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SB1340 • 2026

Education, Higher

AN ACT to amend Tennessee Code Annotated, Title 9; Title 49 and Title 62, relative to higher education.

Education
Active

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

Sponsor
Powers, Haston
Last action
2025-03-26
Official status
Assigned to General Subcommittee of Senate Education Committee
Effective date
Not listed

Plain English Breakdown

The official source does not provide specific details on how incentives are structured or funded, nor does it specify which fields are considered high-demand.

Higher Education Funding Formula Update Act

This bill requires Tennessee's higher education commission to review and update its funding formula every five years to provide incentives for institutions offering programs leading to job placement in high-demand fields.

What This Bill Does

  • Requires the Tennessee Higher Education Commission to review and update the outcomes-based funding formula model at least once every five years.

Who It Names or Affects

  • Tennessee's higher education commission
  • Colleges and universities in Tennessee

Terms To Know

Outcomes-based funding formula model
A system that allocates money to educational institutions based on their performance or outcomes, such as job placement rates.

Limits and Unknowns

  • The bill does not specify which fields are considered high-demand.
  • It is unclear how the incentives will be structured or funded.

Bill History

  1. 2025-03-26 Tennessee General Assembly

    Assigned to General Subcommittee of Senate Education Committee

  2. 2025-03-26 Tennessee General Assembly

    Taken off notice for cal in s/c Higher Education Subcommittee of Education Committee

  3. 2025-03-19 Tennessee General Assembly

    Placed on Senate Education Committee calendar for 3/26/2025

  4. 2025-03-19 Tennessee General Assembly

    Action deferred in Senate Education Committee to 3/26/2025

  5. 2025-03-19 Tennessee General Assembly

    Placed on s/c cal Higher Education Subcommittee for 3/26/2025

  6. 2025-03-12 Tennessee General Assembly

    Placed on Senate Education Committee calendar for 3/19/2025

  7. 2025-03-12 Tennessee General Assembly

    Sponsor change.

  8. 2025-03-12 Tennessee General Assembly

    Sponsor(s) Added.

  9. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Education Committee

  10. 2025-02-12 Tennessee General Assembly

    Assigned to s/c Higher Education Subcommittee

  11. 2025-02-12 Tennessee General Assembly

    P2C, ref. to Education Committee

  12. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  13. 2025-02-10 Tennessee General Assembly

    Intro., P1C.

  14. 2025-02-06 Tennessee General Assembly

    Filed for introduction

  15. 2025-02-06 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text 
HOUSE BILL 1348
By Haston

SENATE BILL 1340
By Powers

SB1340
003369
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 9;
Title 49 and Title 62, relative to higher education.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-7-202(f), is amended by adding
the following as a new subdivision:
(4) The commission shall review and update the outcomes-based funding
formula model at least once every five (5) years to provide incentives for institutions that
offer programs leading to job placement in high-demand fields in this state.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.