Will Tennessee Change Its Definition of “Economically Disadvantaged” Students?

A word from the Nashville Public Education Foundation (NPEF) on how the meaning of words makes a difference for public school kids.

Earlier this year, Tennessee lawmakers introduced a bill that would change the state’s definition of students who are economically disadvantaged. The bill proposed adding TennCare (Medicaid) participation as a factor in determining which students are designated as “economically disadvantaged.” Tennessee’s definition of this demographic, which was changed in 2016, is one of the most restrictive in the country: it currently counts students whose families are actively enrolled in SNAP and TANF in addition to other categorical factors, such as students experiencing homelessness or part of the foster care system. A major reason this definition is considered so strict is due to the low income threshold for qualifying for SNAP compared to other states – Tennessee’s income limit is 130% of the federal poverty guidelines, while many other states have enacted policies that effectively increase this threshold, with some states up to 200% of the federal poverty guidelines.

Adding in TennCare enrollment data, as the bill proposed, would result in a state definition of “economically disadvantaged” that much more accurately captured the socioeconomic reality and lived experiences of students and families. The implications of this definition became prominent when the number of students considered economically disadvantaged became directly tied to public school funding with the passage of TISA in 2022.

Despite bipartisan support, the state did not allocate funding for the costs associated with the definition change if the bill had passed. However, the bill was amended to task the TISA review committee to study Tennessee’s definition of economically disadvantaged, analyze how the state’s definition compares to that of other states, assess the impact on public schools, and make recommendations by November 2027. While not a full realization of the original bill, the amended version, which passed nearly unanimously in the state House of Representatives and Senate, demonstrates positive forward momentum and a shared commitment to addressing this issue.

cityscape of nashville tennessee at dawn
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WSMV reports that Tennessee now ranks last in the nation in school funding:

Tennessee has now been ranked as the worst state in the nation for spending on public school students from kindergarten through 12th grade.

The finding is part of a new report from the National Education Association that tracks teacher pay, student spending and education investment across the U.S.

The report shows that public school spending per student has dropped nearly 10% from the 2023-2024 school year. In that year, Tennessee ranked 48th in the nation for student spending.

Tennessee State Democrats called the findings “an indictment of one-party Republican governance.”

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WKRN notes that a new analysis says Tennessee ranks last in the nation in school funding:

The report places the Volunteer State 51st in per-pupil spending, behind every other state and the District of Columbia, prompting criticism from Democratic lawmakers who argue the numbers reflect years of underinvestment.

“It shows the state has prioritized big tax cuts and a private school program rather than dealing with the most important investment we make in the state’s future,” State Sen. Jeff Yarbro (D-Nashville) said.

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Chalkbeat reports:

Tennessee Republicans have passed an unprecedented intervention of the Memphis-Shelby County school system that gives political appointees sweeping authority over the locally elected school board and the state’s largest school district.

The appointed oversight board will have four years to address what Republicans argue is untenable academic underperformance and administrative instability in the district, which serves more than 100,000 students.

The new law gives the oversight board, which could be appointed at any time and must convene for the first time before July, broad latitude to set performance metrics for the district. It could also control everything from firing and hiring a superintendent to textbooks and classroom curriculum. The new body would have final say over the district’s $1.7 billion budget and major decisions like school closures and zoning.

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Tennessee is last in the nation in school funding, a new report shows.

Senate Democratic Caucus Chair London Lamar blasted the GOP supermajority and Gov. Bill Lee over the consistent underfunding of the state’s schools:

“While Gov. Lee and Republicans were busy shoveling hundreds of millions of taxpayer dollars into their private school voucher scam, they left nearly a million kids in Tennessee’s public schools with less funding per student than anywhere else in the nation. This isn’t an accident — it’s a choice. And Tennessee families are paying the price.”

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Tennessee policymakers and Gov. Lee have decided that funding a separate, $300 million voucher school system is more important than investing in our state’s public schools.

That decision carries real costs, as this letter writer to the Tennessean points out:

The wonderful public school my precious granddaughters attend has been informed that they will lose $338,000 this year. In essence, to have the same services in 2026-2027, they will have to find donors and philanthropies to chip away at this hole in the next few months, or drastically reduce staffing. Already, current staff cover two or three job descriptions, double up on learning support and, at the same time, have produced better test scores and student retention. The system disincentivizes success.

Four months to raise $338,000 that won’t provide extras or undergird new efforts. It’ll be just enough to maintain. Metro and the State do not provide fundraising support. PTAs are keeping the doors open, and moms are popping their trunks in the pickup line to provide diapers, hygiene products and food for students whose government-supported benefits have been reduced or stopped altogether.

cityscape of nashville tennessee at dawn
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Is Tennessee Developing a Dual System of Education?

The Unity Group of Chattanooga says in an email that the rapid expansion of school vouchers in Tennessee will lead to a dual system of education – a resegregation of schools.

Here’s what they have to say:

The Unity Group of Chattanooga remains firmly opposed to the expansion of school voucher programs in Tennessee, including Education Savings Accounts (ESAs) and the newly created “Education Freedom Scholarships.”

In the most recent actions of the Tennessee General Assembly, lawmakers have advanced and enacted sweeping voucher expansion through legislation including Senate Bill 1585 / House Bill 1881, as well as House Bill 2532 / Senate Bill 2453. Together, these measures significantly expand the state’s voucher system, increasing the number of publicly funded scholarships and further diverting taxpayer dollars from public schools into private education.

