Why Are Tennessee Lawmakers Spending $300 Million on a Failed Program?

At Gov. Bill Lee’s behest, the General Assembly this year expanded the state’s private school discount coupon scheme – now costing $300 million.

As part of that expansion, policymakers also decided that students accepting vouchers would no longer have to take state standardized tests – so, we won’t know in the future whether students using vouchers have “improved” academic outcomes.

We do, however, have numbers from the program so far – a program that has been around since its passage in 2019.

Data analysis shows that Tennessee kids using vouchers score 20 points or more WORSE than their public school peers.

The Tennessean notes that only 17% of kids receiving vouchers scored proficient on the state’s standardized math test and 24% reached proficiency in English.

I mean, that sounds bad – but, how does it compare to public school results?

Public school students scored 43% in math proficiency and 40% in English.

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Some private schools receive public funds for every student in their building – and still aren’t required to meet the transparency and accountability requirements of public schools.

ProPublica digs into some of these “100% schools” and finds both poor performance and questionable financial practices. Yes, both of these may occur in public schools – but, public schools post line-item budgets online and must conduct business in public meetings. There are also rules about awarding contracts to board members – rules that don’t seem to apply to private schools.

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On the Futility of Federal Vouchers

Trump’s education scam is a federal school voucher scheme. And it won’t help public schools, despite some who suggest otherwise.

Point is– federal voucher dollars are not going to go to public schools unless the public schools can figure out a way to create the new funding stream for students carrying cash backpacks, and that create a whole new set of issues. If a special tutoring program is available to Susie because she has a backpack of federal voucher money, then why shouldn’t that tutoring be available to any or all students, regardless of backpack status?

Addendum: If a district already has a program that charges fees, then the federal voucher would help families pay that fee, but that would result in zero new revenue for the district.

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School privatization schemes come in a lot of packages – no matter how they are served, though, the results are the same: The schemes cost a lot, leave lots of kids behind, and reduce funds available for traditional public schools.

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The appeal of “school choice,” in which families are permitted to use state funds that would’ve been otherwise spent on public education on non-traditional programs like charter or private schools, is easy to understand. The promise of options and tailored education sounds reasonable in the abstract. But in practice, choice works best for families with the time, information, and flexibility to navigate it, and whose children the private school is willing to choose. For a family in rural Florida or a child with complex disabilities whose needs most private schools won’t accommodate, the marketplace of options is theoretical. The public school is the only institution legally required to educate every child who walks through the door. When it is weakened through funding cuts, the diversion of students and dollars, or a hollowed-out teaching workforce, the consequences fall hardest on the children least able to find alternatives.

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Of Vouchers and Darkness

State Rep. Aftyn Behn talks about the current climate in Tennessee – and predicts a dark future after the devastating results of a decade and a half of complete GOP control. She even calls out vouchers as among the key policy blunders the GOP seems eager to expand:

Tennessee’s private school voucher program has already jumped from 20,000 seats to 35,000 in its second year, estimating a cost of $260 million by 2027… states like Arizona with similar voucher programs are staring down billion-dollar holes in their budget, with local counties hemorrhaging revenue with limited ability to fill the gaps

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In the race to become Tennessee’s next Governor, U.S. Senator Marsha Blackburn has the backing of one of the nation’s biggest voucher supporters.

Jeff Yass is one of the richest people in the world. He is the richest person in Pennsylvania. He is #25 or #27 on Bloomberg’s Billionaires’ Index, depending on which day you check.

Yass is known for his investment in TikTok’s parent company and for being a major financial supporter of President Donald Trump’s 2024 campaign.

He’s now the largest single contributor in Tennessee’s gubernatorial election after donating $1 million to Team Tennessee, a PAC that is backing U.S. Sen. Marsha Blackburn’s bid for the top job.

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A group that supports a statewide program of private school discount coupons for wealthy families (school vouchers) is among the top political spenders in Tennessee.

Tennessee Lookout reports

Over the next two years, the School Freedom Fund spent $4.5 million across Tennessee’s 2024 legislative cycle and a special election for a Middle Tennessee Congressional seat in 2025. The group won five of the six primaries it spent on, signaling the value of its backing in winning competitive Republican elections.

The group spent nearly twice as much as the Tennessee Republican Caucus did in the 2024 cycle. Following that, state lawmakers passed Lee’s original 2024 statewide plan by a five-vote margin in the state House.

Now, the state has a $300 million school voucher scheme. Tennessee also invests less in public education than any other state in the nation.

