103(h)(2) is not eligible to receive such funds.
Item 24. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $5,000,000 (nonrecurring) to the Department of Tourist
Development for the sole purpose of making a grant to the Chattanooga.Zoo, to be used for
capital improvement projects.
Item 25. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $500,000 {nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the City of Kingsport,
to be used for a dental clinic expansion in the same manner and for the same purposes as
the appropriation in Section 55, Item 1, line item 64, to Miscellaneous Appropriations - Grant
to City of Kingsport - Dental Clinic Expansion - Grant.
Item 26. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $100,000 (nonrecurring) to the Department of Health for the sole
purpose of making a grant in such amount to the Epilepsy Foundation of East Tennessee, to
be used to assist those living with _epilepsy and their caregivers statewide and to support
education and awareness programs and services about proper seizure first-aid and different
types of seizures.
Item 27. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $50,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to Chi Boule Chapter of
Sigma Pi Phi Fraternity, Inc., to be used for hosting a regional conference in this state.
Item 28. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $100,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the Claiborne
Heritage Center, to be used for restoration .of the historic Graham-Kivett House and its
conversion to a museum.
Item 29. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $20,000,000 (nonrecurring) to the Department of Transportation,
Transportation Equity Fund, for the sole purpose of supporting the rehabilitation and
improvement of the state's short-line railroads.
Item 30. In addition to any other funds apprqpriated by the provisions of this act, there
is appropriated the sum of $150,000 (nonrecurring) to the Department of Environment and
108
SB 2690
Conservation for the sole purpose of making a grant in such amount to the county
government of Rhea County, to be used for purchasing monuments and other assets for the
veterans park in the City of Dayton.
Item 31. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $932,640 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the East Tennessee
Regional Forensic Center located in Jefferson City, to be used to provide digital forensic
capabilities and training to law enforcement agencies in East Tennessee.
Item 32. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $50,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to Campbell County
Children's Center, to be used for programs and services in a five-county area for children
who are removed from homes.
Item 33. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $10,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to Campbell County
Historical Society, to be used for programs and services, including historical preservation and
preserving graves of veterans, and for historical education videos.
Item 34. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $5,000,000 (nonrecurring) to the Department of Economic
Development to host a Council of State Governments (CSG) National •Conference in
Nashville, Tennessee.
lterT} 35. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $4,000,000 (nonrecurring) to Tennessee Tech University for the
sole purpose of establishing and supporting the university's supercomputer located at the
Crossville campus.
Item 36. In addition to any other funds appropriated in this act, there is appropriated
the sum of $50,000 (recurring) to the State Museum for the sole purpose of making a grant in
such amount to the Green McAdoo Cultural Organization, to be used for maintenance,
restoration,. and operational expenses of the Green McAdoo Cultural Center.
Item 37. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $10,000,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to Vanderbilt University
Medical Center's ALS Research Center, to be used for amyotrophic lateral sclerosis (ALS)
research.
Item 38. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $100,000 (recurring) to the Department of Mental Health and
Substance Abuse Services for the sole purpose of making a grant in such amount to the
Macon County Recovery Court, to be used to support and enhance the programs, services,
and operation of the recovery court.
Item. 39. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $3,200,000 (recurring) to East Tennessee State University for the
sole purpose of providing operating support to the Gatton College of Pharmacy, and covering
its inflationary expenses, including salaries, operating -expenses, and group health insurance,
in the same manner as other nonformula specialized units.
Item 40. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $44,150 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making ;a grant in such amount to Good Samaritan
Ministries, located in Johnson City, Tennessee, to be used for the replacement of outdated
medical equipment for free eye exams.
Item 41. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $250,000 (nonrecurring) to the Department of _Finance and
Administration for the sole purpose of making a grant in such amount to Families Free, Inc.,
to _be. used to provide support to .recovery court programs and services at the Northeast
Tennessee Regional Recovery Center for men located in Roan Mountain· and women located
in Johnson City.
Item 42. I:n addition to any other funds appropdated by the provisions of this act, there
is appropriated the sum of $100,000 (recurring) to the Department of Agriculture for the Farm
109.
SB 2690
to Tap program to support the utilization of Tennessee agricultural products in brewing and
the promotion of the Tennessee brewing industry.
