Tennessee Lawmakers Boost Vouchers to 35,000 Amid Funding Fights

NASHVILLE, Tenn. — Tennessee lawmakers gave final approval this week to House Bill 2532, expanding the state's Education Freedom Scholarship program to 35,000 vouchers starting in the 2026-27 school year, nearly doubling the current 20,000 slots launched last year. The House passed the measure Monday, followed by an 18-14 Senate vote Thursday aligning with the lower chamber's version, falling short of Gov. Bill Lee's original call for 40,000 scholarships. Each voucher provides families about $7,000 in public funds to cover private school tuition, with the expansion carrying a price tag exceeding $150 million annually, pushing total program costs toward $260 million.

Demand far outpaces supply, with state data showing over 18,000 renewal applications and more than 17,000 new ones from income-eligible families — those at or below 100% of the federal free or reduced-price lunch threshold — potentially filling all spots under the priority system. The bill mandates annual reports from the Tennessee Department of Education to the legislature, detailing applications by county and enrollment status to track impacts across urban hubs like Nashville and Memphis and rural areas. Critics, including some Republicans, raised alarms about the program's rapid growth jeopardizing public school funding, while supporters hailed it as a vital school choice boost for families.

The measure now heads to Gov. Lee's desk for signature, marking a key win for his education agenda despite compromises. Public schools will receive 'hold harmless' funding for voucher students withdrawing through 2028, aiming to soften the blow on districts. With applications flooding in from counties statewide, the expansion underscores Tennessee's shifting education landscape amid ongoing battles over taxpayer dollars.