Education, Higher - As introduced, requires each public institution of higher education to classify a student who is the spouse of a service member who has not resided in this state for at least one year as an in-state student for tuition purposes if the service member's spouse resides in this state while enrolled in the institution; adds dependants of active-duty military personnel or veterans residing outside of this state to those who are eligible to receive the in-state tuition rate at a public institution of higher education; requires, instead of allows, the governing board of each such institution to provide the in-state tuition rate to military-affiliated individuals. - Amends TCA Title 49.

114th Regular Session (2025-2026) Introduced by Jay Reedy

Tennessee bill mandates in-state tuition for military spouses and dependents at public universities, eliminating institutional discretion and potentially reducing tuition revenue.

Taken off notice for cal in s/c Finance, Ways, and Means Subcommittee of Finance, Ways, and Means Committee

#education #higher

Legislative bill overview

HB 1789 expands in-state tuition eligibility at Tennessee public universities to include spouses of service members stationed in Tennessee and dependents of active-duty military or veterans living out-of-state. The bill changes institutional authority from discretionary ("allows") to mandatory ("requires") when providing in-state tuition rates to military-affiliated individuals.

Why is this important

In-state tuition rates are substantially lower than out-of-state rates, often reducing annual costs by $10,000-$15,000 per student. This bill directly affects military families' access to affordable higher education and may increase enrollment at Tennessee institutions while shifting tuition revenue models. It also standardizes policy across all public universities rather than allowing institution-by-institution discretion.

Potential points of contention

Revenue impact: Mandatory in-state rates for additional populations reduces institutional tuition revenue; unclear whether state would compensate universities for this loss

Residency definition conflicts: Creates ambiguity when service members' spouses are stationed in Tennessee temporarily—does this constitute "residence" for tuition purposes, and for how long?

Out-of-state dependent eligibility: Granting in-state rates to dependents living outside Tennessee (whose parents may be out-of-state) contradicts traditional residency-based tuition logic and may face constitutional scrutiny

Institutional autonomy: Converting discretionary benefits to mandatory requirements limits university flexibility in financial planning and budgeting