AN ACT relative to government applications for federal financial assistance.
HB1092 revises Tennessee law governing how state executive departments apply for, accept, and use federal financial assistance. The bill replaces the existing framework in Title 4, Chapter 4, Part 1 with a more detailed approval and reporting process centered on the governor, the joint committee on ways and means, and, for certain loans or indebtedness, the funding board. It defines “federal aid” broadly to include grants, loans, cooperative agreements, and other federal assistance offered through executive order or act of Congress.
Under the bill, state recipients generally must notify the joint committee before applying for or accepting federal aid, with different procedures depending on whether the amount is below or above $25 million. For larger awards, the committee may hold a hearing and must approve the aid or allow it to proceed after 30 days without disapproval. The bill also requires recipients to provide detailed information about the purpose, conditions, fiscal effects, matching funds, and budget share of the aid, and it imposes annual reporting requirements on federal block grants and other federal funds. Several categories of aid are exempted, including Medicaid and TennCare-related aid, federal entitlement programs, WIC, school lunch, IDEA, and certain emergency and recurring funds.
The bill amends numerous Tennessee Code provisions across state departments to make federal aid subject to the new requirements in § 4-4-116, and it deletes or revises older references to “federal financial assistance.” It also changes legislative oversight provisions so that the joint committee on ways and means, along with legislative fiscal staff, plays a larger role in reviewing and monitoring federal grants. The act applies prospectively beginning July 1, 2025, with application and acceptance dates controlling when the new procedures take effect.
The bill appears to have been broadly supported in committee and on the floor, passing key committee votes unanimously and receiving strong majority support on final passage. The voting history suggests general agreement with the goal of increasing legislative oversight and standardizing the handling of federal funds. At the same time, the final floor vote shows meaningful opposition, indicating that some members were concerned about the scope or practical effects of the new approval process.
The main points of contention are likely the added legislative review and approval requirements for federal aid, especially for awards of $25 million or more, and the possibility that the process could slow or complicate the state’s ability to secure federal funds. Another likely issue is the breadth of the bill’s reach across executive departments and the extent to which it shifts authority from agencies and the governor toward the joint committee on ways and means. The exemptions for major mandatory programs such as Medicaid, TennCare, and federal education and nutrition programs suggest an effort to limit disruption, but also highlight the bill’s focus on discretionary federal aid rather than required program funding.