Another Voucher Warning

As the 2026 legislative session comes to a close, lawmakers are now looking at yet another effort to expand Gov. Bill Lee’s signature scheme: A private school discount coupon plan for wealthy families.

Some call them vouchers.

Realists call it a scam – exclusionary, expensive, and harmful to public schools and Tennessee communities.

A reverse Robinhood scheme that would make Ronald Reagan proud – taking tax dollars from Tennessee’s working class and sending them to the wealthy to fund private school education discounts.

In an email, Metro Councilmember Sandra Sepulveda notes:

After securing an expansion of Governor Lee’s voucher scam, well-funded special interests are now pushing to grow the state’s older and more costly ESA private school voucher system and the legislation is already moving quickly.

Tennessee lawmakers are advancing amended legislation (HB 1881/SB 1585) that would significantly expand the state’s ESA voucher program.

Key concerns with the amended bill:

  • Dramatically expand the income limit for the Education Savings Account (ESA) program and add Knox County, in addition to the Achievement School District, Hamilton County, Metro Nashville, and Memphis-Shelby. The income limit would be so high that almost every Tennessee family would qualify. 
  • Remove the 15,000-student cap on ESA vouchers. School districts affected by the program must reimburse the state for each ESA scholarship awarded from their respective counties. Most of these dollars come from local funds in each of these four counties. Without the cap,  school districts may have to send additional funding to the state to cover the additional ESA recipients, taking resources out of the neighborhood public schools and classrooms. 
  • Allow the ESA program to serve additional students when the statewide voucher program reaches capacity. The four additional counties that would now be included in the ESA program already have the highest number of families participating in the voucher program. This could explode the number of vouchers in Tennessee and cause irreparable fiscal harm to the state’s largest school districts.
  • Remove TCAP testing and annual reporting requirementsfor the ESA program. By removing these requirements, lawmakers reduce transparency and accountability, leaving families and taxpayers without the information they need to see how students in the ESA program are performing compared to their peers in public schools.

Use the buttons below to take action to stop special interests from taking your tax dollars to give private school coupons to Bill Lee’s rich friends.

EMAIL: https://bit.ly/fundourschoolstn
CALL: https://bit.ly/vouchercallscript2026

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Sepulveda Speaks Out Against Vouchers

In an email sent by advocacy group TN for All, Nashville Metro Councilmember Sandra Sepulveda issues a call to action against the legislature’s attempt to rapidly expand Gov. Bill Lee’s voucher scheme. If expanded, the plan could cost as much as $300 million next year.

The email reads in part:

Last night, the Tennessee House of Representatives voted to pass an expansion of Governor Lee’s voucher scheme.

These vouchers, called “Education Freedom Scholarships,” have so far gone primarily to wealthy families whose children were already enrolled in private schools, with no evidence from the Lee administration to suggest otherwise.

For the upcoming school year, each voucher will be worth $7,530 per student attending a private school, which is more state funding per pupil than Tennessee provides to K 12 public school students. Meanwhile, Tennessee ranks 47th in the nation in per pupil spending for public education.

In short, this means more strain on our public schools and less support for the students who rely on them.

Vouchers are a bad deal for Tennessee families. Our children deserve strong, stable investment in their public schools.

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TC Weber tracks down the latest in the ongoing fight over expanding school vouchers:

Take the voucher expansion bill.

The House recently amended its version, pushing the program to 35,000 students next year—an increase of 15,000.

The Senate? They want 40,000.

Because of course they do.

The House version also adjusts “hold harmless” funding—meaning districts would only receive funding for students who actually take vouchers, not for overall enrollment losses.

That’s not a small tweak.

That’s a structural shift.

And it has the potential to hit district budgets hard.

The big question now is whether there are enough votes to get anything across the finish line.

Republicans have a supermajority, but even within that, there’s division.

And when divisions show up this late in session, strange things can happen.

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As an example:

Subsidize private education for the rich. School vouchers, on average, cover just 39% of middle school private school tuition across the sampled states. Even with a private school voucher, tuition prices are often out of reach for working-class families, meaning that the vouchers function as a subsidy to the rich who can already afford to pay for private education.

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A lawsuit over school vouchers in Ohio points to disparities in state funds received, with public schools coming out on the losing end.

The coalition representing public school districts says the voucher program violates the state constitution’s equal protection provisions by providing more funds for some students receiving vouchers than their public school peers.

