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SB 2690

Appropriations - As introduced, makes appropriations for the fiscal years beginning July 1, 2025, and July 1, 2026. -

114th Regular Session (2025-2026)

Redirect $37.65M from Education Freedom Scholarships to fund $5,000 teacher raises and K–3 class-size reductions to 15 students.

Signed by Senate Speaker
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Bill Summary · SB 2690

Summary of Senate Bill 2690 (Session 114, Tennessee)

This summary describes the introduced appropriations bill, including its main purpose, key provisions, affected parties, and procedural timeline. The bill as acted upon includes an amendment package related to education funding and teacher raises.

1) Purpose and Intent

  • SB 2690 is an appropriations measure for the fiscal years beginning July 1, 2025, and July 1, 2026.
  • The bill, as amended, includes a reallocation/reprioritization of education funding and a targeted appropriation to support teacher pay increases and class-size reductions.

2) Key Provisions and Changes

  • General funding context:

    • The bill references appropriations for the Department of Education, including specific line items and budget documents (e.g., Education Freedom Scholarship Program noted on Budget Document page B-90 for 2026-2027). The amendment modifies these allocations.

  • Amendment details (new Section, relative to HB2631 and SB2690):

    • Item 1: Reduction of Education Freedom Scholarship Program funding
    • The appropriation in Section 1, Title III-9, Item 1.5, to the Department of Education for the Education Freedom Scholarship Program is reduced by a recurring amount of $37,650,000.
    • This reduces the baseline ongoing funding for that program.
    • Item 2: Additional recurring appropriation for targeted education initiatives
    • An additional $37,650,000 (recurring) is appropriated to the Department of Education.
    • Purpose:
      • Provide teacher raises of $5,000 per teacher.
      • Provide funds to local education agencies (LEAs) to reduce class sizes for grades K-3 to a maximum of 15 students.
    • This allocation is explicit and separate from the existing appropriations and is intended to be used solely for teacher compensation and targeted early-grade class-size reductions.

  • Overall fiscal effect (as stated in the amendment):

    • Net effect: The recurring $37,650,000 appropriation to support teacher raises and K–3 class-size reduction is offset by a recurring $37,650,000 reduction to Education Freedom Scholarship Program funding. In effect, the amendment swaps funding sources for these purposes while maintaining the same total recurring amount in the affected line items, but reallocating toward salary and class-size improvements rather than scholarships.

3) Who/What is Affected

  • Department of Education
    • Receives the net effect of the amended appropriation, with changes to specific line items:
    • Education Freedom Scholarship Program budget line (reduced by $37,650,000 recurring).
    • New recurring funding for teacher raises ($5,000 per teacher) and K–3 class-size reductions (to a 15-student cap) allocated to LEAs and the department’s control.
  • Teachers and LEAs
    • Teachers would receive a $5,000 annual pay increase per teacher (recurring).
    • LEAs would receive funds to reduce K–3 class sizes to 15 students or fewer.
  • Education Freedom Scholarship Program
    • Receives a reduction in its recurring funding, redirecting funds to teacher pay and class-size reductions.

4) Procedural and Timeline Aspects

  • Legislation route:
    • The measure underwent a series of amendments during committee and floor action in the Senate, with amendments introduced and tabled.
    • As of the latest action history provided:
    • It passed the Senate with amendments (Ayes 26, Nays 5) on April 16, 2026.
    • The amendment described above (Amendment 17 – HA1178) was tabled as part of Senate consideration.
  • House actions:
    • The companion House bill HB2631 is listed; the amendments and cross-references indicate ongoing conference or reconciliation steps following Senate passage.
  • Effective period:
    • The amendments are framed as recurring (ongoing) funding decisions beginning in the 2025–2026 fiscal years, consistent with typical state biennial appropriations cycles.

5) Practical Implications

  • Economic impact:
    • Recurring $37.65 million is redirected from Education Freedom Scholarships to direct investments in teacher compensation and early-grade class-size reductions.
  • Education policy impact:
    • Potentially higher teacher compensation may affect recruitment/retention.
    • Smaller K–3 class sizes could impact student learning environments and resource needs (e.g., staffing, classrooms, materials).
  • Budgetary considerations:
    • The bill maintains a net recurring appropriation level by reallocating existing funds rather than creating new ongoing expenditures, pending legislative approval and any subsequent adjustments.

Note: This summary reflects the amendment language and the action history up to the most recent publicly available proceedings. Final status may vary based on conference actions, further amendments, and eventual enactment into law.

Compiled from official sources — confirm details with the bill’s official record.

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