2025 Legislative Session Begins
Special session announced for Jan. 27 to address Education Freedom, Disaster Relief and Illegal Immigration
(NASHVILLE) January 16, 2025 – The 114th General Assembly has begun as state lawmakers gathered on Capitol Hill Tuesday to take the oath of office, elect officers and organize the business of the 2025-2026 legislative sessions. For the first order of business, newly elected and reelected senators took the oath of office as families and friends crowded the Senate chamber and watched proudly. The next orders of business were adoption of the Senate rules, followed by the election of Lt. Governor Randy McNally to serve his fifth term as Lt. Governor of Tennessee and Speaker of the Senate.
The start of a new legislative session is always an exciting time. It’s a season full of new ideas for legislation fueled by the shared enthusiasm of lawmakers committed to improving state government and championing the needs of their districts.
The biggest news of the week came on Wednesday when Governor Bill Lee announced a special legislative session to begin on January 27 to address the Education Freedom Act, disaster relief for Hurricane Helene and illegal immigration. The special session will give lawmakers the opportunity to focus on these three important issues and take thoughtful legislative action before the regular session begins.
Gov. Lee, Lt. Governor McNally, House Speaker Cameron Sexton, Senate Majority Leader Jack Johnson and House Majority Leader William Lamberth issued the following joint statement about the upcoming special session:
“We believe the state has a responsibility to act quickly on issues that matter most to Tennesseans, and there is widespread support in the General Assembly and across Tennessee for a special session on the most pressing legislative priorities: the unified Education Freedom Act and a comprehensive relief package for Hurricane Helene and other disaster recovery efforts.
The majority of Tennesseans, regardless of political affiliation, have made it clear that they support empowering parents with school choice, and the best thing we can do for Tennessee students is deliver choices and public school resources without delay.
Additionally, Hurricane Helene was an unprecedented disaster across rural, at-risk, and distressed communities that cannot shoulder the local cost share of federal relief funds on their own. The state has an opportunity and obligation to partner with these impacted counties and develop innovative solutions for natural disasters going forward.
Finally, the American people elected President Trump with a mandate to enforce immigration laws and protect our communities, and Tennessee must have the resources ready to support the Administration on Day One.”
Education Freedom Act
Gov. Lee and legislative leadership introduced the unified Education Freedom Act (SB1/HB1) on November 6, 2024 with the recognition that every Tennessee child deserves to attend the school that best fits their unique needs, regardless of income or zip code.
In addition to establishing Education Freedom Scholarships, the Act further invests in public schools and teachers by delivering teacher bonuses to recognize their unwavering commitment to student success, increasing K-12 facilities funding, and ensuring state funding to school districts will never decrease due to disenrollment. Gov. Lee and the General Assembly will maintain their commitment to public schools by further investing hundreds of millions of state dollars in the Tennessee Investment in Student Achievement (TISA) formula and raising starting teacher pay.
Hurricane Helene + Disaster Relief
Hurricane Helene was an unprecedented disaster that primarily impacted at-risk and distressed counties, with eligible damage-related costs estimated at $1.2 billion. Gov. Lee is proposing immediate legislative and budgetary action to support ongoing recovery efforts and allow for proactive preparation for future emergencies. The comprehensive plan invests more than $450 million in direct disaster relief. Key components of the plan include:
Disaster Relief Grants (DRG) Fund: $240 million to bolster Tennessee’s existing disaster relief fund, as well as reduce the local cost-share burden from 12.5% to 5% and fund the state match requirement to access federal funds and cover administrative costs.
Hurricane Helene Interest Payment Fund: $110 million to establish a new fund that will help local governments manage loan interest for recovery costs by covering interest costs at 5% per year for three years on loans for recovery expenses.
Governor’s Response and Recovery Fund: $100 million to create a new program inspired by the HEAL Program to provide flexible financial resources for future emergencies, including agricultural recovery, unemployment assistance, and business recovery efforts.
$20 million for the rebuilding of Hampton High School in Carter County, which was destroyed in Hurricane Helene.
