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HB 2532

Education - As introduced, increases, from 25,000 to 40,000, the maximum number of education freedom scholarships that may be awarded to eligible students in the 2026-2027 school year; directs the governor to elect for this state to participate in the federal education tax credit program created in The One, Big, Beautiful Bill Act and to comply with any and all requirements to maintain the state's participation in the program in the future. - Amends TCA Title 49.

114th Regular Session (2025-2026) Introduced by William Lamberth

Tennessee bill expands education freedom scholarships from 25,000 to 40,000 and directs state participation in federal education tax credit program.

Transmitted to Governor for his action.
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Bill Summary · HB 2532

Legislative bill overview

HB 2532 expands Tennessee's education freedom scholarship program by increasing the maximum number of scholarships from 25,000 to 40,000 for the 2026-2027 school year. The bill also directs the governor to enroll Tennessee in a federal education tax credit program established through The One, Big, Beautiful Bill Act and maintain compliance with all federal requirements.

Why is this important

This legislation would significantly expand school choice options in Tennessee, allowing 15,000 additional eligible students to receive scholarships for alternative education options (private schools, homeschooling, etc.). The federal tax credit program participation could create additional funding mechanisms for education scholarships, potentially affecting state budget priorities and federal-state education policy alignment.

Potential points of contention

  • Funding mechanism clarity: The bill doesn't specify how the state will fund the additional 15,000 scholarships or what impact this expansion has on public school budgets and per-pupil allocations
  • Federal program conditions: Automatic compliance with unspecified federal requirements in "The One, Big, Beautiful Bill Act" grants broad executive authority without detailed legislative oversight of future obligations
  • Eligibility and access concerns: Questions about whether the 40,000 scholarship cap adequately serves eligible populations across rural and urban areas, and whether income-based eligibility criteria are maintained
  • Public education impact: Critics may argue scholarship expansion diverts resources from traditional public schools; supporters counter it increases competition and choice

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

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