School Vouchers

Plain English Breakdown

Checked against official source text during the last sync.

Expanding Eligibility for Individualized Education Accounts

This bill allows children with medical conditions that prevent them from attending school in person to receive individualized education accounts (IEAs) and enroll in home schooling programs.

What This Bill Does

• Extends eligibility for IEA program to students who have a medical condition preventing them from attending school in person, as determined by the state board of education.
• Allows parents of eligible students with medical conditions to use IEA funds for home schooling expenses.
• Requires parents to ensure that IEA funds are used only for approved educational expenses.
• Gives the department of education authority to monitor and enforce compliance with these requirements, including suspending or terminating a student's participation if there is non-compliance.

Who It Names or Affects

• Students in Tennessee who have medical conditions that prevent them from attending school in person.
• Parents of eligible students who can use IEA funds for home schooling expenses.
• The department of education which will monitor and enforce compliance with the new requirements.

Terms To Know

Individualized Education Account (IEA)

An account that provides funding to eligible students for educational purposes outside of public schools.

Eligible student

A Tennessee resident who meets specific criteria, including having a medical condition that prevents in-person school attendance or qualifying under existing disability categories.

Limits and Unknowns

• The bill does not specify the exact number of additional students expected to become eligible and participate.
• It is unclear how much local expenditure will increase due to this change starting from fiscal year 2027-28.

Official Summary Text

Generally, the Individualized Education Act authorizes parents of eligible students to agree to use funds deposited into an individualized education account (IEA) to provide an education for the participating student and not enroll their student in a publ
ic school during participation in the IEA program.

Under present law, in order for a student to be eligible to participate in the IEA program, the student must be a Tennessee resident, have a qualifying disability, have an active IEP, and meet at least one (1) of the following requirements:

(1) Was previously enrolled in and attended a Tennessee public school for the one full school year immediately preceding the school year in which the student receives an IEA;

(2) Is enrolling in a Tennessee school for the first time; or

(3) Received an IEA in the previous school year.

This bill extends eligibility to participate in the IEA program to a student who is a Tennessee resident and is:

(1) A child with a medical condition that inhibits the child from attending school in person, as determined by the state board of education; and

(2) Entitled to attend a public school.

This bill also authorizes a parent of a student who is eligible for the IEP program under the eligibility criteria added by this bill to use the IEA for a home school. A parent of such an eligible student will be required to ensure that funds in an IEA
are used only for approved expenses and the department of education will regularly monitor such funds to ensure compliance. This bill authorizes the department to suspend or terminate an eligible student from participating in the program, if the departme
nt
determines that the parent has failed to comply with the requirements of this bill. If the department terminates an eligible student's participation in the program pursuant to this bill, then the student is ineligible from participating in the program i
n the future.

Current Bill Text

SENATE BILL 1975
By Akbari

HOUSE BILL 1740
By Glynn
HB1740
011493
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 49,
relative to the Individualized Education Act.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-10-1402(3), is amended by
deleting the subdivision and substituting:
(3) "Eligible student" means a resident of this state who:
(A)
(i) Is a child with any of the following disabilities as defined by the
state board of education pursuant to § 49-10-102:
(a) Autism;
(b) Deaf-blindness;
(c) Hearing impairments;
(d) Intellectual disability;
(e) Orthopedic impairments;
(f) Traumatic brain injury;
(g) Visual impairments;
(h) Developmental delay;
(i) Multiple disabilities;
(j) A specific learning disability; or
(k) Deafness;
(ii) Has an active individualized education program (IEP) in
accordance with 34 C.F.R. § 300 et seq., § 49-10-102, and regulations of
the state board of education with one (1) of the disabilities pursuant to

- 2 - 011493

subdivision (3)(A)(i) as the primary or secondary disability in effect at the
time the department receives the request for participation in the program;
and
(iii) Meets at least one (1) of the following requirements:
(a) Was previously enrolled in and attended a Tennessee
public school for the one (1) full school year immediately
preceding the school year in which the student receives an
individualized education account (IEA);
(b) Is enrolling in a Tennessee school for the first time; or
(c) Received an individualized education account (IEA) in
the previous school year; or
(B)
(i) Is a child with a medical condition that inhibits the child from
attending school in person, as determined by the state board of
education; and
(ii) Is entitled to attend a public school;
SECTION 2. Tennessee Code Annotated, Section 49-10-1402(6), is amended by
deleting the subdivision and substituting:
(6) "Participating school" means:
(A) A nonpublic school that meets the requirements established in this
part and seeks to enroll eligible students; or
(B) For an eligible student, as defined in subdivision (3)(B), a home
school, as defined in § 49-6-3050(a)(1);
SECTION 3. Tennessee Code Annotated, Section 49-10-1404, is amended by adding
the following as a new subsection:

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(d) This section does not apply to an eligible student, as defined in § 49-10-
1402(3)(B), or a participating school, as defined in § 49-10-1402(6)(B).
SECTION 4. Tennessee Code Annotated, Section 49-10-1403(d), is amended by
adding ", as defined in § 49-10-1402(6)(A)," after "A participating school".
SECTION 5. Tennessee Code Annotated, Section 49-10-1405(a)(7), is amended by
adding ", as defined in § 49-10-1402(6)(A)," after "of participating schools".
SECTION 6. Tennessee Code Annotated, Title 49, Chapter 10, Part 14, is amended by
adding the following as a new section:
(a) A parent of an eligible student, as defined in § 49-10-1402(3)(B), shall ensure
that funds in an IEA are used only for approved expenses listed in § 49-10-1403(b).
(b) The department shall create and implement a process to ensure that funds in
an IEA for an eligible student, as defined in § 49-10-1402(3)(B), are regularly monitored
to ensure compliance with this section and § 49-10-1403(b).
(c) The department may suspend or terminate an eligible student from
participating in the program, if the department determines that the parent has failed to
comply with the requirements of this section. If the department terminates an eligible
student's participation in the program pursuant to this subsection (c), then the student is
ineligible from participating in the program in the future.
SECTION 7. This act takes effect July 1, 2026, the public welfare requiring it.