Public Safety + Immigration
Tennessee continues to lead the nation in fighting illegal immigration. During the special session lawmakers will consider legislation to ensure the state is ready on day one to assist President Trump in carrying out his immigration enforcement agenda. Legislative action is expected to underscore Tennessee’s commitment to the rule of law, preserve state sovereignty and assist the federal government in enforcing federal immigration law.
Lt. Governor McNally announces committee appointments
Lt. Governor Randy McNally (R-Oak Ridge) announced Senate committee assignments for the 114th General Assembly on Thursday, with several changes.
Lt. Governor McNally praised his fellow members in announcing the assignments.
"In my eight years as speaker and my many years in the Senate, I have never before seen the level of talent displayed in the membership of the Senate,” Lt. Governor McNally stated. “Any one of our Senate members could serve in many different roles on any of our various committees and make a positive impact on the chamber and our state. These types of decisions are never easy but we are blessed to have so many capable individuals in the Senate. I am confident we have assembled the best team for the people of Tennessee.”
Notable committee chairmen changes for the 114th General Assembly include Sen. Dawn White (R-Murfreesboro) at Education, Sen. Ed Jackson (R-Jackson) at Government Operations and Sen. Shane Reeves (R-Murfreesboro) at Energy, Agriculture and Natural Resources.
Senator Bill Powers (R-Clarksville) will head the Calendar Committee.
McNally also re-appointed Sen. Ferrell Haile (R-Gallatin) as the Speaker Pro Tempore of the Senate.
Sen. John Stevens (R-Huntingdon) and Sen. Joey Hensley (R-Hohenwald) will serve as Deputy Speakers.
Lt. Governor McNally made the following statements about the 114th General Assembly’s Senate committee chairs.
Education Committee Chairman Dawn White (R-Murfreesboro)
“Senator White has been a rising leader in the Senate for quite some time. Her commitment to education and experience as a teacher will serve her well in this role. Tennessee’s commitment to reform in education is clear. I am confident Chairman White will be pivotal to that project.”
Government Operations Committee Chairman Senator Ed Jackson (R-Jackson)
“Senator Jackson is a strong and dependable member of our Senate team. The Government Operations Committee has a vast portfolio of issues under its purview and touches every area of state government. Its oversight function is critical. I am confident Senator Jackson will be an excellent leader for this committee.”
Energy, Agriculture and Natural Resources Chairman Senator Shane Reeves (R-Murfreesboro)
“Senator Reeves is an outstanding member of the Senate. He works hard, listens and is always looking to to help others. Having served on the committee he understands the subject matter and will provide excellent leadership for the committee and staff. I look forward to great work from Chairman Reeves and his committee.”
Judiciary Committee Chairman Senator Todd Gardenhire (R-Chattanooga)
“Senator Gardenhire is a strong conservative who understands the need for a tough-on-crime approach. His first session as chairman was a great success and yielded many positive results for the people of Tennessee. I look for more great things from the Judiciary Committee this year.”
Finance Ways and Means Committee Chairman Senator Bo Watson (R-Hixson)
“Tennessee’s outstanding fiscal health is a direct result of hard decisions made by committed leaders. Bo Watson has never been afraid of making those hard decisions. Bo’s hard work has kept Tennessee’s fiscal house in order under the toughest of conditions. I am proud to reappoint him.”
Commerce and Labor Committee Chairman Senator Paul Bailey (R-Sparta)
“Paul Bailey is a business owner and a conservative. He intimately understands the needs of entrepreneurs and employers as well as workers and wage earners. He has done an excellent job as chairman and I am proud to reappoint him.”
Transportation and Safety Chairman Senator Becky Massey (R-Knoxville)
“Becky Massey is a compassionate legislator dedicated to representing her constituents. She understands the importance of transportation to our economy and is dedicated to keeping Tennessee citizens safe. Her talents and abilities are perfect for this committee.”
State and Local Committee Chairman Senator Richard Briggs (R-Knoxville)
“As a long-time leader in local government, Richard Briggs did excellent work last session in this role. A proven and effective chairman, I am confident he will continue to excel. I am proud to re-appoint him.”
