
Gov. Bill Lee is proposing a $55.6 billion budget for the next fiscal year, pumping billions into the state’s battered and congested roadways and dramatically expanding TennCare for families.
Lee unveiled his legislative and budget proposals on Monday ahead of his annual State of the State address before the Tennessee General Assembly.
The governor’s total proposed budget amounts to about $500 million less than last year due to the sunsetting of federal pandemic funding. It also presents a shift in priorities for a state that has long resisted expanding social welfare programs.
“I say with great pride that Tennessee is leading the nation,” said Lee in a nod to his speech’s theme. “The state of our beloved state is prosperous, hopeful and unrivaled.”
Entering his second term, Gov. Lee made clear that his focus will be on fixing Tennessee’s roadways. His budget aligns with that, pushing for $3 billion to build new roads across the state. He also wants another $300 million for the local highway program funding road maintenance in local communities.
“That’s why I’m introducing the Transportation Modernization Act,” Lee announced, “a plan to engage public-private partnerships to build additional choice lanes on urban highways, to ensure electric vehicle owners pay their share in maintaining our roads, and to provide a delivery model that builds rural and urban projects faster, all without the burden falling on Tennessee taxpayers.”
TennCare expansion
The governor also announced the Tennessee Strong Families initiative, which is an effort to support infants and mothers following the state’s enactment of one of the strictest anti-abortion laws in the country.
“This is about human dignity,” Lee said.
As he began to explain the details, Lee was interrupted by at least one person shouting, who was escorted out. Republicans, who hold a supermajority in the chamber, clapped in support of the governor who responded to the heckler, “Civility is not a weakness.”
“We will further strengthen postpartum coverage, provide services to over 5,000 more mothers, close the coverage gap for parents, and reach an additional 10,000 children,” said Lee. “In total, offering services to nearly 25,000 more women, children and parents in need.”
The initiative increases the pregnancy eligibility threshold for TennCare to 250% of the federal poverty level from 200%, permanently extends TennCare postpartum coverage for a full year and provides diapers for the first two years of an infant’s life.
The proposal comes as a turnabout for Lee, who has mostly resisted expanding social safety programs.
Lee also touched on school funding, asking for $125 million for teacher raises and touting the rollout of a controversial school voucher program, the Education Savings Account.
The governor briefly touched on Tyre Nichols who died three days after being brutally beaten by Memphis police, saying he had been “in constant prayer for the Nichols family since they tragically lost their son in January.”
The governor did not address police brutality or any public safety reforms in response to the case, instead proposing another $50 million to combat violent crime and 100 more highway patrol officers.
Democratic response
Democrats, in a prebuttal released before Lee’s speech, said the governor and Republican-controlled legislature could go further to help Tennessee families in need. House Minority Leader Karen Camper, D-Memphis, says as one of several states to reject federal funding to expand healthcare, Tennessee should reverse course.
“The money is there. We’ve missed out on $23 billion so far. So please, join us in making affordable and accessible healthcare a top priority for our hardworking families” said Camper.
Camper also called out Lee and other Republicans for feeding into what she calls division politics. In fact, Lee made little mention of the culture war politics that have come to preoccupy his party this year, including bills to restrict transgender healthcare, drag shows and a decision by Lee’s Department of Health to discontinue federal funding for HIV prevention programs.
“It is not conservative to use the awesome power of the state to limit the freedom of some groups or the rights of whole communities. We will never stop fighting for a woman’s right to make personal healthcare decisions — without political interference,” said Camper.

Physicians hold signs in protest for Gov. Bill Lee to see after leaving his State of the State address on Feb. 6.
Outside of the House chamber, physicians were lined up near the stairs where Gov. Lee had to exit holding up signs. Laura Andreson, a gynecologist in Franklin, says Lee’s policies harm patients.
“There are multiple things being brought in between physicians and their patients. It includes women’s reproductive healthcare, LGBTQ rights, all the transgender issues,” said Andreson.