Item 43. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $3,000,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the Oak Ridge
Corridor Development Corporation, to be used for construction of a building· at the Oak Ridge
Nuclear Innovation Campus.
Item 44. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $750,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the Oak Ridge
Corridor Development Corporation, to be used for research and planning.
Item 45. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $140,000 (nonrecurring) to the Department of Safety for the sole
purpose of funding training of the executive protection unit.
Item 46. In addition to any other funds appropriated by the provisions of this act, there
is appropriated $10,000,000 (nonrecurring) to the Department of Environment and
Conservation for the establishment of a new state park at the former Clark Center Park
property in Oak Ridge, Tennessee. The appropriation in this item is subject to the Clark
Center Park property being transferred to the State of Tennessee from the U.S. Department
of Energy and a local match of $6,250,000 being provided by Anderson County prior to June
30, 2031. The Commissioner of Environment and Conservation shall report in writing to the
Commissioner of Finance and Administration when such property is transferred and when
the matching funds are raised, with a copy provided to the Chairs of the Finance, Ways and
Means Committees of the Senate and the House of Representatives. Any unexpended funds
shall not revert to the general fund and must be carried forward in a reserve to be expended
for purposes of this item; provided, that if the transfer and local match is not established prior
to June 30, 2031, then such funds shall revert to the general fund at June 30, 2031.
Item 47. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $750,000 (nonrecurring) to the Department of Economic and
Community Development for the sole purpose of making a grant in such amount to
Tennessee Chamber of Commerce and Industry, to be used for Learning Blade, Career
Blade, and Ready for Industry programs.
Item 48. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $8,000,000 .(nonrecurring) to the Tennessee Historical
Commission for the sole purpose of making a grant in such amount to the Andrew Jackson
Foundation, to be used for capital improvements forAndrew Jackson's Hermitage.
Item 49. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $2,700,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the Tennessee
Walking Horse National Celebration Association, to be used for renovation and expansion of
three (3) RV parks.
Item 50. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $1,800,000 (nonrecurring) to the Health Facilities Commission for
the sole purpose of resolving the survey backlog.
Item 51. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $100,000 (nonrecurring) to the Department of Disability and Aging
for the sole purpose of making a grant in such amount to the Tennessee Senior Olympics, to
be used for programs and services that promote healthy lifestyles for seniors through fitness
and sports. •
Item 52. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $500,000 (nonrecurring) to the Department of Finance and
~dministr~tion for the sole purpose of making a grant in such amount. to Jonathan's Path,
l~c., to be used for scaling a progressive housing continuum for teens in foster care.
Item 53. In addition to any other funds appropriated by the provisions of this act, there
is_ appropriated the sum of $20,250 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to Friends of the
Festival, Inc., to be used for Chattanooga's 250 year celebrations. on and around July 4,
2026.
110
SB 2690
. Item 54. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $79,800,000 (nonrecurring) to the Bureau of TennCare for the
sole purpose of buying back TennCare services funded by the annual hospital assessment.
Item 55. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $5,500,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the Memphis Art
Museum, to be used for the construction of a new museum.
Item 56. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $300,000 (nonrecurring) to the Department of Mental Health and
Substance Abuse Services for the sole purpose of making a grant in such amount to Helen
Ross McNabb, Inc., to be used for outpatient mental health services directed toward military
service members, veterans, and their families. 1
Item 57. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $50,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to Be Her Hero, to be
used for the purchase, storage, and distribution of feminine hygiene products to schools,
shelters, and community partners across Greene County and the surrounding area for
persons in need of basic necessities and to increase education and advocacy efforts
regarding the program.
Item 58. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $50,000 (nonrecurring) to the Tennessee Wildlife Resources
Agency for traps for wild hog and other wildlife damage. control operations.
Item 59. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $50,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to Tennessee
Conference of Zetas, Inc., to be used for the Zeta Phi Beta Sorority International Boule
. Conference to be held in July 2026 in Nashville, Tennessee.
Item 60. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $300,000 (nonrecurring) to the University of Memphis to be used
exclusively to fund scholarships for students from Tennessee at the University of Memphis,
Cecil C. Humphreys School of Law;
Item 61. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $6,000,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the county
government of Sevier County, to be used for a sewer line extension for Old Newport
Highway, Jones Cove Road, and Dixon Branch Road.