Health and Welfare Committee Chairman Rusty Crowe (R-Johnson City)
“Rusty Crowe’s leadership of the Health and Welfare Committee has been outstanding. Rusty's steady hand and experience will continue to keep the committee on course. I appreciate his service and am grateful for his strong leadership.”
Ethics Committee Chairman Senator Ferrell Haile (R-Gallatin)
“Ferrell Haile is a true public servant with unquestionable integrity. He has led this critically important committee for many years. I am confident his excellent leadership will continue.”
Calendar Committee Chairman Senator Bill Powers (R-Clarksville)
“Bill Powers is a critical member of our Senate team. He fights hard for his constituents and has a strong conservative temperament. I know he will make a great Calendar Committee Chair.”
Senate approves four new members to the General Assembly’s Joint Fiscal Review Committee
In other action this week, the Senate confirmed Senator Ken Yager, R-Kingston, Senator Paul Rose, R-Covington, Senator Todd Gardenhire, R-Chattanooga, and Senator Heidi Campbell, D-Nashville, to the Tennessee General Assembly’s Joint Fiscal Review Committee. The prestigious committee serves as the General Assembly’s “watchdog” on all state budgetary matters.
The Fiscal Review Committee conducts a continuing review of the financial operations of state government. This includes oversight of state contracts. The committee is also responsible for preparing and distributing the General Assembly’s fiscal notes showing how proposed legislation would financially impact state and local governments.
The new members were nominated for the position by their party caucuses in December.
Preview of legislative issues for regular session
Following the conclusion of the special session, lawmakers will turn their attention to addressing hundreds of other bills throughout the regular session. Key priorities are expected to include crafting the state budget, advancing education initiatives, and tackling issues related to public safety and the judicial system, among many others.
Budget
The Tennessee General Assembly's most important responsibility – and only constitutional duty – is passing a balanced budget, which depends on accurate revenue projections from the state. Each year, the State Funding Board (SFB) is tasked with issuing General Fund growth projections for the upcoming fiscal year, which is used as the basis for the next year’s available budget funds. For the second year in a row, the state is seeing much slower revenue growth than in years past, with the Board predicting a growth rate of 1% to 2% for Fiscal Year 2025/2026. Experts told the SFB in November 2024 the state’s economy remains healthy, and the dramatic dip in revenue growth is largely due to two years of double-digit growth rates of 13% to 15%. Tennessee’s growth rate is typically between 3.5% to 5%.
Despite slower revenue growth and inflation, Tennessee’s economy continues to outperform the national average in multiple metrics. Tennessee’s job growth is at 18.5% since the Great Recession, compared with the national average of 15%. In addition, Tennessee's unemployment rate remains notably below the national average, standing at 3.3% in October 2024 compared to the national rate of 4.1%.
The AAA-rated Volunteer State ranks among the nation’s least indebted states and stands out as a leader in fiscal stability and low taxes. Republican lawmakers are committed to ensuring that Tennesseans keep more of their hard-earned money and have consistently cut taxes every year. Since 2011, the General Assembly has cut over $2 billion in taxes. In 2025, expect lawmakers to explore more ways to ease the tax burden on Tennessee taxpayers.
To safeguard the state’s financial stability during economic downturns, Tennessee lawmakers have consistently prioritized strengthening the Rainy Day Fund, the state’s savings account. In 2024, the legislature contributed an additional $100 million, raising the fund to a record-breaking $2.15 billion.
Education
While the special session will address the top issue of school choice, additional key education topics will make headlines in 2025. Lawmakers are expected to explore innovative ways to enhance Tennessee’s student-centered approach to education, continue bolstering support for teachers, and improve the overall quality of education to ensure every child has access to excellent learning opportunities. In addition, other issues that may be addressed include further securing the rights of parents to make moral, religious and medical decisions for their children and prohibiting the use of cell phones in schools.
