Tennessee Senate Bill SB2159

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26
• Engrossed: 3/30/26
• Enrolled: 4/23/26

Caption

AN ACT to amend Tennessee Code Annotated, Section 49-4-708, relative to the Tennessee Promise scholarship endowment fund.

Impact

This amendment is expected to streamline the funding process for the Tennessee Promise scholarship, by creating a more structured approach to managing lottery excess funds. By mandating a transfer of surplus funds to the scholarship fund, the bill aims to enhance the resources available for education funding, thereby supporting the overarching goal of making college education more accessible to Tennessee students. This change could potentially expand the reach and effectiveness of the Tennessee Promise scholarship program, benefiting a larger number of students in the state.

Summary

Senate Bill 2159 focuses on amending the Tennessee Code Annotated relating to the Tennessee Promise scholarship endowment fund. The bill stipulates changes to the management of excess funds in the lottery for education account, specifically targeting the allocation procedure for these funds beginning in the fiscal year 2025-2026. Under this new regulation, funds exceeding a specified reserve amount must be transferred to the Tennessee Promise scholarship special reserve account on an annual basis or as determined by state financial authorities.

Contention

While the bill proposes positive benefits for educational funding, it may also raise questions about the limits of financial reserves generated from the lottery. Critics might voice concerns regarding the potential impact on existing financial reserves that are crucial for managing the state's lottery funds effectively. There may be discussions around the balance between ensuring a stable funding source for scholarships and maintaining sufficient reserves for unforeseen educational budget needs, which could lead to debate among stakeholders about the prioritization of funds.