The 114th General Assembly kicks off 2026 Legislative Session
(NASHVILLE) January 15, 2026 – The General Assembly convened on Tuesday, Jan. 13 this week to begin the 2026 session of the 114th General Assembly. The budget, education, and illegal immigration are emerging as top issues as the session gets underway.
In the coming weeks, legislators will be busy filing bills ahead of the Jan. 29 deadline. Hundreds of measures have already been introduced, including legislation carried over from the 2025 session.
The following is a preview of key issues the General Assembly is expected to address this year.
Illegal Immigration
The General Assembly will continue its focus on improving public safety and cracking down on illegal immigration throughout Tennessee. Last year, lawmakers passed comprehensive immigration enforcement legislation. This year, lawmakers aim to build on those accomplishments with a series of immigration bills.
Lawmakers roll out ‘Immigration 2026’ enforcement package
House and Senate Republican leadership unveiled a new legislative package this week aimed at strengthening immigration enforcement, closing sanctuary loopholes, and protecting Tennessee taxpayers.
Speaker Cameron Sexton (R-Crossville), Lt. Governor Randy McNally (R-Oak Ridge), and GOP leaders from both chambers announced the “Immigration 2026” initiative, which would require stronger cooperation with federal authorities, tighten verification for taxpayer-funded benefits, and ensure state and local governments actively enforce immigration laws.
"Tennessee has long been a beacon for state-led immigration restriction. This session will continue that work,” said Lt. Governor McNally. “The federal government under President Trump has put a priority on sealing our borders and hastening the return of illegal immigrants to their native lands. We are doing all we can to assist in that effort. Taxpayers should never have to subsidize or compete with those here unlawfully. The scourge of illegal immigration will end in our nation and Tennessee will help lead the way."
The proposal comes as lawmakers point to rising crime and costs tied to illegal immigration, which has reached nearly $1 billion annually for Tennessee, placing additional strain on public services, schools, hospitals, and law enforcement.
According to the Tennessee District Attorneys General Conference, nearly 2,720 individuals not lawfully present were charged or convicted of crimes in Tennessee over a three-month period in late 2024. Federal enforcement operations in 2025 resulted in nearly 200 arrests of criminal illegal aliens in the Nashville area alone. Since late 2025, over 300 immigration-related arrests have been made in Memphis under the joint federal-state task force efforts.
Key parts of the Immigration 2026 package would:
Require verification of lawful status before receiving taxpayer-funded benefits
Mandate E-Verify for state and local government hires
Require proof of lawful status for professional licenses
Require drivers to pass English-only drivers’ license exams, after a 12-month probationary period
Strengthen cooperation between local law enforcement, courts, and ICE
Increase transparency through regular reporting on immigration-related costs
“Illegal immigration didn’t become a crisis overnight,” said Senate Majority Leader Jack Johnson (R-Franklin). “It’s the result of years of federal failure and refusal to uphold the law. Our communities deserve better. Last year, we took meaningful action with comprehensive legislation to strengthen cooperation between state, federal and local officials, and this year we’re building on that progress. I’m grateful that now we have a strong partner in President Trump and the federal government as we work to restore law and order and protect Tennessee taxpayers.”
Rural lawmakers also emphasized the impact on small communities.
“Rural communities like mine are paying the price for illegal immigration,” said Senate Republican Caucus Chairman Ken Yager (R-Kingston). “It places a real strain on local resources and drains taxpayer dollars that should be reinvested right here at home to strengthen our communities. I’m grateful we are continuing to address this crisis and look forward to working with the General Assembly to pass legislation to enforce our laws, strengthen our communities and protect taxpayer resources.”
The legislation will ensure enforcement is consistent statewide, with consequences for local governments that refuse to comply.
Legislation aims to enhance protections for officers enforcing immigration laws
This summer, Leader Johnson filed Senate Bill 1464 to protect officers enforcing immigration laws. The legislation was filed in response to actions by Nashville Mayor Freddie O’Connell’s administration which released sensitive information related to federal immigration enforcement. The legislation would create a Class E felony for state or local officials who negligently release identifying information about officers involved in federal immigration enforcement. It also would establish removal mechanisms for public officials in violation of this policy.
“The people of Tennessee expect their elected leaders to protect law enforcement—not endanger them,” said Leader Johnson. “When a public official like Mayor O’Connell chooses political activism over public safety, especially by interfering with federal immigration enforcement, he has no business holding office in this state.”
“Mayor O’Connell’s public refusal to rescind his executive order makes the need for this legislation unmistakably clear to prevent future political defiance that undermines the rule of law and puts law enforcement at risk,” Johnson continued. “It sends a message not only to Mayor O’Connell, but to any other blue-city mayor who may consider following his lead: Tennessee will protect its officers, not sacrifice them for political theater.”