In the 2023-2024 school year, students in Richmond Heights Local School District received $1,530 in state funding. Students in Cleveland Heights-University Heights City School District received $2,600. That’s far less than what EdChoice students in grades K-8 received, $6,166, and high school students got, $8,408.

The districts argue this disparity is unjustified and discriminatory, and that public school students should not have to leave public education to receive equal treatment.

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Voucher Numbers

TC Weber takes a look at the state’s voucher numbers:

This week, the Tennessee Comptroller released a 163-page analysis of the second program. Reviews are mixed—and appropriately so.

The report shows:

  • Program growth from 452 students to nearly 3,700
  • Participation still far below the 15,000 seats authorized
  • Of 98,000 eligible students, only 7,019 applied (7.2%)

Several findings deserve closer scrutiny:

  • 24–36% of ESA recipients never used their vouchers
  • It’s unclear where unused funds went
  • The majority of ESA students did not attend public school the prior year

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Runaway school vouchers lead to school closures.

In every state.

Every time.

The evidence out of Arizona is clear:

8 more community schools close: Our hearts break for the Kyrene and Scottsdale communities, as their school boards have voted to shutter neighborhood schools. Kyrene voted to close 6 schools, and Scottsdale Unified voted to shut down 2 schools at the end of this school year. These votes come after months of emotional community input and difficult conversations about budget constraints. This brings the total number of schools shut down since universal ESA voucher expansion to 28, with at least 4 more closures expected in Amphi.

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Privatizing Just to Privatize

It turns out, all that “school choice” talk Gov. Bill Lee used to promote his signature policy issue – private school discount coupons – was just talk.

Kids aren’t leaving failing schools.

Kids aren’t performing better once they are in private schools.

It’s just state-sponsored privatization of a public good.

More from Chalkbeat:

Most Tennessee public school students who use Education Savings Account vouchers aren’t leaving low-performing public schools, while ESA students overall are underperforming their public school peers in both academic achievement and growth.

Overall, students receiving ESA money performed worse on the state’s standardized tests than students in public schools, although ESA students outperformed their peers in Memphis-Shelby County schools last year. The comptroller’s report also notes that scores from students receiving ESAs have increased over time.

Meanwhile, virtual schools participating in the ESA program for the first time last year performed worse than both private schools with ESA students and local public schools. Just 20% of ESA students enrolled in virtual schools were proficient in English language arts, and just 17% were proficient in math.

And, the kids aren’t leaving behind schools that are “failing:”

“Most schools that students are leaving to participate in the ESA program are neither reward nor priority schools, which would indicate their performance is neither among the highest or lowest of public schools in the state,” the comptroller’s report states. “When considering schools that have received state and federal designations, more ESA students are leaving reward schools than priority schools.”

Read the Comptroller’s report on Education Savings Accounts (ESAs)

Gov. Bill Lee promoting school privatization

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Florida’s Department of Education is unable to track as many as 30,000 students at any given time due to the “Wild West” nature of the state’s multiple “school choice” schemes:

Sen. Don Gaetz, R-Crestview, said that at any given moment the state does not know where 30,000 students are in terms of school categories — traditional public or voucher-supported private or home schools — together worth $270 million in education support.

Sometimes, the students are “double-dipping” – enrolled in a private school where voucher dollars have been sent, but actually attending a local public school – the cost, then, is borne exclusively by the local school district.

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How Big Will TN’s Voucher Program Get in 2026?

Tennessee’s private school coupon scheme already has 20,000 takers. It will grow to 25,000 in 2026-27 unless the legislature intervenes to expand the program further.

And, that’s just what Gov. Bill Lee and House Speaker Cameron Sexton plan to do – with some suggesting a doubling of the program to 40,000 students next year.

Chalkbeat reports:

A mechanism in the state law will allow lawmakers to easily expand the program for 5,000 new students since the state received more than 40,000 applications, well above the expansion threshold set by state law. But Gov. Bill Lee and other Republican lawmakers say they want to expand the program even further.

But it’s unlikely the number of new seats will be decided on by the time applications close on Jan. 30, just days into the 2026 legislative session.

At least one issue advocacy group is calling for the state to rapidly expand the voucher program and other school privatization efforts – calling for 200,000 students to be using vouchers by 2031.

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