The Tennessee House and Senate passed the state’s $58.3 billion budget for the 2026-27 fiscal year, fulfilling the General Assembly’s only constitutional duty.
This year’s spending plan reflects a continued return to more typical economic growth following several years of record-high revenues. The budget reaffirms the General Assembly’s longstanding commitment to fiscal responsibility while making targeted investments to strengthen Tennessee’s economy, improve education, and support families across the state.
The budget conservatively projects 2.35 percent growth in state revenue, amounting to about $450 million in recurring funds that have been fully utilized. In recent years, earnings from the Treasurer’s investments have been exceptionally strong, driven by higher balances available for investment and elevated interest rates. The 2026-27 budget incorporates more than $620 million in non-recurring funding from these investment earnings, along with $42 million in unclaimed property revenue…