Undocumented students in public schools
Lawmakers may also revisit Senate Bill 836, sponsored by Sen. Bo Watson (R-Hixson), which passed the Senate but stalled in the House. It aims to allow local school districts the option to prioritize resources for students lawfully present in the United States and to charge tuition for undocumented students seeking to enroll in public schools.
School Choice
School choice is expected to continue to be a focus this session. Gov. Lee and legislative leaders have expressed their desire to expand the Tennessee Freedom Scholarships program – possibly up to 40,000 additional scholarships, effectively doubling its current size. Under current law, the program is already structured to grow by 5,000 scholarships annually, subject to demand and legislative approval. Lawmakers will decide whether additional expansion is warranted based on the availability of state revenues.
To increase utilization of the Education Savings Account (ESA) program, lawmakers may also consider changing the income limits for the ESA program, which serves families in Davidson, Shelby, and Hamilton counties. A Tennessee Comptroller report shows that only 3,693 students used the program in the 2024–25 school year, even though 5,000 scholarships are available. Many families who want to participate do not qualify under the current income cap. Raising or removing that limit could allow more than 1,000 additional students to use the program.
Budget and Economy
The Tennessee General Assembly's most important responsibility – and only constitutional duty – is passing a balanced budget, which depends on accurate revenue projections from the state. The Governor will deliver his budget address on Monday, Feb. 22 to unveil his budget proposal.
Each year, the State Funding Board (SFB) is tasked with issuing General Fund growth projections for the upcoming fiscal year, which is used as the basis for the next year’s available budget funds. For the third year in a row, the state is seeing slower revenue growth than in years past, with the Board predicting a growth rate of 2.25% and 2.35% for Fiscal Year 2026/2027.
Despite slower revenue growth, Tennessee’s economy continues to outperform the national average in multiple metrics. Tennessee's seasonally-adjusted unemployment rate held steady in September at 3.6% as the Volunteer State's economy continues to show signs of strength.
Tennessee Secretary of State Tre Hargett's office recorded 20,917 new business filings in the third quarter of this year, a record for any third quarter since tracking began. New filings increased by nearly 15% over the third quarter of last year. Annual reports, which are business renewals, declined by 25%.
A new report from the University of Tennessee's Boyd Center for Business and Economic Research predicts the state's inflation-adjusted gross domestic product (GDP) will increase by 2% next year, which is more than projected for 2025 but less than the growth rate in 2023 and 2024. Job growth in Tennessee is positive but has slowed compared to recent years, adding roughly 24,000 jobs in 2025. The report projects the addition of 31,400 jobs, a 0.9% increase, next year, below Tennessee's average of 60,000.
To safeguard the state’s financial stability during economic downturns, Tennessee lawmakers have consistently prioritized strengthening the Rainy Day Fund, the state’s savings account. In 2024, the legislature contributed an additional $35.6 million, raising the fund to a record-breaking $2.2 billion.
Tax Cuts
The AAA-rated Volunteer State ranks among the nation’s least indebted states and stands out as a leader in fiscal stability and low taxes. Every year, lawmakers explore ways for Tennesseans to keep more of their hard-earned money. Since 2011, the General Assembly has cut over $8.2 billion in taxes.
Once again, tax cuts will be a discussion in the 2026 session. Legislation might be considered to cut the state’s grocery sales tax. Notably, Tennessee Republicans have gradually lowered the grocery sales tax by nearly 30% since 2007.
When Republicans earned the majority responsibility of governing Tennessee in 2011, lawmakers set out with a clear mission to lower the tax burden on hardworking families, strengthen small businesses, and build a state where opportunity could thrive. Fourteen years later, the results speak for themselves.
This record tax relief has reshaped Tennessee’s economy by attracting investment and ensuring that families keep more of what they earn.
Joint legislative committee approves Rural Health Transformation plan
On Wednesday, the Joint Committee on Ways and Means approved Gov. Bill Lee’s administration’s plan to participate in the federal Rural Health Transformation Program, which could bring up to $207 million in new funding to Tennessee.
The Lee administration submitted the state’s application to the Centers for Medicare and Medicaid Services (CMS) in November, and it was accepted in December. The proposal, developed by the Tennessee Department of Health, focuses on strengthening rural health systems, improving maternal and child health, expanding prevention and community-based care, investing in health technology and infrastructure, and growing the rural health care workforce.
Tennessee is guaranteed to receive at least $100 million per year for five years. An additional $107 million per year could be available if the state meets certain federal requirements.
To qualify for the full amount, lawmakers would need to pass legislation to eliminate certificate-of-need requirements and expand some scope-of-practice laws—longstanding policy issues the General Assembly has debated and adjusted in past years. Lawmakers will discuss these issues and consider legislative action this session.
U.S. Supreme Court hears arguments on protecting girls’ sports
In other news, the U.S. Supreme Court heard oral arguments this week in two cases that could determine whether states can continue to restrict biological males from competing in girls’ and women’s sports.
