Tennessee Senate Bill SB0523

Tennessee 2025-2026 Regular Session

• Introduced: 1/30/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 9; Title 67, Chapter 4 and Title 71, relative to supplemental income grants.

Summary

SB0523 creates a five-year pilot program for annual supplemental income grants administered by the Tennessee Department of Human Services. Beginning in 2026, eligible households may receive $5,000 per year, paid monthly, quarterly, or in a lump sum, if they meet the bill’s income and family-structure requirements and submit an application with supporting documentation. To qualify, a household must include at least three family members living together, have at least one dependent claimed on a federal tax return, all members must be Tennessee residents, and household adjusted gross income must not exceed $30,000, excluding the grant itself. The bill also establishes a dedicated supplemental income grant fund within the general fund and directs that it be financed through gifts or donations from taxpayers subject to Tennessee’s excise or franchise taxes, federal grants or funds, and, if needed, the state’s revenue fluctuation reserve. The program is set to terminate on December 31, 2030, and any remaining unallocated money would be returned to the reserve for revenue fluctuations. The Department of Human Services would be required to adopt rules and forms under the Uniform Administrative Procedures Act to run the program.

Impact

This bill would add a new part to Tennessee Code Annotated Title 71 governing supplemental income grants and would amend Title 9 to make revenue fluctuation reserve funds available for the program. It also references Title 4 for rulemaking procedures and Title 67 for the tax categories tied to potential donations into the fund. In practical terms, it would create a new state-administered cash assistance program for low-income Tennessee families, establish eligibility criteria and application procedures, and create a new funding mechanism that could draw on state reserves, private donations from certain taxpayers, and federal funds.

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 bill text alone, the measure appears designed as a targeted anti-poverty or family-support initiative, which suggests it may appeal to supporters of direct cash assistance and economic relief for low-income households. At the same time, its use of the revenue fluctuation reserve and the creation of a new recurring grant obligation could raise fiscal concerns among lawmakers focused on budget stability and the use of state reserves.

Contention

The main points of potential contention are likely to be fiscal and administrative. Supporters would likely emphasize the grant’s potential to help low-income families with children or dependents, while critics may question whether the state should commit reserve funds to a new cash-assistance pilot, especially one that lasts five years and provides $5,000 annually per eligible household. Eligibility design may also be debated, including the requirement that a household have at least three family members and a dependent claimed on a tax return, which could exclude some needy households. Another possible issue is whether the program should rely on donations and federal funds versus direct state appropriations.