Committee advances $59.7 billion Appropriations Act, sends bill to calendar and rules

The Finance, Ways and Means Committee advanced the Appropriations Act, House Bill 14‑09, sending the package to calendar and rules after a 27‑0 committee vote Thursday.

Committee Chairman Hicks described the fiscal year 2025–26 spending plan as a $59.7 billion budget composed of state appropriations, federal funds and other sources. “This is the Appropriations House Bill 14 o 9,” Chairman Hicks said as he introduced the bill and its three amendments, which the committee adopted in sequence.

The budget outlined by Chairman Hicks relies on several revenue sources and a mix of recurring and nonrecurring appropriations. The chair said the bill assumes roughly a 50/50 split between state and other monies, listing the high‑level composition as about $29.7 billion of state appropriations, $20.8 billion in federal funds and about $9.2 billion from other sources. He told members the package programs a 2% growth in recurring state revenue for fiscal year 2026 and incorporates more than $959 million in TennCare shared savings to date.

Major allocations listed in the presentation included: - Disaster relief: $597 million total, including $240 million for Tennessee Emergency Management Agency (TEMA) disaster relief grants, $110 million for the Helene Emergency Assistance Loan Fund, $125 million for a governor’s response and recovery fund, and targeted aid including $20 million for reconstruction at Hampton High School and grants to property owners damaged in Hurricane Helene. - K–12 education: more than $640 million in new state funding, including $198 million in one‑time teacher bonuses, $148 million for TISA growth, $20 million for a charter school facilities fund and $20 million for school safety grants, plus $27.3 million for summer learning and transportation. - Higher education: $264 million to fund outcomes and pay increases for institutions, community colleges and TCATs, plus capital improvements. - Health and social services: roughly $1.5 billion in new spending, including $98 million from shared savings for hospital buybacks, $28 million for nursing home provider stability, an increase in direct support professional wages and $24 million for a year‑4 dental pilot program. - Law and public safety: approximately $378 million for new initiatives, including position expansions at the Tennessee Bureau of Investigation and the Highway Patrol and $30 million for violent‑crime intervention grants. - Economic development and transportation: combined allocations including $1 billion for TDOT projects (with a $1 billion general fund subsidy noted) and smaller targeted grants for rural development, research and aviation. - Grant pools and local assistance: funding lines for volunteer fire departments ($20 million), EMS and rescue squads ($5 million each), senior centers ($5 million), museums ($5 million), courthouse capital maintenance ($2 million) and food banks ($500,000).

Hicks told members the committee used some recurring dollars for nonrecurring projects in prior years to create room in subsequent budgets, an approach he said left about $422.8 million in recurring dollars at the outset of the current cycle; of that, he said, roughly $412.4 million was spent on nonrecurring items and will be available going into the next fiscal planning cycle.

Members asked about priorities and geographic distribution. Representative Gant and others noted specific line items for West Tennessee, including a multi‑million allocation for a Wilder Youth Development Center and several Memphis projects that Chairman Hicks listed (among them, funding for the Memphis Zoo, University of Memphis law school scholarships and TCAT Memphis). Leader Lambert and others discussed the tension of allocating limited funds across urban, suburban and rural districts; Hicks said legislative priorities and overlap among programs drove some of the shifts in the legislative amendment.

The bill was considered as amended: the committee placed three subcommittee/legislative amendments on the bill during the session before final passage in committee. After discussion closed, members voted to move House Bill 14‑09 to calendar and rules; the madam clerk reported 27 ayes and 0 nays.

The Appropriations Act now moves to calendar and rules, where it will be scheduled for floor consideration and additional amendment opportunities.

Sources: Committee discussion and presentation by Chairman Hicks; committee roll call recorded by the clerk.