AN ACT to amend Tennessee Code Annotated, Title 4 and Title 49, relative to education.
HB0408 reorganizes the governance and administration of several Tennessee higher education and student financial aid functions. The bill places the Tennessee Student Assistance Corporation (TSAC) more directly under the Tennessee Higher Education Commission (THEC) by making THEC the governing board of TSAC effective July 1, 2025, while preserving TSAC as the entity that administers student assistance programs authorized by law. It also updates the statutory description of the review committee that helps develop or revise the state’s higher education master plan, financial aid policies, and funding formula, and it adds the Tennessee Independent Colleges and Universities Association president to that committee for master plan and financial aid matters.
The bill also sunsets two teacher-related scholarship/loan programs on July 1, 2025: the Tennessee Teaching Scholars Program and the Minority Teaching Fellows Program. TSAC would continue to administer any remaining outstanding loan obligations after termination. In addition, the bill makes a technical cross-reference correction in the statute governing a student assistance program, changing a citation from one code section to another. The act takes effect July 1, 2025.
Its main legal effect is to amend Tennessee Code Annotated Title 49, especially the provisions governing TSAC, THEC, higher education planning, and state financial aid programs. It shifts board authority from TSAC’s existing board of directors to THEC, changes the composition of the higher education review committee, and formally ends two scholarship/loan programs while preserving administrative authority for outstanding loans. The bill therefore affects state higher education governance, student aid administration, and teacher pipeline financing.
The available voting history suggests generally favorable sentiment, with the bill advancing 5-0 in the House Higher Education Subcommittee and 14-3 in the House Education Committee. No committee transcript is available, so specific arguments are not recorded in the provided materials. The recorded votes indicate broad support, though the 3 dissenting votes in the full committee suggest some concern about the restructuring or the termination of the teaching-related programs.
The most likely points of contention are the consolidation of authority under THEC, the elimination of the Tennessee Teaching Scholars Program and the Minority Teaching Fellows Program, and the broader policy choice to discontinue those programs rather than continue them in modified form. Supporters likely viewed the bill as an administrative streamlining measure and a way to align financial aid governance with the state’s higher education planning structure, while opponents may have been concerned about reduced support for teacher recruitment, minority teacher preparation, or the loss of program-specific governance.
HB0408 amends Tennessee Code Annotated Title 49 to restructure TSAC governance under THEC, revise the higher education review committee, terminate two scholarship/loan programs effective July 1, 2025, and correct a statutory cross-reference. It affects state higher education agencies, student aid administration, and recipients or borrowers under the terminated teaching programs, while preserving TSAC’s authority to manage outstanding obligations.
The bill appears to have received generally favorable consideration in committee, advancing unanimously in subcommittee and by a solid majority in the House Education Committee. The absence of transcript material limits detail, but the recorded votes suggest support for the administrative restructuring, with some opposition likely tied to the program terminations or governance changes.
The main likely areas of disagreement are the transfer of TSAC governance to THEC, which centralizes authority over student aid administration, and the sunset of the Tennessee Teaching Scholars Program and Minority Teaching Fellows Program, which may have raised concerns about teacher recruitment and support for minority educators. The 3 no votes in the House Education Committee indicate at least some resistance, though the specific objections are not documented in the provided record.