AN ACT to amend Tennessee Code Annotated, Title 49, relative to education freedom scholarships.
HB2365 amends Tennessee’s education freedom scholarship law to expand and clarify how scholarships may be used. The bill revises the definition of a “recipient” to include eligible students who enroll in either a private school or an out-of-district public school, and it updates eligibility rules so a student or parent must apply, satisfy compulsory attendance requirements through one of those enrollment options, and not enroll the student in the zoned public school while receiving the scholarship. It also distinguishes scholarship amounts by school type: private-school recipients receive an amount equal to the state base funding amount, while out-of-district public school recipients receive an amount equal to the tuition and fees charged by that school.
The bill further adjusts how scholarship funds may be used and how recipients are tracked. Several provisions are narrowed so they apply specifically to recipients enrolled in private schools, while a new testing requirement is added for recipients enrolled in out-of-district public schools. Those students must take the same annual assessments required of public school students in the same grade or course, and the enrolling school must administer the tests. Beginning June 30, 2026, private schools and out-of-district public schools that enroll recipients must submit test results to the Office of Research and Education Accountability, which will compile an annual report for legislative education committees.
The bill’s impact on state law is to broaden and formalize Tennessee’s scholarship program for education choice while creating separate administrative rules for private-school and out-of-district public-school participation. It amends multiple sections of Title 49 governing scholarship eligibility, funding, allowable expenses, enrollment restrictions, testing, and reporting. The measure also shifts oversight toward state-level data collection and analysis through the comptroller’s office, with reporting structured by grade level, household income, sex, and race.
Because no committee transcripts or recorded votes were provided, there is no documented debate or roll-call sentiment in the materials supplied. Based on the bill text alone, the measure appears generally supportive of school choice and scholarship expansion, while also emphasizing accountability through testing and reporting requirements. Any controversy would likely center on the inclusion of out-of-district public schools, the use of state funds for private education, and the collection and reporting of student performance data.
HB2365 amends Tennessee Code Annotated Title 49 to expand and refine the education freedom scholarship program by defining recipients to include students in private schools and out-of-district public schools, revising eligibility and funding rules, and adding testing/reporting requirements. It affects scholarship administration, school participation, state funding calculations, and oversight by the Office of Research and Education Accountability, while imposing new obligations on participating schools and families.
No committee discussion or voting history was provided, so there is no recorded legislative sentiment to summarize. From the bill text, the measure appears to reflect a pro-school-choice approach with added accountability provisions, suggesting likely support from education freedom advocates and possible caution from critics concerned about private-school funding, public-school diversion, and data reporting.
The main points of contention likely involve whether state scholarship funds should be used for private schools and out-of-district public schools, whether the program diverts students and resources from zoned public schools, and whether the new testing and demographic reporting requirements are sufficient to ensure accountability. Stakeholders most likely to disagree include school choice supporters, public education advocates, private schools, and local school systems.