For the eighth and final time, Tennessee Gov. Bill Lee delivered his State of the State to the General Assembly.

Lee also presented his budget and legislative priorities for his final year in office.

The governor said Tennessee is in a strong budgetary position and claimed his $57.9 billion budget includes strategic funding to ensure economic and educational opportunity, strengthen families, preserve our natural resources and more.

Lee noted the following:

• $20 million investment in Tennessee’s Rainy Day Fund, bringing Tennessee reserves to more than $2.2 billion, the largest in state history

• $8 million to expand the Tennessee Youth Employment Program, creating more opportunity for young adults to gain valuable job skills, especially in underserved communities

• $25 million in further investment in the Tennessee Entertainment Commission to fund incentive grants for Tennessee’s music and film industry

• $425 million to the Tennessee Department of Transportation to address the state’s infrastructure needs, including expediting existing road projects and funding new projects across rural and urban Tennessee

• $165 million to renovate and replace Tennessee’s rest areas and welcome centers

• $56.2 million to support infrastructure needs for commercial and general aviation

• $30 million to create the Starter Home Revolving Loan Fund to support construction of new, affordable starter homes for hardworking Tennesseans, prioritizing rural communities

• $25 million further investment in the Rural Development Fund to improve quality of life in rural communities by supporting business development and infrastructure planning

Lee also addressed the devastation caused by winter storms that have left thousands of Middle Tennesseans without power and claims 23 lives.

“Let me begin by saying – many in our state have experienced real challenges in the past week due to Winter Storm Fern.There are Tennesseans who are still without power – some who are in this room tonight,” Lee said. ‘And there are Tennessee families who lost a loved one – 23 lost their lives due to the winter storm. It has been a difficult, frustrating and, in some cases, tragic struggle.

“To add to that struggle, I spoke last night with Nicole Bonham, the widow of Derrick Bonham, a Weakley County Sheriff’s Deputy who courageously gave his life this week in the line of duty, leaving behind Nicole and their three children,” Lee said before asking for a moment for prayer. “In the midst of the challenges of this storm, we have seen the courage and selflessness of the line workers, Highway Patrolmen, Tennessee National Guardsmen, TDOT crews, countless state employees…as well as everyday Tennesseans opening their homes to neighbors in need.”

Lee said the work done by his office and the assembly is about changing lives.

Among other things, Lee highlighted some of Tennessee’s achievements in education in his tenure, taking credit for bringing “common sense” back to Tennessee’s classrooms.

“We know that kids have to learn to read by the third grade, so that in fourth grade, they can read to learn. This simple truth has guided our kindergarten through third grade literacy strategy, and the work has paid off. Today, only six states in the country have fourth graders who read significantly better than ours.

“Third, we’ve recognized the dignity and value of Tennessee teachers. In 2019, the starting salary for a teacher was $35,000. Thanks to you – the members of this General Assembly – in 2027, starting pay will be $50,000.”

Lee said that Tennessee is a top five state for improvement in reading and math.

“When I took office in 2019, Tennessee ranked in the bottom half of states in both math and reading. Today, not only do our scores outpace the national average, but since 2022, Tennessee is a top five state for gains in reading and math. This didn’t happen by accident.

“… we’ve made an historic investment of more than $2.5 billion in our public schools – that’s a 50 percent increase. And I’m proud that, this year, we’re proposing an additional $340 million in the budget directed to our public schools.”

Despite the outlined improvement in public education, Lee also found time to praise his controversial school choice initiative, the Education Freedom Scholarship Program, which launched in the fall of 2025.

“Parents know best,” he said.

“Clearly, Tennesseans like freedom. Last year, we received more than 40,000 applications, and this year, 54,000 applications so far for 20,000 spots,” he said. “That means, right now, 34,000 students are still waiting for a shot at Education Freedom. We owe it to them.”

Lee did not address a Comptroller’s report late last year that indicated that many of the applicants for the Education Savings Account – a precursor to the EFS – did not qualify for the program and many of the approved students did not use the money for which they did qualify.

“We don’t have to look far to see how education freedom is changing lives. Down the road in Antioch, 77 percent of students enrolled at Lighthouse Christian School are there because they received a scholarship from the State,” Lee said of the school whose motto is “Developing the Next Generation of Christ-Centered Leaders.”

“Dr. Milton Nettles, Head of School at Lighthouse, has seen how school choice is changing lives firsthand. Once a public school teacher himself, he believes parents know best, and he’s seen hundreds of students find their fit at Lighthouse and parents who have a choice, at last,” Lee said. “Still, he says, it isn’t enough, and I agree. Growing the program would open the doors of opportunity for thousands more children statewide.”

Other initiatives the Governor outlined included:

• $205 million utilizing Shared Savings to strengthen healthcare initiatives, including funding Rural Health Transformation Resiliency Grants

• $230 million to TennCare to cover increasing costs associated with medical inflation, including higher prescription drug prices and Medicare payments, and increased utilization and services

• $34.5 million to Department of Children’s Services (DCS) to assist with reducing caseload ratios

• $10.7 million to enhance staff safety at DCS facilities that accommodate delinquent youth

• $15 million for capital project and maintenance grants to YMCAs across Tennessee

• $100 million to bolster the Governor’s Response and Recovery Fund which provides support to individuals, businesses, and communities after natural disasters

• $80 million for public safety grants to enhance crime prevention and increase public safety in Memphis

• $83 million to Tennessee Department of the Military for construction of a new Army Aviation Support Facility in Rutherford County

• $37.5 million for salary increases and creation of an additional 50 State Troopers and related support staff positions to improve public safety across the state

• $20 million for capital improvements at the West Tennessee and East Tennessee Regional Juvenile Justice Centers

• $1.7 million recurring grants to non-profit partners that combat human trafficking and support survivors