The cases, West Virginia v. B.P.J. and Little v. Hecox, challenge state laws in West Virginia and Idaho that limit participation in women’s sports to biological females. During Tuesday’s hearing, several justices appeared receptive to arguments that states have the authority to protect fairness and safety in female athletics.
At issue is whether these laws violate the Equal Protection Clause of the U.S. Constitution and Title IX, which prohibits sex-based discrimination in education.
This ruling will have broad implications for states across the country, including Tennessee, which has enacted multiple laws since 2021 to protect girls’ and women’s sports by ensuring that only biological females can compete in Tennessee Secondary School Athletic Association (TSSAA) middle and high school sports.
Preview in Brief
K-12 Education Innovation - The Advisory Committee on Innovations in K-12 Education is expected to release its final report soon after spending the summer and fall reviewing scheduling flexibility, teacher training, educator evaluations, assessments and Career and Technical Education. Several recommendations could become legislation, including improved reporting for local assessments and enhancements to the TCAP family portal.
Law Enforcement Recruitment Fund – Senator Brent Taylor (R-Memphis) filed SB 1476 to create a new fund to help local governments recruit police officers when at least 10% of their positions are vacant.
District Attorney Reporting Requirements – Sen. Taylor also filed Senate Bill 1467 requiring the Shelby County District Attorney’s Office to notify the General Assembly when entering plea agreements with felony defendants, reducing charges, dismissing cases, or declining prosecution in cases connected to the Memphis Safe Task Force. The proposal follows ongoing concerns related to public safety and prosecutorial transparency.
Party Registration / Closed Primaries – Lawmakers are expected to revisit proposals related to closing party primaries, now more commonly referred to as party registration, which would limit participation in primaries to registered party members. The issue has gained increased attention in recent years and is expected to be a topic of discussion during the 2026 session.
SNAP & Food Insecurity – Recent federal changes under H.R. 1 are expected to significantly increase Tennessee’s financial responsibility for SNAP, including requiring the state to cover a larger share of administrative costs and to contribute to benefit costs tied to payment error rates. These changes may prompt legislative review of SNAP oversight, efficiency, and workforce-related requirements.
Food insecurity remains a priority for lawmakers. During the last session, the General Assembly appropriated $500,000 to Second Harvest Food Bank, and Gov. Lee directed $5 million in state funds to food banks during the federal shutdown to address increased demand caused by restricted access to SNAP benefits.
Transportation & Infrastructure – The Transportation Committee is expected to focus on long-term infrastructure funding and system needs. Lawmakers will review findings from a Tennessee Advisory Commission on Intergovernmental Relations (TACIR) study on transportation funding options and receive updates from TDOT on implementation of the Transportation Modernization Act. Broader discussions may include road safety, homeland security considerations, and requests to expand highway patrol staffing to improve traffic enforcement and public safety.
Child Care Development Fund (CCDF) – Tennessee experienced a $44.5 million reduction in federal CCDF funding in FY 2025, requiring adjustments to programs such as Smart Steps. With nearly half of Tennesseans living in child care deserts, lawmakers may examine child care capacity, affordability, and program sustainability during the 2026 session.
Opioid Crisis – Opioid use disorder continues to rise across Tennessee. In 2024, an estimated 1,447 out of every 100,000 insured Tennesseans received treatment for opioid use disorder—nearly four times the rate reported in 2021. Lawmakers are expected to review data trends and consider potential policy responses related to treatment, prevention, and public safety.
Artificial Intelligence in Health Care – Artificial intelligence is increasingly being integrated into healthcare. As new applications emerge, lawmakers are expected to examine potential benefits such as efficiency and innovation, along with concerns related to patient safety, data privacy, and regulatory oversight.
Insurance Coverage Practices – The Commerce and Labor Committee may consider several proposals affecting health insurance coverage and reimbursement practices. These could include legislation requiring coverage of certain biomarker tests when medically appropriate, aimed at supporting more personalized and targeted care. Lawmakers may also review proposals intended to limit insurance downcoding, which occurs when insurers reclassify properly billed services at lower payment levels.
In addition, a broader prior notification requirement – similar to legislation enacted in Arkansas – could be discussed. A proposal like this would require insurers to provide advance notice before making significant changes to coverage or reimbursement policies, with the goal of improving transparency and administrative predictability for health care providers.
Property Tax Reform – Rising property values and tax burdens have renewed interest in property tax reform. Lawmakers may consider proposals aimed at limiting property tax growth, particularly for seniors on fixed incomes. Potential legislation could include requiring local referendums to approve property tax increases.
Corrections Oversight – Corrections oversight is expected to receive increased attention. Recent recommendations include creating a body camera pilot program for correctional officers within the Tennessee Department of Correction. Lawmakers are also awaiting the U.S. Department of Justice’s findings from its civil rights investigation into Trousdale Turner Correctional Center, which could lead to additional legislative action depending on timing and conclusions.
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