Tennessee House Bill HB2326

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26
• Refer: 2/5/26

Caption

AN ACT to amend Tennessee Code Annotated, Section 9-4-603, relative to earnings of the state pooled investment fund.

Summary

HB2326 amends Tennessee law governing the state pooled investment fund by directing the state treasurer to transfer a portion of the fund’s earnings to the state highway fund. Specifically, by June 30 of each year, the treasurer must allocate and deposit 10% of the investment income earned by the pooled investment fund during that fiscal year into the state highway fund. The bill applies notwithstanding any conflicting law. The measure is a targeted fiscal reallocation rather than a broad policy change. It creates a dedicated annual transfer from investment earnings managed under Tennessee Code Annotated, Section 9-4-603, and ties those earnings to transportation-related funding needs. The bill takes effect immediately upon becoming law because it declares that the public welfare requires it.

Impact

The bill would amend Tennessee Code Annotated, Section 9-4-603, by adding a new subsection requiring the state treasurer to divert 10% of annual investment income from the pooled investment fund to the state highway fund. This would affect the distribution of state investment earnings and increase resources available for highway-related purposes, while reducing the share of earnings retained for other uses within the pooled investment fund or general state financial operations.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available record. Based on the text alone, the bill appears straightforward and administrative, with an apparent policy goal of supporting transportation funding through a dedicated transfer of investment income.

Contention

The main potential point of contention is the diversion of pooled investment fund earnings away from other state priorities and into the highway fund. Supporters would likely favor the dedicated transportation funding stream, while opponents could object to reducing flexibility in how investment income is used or to earmarking funds without a broader budget review. No specific lawmakers, agencies, or stakeholder groups are identified in the provided materials.