Lawmakers to take up Education Freedom Act; special session called
By Bill Brewer
Education savings accounts, which already are in place in Hamilton, Davidson, and Shelby counties, are again at the top of Gov. Bill Lee’s legislative agenda, this time for the 2025 General Assembly.
And the bishops of Tennessee have come out in support of Gov. Lee’s new legislation as similar versions have been drafted in the state House and Senate, creating a new education savings program for elementary and high school students that covers the entire state. The House bill is HB1 and the Senate bill is SB1.
The new versions incorporate many aspects of the existing ESA program but also include modifications.
In Gov. Lee’s Education Freedom Act, Education Freedom Scholarships would be available to all families with school-age children. Parents would have the opportunity to choose the school for their children, regardless of income or ZIP code.
The legislation provides 20,000 scholarships for Tennessee students beginning with the 2025-26 school year, with 10,000 seats reserved for families with household incomes that do not exceed 300 percent of the amount required to receive free or reduced lunch in public schools, who have a disability, or are eligible for the existing ESA program.
The Education Freedom Act will grow with demand as 5,000 scholarships with universal eligibility will be added each year after 75 percent of total scholarships are taken in the prior year.
Each student will receive a scholarship equal to the per-pupil base funds allocated to public school students each year—$7,075 as of the most recent school year—which will be deposited into an account for parents to use on tuition and fees first, followed by other qualified education expenses.
More than 350 private schools, including the 10 Catholic schools in the Diocese of Knoxville, would be eligible to receive Education Freedom Scholarships as schools in either Category I (state-approved or accredited), Category II (approved by a private-school accrediting agency), or Category III (approved through accreditation by a state-authorized accrediting agency).
Among requirements for Education Freedom Scholarships, students would take standardized national or state tests, with results shared with parents and anonymously reported to the state legislature for annual review. Homeschool students would not be eligible to participate in the scholarship program.
The Education Freedom Act would “ensure that schools maintain their independence and educational freedom, preventing unnecessary government overreach while expanding choices for Tennessee families,” Gov. Lee’s office said in a statement.
“Education freedom means investing in the best public schools in the country and the teachers who make it possible. With this next session, the Lee administration will have invested at least $2.5 billion in additional state funding for public education during the governor’s time in office,” according to Gov. Lee’s office.
Also, according to Gov. Lee’s office, the act would ensure that state funding to school districts will never decrease due to disenrollment. It also would provide a $2,000 bonus to every public school teacher in Tennessee “to recognize their hard work and dedication, and for leading the nation in student achievement and growth.”
The act calls for investing in infrastructure, with 80 percent of sports-wagering revenue dedicated to building and maintaining kindergarten-through-12th-grade school facilities, “prioritizing emergency needs as well as at-risk and distressed counties … Gov. Lee and the General Assembly will maintain their commitment to public schools by investing hundreds of millions of state dollars in TISA (Tennessee Investment in Student Achievement) next year as well as raising starting teacher pay to $47,000 in fiscal year 2025-26—an increase from $35,000 in 2019,” the governor’s office stated.
The bishops of Tennessee’s dioceses—Bishop Mark Beckman in the Diocese of Knoxville, Bishop J. Mark Spalding in the Diocese of Nashville, and Bishop David P. Talley in the Diocese of Memphis—have issued statements in support of the Education Freedom Act as Catholic schools across the state express optimism that they will be able to participate in the scholarship program.
The Education Freedom Act is set for deliberation and votes in the House and Senate when the General Assembly convenes this month. Gov. Lee is calling a special legislative session on Jan. 27 to address the act.
Bishop Mark Beckman has written state legislators expressing the Diocese of Knoxville’s support for the act.
“On behalf of over 70,000 registered Catholics who live throughout the Diocese of Knoxville in East Tennessee, I write to you as their bishop, and as a fellow steward of our community, a former Catholic educator and administrator, and Tennessee native. I also write with deep gratitude for the state of Tennessee’s commitment to educational excellence and with confidence that together we can successfully address the critical issues facing our children’s future educational opportunity.
“The Education Freedom Act of 2025 HB1/SB1, set to be considered in the next legislative session, would offer Tennessee’s families the freedom to choose the best educational setting for their children, regardless of where they live.
