Gov. Bill Lee delivers State of the State, outlines $1 billion for roads, nuclear investments and housing initiatives

The joint convention of the Tennessee Senate and House of Representatives met Feb. 10, 2025, to hear Gov. Bill Lee deliver his State of the State address and to authorize transmission of the governor's budget documents, House Joint Resolution 63 said.

Gov. Bill Lee used the address to frame a budget and policy agenda that emphasizes infrastructure, energy and workforce development. "If Tennessee has led the nation as a beacon of opportunity and security and freedom, then why can't we be the nation's capital of innovation too?" Lee said.

Lee told legislators his budget will propose $1 billion for the Tennessee Department of Transportation to build and maintain roads and bridges across the state and an additional $50 million to develop the Clinch River site as part of an effort to host the nation's first small modular reactor on Tennessee soil. The address also called for a $10 million infusion to the state's nuclear energy fund.

On housing, Lee proposed a $60 million starter-home revolving loan fund offering 0% construction loans for building new single-family starter homes and continued support for a rural and workforce housing tax credit. "Our state needs a housing plan that makes this key part of the American dream possible," Lee said.

Workforce and education proposals included a new Tennessee Works scholarship that Lee said "will cover every penny of TCAT tuition and fees for all students," expansion of the Tennessee Youth Employment Program to operate year-round with the goal of doubling participation, and an additional roughly $580 million for public education investments that Lee said would bring his administration's total public school investments to $2.5 billion.

Childcare and family supports were highlighted with a proposed $11 million investment in the Boys & Girls Club to serve an estimated 7,500 low-income children, changes to the Smart Steps program to ease benefit cliffs, and expanded wage eligibility to reduce childcare worker turnover.

Lee also proposed conservation and water supply measures, including $100 million to craft a regional water supply strategy for the Duck River watershed, and said he will pursue the Farmland Conservation Act after noting Tennessee is losing an estimated 10 acres of farmland per hour.

Lee framed much of the agenda around energy and economic development. He cited Tennessee's existing federal shared-savings Medicaid agreement and said it had saved $1 billion to date; he noted the state has recruited about $40 billion in private capital investment in the last six years and credited nearly 250,000 jobs tied to that recruitment. He said Tennessee will seek to remain competitive for industrial investment by securing reliable energy, citing an $800 million federal grant application by the Tennessee Valley Authority for the Clinch River site and proposing the state's own $50 million contribution toward development.

Procedurally, House Joint Resolution 63 — read into the record at the start of the joint convention — authorized the transmittal of the state budget documents for fiscal year 2025–26 before the close of business of both houses on Feb. 10, 2025, and authorized filing implementing legislation before the close of business on Feb. 14, 2025. Leader Johnson moved to appoint a committee of five senators and five representatives to notify the governor that the joint convention was in session; the membership named included Senators Jackson, Powers, Reeves, Rose and Yeager and Representatives Cochran, Williams, Hill, Chisholm and Hardaway, with Representative Cochran serving as chairman.

The joint convention recessed pending the governor's arrival, reconvened for the address, and adjourned after Lee concluded.

Actions recorded in the convention included motions to dispense with roll calls for both chambers, appointment of the notification committee, the formal calling of the joint convention under House Joint Resolution 63, and adjournment following the address; no roll-call vote tallies were recorded in the transcript excerpt.

Less-central items Lee mentioned included disaster recovery for East Tennessee — damages he cited as roughly $1.2 billion — proposals for farmland grants, expanded economic development grants of $80 million, and a proposed increase to the state's rainy day fund to nearly $2.2 billion. Lee also introduced guests during the address, including four county mayors from hard-hit areas, a farming family he named as Noble Springs Farm owners Dustin and Justine Noble, and former Sen. Lamar Alexander.

The joint convention record shows the legislature took the procedural steps necessary to receive the governor's public address and to transmit the budget documents and related implementing legislation on the schedule announced in House Joint Resolution 63.