NASHVILLE, Tenn. (WTVF) — We now know more about how Governor Bill Lee plans to pay for his school vouchers bill. The issue is one of three being debated during a special session of the Tennessee legislature this week.
HB 6004 provides the framework for how public tax dollars would fund tuition expenses for students who want to attend private school. House Majority Leader William Lamberth and Sen. Jack Johnson are still the bill's primary sponsors for the Education Freedom Act of 2025. The bill included the layout for the vouchers, a one-time bonus for public school teachers and maintenance money for public school buildings across the state.
This is a plan for the next three school years.
Like the original wording, the baseline voucher amount is $7,000. The state wants to provide 20,000 students with the available money for the upcoming school year.
This special session on vouchers comes on the heels of a highly contentious 2024 session that led to no compromise on the initiative. Lawmakers are in committees all Tuesday afternoon. During the committee meetings, President Donald Trump tweeted his support of the legislature trying to pass the legislation.
In the committees, those for and against the bill testified.
The number of students eligible to receive the money is just over one million students — 969,000 public school students and 74,112 non-public school students.
Who gets the vouchers and when
Of those 20,000 scholarships, lawmakers want 10,000 to go to students whose family income doesn't exceed 300% of the amount required for free and reduced lunch. A family of four making less than $170,000 per year would qualify. The remaining 10,000 vouchers can go to any student regardless of income.
Per the fiscal note, the legislative analyst Alan Hampton anticipated that 65% of existing private school students would take advantage of the available money. He noted that he believed only 35% of public school students would transition out or 7,000 students.
The following year, the state said it would open up 25,000 available vouchers if the demand meets the anticipated number. The voucher amount would increase to $8,750, according to the fiscal note.
As outlined, if the number of vouchers exceeds what is available, the state will have to prioritize students. That would mean the vouchers would go to students enrolled the previous year, low-income students, public school students and then all other eligible students across the state.
Students using the voucher program will have to take a standardized test from grades third to 11th. That test can be the TCAP or another nationally-known test.
How the state would pay for it
Though voucher legislation failed in 2024, $144 million remained in the state budget for vouchers even though it didn't go into effect.
The fiscal note indicated it would like to use money from the Lottery Education Account for building improvements to public schools, which is traditionally the money for the HOPE Scholarship. Students enrolled at universities can use that money for their enrollment. Per semester, that allowance is $2,250 for freshmen and sophomores and $2,850 for juniors and seniors at four and two-year schools with on-campus housing.
It's not calculated how much money each district has in terms of infrastructure across the state. State money typically doesn't fund brick and mortar for school districts, but this bill would use tax money for infrastructure improvements.
The bill is requesting $77 million for the next three years from the Lottery Education Account, which is controlled by the Tennessee Higher Education Commission. We have reached out to the THEC to better understand the current lottery funding and how much is in their reserves.
The majority of the money comes from the general fund for the state. The beginning funding is $347 million.
In the 45 Tennessee counties NewsChannel 5 covers, the majority of private schools are in Davidson, Montgomery, Wilson and Sumner Counties. Rural counties in our viewing may have one private school option or none at all.
State funding for public schools
Teachers will receive a one-time bonus of $2,000, if this bill passes.
However, the local school board will have to adopt a resolution affirming that the district wants to receive those raises for teachers. They do not have to agree with the overall law. Several Middle Tennessee districts in 2024 sent resolutions to the legislature that they didn't want a voucher system in place. However, boards would have until June 1 to submit to the Department of Education affirming the bill.
A disaster relief fund was also established through an additional amendment to the Education Freedom Act of 2025. The fund would build from $25 for each student enrolled in public schools.
This would go to schools that have sustained significant damage from a natural disaster or state of emergency. Lawmakers used the example of the Waverly floods, tornadoes in 2020, and the Hurricane Helene flooding of why this was needed.
As currently written in the bill, the per-pupil spending amount for students in public schools would remain the same. This became a major source of debate during the House Education Committee meeting Tuesday. "So you’re telling me, that we’re going to fund two school systems? And that we’re going to pay twice, and we’re asking taxpayers to fund two school systems?" asked Rep. Gloria Johnson, a Democrat from Knoxville.
"No public school loses even one red cent due to this bill," answered Rep. William Lamberth, a Portland Republican who serves as House Majority Leader. "Public schools will continue to receive all the money and then some that they’re going to receive, and we’re setting up a scholarship fund. It is very different really from anyone has done in the nation."
Every year, state funding for schools is determined by enrollment. In this plan, lawmakers wrote funding wouldn't decrease if enrollment dipped for school districts if students and their families instead enrolled at a private school with a voucher.
As written, lawmakers said they would provide additional funds so districts wouldn't lose money.
Committee rooms during the voucher debate
Rep. Scott Cepicky, R-Culleoka, laid out the rules for the committee room.
There are no running debates.
Cepicky — the chairman of the committee — provided rules to members about how the conversations and arguments would transpire.
He also provided rules for the crowd, which was full inside the Tennessee House. Members of the crowd who disrupted the meeting were allowed one warning until they were asked to leave following a second infraction.
"When you go outside, you can hoot and holler all you want," Cepicky said. "No outbursts, clapping, finger-snapping. Witness what is going on, and let us as legislators listen to the debate."
Do you have more information about this story? You can email me at emily.west@newschannel5.com or chris.davis@newschannel5.com.
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