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Tennessee

Tennessee, like all states, has a unique early childhood policy landscape that is shaped by economics, demographics, political history, coalitions, and other factors that create a state-specific environment for policy advocacy.

State early childhood policy progress is dependent both on the state’s environment and the numerous efforts—by the organizations listed on this page, other organizations, parents, policymakers, practitioners, and more—who work both independently and collaboratively to achieve wins for young children.

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2025 State Early Childhood Policy Environment and Progress

Early Childhood Landscape:

Research shows that family economic security is foundational to children’s overall wellbeing. Research also shows that widespread disparities in opportunity (especially by race) drive wide disparities in outcomes. States with policies that offer strong support to young children and their families are more likely to see 1) declining numbers of children in low-income households and 2) low racial disparity among those children. 

Young Children in Low-Income Households: Declining

Approximately 44% (322,000) of the state’s children 0-8 live in households below 200% FPL (2022). This number represents a decrease from 48% (343,000) in 2017.1

Racial Disparity Among Young Children Living in Low-Income Households: High

Black, Hispanic/Latino, and/or Native children aged 0-8 are significantly more likely to be living in households below 200% FPL than are Asian and non-Hispanic White children.2

(NOTE: Selecting for age 0-8, state, and race can yield small cell sizes that can make percentages less accurate. Bars marked with S indicate data with extremely small cell sizes, which is not displayed. Bars marked with C should be interpreted with caution. Though the cell sizes are larger, they still fall below a threshold of reliability.)

Advocacy Landscape:

State General Fund Appropriations: Growing 

In May of 2025, Tennessee’s governor signed the state’s fiscal 2026 budget that appropriates $59.5 billion in all funds, an increase of 1.6 percent over fiscal 2025 (as cited in the 2024-2025 Fact Book). The revenue forecast projects general fund revenues of $19.2 billion in fiscal 2026, an increase of 2.0 percent over the revised fiscal 2025 estimate. The budget invests $35.6 million in the state’s Rainy Day Fund, bringing reserves to nearly $2.2 billion, the largest in state history.3

Key Revenue Sources (after federal transfers):4

      • Sales Taxes ($2,184 per capita)
      • Charges ($1,426 per capita)

Charges are public payments connected with a specific government service, such as tuition paid to a state university, payments to a public hospital, or highway tolls. Tennessee does not have a personal income tax.

State Budget Rules:4

Tennessee uses an annual budget. The legislature is not required to pass a balanced budget, nor is the governor required to sign one, and deficits may be carried over into the following year. However, the state has budget rules that require lawmakers to balance revenues and expenditures. Tennessee also limits annual spending growth with a budget rule based on personal income growth. The limitation can be overridden with a simple legislative majority vote, though. Tennessee also limits total authorized debt and debt service incurred by the state.

Permanent State Funding Stream Dedicated to Early Childhood: No

There is no permanent state funding stream—such as lottery revenue, nicotine tax, or trust fund distributions—dedicated by statute to early childhood supports.9 (Examples of states with such funding in place can be found in the Alliance’s Revenue and Early Childhood Finance resource center.) 

Political Alignment: Aligned Republican

During the 2025 session, the state’s Senate and House were both Republican controlled. The state’s Governor was also a Republican.6

Types of Common Ballot Measures Available:8  One

    • Legislature-Initiated Constitutional Amendments – A constitutional amendment that appears on a state’s ballot as a ballot measure because the state legislature in that state voted to put it before the voters.

Early Childhood Policy Advocacy Organizations Include:

Early Childhood Policy Advocacy Multi-State Initiatives Include:7

2025 Policy Progress:

Highlights from the state’s early childhood policy advocacy community include:9

For the first time ever, a Tennessee governor featured child care as a priority in his state-of-the-state address, and included recurring state general fund dollars in his budget, which were approved by the Tennessee General Assembly:

    • $5.9 million to cover childcare for families earning between 85% and 100% of SMI
    • $7.2 million to expand the WAGE$ early educator bonus program

Advocates also proactively and successfully addressed aspects of child care regulation in SB 1379. The act:

    • Allows child care agencies to lease or purchase underutilized property from LEAs
    • Classifies a child care family home as residential property for certain purposes, including zoning and building codes
    • Permits a host-school’s fire inspection and facilities to be sufficient for a child care agency’s provisional license under the department of human services.     

