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SB 751

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 Ken Yager

Tennessee adds MidSouth development district to state funding and revises the formula distributing state economic development resources among nine regional districts.

Comp. became Pub. Ch. 332
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Bill Summary · SB 751

Legislative bill overview

SB 751 adds the MidSouth development district to Tennessee's list of state-funded regional development districts and establishes a new funding formula for distributing state resources among nine total development districts. The bill specifies an overall state funding level and changes how that money is allocated across districts based on a revised calculation method.

Why is this important

Development districts provide economic development support, workforce training, and regional planning services that affect local business growth and community infrastructure projects. Changing the funding formula redistributes state resources among regions, meaning some districts will receive more support while others may receive less, directly impacting the economic development services available to rural and urban communities across Tennessee.

Potential points of contention

  • Regional equity concerns: The new funding formula will create winners and losers among districts; some regions may lose funding while others gain, raising questions about fairness and political favoritism
  • MidSouth district status: Adding a ninth district requires determining whether this represents new state spending or reallocation from existing districts, and whether MidSouth meets the same criteria as established districts
  • Funding adequacy: The bill specifies a total funding level, but stakeholders may debate whether that amount is sufficient for nine districts or whether some regions are underserved under the new calculation

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

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