Education

Plain English Breakdown

The bill summary does not provide specific details on the amount of funding beyond FY27-28.

Expanding Education Funding for Disadvantaged Students

This bill changes how Tennessee defines economically disadvantaged students and requires additional state funding to schools if their number of such students decreases.

What This Bill Does

• Changes the definition of 'economically disadvantaged' to include students who are Medicaid beneficiaries or from households receiving SNAP, TANF, FDPIR benefits, and eligible for free school meals through direct certification.
• Requires the state education department to allocate additional funds to local school districts if their funding decreases due to a drop in economically disadvantaged student numbers.
• Ensures that any additional funds provided to schools must come solely from state money.
• Directs the state education department to request changes to Tennessee's ESSA plan to include more students as 'economically disadvantaged'.

Who It Names or Affects

• Local Education Agencies (LEAs) in Tennessee
• Students who are now considered economically disadvantaged under new criteria
• The Department of Education and local school districts

Terms To Know

TISA

Tennessee Investment in Student Achievement formula, which is the system for funding K-12 public schools.

ESSA

Every Student Succeeds Act, a federal law that outlines requirements for states to improve education quality and equity.

Limits and Unknowns

• The bill does not specify how much additional funding will be provided beyond the initial $83.7 million in FY27-28.
• Local school districts may need to increase their contributions if more students are identified as economically disadvantaged under new criteria.
• The changes to ESSA plan definitions and TISA allocations will only last until July 1, 2030.

Official Summary Text

Present establishes the Tennessee investment in student achievement formula (TISA) as the system for funding education for K-12 public schools. As part of TISA, each student generates a funding allocation that includes (i) a base funding amount, (ii) we
ighted allocations for which the individual student satisfies certain criteria, and (iii) direct allocations for which the individual student satisfies certain criteria. TISA provides for a 25% weighted allocation for a student who is economically disadv
an
taged. Present law defines "economically disadvantaged" to mean a homeless, foster, runaway, or migrant student or a student eligible for free or reduced-price school meals or milk through the direct certification eligibility guidelines established in fe
deral law.

This bill expands the definition of "economically disadvantaged to include a student who is (i) a medicaid beneficiary or (ii) from a household that receives benefits under the Supplemental Nutrition Assistance Program, Temporary Assistance for Needy Fam
ilies, or the Food Distribution Program on Indian Reservations.

TISA ALLOCATIONS

Beginning with TISA allocations for the 2027-2028 school year, this bill requires the department of education ("department") to allocate additional funds to a local education agency ("LEA") if an LEA's TISA allocation for the current school year is less
than the LEA's TISA allocation for the immediately preceding school year, and the reduction is due to a reduction in the LEA's weighted allocations based on the amount of economically disadvantaged students. Such an additional allocation must be equal to
t
he weighted allocations generated by the LEA for the immediately preceding school year. However, any additional funds provided to a LEA pursuant to this provision must be solely state funded.

Present law prohibits an LEA's allocated education funding from decreasing more than 5% from one year to the next year. The department is required to allocate additional funds to such an LEA in an amount to bring the decrease to 5%. Additionally, prese
nt law requires the department to allocate additional funds to an LEA if their TISA allocation is less than the previous school year, and the school has experienced disenrollment. This bill requires the department to allocate additional funds based on a
lo
wer amount of economically disadvantaged students to an LEA before considering whether the LEA is eligible for additional allocations pursuant to this program.

This bill provides that the additional TISA allocation provisions pertaining to economically disadvantaged students, as described above, are repealed on July 1, 2030.

EVERY STUDENT SUCCEEDS PLAN

No later than January 1, 2027, this bill requires the department to submit a request to the United States department of education to amend this state's Every Student Succeeds Act (ESSA) plan to change the definition of the economically disadvantaged subg
roup to include all students who are directly certified to receive free lunch without having to complete the household application and
that homeless, runaway, and migrant children and children from households that receive benefits under the Supplemental Nut
rition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), the Food Distribution Program on Indian Reservations (FDPIR), or
TennCare
, are deemed "categorically eligible" for free school meals and are directly certified.

Current Bill Text

SENATE BILL 2385
By Hensley

HOUSE BILL 2485
By Haston
HB2485
012477
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 49,
Chapter 1 and Title 49, Chapter 3, relative to
economically disadvantaged students.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-3-104(10), is amended by
deleting the subdivision and substituting:
(10) "Economically disadvantaged" means:
(A) As defined in Tennessee's Every Student Succeeds Act (ESSA) plan
established pursuant to the federal Every Student Succeeds Act (20 U.S.C. §
6301 et seq.), a homeless, foster, runaway, or migrant student or a student
eligible for free or reduced-price school meals or milk through the direct
certification eligibility guidelines established pursuant to 42 U.S.C. §§ 1751-1769;
and
(B) A student who is:
(i)
(a) A medicaid beneficiary; or
(b) From a household that receives benefits under the
Supplemental Nutrition Assistance Program (SNAP), Temporary
Assistance for Needy Families (TANF), or the Food Distribution
Program on Indian Reservations (FDPIR); and
(ii) Eligible for free school meals or milk through the direct
certification eligibility guidelines established pursuant to 42 U.S.C. §§
1751-1769;

- 2 - 012477

SECTION 2. Tennessee Code Annotated, Section 49-3-108, is amended by adding the
following as a new subsection:
(j)
(1) Beginning with TISA allocations for the 2027-2028 school year, if an
LEA's TISA allocation for the current school year is less than the LEA's TISA
allocation for the immediately preceding school year, and the reduction is due to
a reduction in the LEA's weighted allocations generated pursuant to § 49-3-
105(b)(1) based on the amount of economically disadvantaged students, then the
department shall allocate additional funds to the LEA such that the weighted
allocations generated by the LEA pursuant to § 49-3-105(b)(1) for the current
school year is equal to the weighted allocations generated by the LEA pursuant
to § 49-3-105(b)(1) for the immediately preceding school year.
(2) Any additional funds provided to an LEA pursuant to this subsection
(j) must be solely state funded. If an LEA is eligible for additional funds under
this subsection (j) and subsection (c) or subsection (i), then the department shall
award additional funds to the LEA pursuant to this subsection (j) first before any
calculations are made for purposes of subsection (c) or subsection (i).
(3) This subsection (j) is repealed on July 1, 2030.
SECTION 3. The department of education shall, no later than January 1, 2027, submit a
request to the United States department of education to amend this state's Every Student
Succeeds Act (ESSA) plan for purposes of changing the definition of the economically
disadvantaged subgroup to include all students who are directly certified to receive free lunch
without having to complete the household application and that homeless, runaway, and migrant
children and children from households that receive benefits under the Supplemental Nutrition
Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), the Food

- 3 - 012477

Distribution Program on Indian Reservations (FDPIR), or the state's Medicaid program, are
deemed "categorically eligible" for free school meals and are directly certified.
SECTION 4. Section 3 of this act takes effect upon becoming a law, the public welfare
requiring it. All other sections of this act take effect July 1, 2026, the public welfare requiring it.