House Bill 2532 / Senate Bill 2453 in particular demonstrates the scale and direction of this effort, expanding the number of scholarships available statewide and tying state funding to student movement out of public schools. These actions make clear that Tennessee is not simply experimenting with vouchers, but actively building and growing a parallel, publicly funded private education system.

We have said before, and we will continue to say, that these programs are ineffective, inefficient, and inequitable. That conclusion is grounded in what we’ve seen in other states and in Tennessee itself: declining academic outcomes; rising costs to taxpayers, and programs that too often benefit those already positioned and affluent enough to access private education.

But for us, the issue runs deeper than cost or performance.

What we are witnessing is the State of Tennessee moving back toward a dual system of education, one public system that remains accountable to all, and another publicly funded but privately controlled system operating under a different set of rules.

That reality stands in direct conflict with the principles established under Brown v. Board of Education and reinforced through decades of court decisions requiring states to dismantle segregated systems and achieve unitary status.

When public funds are redirected to private institutions that are not bound by the same transparency, admissions standards, or civil rights obligations as public schools, we risk recreating conditions that those rulings were meant to eliminate.

We have seen this before. Following Brown, similar mechanisms were used to avoid integration and maintain separation under a different name.

We cannot ignore that history.

At a minimum, these policies raise serious questions about whether Tennessee can still be identified as a state that has achieved and maintained unitary status. From our perspective, this is a step backward, toward separation, toward inequality, and away from the shared responsibility of providing a strong public education for every child.

The Unity Group of Chattanooga will continue to speak clearly on this issue. We believe in one system of public education that is fully funded, fully accountable, and open to all, not a divided system that leaves too many behind.

Chattanooga Sign
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Another Voucher Warning

As the 2026 legislative session comes to a close, lawmakers are now looking at yet another effort to expand Gov. Bill Lee’s signature scheme: A private school discount coupon plan for wealthy families.

Some call them vouchers.

Realists call it a scam – exclusionary, expensive, and harmful to public schools and Tennessee communities.

A reverse Robinhood scheme that would make Ronald Reagan proud – taking tax dollars from Tennessee’s working class and sending them to the wealthy to fund private school education discounts.

In an email, Metro Councilmember Sandra Sepulveda notes:

After securing an expansion of Governor Lee’s voucher scam, well-funded special interests are now pushing to grow the state’s older and more costly ESA private school voucher system and the legislation is already moving quickly.

Tennessee lawmakers are advancing amended legislation (HB 1881/SB 1585) that would significantly expand the state’s ESA voucher program.

Key concerns with the amended bill:

  • Dramatically expand the income limit for the Education Savings Account (ESA) program and add Knox County, in addition to the Achievement School District, Hamilton County, Metro Nashville, and Memphis-Shelby. The income limit would be so high that almost every Tennessee family would qualify. 
  • Remove the 15,000-student cap on ESA vouchers. School districts affected by the program must reimburse the state for each ESA scholarship awarded from their respective counties. Most of these dollars come from local funds in each of these four counties. Without the cap,  school districts may have to send additional funding to the state to cover the additional ESA recipients, taking resources out of the neighborhood public schools and classrooms. 
  • Allow the ESA program to serve additional students when the statewide voucher program reaches capacity. The four additional counties that would now be included in the ESA program already have the highest number of families participating in the voucher program. This could explode the number of vouchers in Tennessee and cause irreparable fiscal harm to the state’s largest school districts.
  • Remove TCAP testing and annual reporting requirementsfor the ESA program. By removing these requirements, lawmakers reduce transparency and accountability, leaving families and taxpayers without the information they need to see how students in the ESA program are performing compared to their peers in public schools.

Use the buttons below to take action to stop special interests from taking your tax dollars to give private school coupons to Bill Lee’s rich friends.

EMAIL: https://bit.ly/fundourschoolstn
CALL: https://bit.ly/vouchercallscript2026

Gov. Bill Lee promoting school privatization

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NPEF on Vouchers

The Nashville Public Education Foundation (NPEF) offers some insight into vouchers.

Short version: The don’t work to improve academic outcomes, they eat state budgets, and they provide private school discount coupons to wealthy families.

MORE about the impacts of the bill that expands vouchers to 35,000 seats and is expected to cost taxpayers $262 million:

The amended House bill would have three main effects on public school districts. First, as part of the process to recoup funding due to disenrollment, districts would be required to collect and share the social security numbers of students at the time of public school enrollment. Critics of the bill argue that this is a measure intended to begin tracking the citizenship and immigration status of students by public school districts. Second, while the state’s funding formula factors in regular increases to offset funding losses, the amended House bill’s requirements place a significant administrative burden on districts that has the potential to require districts to spend more money to recoup funding than the money they would recoup in the first place. Third, the amended House bill also significantly increases the household income threshold built into the program, making more vouchers available for higher-income families than previous legislation allowed. 

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Memphis Republicans Mark White and Brent Taylor, who are sponsoring the legislation, have both said in recent months that they want to align with White’s original bill.

White’s plan would install a board of managers, handpicked by elected state Republicans, that would have significant authority over the Memphis-Shelby County school district. Appointment powers would be given to the governor, lieutenant governor and House speaker, all Republicans who are not from Memphis.

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