Tennessee Passes $58B Budget Without Grocery Tax Cuts

Republican leaders emphasize need for cautious approach amid slowing revenue growth and federal funding cuts.

Apr. 17, 2026 at 3:56am

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A photorealistic painting of an empty grocery store checkout counter, with warm sunlight streaming in through the windows and deep shadows cast across the scene, creating a contemplative and melancholic mood.The lack of grocery tax relief in Tennessee's new budget leaves many residents feeling the state has overlooked their everyday needs.Today in Nashville

Tennessee lawmakers have passed a $58 billion state budget, but a highly discussed cut to the state's 4% grocery tax was left out of the final spending plan. Republican leaders cited the need for a more cautious approach this year due to slowing revenue growth and federal funding cuts, though they had signaled openness to reducing or eliminating the grocery tax earlier in the legislative session.

Why it matters

The lack of grocery tax relief in Tennessee's new budget is a disappointment for many residents who have been calling for the tax to be reduced or eliminated. The 4% tax on groceries is seen by some as an unfair burden, especially for low-income families. The decision not to include the cut reflects the state's fiscal priorities, which some argue leave everyday Tennesseans behind.

The details

Throughout the legislative session, Republican leaders in Tennessee had signaled they were open to reducing or eliminating the state's 4% grocery tax. Several different versions of a grocery tax cut were sponsored, including a partial cut, cutting the tax on fresh produce, cutting it for older adults, and eliminating it altogether. However, when it came time to pass the final $58 billion state budget, no cuts to the grocery tax were included. Republican leaders emphasized the need for a more cautious approach this year due to slowing revenue growth and federal funding cuts, stating they 'never want to pass a tax cut that some legislative body might have to put back in place.'

  • The Tennessee legislature passed the $58 billion state budget in April 2026.

The players

William Lamberth

House Majority Leader (R-Portland)

Jack Johnson

Senate Majority Leader (R-Franklin)

John Stevens

State Senator (R-Huntingdon)

Aftyn Behn

State Representative (D-Nashville)

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What they’re saying

“'Why would you tax the very things people need to survive every single day?'”

— William Lamberth, House Majority Leader (R-Portland)

“'We've cut over $5.1 billion in taxes in Tennessee. That's money right back into every single Tennessean's pocket, and we're going to continue to look for ways, like the grocery tax and others, to reduce taxes.'”

— William Lamberth, House Majority Leader (R-Portland)

“'The budget recognizes the return to a more normal economic environment with conservative growth expectations.'”

— Jack Johnson, Senate Majority Leader (R-Franklin)

“'The surest way to know what's truly in a person's heart is to look at where they spend their money. As a state, we don't have a heart, but you can see what's important to us by what we spend the taxpayers' money on.'”

— John Stevens, State Senator (R-Huntingdon)

“'They have cosplayed like they are ending the grocery tax. They ran on it last election cycle, I'm sure they'll be running on it again, and there's only so many years until Tennessee voters will give them until they actually do it, and I think we're at a breaking point for that. Our message is get serious about ending the grocery tax.'”

— Aftyn Behn, State Representative (D-Nashville)

The takeaway

Tennessee's decision to pass a $58 billion budget without any cuts to the state's 4% grocery tax has disappointed many residents who were hoping for relief from the tax. While Republican leaders had previously signaled openness to reducing or eliminating the tax, they ultimately cited the need for a more cautious approach this year due to slowing revenue growth and federal funding cuts. This move reflects the state's fiscal priorities, which some argue leave everyday Tennesseans behind.