Volunteer State News

Governor Bill Lee recently presented his agenda for 2025, outlining a $59.5 billion budget and legislative priorities during his seventh State of the State address to the General Assembly. The governor's plan focuses on economic opportunity, tax relief, housing, infrastructure, conservation, and agriculture.

Key proposals include a $35.6 million investment in Tennessee’s Rainy Day Fund, which will increase state reserves to nearly $2.2 billion. An additional $7 million is earmarked to expand the Tennessee Youth Employment Program, aiming to operate year-round and reach more underserved communities.

For rural development, Gov. Lee has allocated $45.8 million for the Rural Development Grant Fund to support site development and community asset improvements. FastTrack grants totaling $25 million are proposed to recruit new businesses and support workforce development in Tennessee.

The governor also plans a $6.3 million statewide Micro-Credentialing Program for short-term certifications aligned with industry needs. The RevV program will receive an additional $25 million to enhance research collaborations between private companies and Tennessee's research institutions.

In housing and infrastructure, Gov. Lee proposes a $1 billion investment in the Tennessee Department of Transportation to expedite road projects across the state. A new Starter Home Revolving Loan Fund will receive $60 million to promote affordable housing construction.

Conservation efforts include a comprehensive regional water resource plan with a $100 million budget aimed at meeting long-term water needs while protecting ecological health in areas like the Duck River region.

The budget also allocates funds for agricultural initiatives such as a new Farmland Conservation Fund with a $25 million budget and an additional $20 million for existing agricultural enterprise programs.