In his eighth and final State of the State address, Republican Gov. Bill Lee unveiled his budget to applause from within the gallery and jeers just outside of it, where protestors gathered to demonstrate against immigration enforcement activity in Tennessee.

For this year’s budget, Lee has focused on expanding nuclear energy, rural health care and his signature school voucher program. Lee did not mention immigration, although it was a centerpiece of his address last year and continues to be a hot topic in the legislature this year.

Education

In a tight budget year, Lee proposed doubling the number of families who will be able to put taxpayer money towards private school tuition. Lee pointed to the application period last month, where 54,000 families applied for 20,000 available vouchers.

“That means, right now, 34,000 students are still waiting for a shot at Education Freedom. We owe it to them,” Lee said.

Lee’s budget will also invest $339 million in public school funding, summer learning camps and raising base pay for teachers to $50,000 a year.

Crime

Lee also praised the Memphis Safe Task Force, a collaboration of federal, state and local law enforcement agencies. The program drew national attention when President Donald Trump called the National Guard to the city. Memphis Democrats have criticized the program, arguing that crime was already at a 25-year low when the guard was deployed.

“Crime is down 55 percent in Shelby County with the lowest monthly crime totals in over 25 years,” Lee said. “Now, we’ve got to make it stick. Crime plagued the city for decades. It won’t go away in six months.”

The governor has proposed $80 million in grants for the Memphis Safe Task Force and stationing an additional 100 state troopers in the city permanently.

Health care

Lee also announced $1 billion in federal grants for strengthening the state’s rural healthcare system over the next five years. To secure that money for hospitals, EMS workers and primary care physicians, the Tennessee statehouse will have to change the state’s healthcare policy to align with Trump’s agenda. That includes eliminating a rule requiring hospitals to prove a rural community needs a facility before establishing one, a policy designed to allow non-profit hospitals to compete with larger providers.

“These laws were created over 50 years ago to prevent hospital overbuilding. But today, what they do is block investment, limit competition, and leave rural communities with few or even zero choices,” Lee said.

Nuclear & AI

Lee pledged an additional $45 million for the state’s nuclear program, which he said has generated $8 billion in outside investments. The Tennessee Valley Authority is planning to build a new nuclear reactor in Oak Ridge by the early 2030s while pursuing other reactors through contracts with nuclear startup companies. TVA recently faced some reliability challenges with its existing fleet, as all seven of its reactors had unplanned outages during a 13-month period. 

Lee also unveiled a new statewide effort to invest in quantum research.

“We also have a vision that Tennessee will both power America and be the catalyst for solving our nation’s most complex problems. So, we’re moving ahead on another front – AI and quantum computing,” Lee said, although he did not elaborate on his plans for artificial intelligence.

Farewell

Lee began his last State of the State address with a choked-up thank you to his wife, Tennessee First Lady Maria Lee, and ended with a prayer for Tennessee.

His budget will require approval from the Tennessee General Assembly.