Senate votes to close chronically underperforming virtual schools; sponsor cites $59 million annual cost

Tennessee Senate · March 19, 2026

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Summary

Senate Bill 24‑41, as amended, requires the commissioner to close virtual schools with three consecutive years of 'significantly below expectations' growth. Sponsor Senator Powers said 12 schools meet the criteria and estimated about $59 million in base TISA payments to those students; supporters framed it as fiscal stewardship and accountability, opponents warned of displaced students with few alternatives.

The Tennessee Senate voted to adopt an amendment and pass Senate Bill 24‑41 on third and final consideration, instructing the commissioner of education to close virtual schools that have been rated 'significantly below expectations' for growth for three consecutive years.

Senator Powers, floor sponsor, described the measure as changing discretionary closure authority from "may" to "shall," meaning the commissioner must close qualifying schools. He said the state currently has 12 virtual schools that meet that level, encompassing roughly 8,163 students. "Multiply that by 7,300... You get $59,000,000," he said on the floor to illustrate the estimated base funding associated with those students.

Supporters, including Senator Briggs, said the state had waited long enough for improvement and asserted there is capacity in other higher‑performing schools to enroll displaced students. Opponents, including Senator Gardner and Senator Hensley, warned some virtual students have no other seat to go to and urged caution about closing schools that have operated for only a short time.

After debate, the Senate recorded the vote: Ayes 26, Nays 6, and the presiding officer declared the bill passed as amended.

What the bill does: It changes the statutory standard and process so that qualifying chronically underperforming virtual schools are closed; the amendment added parental notification requirements and a list of operators subject to closure to the Department of Education website.

Votes and formal action: Senate recorded Ayes 26, Nays 6 on third and final consideration; motion to reconsider tabled.

Why it matters: The policy affects thousands of students and tens of millions in TISA funding; lawmakers framed it as both a fiscal and education‑quality measure while opponents warned of potential harms to vulnerable students if placement capacity is insufficient.