Education Freedom Scholarship Expansion Moves to Senate Floor

Governor Lee announces Education Freedom Scholarship program in 2024 (Photo by Sky Arnold)

Legislation to expand the number of Education Freedom Scholarships is headed to the Senate floor.

Senate Bill 2247, sponsored by Senator Jack Johnson, R-Franklin, advanced through the Senate Finance, Ways, and Means committee on Tuesday morning after a 6-4 vote, which included “nays” from fellow Republican Senators Joey Hensley, R-Hohenwald, and Page Walley, R-Savannah.

Supporters say the expansion is needed because the program has reached its 20,000-scholarship capacity for two consecutive years. Johnson’s bill would increase the number of available scholarships to 40,000.

"While we're doing the best we can to make our public school system the best it can be for children in Tennessee, let's also recognize that no matter how hard we try, for some families, for whatever reason, that public school option is not going to be the best option for their child, and we should empower that family with educational choice, regardless of their income status," Johnson said.

Republican Opposition

The legislation has faced opposition from Democrats who worry it will drain money from school districts, along with Republicans who are concerned about the expansion’s $155 million cost for the 2027-2028 school year.

Senator Hensley was among them, questioning whether the state was essentially “paying for some of these children twice.” The legislation that created the scholarship program includes a financial guarantee to “hold schools harmless.” Districts will still receive the same amount of money from the state regardless of whether their student population declines due to the program.

“We're holding the public schools harmless,” Hensley said. “I'm just concerned that we're on the path to make it difficult for us to continue funding everything. We’re funding (the scholarships) this year, yes, but that's $300 million that's going to grow, and we can still expand it $5,000 a year, every year.”

Expansion Reduction Proposed

The House Finance, Ways, and Means Subcommittee opted to postpone voting on that chamber’s version of the bill until next week.

Committee Chairman Ryan Williams, R-Cookeville, has proposed an amendment to reduce the expansion to 35,000 scholarships. It’s uncertain if the House will move forward with that amendment or another proposal.

Should the bill eventually fail, the number of scholarships could still increase by 5,000 next school year under the program’s current rules.