Chairman Watson introduced a large finance amendment (drafting code 79‑69) that would require state departments to follow a standardized process when applying for and accepting federal aid. The amendment requires notification to the joint finance committee and, for large aid packages (equal to or above $25 million), affirmative committee review before acceptance. It also requires agencies to disclose purpose, amount, match requirements and fiscal impacts and mandates an annual consolidated federal‑aid report to the legislature.

Supporters described the amendment as a transparency and oversight measure intended to preserve Tennessee’s appropriations authority and to prevent unanticipated federal conditions from altering state policy. The amendment also contains exemptions for certain federal entitlement programs, Medicaid, WIC and federal education mandates so that recurring federal entitlement benefits are not disrupted.

Senator Yarbrough raised constitutional concerns about giving a legislative committee a binding veto over executive acceptance of federal funds and compared the proposal to other committee review regimes; he said the change could present separation‑of‑powers problems and cautioned that courts have resisted congressional efforts that emulate this kind of one‑way legislative choke point. Chairman Watson and proponents said the amendment had been negotiated with the administration and included protections and exemptions for major federal programs.

The committee adopted the amendment by voice vote after debate. The bill as amended was recommended for passage to the calendar; the committee recorded the final vote as 9 ayes and 2 nays.

Ending: The amendment establishes a uniform review and reporting process for federal aid that lawmakers said will increase transparency; opponents warned of possible constitutional questions about legislative control of executive action.