Tennessee House Bill HB1409

Tennessee 2025-2026 Regular Session

• Introduced: 2/14/25
• Refer: 2/24/25
• Refer: 4/15/25
• Engrossed: 4/16/25
• Enrolled: 4/29/25
• Passed: 5/21/25
• Chaptered: 5/27/25

Caption

AN ACT to make appropriations for the purpose of defraying the expenses of the state government for the fiscal years beginning July 1, 2024, and July 1, 2025, in the administration, operation and maintenance of the legislative, executive and judicial branches of the various departments, institutions, offices and agencies of the state; for certain state aid and obligations; for capital outlay, for the service of the public debt, for emergency and contingency; to repeal certain appropriations and any acts inconsistent herewith; to provide provisional continuing appropriations; and to establish certain provisions, limitations and restrictions under which appropriations may be obligated and expended. This act makes appropriations for the purposes described above for the fiscal years beginning July 1, 2024, and July 1, 2025.

Summary

HB1409 is Tennessee’s annual appropriations act for fiscal years 2025-2026, with carry-forward and supplemental provisions tied to the close of fiscal year 2024-2025. It sets operating budgets for the legislative, judicial, and executive branches; funds major state departments; authorizes capital outlay and debt service; and provides continuing appropriations, reserve designations, and transfer authority for the Commissioner of Finance and Administration. The bill also includes detailed earmarks for specific programs, grants, and one-time projects, including education funding, public safety, health care, transportation, economic development, and a number of nonprofit and local-government grants. A major feature of the bill is its funding of core state services and large formula-driven programs. It appropriates substantial sums for K-12 education through the TISA formula, higher education institutions and student aid, TennCare, corrections, transportation, public safety, and human services. The bill also establishes or continues funding for state employee compensation and benefits, retirement contributions, health insurance, and various administrative systems. In addition, it authorizes the use of departmental revenues, federal funds, reserve balances, and dedicated funds for specific purposes, and it includes numerous provisions governing how those funds may be carried forward, transferred, or reallocated. The bill’s impact on state law is primarily fiscal and administrative rather than substantive policy-making. It operates as the state budget and appropriations vehicle, directing how existing statutory programs are financed and administered for the upcoming fiscal year. It references and relies on many Tennessee Code Annotated provisions governing budgeting, allotments, debt service, state insurance, education funding, and dedicated funds, while also setting conditions for capital projects, reserve balances, and reporting requirements. It does not broadly amend program statutes, but it does affect the practical operation of many agencies by specifying funding levels, earmarks, and spending restrictions. The general sentiment reflected in the voting history appears supportive of the bill’s passage, with the main appropriations measures advancing by comfortable margins and the final floor vote passing 79-16 in the House. Committee votes were unanimous or near-unanimous in favor, suggesting broad institutional support for the budget framework. At the same time, the floor record shows significant debate over many proposed amendments, most of which failed by wide margins, indicating that while the overall budget had enough support to pass, there was substantial disagreement over how funds should be allocated within it. The main points of contention appear to have centered on specific spending priorities and policy-linked appropriations rather than the existence of the budget itself. The amendment votes suggest disputes over education, public safety, health, and other targeted spending items, with several proposals from minority-party members failing decisively. The bill also includes several large earmarks and one-time grants, which are the kinds of provisions that often draw scrutiny because they direct funds to particular entities, local projects, or politically salient programs. Overall, the bill reflects a broadly supported state budget with notable disagreement over selected allocations and amendments.

Impact

HB1409 appropriates state funds for FY 2025-2026 and related carry-forward/supplemental periods, governing the expenditure of general fund, departmental revenue, federal aid, dedicated funds, and reserves across state government. It sets funding levels for major agencies and programs, including education, TennCare, transportation, corrections, public safety, health, human services, higher education, and capital outlay, while also authorizing transfers, reappropriations, and reserve use under specified conditions. The bill reinforces existing budget administration statutes and adds detailed spending restrictions, earmarks, and reporting requirements that affect agencies, local governments, and nonprofit recipients.

Sentiment

The bill appears to have broad support in the legislature, especially in committee, where votes were unanimous or overwhelmingly favorable. On the House floor, the appropriations calendar and final passage also cleared by substantial margins, indicating general agreement with the overall budget. However, the many failed amendment votes show that members disagreed on a range of specific spending priorities and policy riders, so the sentiment was supportive of passage but divided on details.

Contention

The most notable contention involved amendment proposals and targeted appropriations, with many floor amendments failing by large margins. The disputes appear to have focused on how to distribute funds within education, public safety, health, and other program areas, as well as whether to add or alter earmarks for particular entities or initiatives. The bill’s numerous direct grants, one-time projects, and policy-linked appropriations likely contributed to debate, but the recorded votes suggest the majority coalition favored the committee-recommended budget structure and resisted major changes.