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HB 35

Regional Authorities and Special Districts - As enacted, adds the MidSouth development district to the list of development districts to which this state intends to assist financially; specifies an overall state funding level for the nine development districts; changes the calculation for how much funding each development district will receive. - Amends TCA Title 13, Chapter 14, Part 1.

114th Regular Session (2025-2026) Introduced by Gary Hicks

Tennessee adds MidSouth development district to state funding and recalculates allocation formula for nine total districts' economic development assistance.

Pub. Ch. 332
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Bill Summary · HB 35

Legislative bill overview

HB 35 establishes the MidSouth development district as a new recipient of state financial assistance and modifies Tennessee's funding distribution formula for all nine development districts. The bill sets an overall state funding level for these districts and changes how that funding is allocated among them under Tennessee Code Annotated Title 13, Chapter 14.

Why this is important

Development districts are regional economic development organizations that manage infrastructure, workforce training, and business recruitment projects. This bill affects which geographic areas receive state economic development resources and how much funding each region gets, potentially shifting economic opportunity and investment patterns across Tennessee regions.

Potential points of contention

  • Funding redistribution: The revised calculation formula may direct more or fewer resources to existing districts, creating winners and losers among regions that previously received funding
  • New district prioritization: Adding MidSouth as a new recipient means state funds are either spread thinner across nine districts instead of eight, or existing districts receive reduced allocations
  • Regional equity concerns: The bill's supporters may argue it brings development resources to underserved areas, while critics may contend it dilutes support for established economic development regions

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

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