“Recent data reveal that barely one-third of public school third-grade students can read at grade level. At area Catholic schools, more than 70 percent of third-graders are performing at or above the state’s reading standards. By creating a scholarship program, Tennessee is taking a balanced, compassionate approach to addressing these educational inequities—allowing more families the financial ability to seek alternatives where the public schools are not meeting the expectations.
“For decades, East Tennessee Catholic schools have provided quality pre-K-12 education for children—Catholic and non-Catholic alike—rooted in a fundamental belief that every child deserves the opportunity to develop their God-given potential. The Education Freedom Act is a long-standing commitment to serving the common good for families statewide.
“As a shepherd in the mission to prepare scholars, leaders, and saints, I humbly request your thoughtful support of the Education Freedom Act HB1/SB1. With your backing, we will indeed witness more children developing their talents, pursuing their dreams, and actively contributing to their communities,” Bishop Beckman wrote.
He urged the legislators to contact Diocese of Knoxville schools interim superintendent George Valadie for information or with questions about the diocese’s educational programs.
Mr. Valadie also has written to lawmakers in support of the Education Freedom Act. In his letter, Mr. Valadie thanked the legislators for their willingness to serve and asked them for their serious consideration and approval of the act.
He has nearly 50 years of experience in education, 15 of them in the classroom and 31 as a principal. Nearly 40 years of his experience have been in Catholic schools in Chattanooga and Memphis.
“Because of my background in schools, I am aware of the ‘school choice’ debates that have been a part of our state’s legislative landscape for well over a decade. But I can’t imagine all that has transpired behind the scenes. It’s that same background, however, that has provided me an ‘up close and personal’ perspective of how such a bill has the potential to enhance so many children’s lives—those enrolled in our schools and those who dream of being there,” Mr. Valadie wrote.
“We are proud of the students’ academic success, their eventual leadership in their churches and communities, but we are especially proud that our schools have—for many, many years—served families of all faiths, races, and socio-economic levels,” he added.
He described how students from all walks of life attend Catholic schools, and there are generous efforts to assist families with financial needs.
“We have been and are a home for so very many. When some of those families have had financial need, we have asked our churches, our alumni, and our parents to help us help the kids. They have responded generously, as they know financial stress knows neither color nor creed. And though helping families who wish to attend is an ever-growing part of our mission, we acknowledge our limitations.
“The Catholic Church has long believed and taught that ‘parents are the principal and first educators of their children.’ I don’t think the Church is alone in that belief. And regardless of who holds that to be true, the responsibility of educating our children is immense.
“But as some parents have exercised that duty resulting in non-public school decisions, I have seen moms and dads (sometimes grandmothers and grandfathers) take on multiple jobs because they believe Catholic schools best suit the needs of their children and grandchildren. It’s a choice they made for sure, but they didn’t just choose a school—they chose to sacrifice time away from family; they chose to step into their future without retirement savings; they chose to let other kids in other families benefit from their education tax dollars; they chose to trade the niceties of life for an educational setting they believe best benefits their children. Choices are just that—and some are hard. I’m inspired by the many who have made such through the years. Not to mention the families that cannot make it happen, no matter how much they give up.
“But it is this legislation that would provide both choice and access to many who seek something different, something perhaps more aligned with their values, something that just seems to ‘fit’ better. It’s not an unreasonable desire for any mom or dad,” Mr. Valadie concluded in his letter.
According to the state, more than 6,500 families have applied for Tennessee’s current school-choice programs in Hamilton, Davidson, and Shelby counties. And more than 3,500 students are currently enrolled in a participating school.
The Lee administration also said 33 states offer school-choice programs, including 12 states that have adopted universal school choice, and that “studies show rising test scores and better educational attainment and life outcomes with education freedom for public and private school students alike.”
“Eighty-three percent of parents nationwide favor school choice policies, and parents are more satisfied when they choose their child’s school. Ninety-nine percent of Tennessee ESA parents are satisfied with the program,” according to the state.
Mr. Valadie explained that under the existing Education Savings Account program, both schools and families had to apply to take part and were accepted as long as they met certain criteria. With an ESA, the state provides $9,000 per student per year for educational expenses. Participants are restricted to public-school students, and there is an income-level qualifying factor involved. If approved, students can attend any participating school as long as they meet entrance requirements.
Students now receiving ESA funding are required to take exams for the Tennessee Comprehensive Assessment Program (TCAP) each year. Diocese of Knoxville schools participate in the Iowa exams as well as ACT and SAT exams for high-school students.
