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HB 2326

Public Funds and Financing - As introduced, requires the state treasurer to allocate and deposit 10 percent of the investment income earned by the state pooled investment fund each fiscal year to the state highway fund. - Amends TCA Section 9-4-603.

114th Regular Session (2025-2026) Introduced by Ryan Williams

Tennessee bill would redirect 10% of annual state investment fund earnings to highway fund, creating variable transportation revenue from market-dependent investment returns.

Taken off notice for cal in s/c Finance, Ways and Means Subcommittee of Finance, Ways and Means Committee
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Bill Summary · HB 2326

Legislative bill overview

HB 2326 would require Tennessee's state treasurer to redirect 10 percent of annual investment income from the state pooled investment fund to the state highway fund. This represents a reallocation of existing state investment earnings rather than new revenue collection. The bill amends Tennessee Code Annotated Section 9-4-603.

Why is this important

Investment income from the pooled fund typically supports general state operations and reserves. Redirecting even a portion of these earnings to highways could affect overall state budget flexibility while potentially providing dedicated transportation funding. The impact depends on annual investment performance—in high-return years, this could represent significant highway dollars; in low-return years, the contribution would be minimal.

Potential points of contention

  • Budget competition: Redirecting 10% of investment income reduces flexibility for other state priorities (education, healthcare, emergency reserves) that traditionally rely on these general fund earnings
  • Unpredictable funding source: Investment income fluctuates annually based on market conditions, making highway planning and budgeting less predictable than stable revenue sources
  • Highway funding priorities: Questions about whether this is the optimal way to address transportation needs versus other funding mechanisms (fuel taxes, tolls, bonds) already dedicated to highways

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

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