Item 62. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $2,000,000 (nonrecurring) to the Department of Transportation for
the sole purpose of making a grant in such amount to the Memphis-Shelby County Airport
Authority, to be used for express delivery distribution at the Memphis International Airport.
Item 63. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $200,000 (nonrecurring) to the Department of Labor and
Workforce Development for the sole purpose of making a grant in such amount to Southeast
Tennessee Development District, to be used for the Smart Factory Institute, to provide
support, innovation, and research for small and large manufacturers statewide.
Item 64. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $7,000,000 (nonrecurring) to the Department of Health for the sole
purpose of making a grant in such amount to University Health System, Inc. (d/b/a University
of Tennessee Medical Center), to be used for pursuing a National Cancer Institute
designation for the University of Tennessee Medical Center at Knoxville .
Item 65. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $750,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the City of
Cookeville, to be used for the relocation and. replacement of the existing TVA tower located
near the intersection of Jefferson Avenue and Neal Street.
Item 66. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the. sum of $750,000 (nonrecurri~g) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to Hope House, to be
111
SB 2690
used for programs and services for pregnant teens and teenage mothers in the City of
Cookeville.
Item 67. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $518,600 (recurring) to the Attorney General and Reporter for the
sole purpose of restoring the base reduction to salary equity funds, as identified on Page A-
29 of the 2026-2027 Budget Document.
Item 68. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $3,702,300 (recurring) to the Department of Finance and
Administration for the sole purpose of providing funds for salary pool and operational costs
for higher education institution nonformula units.
Item 69. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $4,000,000 (nonrecurring) to the Department of Transportation for
the sole purpose of widening State Route 99 (Salem Highway) for approximately 2.5 miles in
the Rockvale Community of Rutherford County.
Item 70. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $3,500,000 (nonrecurring) to the Tennessee Higher Education
Commission for the sole purpose of making a grant for the tnAchieves program.
Item 71. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $1,200,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to Junior Achievement
of East Tennessee, Inc., to be used for a pilot project focused on the statewide
implementation of the Junior Achievement (JA) Financial Literacy Semester Course-an
evidence-based, standards-aligned solution that ensures Tennessee high school graduates
are financially capable, career-ready, and prepared for long-term economic success.
Item 72. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $100,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the City of Harriman,
to be used for infrastructure and economic development off State Highway 29 (Pine Ridge
Road) north of Interstate 40, Exit 350, including planning and design for such development.
Item 73. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $70,000 (nonrecurring) to the Commission on Children and Youth
for the sole purpose of expanding Court Appointed Special Advocates (CASA) programs to
three (3) additional counties.
Item 74. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $20,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the municipal
government of the City of Elizabethton, to be used for the reconstruction and refurbishing of
the Hampton Community Water Tower.
Item 75. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $30,000 (nonrecurring) to the Department of Finance and
Administration for the sole purpose of making a grant in such amount to the county
government of Johnson County, to be used for the planning and engineering of the Multi-
Sports Complex for the youth of Johnson County.
Item 76. In addition to any other funds appropriated by the provisions of this act, there
is appropriated the sum of $7,000,000 (nonrecurring) to the Department of Human Services
to be used exclusively for the Summer Electronic Benefits Transfer (EBT) Program.
SECTION 62. The Tennessee Code Commission is requested to place an appropriate,
permanent note following the codification of any public act which is codified and which has not
received constitutionally required first year's funding through the provisions of this act.
SECTION 63. If any provision of this act or its application to any person or circumstance is
held invalid, then the invalidity does not affect other provisions or applications of the act that can be
given effect without the invalid provision or application, and to that end, the provisions of this act are
severable.
SECTION 64. This act takes effect July 1, 2026, the public welfare requiring it; provided,
however, that any provision of this act which authorizes prior or immediate expenditures and any
section or item which specifies an immediate effective date takes effect upon becoming a law, the
public welfare requiring it.
112
SENATE BILL NO. 2690
PASSED: April 16, 2026
D--- - - l.,.. ~~,._\~~ - -
\ SPEAKER OF THE ~NATE
RANDY M ALLY
CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
CYJ,°'i"" APPROVED this 2:)...hi. day of 2026
~•
BILL LEE, GOVERNOREvery fact on this page links to its source, starting with the official bill record.