Davidson and Shelby counties are in their third year in the ESA program, and Hamilton County is in its second year.
“Gov. Lee wants a statewide program that would be slightly different than the ESA legislation,” Mr. Valadie said. “Last year the House had its own version, and the Senate had its own version. The governor’s staff, the House, and the Senate have worked together on uniform legislation since the 2024 General Assembly ended last spring.”
The new bill they have drafted together is the Education Freedom Act.
While half of the Education Freedom Scholarships are reserved for lower-income families currently enrolled in the ESA program, the remaining half are open to any family. Income is not a factor, and geography is not a factor.
According to Mr. Valadie, the ESA program will remain in effect, and students can continue to be enrolled in it instead of the Education Freedom Scholarship.
Under the Education Freedom Scholarship program, participating private or parochial schools must be state-accredited or state-approved, must be accredited by a state- or federally approved accreditation agency like AdvancEd or Cognia, and must be a licensed school.
Allowable uses for Education Freedom Scholarship money include tuition, textbooks, tutoring, and computers. Unused funds can be rolled over year to year.
“A significant difference is students with Education Freedom Scholarships will not have to take the TCAP. But they will have to take a standardized national or state test, such as the Iowas,” Mr. Valadie said.
He emphasized how accountability is part of the Education Freedom Act, where test results must be given to each student’s parents and to the state, which Diocese of Knoxville schools already do.
“Another big difference is ESA money is limited to public-school students or students who are home-schooled who want to attend a private school. You couldn’t already be in a private school. With the Education Freedom Act, now you can be in a private school.”
In addressing the concerns of opponents to school-choice legislation, the Education Freedom Act requires that state funding for local education agencies like East Tennessee’s public-school districts will not be affected from one year to the next by students disenrolling and opting for an Education Freedom Scholarship. Public school districts would not lose funding.
As an incentive to public school teachers, each teacher would receive the one-time bonus of $2,000 from the Tennessee Department of Education if the act passes the General Assembly and is signed into law by Gov. Lee.
The Tennessee bishops are working with the Tennessee Catholic Conference in getting their messages and the messages of Catholic faithful to the governor and lawmakers. The Tennessee Catholic Conference represents the three dioceses on matters of public policy.
“The Education Freedom Scholarship Act of 2025 is definitely a top priority for Gov. Bill Lee and his administration, and key members of the Republican-controlled Tennessee General Assembly are supporting his push to establish the program,” said Rick Musacchio, executive director of the conference. “The majority leaders in both the House and Senate are the primary sponsors of the legislation and filed their bills as House Bill 1 and Senate Bill 1, showing their intent to focus on advancing parent choice in education across the state.”
Mr. Musacchio is closely monitoring the legislation as the state legislature enters the special session.
“To become law, identical bills must pass both chambers and be signed by the governor. Although bills may be changed through amendments as they travel through the committee process in each body, and potentially be reconciled before final passage, it is very important to note that the two bills are the same at the start of the session. Similar legislation moving forward in each chamber helps them reach the endpoint needed for success,” he noted.
“The scholarships do not extend the regulatory authority of the state or local education authorities to create additional rules, regulations, or requirements other than the narrowly tailored rules to govern the administration of the scholarships. Schools across Tennessee that choose to accept the scholarships would control admission and student-retention decisions as well as the curriculum offered,” Mr. Musacchio added. “The bills allow for national norms-referenced tests like the Iowa Test of Basic Skills that are used in many Catholic schools or the TCAP test to be used to assess student achievement.”
Efforts to pass a statewide school-choice program have been unsuccessful in recent years, although the program limited to Hamilton, Davidson, and Shelby counties has illustrated how the measure is attracting more support.
“Even though the governor and leadership of the General Assembly are backing the effort to establish the Education Freedom Scholarships, the legislature is still divided on the issue. Members will be considering the legislation carefully through the process,” Mr. Musacchio said. “The governor and sponsors are working hard to pass the legislation this year, but it will likely come down to close votes in both chambers.”
Mr. Valadie believes it is important for the Catholic faithful of East Tennessee to support the Education Freedom Act and encourage their legislators to do the same.
“The bishop is all in, and I’m all in,” Mr. Valadie said. “I taught economics for years. What I taught was the beauty of capitalism and how competition makes us all better. And I believe that. Allowing families the freedom to choose schools makes us all better.”