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HB 1344

Education, Higher - As enacted, authorizes, subject to appropriation, an institution of higher education to request to redirect the institution's capital outlay funds for purposes other than those set out in the 2022 appropriations act; makes related revisions. - Amends TCA Title 4; Title 8; Title 9; Title 10; Title 12; Title 49; Title 66 and Title 67.

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

Authorizes Tennessee higher education institutions to request reallocation of their capital outlay funds to alternative purposes instead of projects designated in 2022 appropriations.

Comp. became Pub. Ch. 467
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Bill Summary · HB 1344

Legislative bill overview

HB 1344 allows Tennessee higher education institutions to request permission to redirect their capital outlay funds (funds designated for building and infrastructure projects) toward alternative purposes, rather than being locked into the original 2022 appropriations act allocations. The bill requires appropriation approval for these redirections and amends multiple Tennessee Code sections governing education funding and appropriations.

Why is this important

Capital outlay funds are substantial, restricted allocations typically designated years in advance for specific construction or facility projects. This bill provides institutions flexibility to reallocate these funds if circumstances change—such as shifting educational priorities, enrollment changes, or revised facility needs—without requiring new legislative action for each reallocation. This can improve fiscal responsiveness but also raises oversight questions about originally-intended projects.

Potential points of contention

  • Project abandonment concerns: Original capital projects may have been promised to communities or departments; flexibility could mean those projects never happen without explicit reappropriation
  • Institutional accountability: Broader discretion over capital funds reduces legislative oversight and may allow institutions to redirect funds away from infrastructure maintenance toward other priorities
  • Equity issues: Institutions with more administrative capacity to request redirections may benefit more than those with less sophisticated budget management

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

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