Backed by students, some from private schools, Gov. Bill Lee signs his signature private school voucher law. (Photo: John Partipilo/ Tennessee Lookout)
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Tennessee public school students this school year will receive less state per-pupil funding than private school students using the state’s new voucher program, drawing sharp criticism from public education advocates and Democrats who argue the state is prioritizing voucher participants at the expense of other students.
Tennessee will spend an average of $7,023 per public school student in the state’s education funding formula, compared to the $7,295 given to students participating in the new Education Freedom Scholarship program.
Public school students will still receive more public funds, though, due to local government contributions to the formula and separate federal funds.
The 2025-26 funding formula allocation numbers, presented in a state board of Education meeting last week, have drawn criticism from opponents of Gov. Bill Lee’s voucher plan that launched this summer.
Tennessee Education Association President Tanya Coats said Monday that vouchers “shortchange” public education and the TEA is “deeply concerned” the state is providing more per-pupil funding for vouchers than in per-pupil public education funding.
“This disparity makes clear that Tennessee’s leaders are prioritizing private school subsidies over strengthening the public schools that serve the overwhelming majority of children in every community,” Coats said. “Rather than closing resource gaps, the state is growing disparities by sending more money to private schools while public schools continue to struggle with overcrowded classrooms, outdated materials, and educator shortages.”
Tennessee law requires that public school students are funded at a higher amount than the voucher program.
The governor’s office and Tennessee Department of Education this week noted state and local governments must contribute to the formula, known as the Tennessee Investment in Student Achievement (TISA).
With local contributions, the average per-pupil TISA allocation is $9,810, more than $2,000 higher than the voucher amount. TISA funding increased by about 3% this year.
“The EFS scholarship amount is $7,295 and is fully state funded, requiring no contribution from local governments,” said Maggie Hannan, communications director at TDOE. “Moreover, the state has made unprecedented investments in public education during the Lee administration, totaling over $2 billion since 2019.”
The financial responsibility of local governments vary, with economic drivers like Nashville funding proportionally more of their local formula while the state shoulders more of the burden for smaller, rural counties.
Public school enrollment still dwarfs voucher participation in Tennessee. Tennessee estimates more than 966,000 children will be enrolled in Tennessee public schools this year, amounting to nearly $6.8 billion in funding from the state and nearly $2.7 billion from local governments.
The education department has blocked data requests and declined to answer questions about how many and which students have been accepted into the voucher program, but the program is limited to 20,000 participants this year.
Still, mechanisms in the law mean Tennessee will likely expand the program every year going forward by up to 5,000 new students, a move an EdTrust analysis found could cost the state more than $892 million in the first five years alone.
House Democratic Caucus Chairman John Ray Clemmons on Tuesday criticized historic education funding levels in recent years and warned local governments would have to raise taxes to keep up with their local share.
“Bill Lee’s legacy will be destroying public education and undermining opportunity for every child in the state of Tennessee,” said Clemmons, a Nashville Democrat. “They have proven, time and again, to bend and stretch the law to fit their false narrative in support of these voucher scams to the detriment of public education across the state of Tennessee.”
Melissa Brown is the bureau chief for Chalkbeat Tennessee. Contact Melissa at [email protected].
Chalkbeat is a nonprofit news site covering educational change in public schools.
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