The Tennessee Senate on Thursday narrowly approved an expansion of the state’s Education Freedom Scholarship program, advancing a version of House Bill 2532 that would grow the program to 35,000 students, an increase of 15,000 scholarships from the initial amount offered during the program’s first year.
In a closely divided vote, the Senate agreed to add 10,000 new scholarships for the 2026-27 school year. The measure passed by a vote of 18-14, with eight Republicans opposing the measure.
Upon approval by Governor Bill Lee, the bill would bring the total number of available scholarships to 35,000, up from the 20,000 initially authorized when the program was created in 2025 and a provision in the initial bill allowing for an additional 5,000 increase for the program’s second year.
The expansion comes amid surging demand for the program. According to the Tennessee Department of Education, more than 56,000 students have applied for scholarships for the upcoming school year, a significant increase from the more than 38,000 applicants the year before.
Supporters argue the growth of the voucher program reflects strong interest from families seeking alternatives to traditional public schools. In a statement, TennesseeCAN praised lawmakers for increasing access.
“This expansion means that more families, regardless of their background or income, can choose to send their child to the public school, charter school or private school that will best support their individual learning needs,” said TennesseeCAN Executive Director Chelsea Crawford.
“We look forward to Gov. Bill Lee signing this bill into law,” Crawford added.
Earlier this week, the Tennessee House of Representatives passed its own version of HB 2532 by a narrow 52-43 margin. That proposal also expanded the program to 35,000 scholarships but included additional provisions related to student data collection and school funding formulas, specifically a requirement tied to Social Security numbers.
Under that plan, public school districts would receive additional funding to offset enrollment losses only if departing students had provided a Social Security number at enrollment. Districts would also be required to report reasons for student disenrollment.
The Senate-backed measure differs from the House version in how it phases in financial protections for school districts experiencing enrollment losses.
Under the Senate amendment, districts would receive full funding protection for the 2026-27 school year to offset declines, before transitioning in later years to a more limited, per-student funding model tied in part to whether students provided Social Security numbers. By contrast, the House approach would have implemented those stricter conditions immediately, offering less upfront financial cushioning to districts.
The Senate plan also delays the point at which districts can only receive additional funding for students who leave specifically to participate in the scholarship program, creating a more gradual transition away from broader enrollment-based protections.
House members voted 63-28 Thursday concurring with the Senate’s changes. The bill now heads to the governor’s desk for final approval.
– – –
Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network. Follow Kaitlin on X / Twitter.
Photo “Class time” by Allison Shelley/The Verbatim Agency for EDUimages CCNC2.0.