Public Safety / Courts
Improving public safety has been a top priority for the General Assembly in recent years. A rise in gang violence and crime across the state, attributed in part to lenient district attorneys and challenges stemming from a weak southern border, has heightened the urgency for action. During the special session, lawmakers aim to bolster public safety by advancing measures to address illegal immigration effectively. In the regular session, lawmakers plan to build on their work in the special session and focus on strengthening the judicial system and implement tougher penalties to keep repeat offenders off the streets.
Senator Brent Taylor, R-Memphis, has been at the forefront of efforts to hold lenient district attorneys accountable. He has called on the legislature to investigate Shelby County District Attorney Steve Mulroy for allegedly neglecting to enforce state laws on prosecuting certain crimes. This call for an investigation has gained support from Lt. Gov. McNally and Senate Leader Jack Johnson, suggesting such an investigation is likely this year.
“I support Senator Taylor’s request that the legislature investigate District Attorney Mulroy. While District Attorneys in Tennessee have prosecutorial discretion, that discretion is not a license to override or subvert the law of the land. DA Mulroy has a clear and long-standing record of ignoring the clear intent of the legislature and the law. That cannot continue. At the very least, the legislature needs to fully look into the size and scope of his prosecutorial neglect so we can determine if it rises to the level of removal,” said McNally in a statement.
PEACE Act
Tennessee Republicans have filed the Protecting Everyone Against Crime and Extremism (PEACE) Act ahead of the 2025 session. The legislation aims to deter hate crimes and strengthen public safety in Tennessee. The PEACE Act proposes new changes to state law addressing hate littering and trespassing, police procedure and obstruction, and road safety.
Multiple hate groups sparked outrage across the Volunteer State in 2024 when they marched and held demonstrations in the Nashville area. At least one targeted a synagogue and distributed anti-Jewish literature to congregants. In another incident, a neo-Nazi group held signs on overpasses promoting hateful messages. House and Senate leaders in February passed House Joint Resolution 963 condemning neo-Nazis after another group marched through downtown Nashville wearing masks and carrying flags with swastikas.
Streamlining process of failure-to-appear orders
Improving the bail system will continue to be a topic for legislative discussion in 2025. Lawmakers will likely consider legislation to address delays in entering failure-to-appear orders into state and federal databases.
In 2024, lawmakers passed legislation to give law enforcement 10 business days to enter defendants into a database following their failure to appear in court. However, sometimes failure-to-appear court orders can be delayed in reaching law enforcement by over 10 days, making it impossible to meet the new deadline.
As a result, legislation in 2025 may seek to create a more streamlined process for failure-to-appear deadlines, including specific deadlines for judges, court clerks, law enforcement, and district attorneys. The deadlines would aim to ensure timely communication and action at every step, reducing administrative delays and improving efficiency in handling failure-to-appear cases.
Artificial Intelligence
Artificial intelligence (AI) is rapidly transforming industries across Tennessee, from health care and entertainment to manufacturing, education, and beyond. AI is a powerful yet disruptive technology. It offers unprecedented opportunities for innovation but also presents complex challenges that require careful consideration.
The 2025 legislative session will likely include discussions on the application, advancement, and regulation of AI. A central feature of AI is its ability to analyze large amounts of data, identify patterns and use those insights to perform tasks such as generating content or making predictions. This capability raises significant concerns about how to balance the benefits of leveraging AI with the need to protect sensitive data and creative content.
New AI Advisory Council will help lawmakers navigate AI issues
Tennessee created a new Artificial Intelligence Advisory Council in 2024 as a result of legislation sponsored by Senator Bo Watson (R-Hixson). The AI Council is made up of 24 members including state government officials and private sector leaders. It met in 2024 and will continue to meet in the coming years to develop a framework for the state of Tennessee to leverage artificial intelligence safely and effectively. The AI Council is responsible for understanding, navigating and recommending a structure for the use of artificial intelligence in Tennessee. The statute requires a yearly report from the AI Council due by December 31 of 2025, 2026 and 2027, with a final report and action plan due by December 31, 2028.
