Tennessee House Bill HB0838

Tennessee 2025-2026 Regular Session

• Introduced: 2/4/25
• Refer: 2/6/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 9; Title 67, Chapter 4 and Title 71, relative to supplemental income grants.

Summary

HB0838 creates a five-year pilot program for annual supplemental income grants administered by the Tennessee Department of Human Services. Beginning in 2026, eligible households may receive $5,000 per year, paid monthly, quarterly, or in a lump sum, if they meet the bill’s household composition, residency, and income requirements. To qualify, a household must include at least three family members living together, have at least one dependent claimed on a federal income tax return, have all members be Tennessee residents, and have adjusted gross income of no more than $30,000, excluding the grant itself. The bill also establishes a dedicated supplemental income grant fund within the general fund and directs that it be financed through gifts or donations from excise- and franchise-tax payers, federal funds, and the state’s revenue fluctuation reserve. The Department of Human Services would be required to create forms and rules under the Uniform Administrative Procedures Act, and households would need to reapply each year to continue receiving assistance. The pilot program would end on December 31, 2030, and any remaining unallocated money would be returned to the reserve for revenue fluctuations.

Impact

HB0838 would add a new part to Tennessee Code Annotated Title 71 governing supplemental income grants and would also amend Title 9 to require that revenue fluctuation reserve amounts be available to fund the program. In practical terms, it creates a new state-administered cash assistance program for low-income Tennessee families and establishes a new funding mechanism and account structure for distributing those payments. It also implicates tax-related provisions in Title 67 by identifying excise and franchise tax payers as potential donors to the fund.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available materials. Based on the bill text alone, the measure appears designed as a targeted anti-poverty or family-support initiative, suggesting a policy goal of providing direct financial relief to qualifying households. The absence of voting history or discussion prevents a reliable assessment of legislative momentum or partisan sentiment.

Contention

The main potential points of contention are likely to be the use of the state’s revenue fluctuation reserve to finance direct cash grants, the creation of a new ongoing spending program, and the eligibility design that limits aid to households with at least three family members and a dependent. Critics could question the fiscal impact, the fairness of excluding smaller households or childless low-income residents, and the reliance on a pilot program funded partly through donations and reserve transfers. Supporters would likely emphasize the targeted nature of the assistance and the temporary pilot structure as a way to test effectiveness before any broader expansion.