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HB2375 • 2026

Public Funds and Financing

AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 9 and Title 67, relative to funding for rural counties.

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Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Doggett, Bowling
Last action
2026-04-08
Official status
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
Effective date
Not listed

Plain English Breakdown

The bill does not specify the exact details of application fees or their use.

Greenbelt Initiative Fund Transfer (GIFT) Act

This bill establishes the Rural Revenue Equity Fund to provide financial support for rural counties in Tennessee based on specific criteria related to agriculture and demographics.

What This Bill Does

  • Establishes a special account within the state general fund called the Rural Revenue Equity Fund with an initial $210 million from the general fund.
  • Requires the commissioner of economic and community development to administer the fund and distribute funds to rural counties for capital improvements, infrastructure projects, law enforcement purposes, firefighter and emergency medical services, or property tax stabilization based on a scoring system.
  • Establishes criteria for evaluating county applications including greenbelt acreage, agricultural sales, population size, and more, with higher scores leading to greater funding allocations.
  • Allows the commissioner to accept additional public or private funds as gifts or grants into the fund.
  • Requires an annual report detailing all expenditures from the fund to be submitted to various state officials.

Who It Names or Affects

  • Rural counties in Tennessee that meet specific criteria and submit applications for funding.
  • The commissioner of economic and community development who will manage and distribute funds.
  • State officials receiving an annual report on fund expenditures.

Terms To Know

Greenbelt classification
Land classified by the assessor as agricultural, forest, or open space land under Tennessee law.
Infrastructure
Basic network of public utilities and access facilities that support and promote land development, including water systems, roads, bridges, and more.

Limits and Unknowns

  • The exact amount and timing of expenditures from the fund cannot be determined.
  • The bill does not specify how application fees will be set or what they cover in detail.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB2375

Plain English: The amendment creates a new fund called the rural revenue equity fund to provide financial assistance to rural counties in Tennessee based on specific criteria.

  • Establishes a special account within the state general fund known as the 'rural revenue equity fund' with an initial appropriation of $210 million for fiscal year 2026-2027.
  • Sets up a scoring system to allocate funds to rural counties based on factors such as land under greenbelt classification, agricultural sales, and population size.
  • Specifies that the commissioner of economic and community development will manage the fund and distribute money according to the established criteria.
  • The amendment does not specify how much funding each rural county might receive or provide details on the exact application process for counties.

Bill History

  1. 2026-04-08 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026

  2. 2026-04-08 Tennessee General Assembly

    Action Def. in s/c Finance, Ways, and Means Subcommittee to Final Calendar No. 2

  3. 2026-04-01 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/8/2026

  4. 2026-04-01 Tennessee General Assembly

    Action Def. in s/c Finance, Ways, and Means Subcommittee to 4/8/2026

  5. 2026-03-31 Tennessee General Assembly

    Sponsor(s) Added.

  6. 2026-03-25 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/1/2026

  7. 2026-03-24 Tennessee General Assembly

    Sponsor(s) Added.

  8. 2026-03-24 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  9. 2026-03-24 Tennessee General Assembly

    Rec. for pass. if am., ref. to Finance, Ways, and Means Committee

  10. 2026-03-18 Tennessee General Assembly

    Placed on cal. Agriculture & Natural Resources Committee for 3/24/2026

  11. 2026-03-17 Tennessee General Assembly

    Sponsor(s) Added.

  12. 2026-03-16 Tennessee General Assembly

    Sponsor(s) Added.

  13. 2026-03-11 Tennessee General Assembly

    Rec for pass if am by s/c ref. to Agriculture & Natural Resources Committee

  14. 2026-03-04 Tennessee General Assembly

    Placed on s/c cal Agriculture & Natural Resources Subcommittee for 3/11/2026

  15. 2026-03-02 Tennessee General Assembly

    Sponsor(s) Added.

  16. 2026-02-05 Tennessee General Assembly

    Assigned to s/c Agriculture & Natural Resources Subcommittee

  17. 2026-02-05 Tennessee General Assembly

    P2C, ref. to Agriculture & Natural Resources Committee

  18. 2026-02-05 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Finance, Ways, and Means Committee

  19. 2026-02-04 Tennessee General Assembly

    Intro., P1C.

