Tennessee Senate Bill SB1431

Tennessee 2025-2026 Regular Session

• Introduced: 2/14/25
• Chaptered: 5/27/25
• Passed: 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

SB1431 is Tennessee’s annual appropriations act for fiscal years 2024-2025 and 2025-2026. It sets operating budgets for the legislative, judicial, and executive branches; funds major state departments and agencies; and authorizes the use of departmental revenues, federal funds, and certain dedicated revenues in addition to general fund appropriations. The bill also includes capital outlay, debt service, contingency funding, carry-forward authority for unspent balances, and a large number of earmarked appropriations and reserve transfers tied to specific programs, grants, and one-time projects. A major feature of the bill is the funding of core state services and large program areas such as education, TennCare, corrections, transportation, public safety, health, human services, and higher education. It also establishes or continues detailed funding formulas and conditions for programs like TISA, state employee benefits, lottery-funded scholarships, and various dedicated funds. The bill further authorizes transfers between accounts, reappropriations of unspent balances, and reporting requirements for the Department of Finance and Administration and other agencies, making it a broad fiscal management measure as well as a spending bill.

Impact

The bill appropriates and conditions the expenditure of state funds across nearly all major state functions, while also directing how dedicated revenues, federal aid, and reserve balances may be used. It affects numerous Tennessee Code Annotated provisions governing budgeting, debt service, capital projects, education funding formulas, TennCare, state employee benefits, regulatory boards, and special funds. It also authorizes carry-forwards, reappropriations, and transfers between programs and agencies, and it establishes or continues earmarks for specific grants, infrastructure projects, and reserve accounts.

Sentiment

The available vote history suggests the bill was generally supported in committee, with the Senate Finance, Ways and Means Committee recommending passage by a 7-2 vote with one pass/no vote. Because the bill is an appropriations act, the overall tone is administrative and budget-focused rather than ideological, but the many earmarks, program-specific allocations, and major funding decisions indicate that some provisions likely drew scrutiny. No committee transcript is available here, so the record only shows limited but affirmative committee support.

Contention

The most likely points of contention are the bill’s large nonrecurring appropriations, extensive earmarked grants, and major policy-linked funding decisions, especially in education, public safety, transportation, and economic development. Provisions involving the Tennessee Investment in Student Achievement formula, school resource officers, downtown public safety grants, the Tennessee Performing Arts Center grant, and other targeted grants may have been debated because they direct substantial funds to specific programs or localities. The 7-2 committee vote indicates some disagreement, but the available materials do not identify which members opposed the bill or the specific objections raised.