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Subcommittee advances $58.3 billion Appropriations Act, sending bill to calendar and rules
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Summary
The Tennessee House Finance and Ways and Means subcommittee on April 15 approved House Bill 26‑31, the fiscal year 2027 Appropriations Act, on a 28‑0 voice vote, forwarding the bill to calendar and rules. The plan totals $58.3 billion and highlights hospital buybacks, TennCare increases, education funding and transportation projects.
Chairman Hicks presented House Bill 26‑31, the fiscal year 2027 Appropriations Act, to the Finance and Ways and Means subcommittee on April 15 and described a $58.3 billion package he said is funded about 51% by state appropriations, 34% by federal revenue and 15% by other sources.
"The fiscal year 27 budget is $58,300,000,000," Chairman Hicks said, laying out what he characterized as the bill's main allocations: roughly 45% for health and social services and nearly 28% for K‑12 and higher education. He said the package reflects a flattening of recent revenue growth driven in part by the end of COVID‑related federal aid.
The subcommittee considered and approved three amendments before taking the final vote. Chairman Williams moved the first amendment and the committee adopted it by voice vote; two additional drafting‑code amendments were subsequently adopted, and Chairman Hicks then provided the detailed line‑item overview.
Major program highlights enumerated by Chairman Hicks include a combined $123 million appropriated for hospital buybacks and an additional $79.8 million in general‑fund support plus $43.2 million in shared TennCare savings to support hospitals; more than $250 million in new state funding for TennCare to cover medical inflation, utilization and prescription costs; roughly $145.5 million recurring for TISA growth to raise per‑student funding; and multiple economic development and infrastructure appropriations, including nonrecurring funds for welcome center renovations, bridge reconstruction, short line railroad rehabilitation and quantum and film incentives.
On targeted programs, Chairman Hicks identified $8 million for a youth employment program (now administered by the Department of Labor) and said $20 million nonrecurring will fund a community workforce housing innovation pilot. He told members the legislature included about $276 million to support member‑requested amendments and legislative initiatives, with recurring and nonrecurring components.
Representative Miller asked whether the $8 million for youth employment would be distributed statewide. "Is that for youth employment, and how will those dollars be distributed statewide?" Miller asked. Chairman Williams and Chairman Hicks explained the program provides grants to businesses for on‑the‑job training and that administration has moved to the Department of Labor.
Representative Love asked whether $30 million originally proposed for the Tennessee Housing Development Agency's revolving starter‑home loan fund was being redirected; Chairman Hicks said the legislature retooled that proposal into a construction and rehabilitation workforce housing pilot with reporting requirements back to the legislature to evaluate effectiveness.
After discussion and questions, the clerk reported the committee vote: 28 ayes, 0 nos. The chair ruled the ayes to have it and the subcommittee advanced House Bill 26‑31 to calendar and rules.
The subcommittee's action sends the fiscal package onward in the legislative process; committee members and chairs also announced schedule details for subsequent meetings with departments and agencies as the process continues.
