Welfare

Plain English Breakdown

The bill summary does not provide specific details about the number of households expected to qualify or the total cost of the program over five years.

Tennessee Supplemental Income Grant Act

This bill establishes a five-year pilot program to provide eligible Tennessee households with an annual $5,000 grant starting in 2026.

What This Bill Does

• Creates a five-year pilot program for supplemental income grants that starts in 2026 and ends on December 31, 2030.
• Defines 'eligible household' as one with at least three family members who are Tennessee residents, file federal taxes together, and have an adjusted gross income of $30,000 or less (excluding the grant).
• Requires eligible households to apply annually for a $5,000 annual grant that can be paid monthly, quarterly, or as a lump sum.
• Establishes a supplemental income grant fund in the state's general fund to finance the program through donations, federal grants, and revenue fluctuations.
• Directs the Department of Human Services to create rules and forms for the program and make them available online.

Who It Names or Affects

• Households that meet the eligibility criteria set by the bill.
• The Tennessee Department of Human Services which will manage the grant distribution and administration.

Terms To Know

Eligible Household

A household with at least three family members who are residents of Tennessee, file federal taxes together, and have an adjusted gross income of $30,000 or less (excluding the grant).

Supplemental Income Grant Fund

A fund established in the state's general fund to finance the supplemental income grants through donations, federal grants, and revenue fluctuations.

Limits and Unknowns

• The bill does not specify what happens if there are insufficient funds in the grant fund.
• It is unclear how many households will qualify for the program or the total cost of the program over five years.

Official Summary Text

This bill requires

t
he department of human services
("department") to
develop and implement a five-year pilot program
, ending in
December 31, 2030
,
in which eligible households are awarded an annual supplemental income grant beginning in 2026.

As used in this bill, an "e
ligible household" means a household in which
(i)

a
t least three members of the same family reside and for which a federal income tax return is filed in which at least one member of the family is listed as a dependent;

(
ii
)
e
ach
member of the household is a resident of this state; and

(
iii
)
t
he adjusted gross income attributable to the household does not exceed $30,000, not including a supplemental income grant received pursuant to this
bill.

GRANTS

This bill requires the depa
rtment to
distribute supplemental income grants in the amount of $5,000 per year, which may be paid as a monthly or quarterly installment or in a lump sum, to each eligible household that submits a completed application and any supporting documents require
d by the department. An eligible household must reapply to receive a grant in a subsequent year.

SUPPLEMENTAL INCOME GRANT FUND

This bill provides that

t
he supplemental income grant pilot program
i
s
to be
funded through the supplemental income grant fu
nd established as a separate account in the general fund. It is the legislative intent that the supplemental income grant fund be funded from
(i)
gifts or donations made by individuals or entities who pay the excise tax or the franchise tax
; (ii)
federal
grants or funds that may be used for such purposes
; and (iii)
the reserve for revenue fluctuations
.

RULEMAKING

This bill requires

t
he department
to
promulgate forms and rules necessary to effectuate this
bill, and to
make
the
forms available on the depa
rtment's website.

Current Bill Text

HOUSE BILL 838
By Miller

SENATE BILL 523
By Lamar

SB0523
001015
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 9; Title 67, Chapter 4 and Title 71, relative to
supplemental income grants.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 71, Chapter 5, is amended by adding
the following as a new part:
71-5-2701. Part definitions.
As used in this part:
(1) "Eligible household" means a household in which:
(A) At least three (3) members of the same family reside and for
which a federal income tax return is filed in which at least one (1) member
of the family is listed as a dependent;
(B) Each member of the household is a resident of this state; and
(C) The adjusted gross income attributable to the household does
not exceed thirty thousand dollars ($30,000), not including a
supplemental income grant received pursuant to this section; and
(2) "Family member" means a spouse, child, grandchild, parent,
grandparent, sibling, niece, or nephew, whether by marriage, blood, or adoption.
71-5-2702. Pilot program for annual supplemental income grants – Amount of
grants – Forms and rules – Supplemental income grant fund – Termination.
(a) The department of human services shall develop and implement a five-year
pilot program in which eligible households are awarded an annual supplemental income
grant beginning in 2026.

- 2 - 001015

(b) The department of human services shall distribute supplemental income
grants in the amount of five thousand dollars ($5,000) per year, which may be paid as a
monthly or quarterly installment or in a lump sum, to each eligible household that
submits a completed application and any supporting documents required by the
department. An eligible household must reapply to receive a grant in a subsequent year.
(c) The department shall promulgate forms and rules necessary to effectuate
this part. Rules must be promulgated in accordance with the Uniform Administrative
Procedures Act, compiled in title 4, chapter 5, and the department shall make forms
available on the department's website.
(d) The supplemental income grant pilot program established pursuant to this
section is funded through the supplemental income grant fund established as a separate
account in the general fund. Subject to the availability of revenue at the end of each
fiscal year, the commissioner of finance and administration shall carry forward any
amounts remaining in the fund. Moneys in the fund must be invested by the state
treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of the fund. It is the
legislative intent that the supplemental income grant fund established pursuant to this
subsection (d) be funded from the following sources:
(1) From gifts or donations made by individuals or entities who pay the
excise tax pursuant to the Excise Tax Law of 1999, compiled in title 67, chapter
4, part 20, or the franchise tax pursuant to the Franchise Tax Law of 1999,
compiled in title 67, chapter 4, part 21;
(2) From federal grants or funds that may be used for such purposes;
and
(3) From the reserve for revenue fluctuations, established in § 9-4-211.

- 3 - 001015

(e) The pilot program terminates December 31, 2030, and any unallocated
moneys remaining in the supplemental income grant fund must be deposited in the
reserve for revenue fluctuations.
SECTION 2. Tennessee Code Annotated, Section 9-4-211, is amended by adding the
following as a new subsection:
(e) Notwithstanding this section, amounts in the revenue fluctuation reserve
must be made available to fund supplemental income grants in accordance with § 71-5-
2702.
SECTION 3. The headings in this act are for reference purposes only and do not
constitute a part of the law enacted by this act. However, the code commission is requested to
include the headings in any compilation or publication containing this act.
SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.