Tennessee lawmakers look to expand low-income student voucher program

Tennessee’s legislature is considering a massive expansion of the state’s first private-school voucher program for low-income students, only a week after bolstering a separate voucher system available to all students.

The move could dramatically expand the Education Savings Account program, which has only about 4,800 students enrolled in Metro Nashville, Memphis Shelby County and Hamilton County school districts, according to a state financial analysis. The bill would expand it to Knox County Schools and remove the cap for the number of students who could receive the money. 

The program was barely adopted in 2019 when former House Speaker Glen Casada held the vote board open for nearly 45 minutes to work the chamber for a tie-breaker.

Senate Bill 1585/House Bill 1881 widens eligibility for the state’s Education Savings Account program by raising the income limit to 400% of the federal free or reduced-price lunch program, $240,000 for a family of four. 

The measure, which is sponsored by Republican Rep. William Slater of Gallatin and Senate Majority Leader Jack Johnson of Franklin, is coming as a surprise to some lawmakers who thought they were done with voting on private-school vouchers last week. 

Republicans are having to whip up votes in the final days of this year’s session. It could be taken up in the Senate, where it could face a difficult path, if it passes the House.

The bill’s financial impact analysis shows only a $22,000 cost for administration. But the state’s Education Savings Account vouchers are worth about $9,700, meaning an increase of 10,000 students could cost the state roughly $97 million.

The bill also removes a provision through which the state pays school districts that lose students to private schools, but the financial impact is not included in the bill’s analysis.

In addition, the Tennessee Department of Education could approve Education Savings Account funds for students who apply for another program called “Education Freedom Scholarships,” if the state doesn’t have enough of those available.

The House and Senate narrowly voted last week to expand the newer “scholarships” program to 35,000 students from 20,000, a move that reduced Gov. Bill Lee’s request to double the program.

Democratic Sen. Heidi Campbell of Nashville called the move “diabolical” and accused the sponsors of waiting until the final days of the General Assembly’s session because “they knew it wouldn’t be able to pass otherwise.”

The private-school voucher expansion passed the House 52-43 and the Senate by 18-14 last week, both barely receiving the constitutionally required number to gain adoption.