Tennessee legislature allocates $198M for teacher bonuses and K-12 facility funding

A bold new bill aimed at transforming Tennessee's education funding landscape was unveiled during the House Finance, Ways, and Means Committee meeting on January 28, 2025. The proposed legislation seeks to allocate a significant portion of sports wagering revenue—approximately 80%—to enhance K-12 public education facilities, particularly in distressed and high-performing school districts.

The bill proposes a direct allocation of $25 per student from sports wagering funds to support school infrastructure in counties that need it most. Additionally, it prioritizes funding for schools affected by natural disasters, ensuring rapid assistance for communities like Waverly and Hampton that have faced recent challenges.

In a move to directly benefit educators, the bill also includes a $198 million provision for a $2,000 bonus for every public school teacher in the state. This initiative aims to ensure that teachers receive the financial recognition they deserve, with funds flowing directly to local education agencies (LEAs) for distribution. The bill emphasizes that this bonus will not require teachers to navigate complex systems to access their funds, streamlining the process for educators.

Moreover, the legislation introduces 20,000 scholarships aimed at expanding school choice for Tennessee families. These scholarships will be available to families earning up to 300% of the poverty level, with a portion open to all applicants on a first-come, first-served basis. The bill includes provisions for assessing the effectiveness of the scholarship program through standardized testing, ensuring accountability and transparency.

As the committee prepares to discuss amendments and finalize the bill, the proposed legislation marks a significant commitment to improving educational funding and resources in Tennessee. With a clear message of progress and investment in the future of education, lawmakers are poised to take a decisive step forward in supporting both teachers and students across the state.