The legislation was backed by Tennessee’s Catholic bishops, parents, and organizations
By Bill Brewer
School choice will soon be available to students in East Tennessee and across the state as the General Assembly in Nashville approved the Education Freedom Act on Jan. 30 during floor votes in the House and Senate.
Gov. Bill Lee called the approval a “milestone in advancing education,” and it is expected to have a significant impact on the 10 Catholic schools in the Diocese of Knoxville.
Gov. Lee is expected to sign the legislation into law soon. It was adopted during a special session of the legislature that began Jan. 27 and concluded Jan. 30. During the four-day session, legislators also took up and approved a comprehensive disaster-relief package for residents, businesses, and governments affected by Hurricane Helene as well as measures for Tennessee to assist in implementing the Trump administration’s immigration policies.
The school-choice legislation was backed by Tennessee’s three Catholic bishops, who wrote to state legislators in support of the bill. The bill also had support from parents and organizations across the state.
“I’ve long believed we can have the best public schools and give parents a choice in their child’s education, regardless of income or ZIP code,” Gov. Lee said shortly after the legislators cast their votes. “Now families can move forward with an opportunity that they’ve never had before.”
The Education Freedom Act establishes Education Freedom Scholarships, which are the foundation of the state’s first universal school-choice program. In addition to the scholarships it provides for students, the act invests in public schools by providing bonuses to teachers, increasing funding for kindergarten-through-12th-grade facilities, and ensuring state funding to school districts will never decrease due to disenrollment as students transfer to different schools.
An amendment to the act requires local school boards to approve the program to access the one-time, $2,000-per-teacher bonuses.
The act, which has a cost of $447 million, appropriates $145.9 million for the Education Freedom Scholarships, $198.4 million for bonuses for the public-school teachers, $77.2 million for K-12 infrastructure directed from existing sports wagering revenue, and $2.7 million for administrative costs.
Each annual scholarship will be valued at about $7,000 for students to use at state-accredited private or parochial schools. Independent homeschool students or students attending church-related homeschools are not eligible for the scholarships.
Gov. Lee said he and the legislature will continue their commitment to public schools by further investing hundreds of millions of state dollars in the Tennessee Investment in Student Achievement (TISA) formula and increasing pay for starting teachers from $35,000 in 2019 to $47,000 in fiscal year 2025-26.
According to the act, Education Freedom Scholarships will be available to all Tennessee families with school-age students beginning with the 2025-26 school year. Parents have the opportunity to choose the school for their children, regardless of income or where they live.
The act provides 20,000 scholarships for Tennessee students, with 10,000 scholarships reserved for families with household incomes that do not exceed 300 percent of the amount required to receive free or reduced-price lunches in public schools, for students with disabilities, or for students who are eligible for the existing Education Savings Account program. The other 10,000 scholarships have no income limit.
The Education Freedom Act will grow with demand as 5,000 scholarships will be added each year after 75 percent of total scholarships are taken in the prior year.
The scholarship money 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 and parochial schools, including the 10 Catholic schools in the Diocese of Knoxville, will be eligible to receive Education Freedom Scholarships. They would qualify as 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) schools.
Among their requirements for a scholarship, students would be required to take standardized national or state tests. The results would be shared with parents and anonymously reported to the state legislature for annual review.
According to the new law, no additional requirements for participating private and parochial schools will be created, and participating schools will not be required to accept scholarship recipients.
House members voted 54-44 in favor of the Education Freedom Act. The Senate vote was 20-13 in favor.
“Education has the power to change the trajectory of a child’s life, and every Tennessee child deserves to attend the school that fits their unique needs, regardless of income or ZIP code,” Gov. Lee said. “In partnership with the General Assembly, Tennessee passed meaningful legislation to address three pressing issues that President Trump and Tennesseans overwhelmingly support: the Education Freedom Act, additional disaster relief for East Tennesseans, and measures to halt illegal immigration.”
George Valadie, interim schools superintendent for the Diocese of Knoxville, welcomed approval of the Education Freedom Act. He believes it will be a winning situation for students, parents, and schools, especially diocesan schools. And he applauds the legislature’s commitment to maintaining funding levels and support for public schools and teachers in Tennessee.
