Protect Local Funding Through Fiscal Accountability: Demand Transparency in School Choice Expansion

An amendment approved by a Finance, Ways and Means subcommittee in the Tennessee House of Representatives not only reduced the proposed expansion of the Education Freedom Scholarships, but also created a reporting requirement.
The amendment presented by Cookeville Republican Ryan Williams would add 10,000 new scholarships for the 2026-27 school year, in addition to the 5,000 included in the original law, for a maximum of 35,000. Gov. Bill Lee requested that lawmakers double the amount of scholarships from 20,000 to 40,000.
Williams said the amendment creates what he called a “pecking order” as to who receives the scholarships. Current recipients would be considered first, followed by students in households whose income does not exceed 100% of the amount required for the student to qualify for free or reduced-price lunch, followed by those whose income does not exceed 300% of that same level.
School districts could also recoup funding due to enrollment losses if they can demonstrate that students are lawful U.S. residents.