Advocates laid the foundation for the act in 2024 with legislation that required the state to study child care regulations and make recommendations on how to improve them while continuing to prioritize the health and safety of children. This was a preemptive piece of legislation advocates championed in order to set a course for lawmakers to do the right kind of regulatory right-sizing (as opposed to eliminating staffing ratios).     

The state has continued to make investments in advocates’ policy priority to grow the behavioral and mental health workforce and expand services. This year the enacted budget included:

    •  $4.4 million for scholarships to increase the number of behavioral health clinicians 
    • $4 million towards behavioral services in schools 
    • $1 million to continue expanding the school-based behavioral health liaison program
    • $10 million for mental health infrastructure grants to children’s hospitals 

Tennessee continues to increase funding for K-12 public education.

    • The state funding formula for K-12 schools increased by $244 million (including pay raises for teachers toward minimum salary of $50k by 2026)
    • $198.4M to provide K-12 teachers with a one-time $2,000 bonus

 

Ongoing Grantee Areas of Advocacy:

The Alliance’s lead ally in Tennessee, Tennesseans for Quality Early Education (TQEE), works to close opportunity gaps so all young children birth through third grade access the quality early learning settings, excellent health and mental health care, and family supports they need to thrive. They do this by 1) supporting diverse communities across Tennessee to strengthen their local early care and education systems and 2) mobilizing those communities and early childhood champions across the state to challenge inequitable state policies.

Tennesseans for Quality Early Education is working to advance early childhood policies in several areas that align with the Alliance’s birth-through-eight policy framework

Early Care and Education

Child Care

Child Care Workforce

Preschool and Pre-K

K-3rd Grade

Child and
Maternal Health

Maternal Health

Infant & Child Health

Early Intervention (Age 0-3)

Family
Supports

Family Economic Security

Home Visiting

Paid Family and Medical Leave

Early Childhood Infrastructure

Data Systems

Early Childhood Governance

Financing 

Click here for more information on advocates’ policy agenda.

RECENT ADVOCACY SNAPSHOT:
tennessee early childhood policy

Tennessee Advocates Leverage Alliance Network to Launch Powerful New Dashboard

Alliance for Early Success convenings, connections, and community fueled the Bright Start Tennessee Dashboard–Tennessee advocates’ new, highly tailored early childhood data portal. Now that each of the Bright Start regions has access to the regularly updated dashboard, they’re better equipped to measure progress and champion state policies with regional and local data.

Read More »

NOTES:

1 Kids Count Data Center, Annie E. Casey Foundation, Children Ages 0 to 8 Below 200 Percent Poverty, January, 2024. 

2 National Center for Children in Poverty, Children Ages 0 through 8 Below 200 Percent Poverty, October 2024, NCCP analysis of ACS 5-Year Estimates – Public Use Microdata Sample 2018-2022.

3 National Association of State Budget Officers, Proposed and Enacted Budgets, FY 2026.

4 Urban Institute, State Fiscal Briefs, April 2025.

5 Alliance for Early Success, State Examples of Dedicated Funding Streams, 2025

6 National Conference of State Legislatures, 2025 State & Legislative Partisan Composition, January 31, 2025.

7 Ballotpedia, Ballot Measures by State, Kids Count Data Center, 2025.

8 Alliance for Early Success, Multi-State Initiatives for Early Childhood Policy Advocacy, July, 2024.

9 Alliance for Early Success, State-Wide Advocacy Highlights Survey, April-October, 2025. 

More State Policy Data:

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More State Child Data:

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