2024 ELVIS Act set the stage for protections from generative AI
In 2024, Tennessee became one of the first states in the nation to pass a law to protect creative industries from generative AI, which clones or copies unique aspects of an artist’s work and reproduces the art without approval from the artists. For example, personalized generative AI cloning models enable human impersonation and allow users to make unauthorized fake works in the image and voice of others. In response to these issues, the 2024 General Assembly passed the Ensuring Likeness Voice and Image Security (ELVIS) Act which protects music artists' voices from the misuse of AI-generated synthetic media.
Transportation
TDOT funding needs
Lawmakers will look at ways to allocate more funds to the Tennessee Department of Transportation (TDOT) to address rising maintenance and construction costs. TDOT Commissioner Butch Eley is requesting an additional $100 million in recurring expenses and $200 million in nonrecurring expenses in the 2025-2026 budget. This funding boost would be aimed at meeting the growing demands of Tennessee's expanding infrastructure needs and ensure critical projects remain on track. Transportation funding is 4.9% of Tennessee’s overall budget compared with over 11% of the state budgets in Florida and Texas, according to Commissioner Eley.
Expect lawmakers to continue innovative approaches to debt-free transportation funding
Tennessee is a leader in fiscal responsibility for transportation funding, proudly maintaining its status as one of the few states with no road debt. To address a $26 billion backlog of congestion-related needs, the General Assembly passed the Transportation Modernization Act of 2023, an innovative initiative aimed at improving the state's infrastructure.
This legislation allocated $3 billion for critical statewide infrastructure projects and an additional $300 million to support local transportation projects across counties. Another key aspect of the legislation is that it authorized TDOT to partner with private entities to develop choice lanes. These innovative lanes will provide drivers the option to pay a user fee to access new lanes that guarantee a minimum speed. Importantly, no fees will be charged for general-purpose lanes, and their availability will remain unchanged. The first choice lane will be built along I-24 between Nashville and Murfreesboro. TDOT is still in the process of securing a commercial contractor to build the first choice lane. The department expects to close on the project in 2026.
Expect the General Assembly to continue its innovative and fiscally conservative principles in 2025 as lawmakers address how to provide more resources to TDOT, while also maintaining their commitment to debt-free transportation funding.
Enhancing roadway safety
As Tennessee's population and traffic volumes continue to grow, lawmakers are expected to prioritize measures aimed at improving roadway and community safety. Significant strides have already been made in recent years, with a substantial increase in Tennessee Highway Patrol (THP) officers and resources contributing to safer roads statewide.
Since fiscal year 2019, THP has experienced a remarkable 92% surge in service calls, supported by the addition of over 350 new positions, including troopers and support staff. Shelby County, in particular, saw the number of troopers rise from 7 to 55, resulting in a 183% increase in traffic stops and a 24% reduction in interstate shootings.
While these efforts have delivered measurable improvements, state leaders remain committed to further enhancing road safety. In 2025, lawmakers are likely to explore additional funding allocations for the THP to expand its capacity and effectiveness. Additionally, there may be discussions about initiating a study through the Tennessee Advisory Commission on Intergovernmental Relations (TACIR) to identify evidence-based strategies for reducing roadway fatalities.
Tennessee's ongoing dedication to roadway safety reflects a proactive approach to addressing the challenges of a growing state, ensuring that its residents can travel safely and confidently in the years to come.
Final implementation of REAL ID
Starting May 7, 2025, all U.S. residents will be required to present a REAL ID-compliant license or a passport to board commercial flights within the United States or access certain federal facilities, military bases, and nuclear power plants. However, a REAL ID will not be necessary for driving or general identification purposes.
To obtain a state-issued REAL ID in Tennessee, residents must provide the following documentation:
Proof of U.S. citizenship or legal presence
Proof of Social Security number
Two proofs of Tennessee residency
Currently, Tennessee is near the national average for REAL ID compliance, with 2.6 million of the state's 5.8 million IDs already converted. The Senate Transportation Committee is collaborating with the Tennessee Department of Safety to ensure residents can transition smoothly. As part of these efforts, the Department is deploying mobile units across the state to make obtaining a REAL ID more convenient for citizens.
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