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SB 1577

Lottery, Scholarships and Programs - As introduced, allows a student who was ineligible for the Tennessee HOPE scholarship as an entering freshman based on their high school grade point average or composite ACT score to regain their eligibility for the HOPE scholarship as a transfer student if the student meets certain requirements. - Amends TCA Title 49, Chapter 4.

114th Regular Session (2025-2026) Introduced by Adam Lowe

Allows HOPE eligibility for students who first earned a certificate/associate degree via Tennessee Promise and transfer within six months, with a 3.0 GPA.

Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026
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Bill Summary · SB 1577

Summary of Bill: SB 1577 / HB 1518 (Session 114, Tennessee)

Purpose and Intent

  • The bill amends the Tennessee HOPE scholarship rules to permit a student who was ineligible for HOPE as an entering freshman (due to high school GPA or ACT score) to regain eligibility later as a transfer student.
  • Specifically, it allows HOPE eligibility for certain students who transfer after earning a certificate or associate degree through the Tennessee Promise program.
  • Effective date and applicability: Applies starting with the 2026-2027 academic year and each year thereafter.

Key Provisions

New Eligibility Path for HOPE as a Transfer Student

  • A student who was not eligible for HOPE as a freshman based on his/her high school GPA or composite ACT score can qualify for HOPE if they; 1) Meet the general HOPE requirements for transfer students (as defined by §§ 49-4-904 and 49-4-905). 2) Are admitted to and enrolled in an eligible postsecondary institution within six months after earning their first associate degree or certificate as a Tennessee Promise student. 3) Maintained Tennessee Promise scholarship eligibility during every semester in which they earned that first degree or certificate. 4) Achieved a final overall GPA of at least 3.0 at the eligible postsecondary institution.

Contextual Conditions

  • The transfer HOPE eligibility is contingent on the student having first participated in the Tennessee Promise program (i.e., earned their first credential as a Promise student and then transferred to another eligible institution).

Who is Affected

  • Eligible students who previously would have been ineligible for HOPE as freshmen, but who subsequently:
    • Earn a certificate or associate degree via the Tennessee Promise framework,
    • Are admitted to and enrolled in another eligible postsecondary institution within six months of earning that credential,
    • Maintain Promise eligibility during their credential-seeking period, and
    • Achieve a 3.0 GPA at the new institution,
  • Will become eligible for HOPE as a transfer student.

Financial and Fiscal Impact

  • The bill creates additional expenditure from the Lottery for Education Account (LFEA) for HOPE awards:
    • FY 2026-27: Estimated $672,600 (based on 118 students eligible in that year)
    • FY 2027-28: Estimated $1,048,800 (based on 184 students total HOPE-eligible in that year)
    • FY 2028-29 and beyond: Estimated to exceed $1,048,800 annually
  • The fiscal note notes that transfer of funds from the LFEA to the Tennessee Promise Scholarship Special Reserve Account (TPSSRA) may be limited by statutory thresholds and that any excess LFEA funds (after other expenditures) are allocated to the TPSSRA.
  • Assumptions include HOPE awards of up to $2,850 per full-time enrollment semester or $5,700 per academic year (for juniors and seniors), with current system estimates projecting new eligible counts over time as awareness grows.

Timeline and Procedural Details

  • Effective date: July 1, 2026.
  • Applicability: The 2026-2027 academic year and each academic year thereafter.
  • The bill was introduced and progressed through committee stages in early 2026, with sponsorship by Rep. Baum and Sen. Lowe (Senate), and co-sponsorship by Sen. Adam Lowe.

Practical Implications

  • For eligible transfer students who previously would have missed HOPE eligibility, this bill provides a potential pathway to HOPE funding later in their college career.
  • Institutions and financial aid offices will need to confirm transfer eligibility criteria, track Promise participation, and verify GPA thresholds for students pursuing this transfer HOPE option.
  • Overall HOPE expenditures are expected to rise in the near term, with incremental cost growth as more students qualify under the transfer pathway.

If you’d like, I can tailor this summary for a policy brief, a legislative analysis memo, or a public-facing explainer.

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

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