Tennessee Gov. Bill Lee Proposes Doubling School Voucher Program in Final Budget

Lee's $57.9 billion budget also includes increased funding for public schools, higher education, and public safety initiatives.

Published on Feb. 3, 2026

Got story updates? Submit your updates here. ›

Tennessee Governor Bill Lee unveiled his proposed $57.9 billion budget for Fiscal Year 2027, his final year in office. The budget focuses on expanding Lee's signature Education Freedom Scholarships program, also known as the school voucher program, by doubling the number of available vouchers from 20,000 to 40,000. Lee also proposed increased funding for public schools, higher education, and public safety initiatives like the Tennessee Highway Patrol.

Why it matters

Lee's push to expand school vouchers has been a contentious issue during his governorship, with critics arguing it diverts funding from public schools. The proposed budget increase for the voucher program to over $300 million annually is likely to face opposition from Democrats and public education advocates. However, Lee frames the expansion as empowering parents and providing educational freedom.

The details

Lee's budget includes about $190 million in new public school funding and over $470 million in higher education investments. To grow the voucher program, Lee proposed an additional $155 million, bringing the annual cost to over $300 million. The budget also includes $37.5 million for Tennessee Highway Patrol pay raises and 50 new trooper positions, as well as $80 million to continue a police crackdown in Memphis and permanently station 100 troopers in Shelby County. Additionally, Lee wants to invest $81.6 million to create three new state parks and over $115 million in nuclear energy and technology companies.

  • Lee released his proposed Fiscal Year 2027 budget on Monday, February 3, 2026.
  • Lee delivered his State of the State address on the evening of February 3, 2026.

The players

Bill Lee

The Republican Governor of Tennessee who is in his final year of his second term.

Raumesh Akbari

The Democratic Senate Leader in Tennessee who criticized Lee's budget priorities in a 'prebuttal' released before the State of the State address.

Got photos? Submit your photos here. ›

What they’re saying

“Tennessee has cast a vision for what education can and should look like, strong public schools, choices for parents, opportunity for every kid to succeed.”

— Bill Lee, Governor (nashvillebanner.com)

“We know that parents know best. Clearly, Tennesseans like freedom. This is why we should empower parents. This is why we need education freedom, and this is why we should, at the very least, double the amount of scholarships this year for Tennessee students.”

— Bill Lee, Governor (nashvillebanner.com)

“After fifteen years of one-party control, working families are feeling the strain. Priorities at the Capitol have been upside down. We need relief now. We need fairness. We need leadership focused on our lives, not distractions.”

— Raumesh Akbari, Senate Democratic Leader (nashvillebanner.com)

What’s next

The Tennessee General Assembly will review and debate Lee's proposed budget in the coming months, with a final budget expected to be passed by the end of the fiscal year on June 30, 2026.

The takeaway

Governor Lee's final budget proposal doubles down on his signature education and public safety initiatives, reflecting his conservative priorities. However, Democrats argue the budget fails to adequately address the cost-of-living concerns facing many Tennessee families, setting up a likely partisan clash over the state's spending priorities in Lee's final year.