(The Center Square) – The Finance, Ways and Means Committee in the Tennessee House of Representatives on Tuesday will consider an amendment to a bill that would reduce Gov. Bill Lee’s proposed increase to the Education Freedom Scholarships.
A subcommittee approved an amendment presented by Cookeville Republican Ryan Williams that would add 10,000 new scholarships for the 2026-27 school year, in addition to the 5,000 included in the original law, for a maximum of 35,000. Gov. Bill Lee requested that lawmakers double the amount of scholarships from 20,000 to 40,000 and included funding in the fiscal year 2027 budget.
Williams said the amendment creates what he called a “pecking order” as to who receives the scholarships. Current recipients would be considered first, followed by students in households whose income does not exceed 100% of the amount required for the student to qualify for free or reduced-price lunch, followed by those whose income does not exceed 300% of that same level.
School districts could also recoup funding due to enrollment losses if they can demonstrate that students are lawful U.S. residents.
The amendment also requires an annual report on scholarship recipients, including their county of residence, whether they were in a public school when they applied, and their annual household income.
The Senate Finance, Ways and Means Committee advanced Lee’s proposal on March 31, which would award the $7,530 scholarship to 40,000 students for the 2026-27 school year. Lee included funding in his fiscal year 2027 budget proposal.
Lee has continued to advocate for increasing the number to 40,000. He posted a video on social media on Monday featuring a Memphis mother whose children received the scholarship.
“Education freedom is changing the lives of thousands of Tennessee children, and it’s time we grow the program to 40,000 scholarships to serve even more families,” Lee wrote.
Applications for the Education Freedom Scholarships increased significantly in the program’s second year. More than 56,000 students applied for the 2026-27 school year, while more than 38,000 applied for the 2025-26 school year, according to the Tennessee Department of Education.
