Tennessee House Bill HB1396

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25
• Refer: 2/12/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 9; Title 67, Chapter 4 and Title 71, relative to financial assistance.

Summary

HB1396 creates a new Tennessee program called the “Guaranteed Basic Income Act” or “Protection Against Automation Act.” Beginning in 2026, the Department of Human Services would be required to develop and administer a guaranteed basic income grant program for eligible residents. Under the bill, eligible residents are adults who hold a valid Tennessee driver license or photo ID, are full-time Tennessee residents, and were also full-time residents in the prior year. The bill directs the department to award $3,000 per year to each qualifying applicant, with payments allowed monthly or semi-monthly. Recipients would need to reapply each year, and the department would be responsible for creating application forms, eligibility guidelines, and administrative rules. The measure also establishes a dedicated guaranteed basic income fund in the state general fund to finance the program.

Impact

HB1396 would add a new part to Tennessee Code Annotated Title 71 and require the Department of Human Services to administer a statewide cash-assistance program. It would create a new dedicated fund, allow appropriations and donations to support the program, and permit deposits from taxes levied under Title 67, Chapter 4 if the General Assembly chooses to do so. The bill also provides that unspent money in the fund would carry forward rather than revert to the general fund, and it would require the state treasurer to invest the fund’s assets.

Sentiment

Because there are no committee transcripts or recorded votes provided, there is no direct evidence of legislative debate or formal support/opposition in the materials. Based on the bill text alone, the measure appears to be a policy proposal aimed at expanding direct financial assistance and addressing economic disruption from automation, but the available record does not show whether lawmakers expressed consensus, concern, or division.

Contention

The main points of potential contention are fiscal and policy-related. Supporters would likely favor the guaranteed cash payments as a poverty-reduction or economic security measure, while opponents may question the cost of a universal or broad-based annual stipend, the creation of a new ongoing entitlement, and the possibility of funding it through tax revenues. Eligibility rules, including the residency and identification requirements, could also raise questions about administrative burden and who would be excluded.