“We are keenly aware how divisive an issue this has been for many years. And we acknowledge that a multitude of different viewpoints exists. But we believe in and are grateful that an increased number of families—and not just those with the resources to do so—will now have the ability to seek alternatives, to choose the school option that best suits what moms and dads believe is needed by their particular child. Different schools have different missions and different strengths. None do everything perfectly. Kids have different strengths and weaknesses, too, and that is why choice is so valuable,” Mr. Valadie said.
“Our state is immeasurably better when all our students—public and non-public alike—receive an exceptional education. On a personal note, and as a lifelong educator, I am especially grateful our legislators have included stipulations designed to continue their support of public schools and their teachers. It is where the largest percentage of our children attend,” he continued. “Though the application and implementation details of this new legislation are unknown at this time, we have already scheduled a school leaders meeting to continue our discussions about the best practices to have in place. Because we want to ensure that we, too, will be the best school and the best match for what a new family needs.”
George Valadie, interim superintendent of schools for the Diocese of Knoxville, said that school choice is ‘so valuable.’ (Photo Bill Brewer)
Mr. Valadie and the diocese especially look forward to sharing the faith with additional students who may choose to attend the diocese’s schools.
“And needless to say, as our schools are missions of the Catholic Church, we welcome the opportunity to spread the Gospel message to all who have wanted Christ’s life to be a part of their child’s life,” he added.
Bishop Mark Beckman of the Diocese of Knoxville, Bishop J. Mark Spalding of the Diocese of Nashville, and Bishop David P. Talley of the Diocese of Memphis have been working through the Tennessee Catholic Conference to support the Education Freedom Act.
The conference has been closely monitoring legislation for education savings accounts (ESAs) for many months, including the ESA program already in place in Hamilton, Davidson, and Shelby counties.
“The Tennessee Catholic Conference celebrates the passage of the Education Freedom Act of 2025 as a significant step forward in advancing educational opportunities for all students across our state. This landmark legislation reflects our shared commitment to ensuring families that every child, regardless of background, has access to an education that nurtures their potential and supports their families’ unique needs,” according to a statement released by the conference, which represents Bishop Beckman, Bishop Spalding, and Bishop Talley.
“In addition to supporting family choice in education, the new law includes provisions to support public schools across the state with significant funding for facility maintenance and expansion as well as financial bonuses for public-school teachers,” the conference statement continued. “We thank Gov. Bill Lee for his leadership in the area of family choice in education. The education scholarships already in place in Memphis, Chattanooga, and Nashville are making progress educating students looking for opportunities not available in public schools. This new program will make options available across the state.”
In its statement, the conference said Catholic schools have long been dedicated to serving the common good by providing an education that values not only academic excellence but also the holistic development of students. Rooted in faith and guided by the principles of compassion, justice, and respect for human dignity, Catholic schools focus on the needs of students and families, striving to form individuals who will contribute positively to society.
“The Education Freedom Act aligns with our mission to create an environment where all children can thrive, offering families more flexibility and access to the educational opportunities that best fit their values and aspirations. We believe this law will help foster a more inclusive and equitable educational landscape, empowering parents to make choices that reflect their children’s needs and supporting schools in their efforts to provide the highest quality of education,” the conference said. “As Catholic schools continue to serve Tennessee communities, we remain steadfast in our commitment to the common good, working together with families, educators, and policymakers to ensure a future where every child can succeed in both faith and learning.”
Approval of the legislation drew positive statements from House and Senate leaders.
“This special session scored many victories for the people of Tennessee. One more piece of the education-reform puzzle has been put in its proper place. No longer will students be trapped by circumstance and geography. Parents across the state finally have a true choice in education,” said Sen. Randy McNally of Oak Ridge, who also serves as the lieutenant governor.
Lt. Gov. McNally is a member of St. Mary Parish in Oak Ridge.
“I am proud of the work we’ve accomplished in this special session to address timely issues that matter to Tennesseans. We passed legislation empowering parents to choose the best educational path for their children…,” said Sen. Jack Johnson of Franklin, who serves as the Senate majority leader.
“Today, the legislature delivered a major victory for Tennessee families. We empowered parents with the freedom to choose the best education for their children…,” said House Speaker Cameron Sexton of Crossville.