  20. 2026-02-02 Tennessee General Assembly

    Filed for introduction

  21. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  22. 2026-02-02 Tennessee General Assembly

    Filed for introduction

Official Summary Text

This bill establishes
within the state general fund a special account to be known as the rural revenue equity fund
(
the "fund"
).
It is the general assembly's intent that the fund consists of a recurring appropriation of
$210
million

from the general fund.

The commissioner of economic and community development
("commissioner") must
administer the fund, and moneys deposited in the fund must be used only to administer the fund and
to be used by r
ural counties only for
c
apital improvement projects
, i
nfrastru
cture projects
, l
aw enforcement purposes
, f
irefighter and emergency medical services
,
or
p
roperty tax stabilization.

This bill requires
an amount from the fund
to be
allocated and distributed to the rural counties based on the county's total weighted score determined according to the formula described
in this bill.
The commissioner
must
prioritize awarding funds to rural counties with the highest total weighted scores.

APPLICATIONS

In order to
receive an allocation and distribution of monies from the fund,
this bill requires
a rural county
to
submit a completed application to the commissioner together with an application fee in an amount established by the department of economic and community development
("department")
. The proceeds from the application fee must be retained by the department, deposited in the fund, and used for defraying the department's expenses in administering and implementing this
bill
. The application and proc
edures for submitting the application must be developed by the department.

This bill requires applications to be
evaluated and scored on the basis of
all of
the following categories:



Total acres of land in the county under a greenbelt classification
.


Annual agricultural sales or taxable agricultural receipts generated in the county
.


Percentage of total land in the county under a greenbelt classification
.


Whether the county has statutory authority to levy a development tax or impact fee
.


The number and economic output of licensed livestock or dairy farms in the county
.


County population
.


Whether the county adopted a property tax increase during the prior five fiscal years.

This bill requires higher scores to
be assigned to applicants that

(i)
h
ave greater numbers of acres of land under a greenbelt classification
,
(ii)
h
ave greater percentages of land under a greenbelt classification
,
(iii)
h
ave higher annual agricultural sales or taxable agricultural receipts
,
(iv)
l
ack statutory authority to levy development taxes or impact fees
,
(v)
h
ave smaller populations
,
or (vi)
h
ave adopted a property tax increase.

This bill requires e
ach category
to
be assigned a score ranging from zero to
100
and a weighted value. The weighted value is determined by multiplying the score by a weighting factor. The weighting factors for each category are given in the
table in the bill.
A county's total weighted score equals the sum of all weighted values.

In addition to appropriations made to the fund,
this bill authorizes
the commissioner
to
accept other funds, public or private, by way of gift or grant to the fund. Any such gift or grant must be deposited into the fund to be expended in accordance with this
bill
.

ANNUAL REPORT

This bill provides that

a
ll expenditures from the fund are subject to review in the form of an annual report submitted by the commissioner to the governor; the speaker and chief clerk of the senate; the speaker and chief clerk of the house of representatives; the chair of the fin
ance, ways and means committee of the senate; the chair of the committee of the house of representatives having jurisdiction over tax matters; and the directors of the office of legislative budget analysis.

Current Bill Text

Read the full stored bill text
SENATE BILL 2480
By Bowling

HOUSE BILL 2375
By Doggett
HB2375
011694
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 5; Title 6; Title 7; Title 9 and Title 67, relative
to funding for rural counties.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 9, Chapter 4, Part 2, is amended by
adding the following as a new section:
9-4-217.
(a) This section is known and may be cited as the "Greenbelt Initiative Fund
Transfer (GIFT) Act."
(b) There is created within the state general fund a special account to be known
as the rural revenue equity fund, referred to in this section as the "fund."
(c) It is the general assembly's intent that the fund consists of a recurring
appropriation of two hundred ten million dollars ($210,000,000) from the general fund.
(d) The commissioner of economic and community development shall administer
the fund, and moneys deposited in the fund must be used only to administer the fund
and implement the purposes set forth in this section.
(e) There must be allocated and distributed to the rural counties an amount from
the fund based on the county's total weighted score determined according to the formula
described in subdivision (g)(5). The commissioner of economic and community
development shall prioritize awarding funds to rural counties with the highest total
weighted scores.
(f) Monies from the fund may be used by rural counties only for:
(1) Capital improvement projects;