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Tennessee Earns an “F” in Support of Public Schools

As Gov. Bill Lee’s 8 years in office come to an end, his legacy is clear: Support for public schools is near the bottom in the nation, while efforts to privatize get top billing.

While the most recent analysis of public school funding places Tennessee last in the nation, a report released this week by the Network for Public Education (NPE) gives the Volunteer State a grade of “F” for its support (lack of support?) for public schools.

In a press release, NPE says:

Only two states — Nebraska and Vermont — earned an A. Seventeen states received an F, failing to meet even 40% of the points allocated across NPE’s 39 standards. Florida ranked last, scoring 14 out of 102 possible points, with Arizona close behind. “The data confirm what we have long suspected: privatization and disinvestment go hand in hand,” said Carol Burris, Executive Director of NPE and the report’s author. “These are not states struggling with limited resources. They have made deliberate choices to abandon their public schools while directing billions in public dollars to private alternatives.”

Relative to Tennessee, the report notes:

Florida lost every possible point in our school funding category, ranking in the bottom decile for funding level, distribution, and effort, while also paying among the lowest teacher salaries in the country when adjusted for cost of living. Arizona, Idaho, North Carolina, and Tennessee each earned just two of sixteen possible funding points.

The 17 states that earned an F for their lack of support of public schools, students, and educators while embracing privatization were (lowest to highest) Florida, Arizona, North Carolina, Louisiana, Indiana, Oklahoma, Idaho, Arkansas, Alabama, Utah, Texas, Tennessee, Georgia, Ohio, Nevada, South Carolina, and Missouri.

About the report:

The report draws on original research in addition to research from other organizations — including the Education Law Center, the Learning Policy Institute, and EdChoice — to deliver a comprehensive assessment of public education and privatization across 39 distinct factors. These include teacher-to-student ratios, teacher satisfaction, school funding levels, and the degree to which laws governing vouchers, charter schools, and homeschools protect both taxpayers and students.

Gov. Bill Lee promoting school privatization

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The Facts About TN’s Very Expensive Voucher Scheme

The Nashville Public Education Foundation (NPEF) released an infographic explaining what happened with school vouchers in the 2026 legislative session.

In the email announcing it, they said:

One of the most prevalent areas of focus in the 2026 Tennessee legislative cycle was the state’s voucher programs, which provide public dollars to families opting to enroll their child in a participating private school instead of their local public school district. Our latest infographic breaks down the need-to-know voucher bills that had an impact on accountability, access, and transparency

The most significant voucher bill this year expanded Tennessee’s Education Freedom Scholarship vouchers, which are available to families statewide, from 25,000 seats to 35,000 seats. The bill also changed how school districts can recoup per pupil funds lost due to disenrollment.
As a result:

  1. Districts can only recoup funds that they can show were lost as a direct result of voucher participation.
  2. Districts must track students’ social security numbers as part of this process, which they currently do not do.
  3. Recouped funding will be calculated according to the past year’s funding levels, which would not account for cost of living increases.

These changes add a great deal of administrative burden to districts to recoup funds and alter a previous hold harmless provision that helped ensure school districts would not lose money from one year to the next. This bill also adjusted the income limits for EFS vouchers, making them more accessible for higher-income families.

Other proposed legislation was intended to increase transparency and accountability surrounding the usage of voucher programs, particularly regarding the socioeconomic levels of families enrolling in voucher programs, and in the learning outcomes of participating students. However, these bills failed at the committee level and did not proceed for a full vote.

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The Impact of Vouchers on Nashville

Tennessee policymakers and Gov. Lee have decided that funding a separate, $300 million voucher school system is more important than investing in our state’s public schools.

That decision carries real costs, as this letter writer to the Tennessean points out:

The wonderful public school my precious granddaughters attend has been informed that they will lose $338,000 this year. In essence, to have the same services in 2026-2027, they will have to find donors and philanthropies to chip away at this hole in the next few months, or drastically reduce staffing. Already, current staff cover two or three job descriptions, double up on learning support and, at the same time, have produced better test scores and student retention. The system disincentivizes success.

Four months to raise $338,000 that won’t provide extras or undergird new efforts. It’ll be just enough to maintain. Metro and the State do not provide fundraising support. PTAs are keeping the doors open, and moms are popping their trunks in the pickup line to provide diapers, hygiene products and food for students whose government-supported benefits have been reduced or stopped altogether.

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