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State Education State Government

Task force to study rejecting federal education funds returns. New study finds rural counties could be the most impacted.

The possibility of Tennessee rejecting federal education funding is back on the General Assembly’s agenda.

Tennessee House Speaker Cameron Sexton, R-Crossville, and Lieutenant Governor Randy McNally, R-Oak Ridge, announced a new Joint Working Group on Federal Education Funding Monday that will study whether the state can provide education services without taking federal dollars.

Speaker Sexton filed a bill to create a similar task force last session but the Senate Education Committee tabled that legislation along with the Speaker’s other proposed bills.

According to a news release, this 10-member working group will “undertake a comprehensive review of federal education funding and its impact on the classroom, curriculum, and attainment.”  The group will additionally examine whether it would be feasible for Tennessee to reject federal education funds and recommend a strategy to reject those funds or eliminate unwanted federal restrictions.

“Any time the federal government sends money, there are always strings attached to those dollars, and there is always a possibility that it opens the state up to other regulations or restrictions,” said Speaker Sexton. “This working group will help provide a clearer picture of how much autonomy Tennessee truly has in educating our students.”

Representative Debra Moody, R-Covington) and Senator Jon Lundberg, R-Bristol, will serve as the group co-chairs. Additional members include Representatives Ronnie Glynn, D-Clarksville, Timothy Hill, R-Blountville, John Ragan, R-Oak Ridge, and William Slater, R-Gallatin, along with Senators Raumesh Akbari, D-Memphis, Joey Hensley, R-Hohenwald, Bill Powers, R-Clarksville, and Dawn White, R-Murfreesboro.

The group plans to submit a report and recommendations to key House and Senate committees by January 9, 2024.

“The education of our youth is one of the essential responsibilities of our government,” said Lt. Gov. McNally. “Federal dollars and the various mandates and restrictions that come with those dollars affect the way Tennessee’s children are educated. Due to our state’s excellent financial position, this is a worthy subject of examination and study.”

No state has ever rejected federal funding for its students and schools and the work group quickly found opposition from a leader in one of the state’s largest school districts.  Metro-Nashville School Board Chair Rachael Anne Elrod attacked the concept of removing federal education funding on social media.

“Schools are a reflection of their communities and our communities are thriving when our families are thriving. A decision to reject federal education funding will hurt the most vulnerable TN families while also being fiscally irresponsible,” wrote Elrod.

State Senator Raumesh Akbari, D-Memphis, delved more directly into the impact rejecting federal education funds could have on vulnerable students.  Senator Akbari released a statement pointing out how much school districts depend on federal funds to support students who have special needs.

“This funding helps level the playing field by providing financial support to states with fewer resources. This enables schools in economically disadvantaged areas to offer competitive educational programs, reducing disparities in education quality. Federal funds are crucial in supporting students with special needs, English language learners, and those from low-income families. These resources help schools provide specialized services and interventions that might otherwise be unaffordable,” said Akbari. “Federal education funding is a strategic investment in the future of our state and nation. The harsh consequences of rejecting this $1.8 billion in funding cannot be overstated.”

A recent Sycamore Institute analysis found Tennessee distributed more than $1.1 billion in federal funds to school districts across the state in 2019, equal to roughly 11% of total district revenues that year.  That analysis also found rural counties are more dependent on federal funds than urban counties.

Davidson (10 percent), Knox (10 percent), and Hamilton (11 percent) County are all below the state average.

Updated with quote from Senator Akbari.