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(2) Infrastructure projects;
(3) Law enforcement purposes;
(4) Firefighter and emergency medical services; or
(5) Property tax stabilization.
(g)
(1) To receive an allocation and distribution of monies from the fund, a
rural county must submit a completed application to the commissioner of
economic and community development together with an application fee in an
amount established by the department of economic and community
development. The proceeds from the application fee must be retained by the
department, deposited in the fund, and used for defraying the department's
expenses in administering and implementing this section. The application and
procedures for submitting the application must be developed by the department.
(2) The application must include, but not be limited to, information
pertaining to the categories listed in subdivision (g)(3).
(3)
(A) Applications must be evaluated and scored on the basis of the
following categories:
(i) Total acres of land in the county under a greenbelt
classification;
(ii) Annual agricultural sales or taxable agricultural receipts
generated in the county;
(iii) Percentage of total land in the county under a
greenbelt classification;

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(iv) Whether the county has statutory authority to levy a
development tax or impact fee;
(v) The number and economic output of licensed livestock
or dairy farms in the county;
(vi) County population; and
(vii) Whether the county adopted a property tax increase
during the prior five (5) fiscal years.
(B) Higher scores must be assigned to applicants that:
(i) Have greater numbers of acres of land under a
greenbelt classification;
(ii) Have greater percentages of land under a greenbelt
classification;
(iii) Have higher annual agricultural sales or taxable
agricultural receipts;
(iv) Lack statutory authority to levy development taxes or
impact fees;
(v) Have smaller populations; or
(vi) Have adopted a property tax increase.
(4) Each category must be assigned a score ranging from zero (0) to one
hundred (100) and a weighted value. The weighted value is determined by
multiplying the score by a weighting factor. The weighting factors for each
category are given in the following table:
Category Weighting Factor
Total acreage under greenbelt classification 0.25
Annual agricultural sales or taxable agricultural receipts 0.20

- 4 - 011694

Percentage of total county land under greenbelt classification 0.15
Lacks statutory authority to levy development taxes or impact fees 0.15
Number and economic output of licensed livestock or dairy farms 0.10
Total population 0.08
Adopted property tax increase 0.07
(5) A county's total weighted score equals the sum of all weighted values.
(h) In addition to appropriations made to the fund, the commissioner of economic
and community development may accept other funds, public or private, by way of gift or
grant to the fund. Any such gift or grant must be deposited into the fund to be expended
in accordance with this section.
(i) The state treasurer shall invest moneys in the fund for the benefit of the fund
in accordance with § 9-4-603. Interest accruing on investments and deposits of the fund
must be credited to and remain part of the fund.
(j) Any unencumbered moneys and any unexpended balance of the fund
remaining at the end of a fiscal year do not revert to the general fund, but must be
carried forward until expended in accordance with this section. No part of the fund shall
be diverted to the general fund or any other public fund.
(k) All expenditures from the fund are subject to review in the form of an annual
report submitted by the commissioner of economic and community development to the
governor; the speaker and chief clerk of the senate; the speaker and chief clerk of the
house of representatives; the chair of the finance, ways and means committee of the
senate; the chair of the committee of the house of representatives having jurisdiction
over tax matters; and the directors of the office of legislative budget analysis.
(l) As used in this section:

- 5 - 011694

(1) "Greenbelt classification" means, in regard to land, land classified by
the assessor of property as agricultural, forest, or open space land under title 67,
chapter 5, part 10;
(2) "Infrastructure":
(A) Means the basic network of public utilities and access
facilities that support and promote land development; and
(B) Includes water and sewerage system elements, storm
drainage systems, roads, bridges, streets, and highways, public
transportation, pedestrian and bicycle facilities, railroads, gas and electric
transmission lines, telecommunications networks, solid waste disposal
sites, and similar public facilities; and
(3) "Rural county" means a county that is not included within a
metropolitan statistical area, as defined by the federal office of management and
budget.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.