Gov. Bill Lee Delivers Final State of the State Address
Tennessee Today

Gov. Bill Lee delivers his State of the State address to the Tennessee General Assembly (Mark Zaleski/The Tennessean)

NASHVILLE, TN — On February 2, Governor Bill Lee delivered his final State of the State address to the Tennessee General Assembly. While addressing the legislature, he reflected on the successes of his 7 years of service as Governor of Tennessee and put forth his last set of priorities through the introduction of his proposed $57.9 billion budget for the 2027 fiscal year.

 

Gov. Lee’s opening remarks centered on the historic ice storm that took the lives of 23 Tennesseans and that continues to affect over 24,000 individuals who remain without power. He took a moment to pray for peace, hope, and for God to be near all those struggling before thanking all those who have worked to restore the state and who have offered help to their neighbors during the storm and its aftermath.

 

As the Governor launched into his priorities, he framed his speech as both reflective and forward-looking, stating, “Throughout our nation’s 250 years, historians have called Tennessee “The Original Frontier” … Just like the continuous building of a more perfect union, the work of a frontiersman never stops, and ours should not stop either.”

 

Education

 

Gov. Lee’s proposed budget includes two key allocations for education: strengthening public schools and expanding a signature effort of his administration, the Education Freedom Scholarship program.

 

• Public education is receiving $339 million in this year’s budget with a focus on increasing teacher starting salaries to $50,000, up from $35,000 in 2019, ensuring significant TISA formula funding, and delivering strong funding for summer learning camps. 

 

• A $155 million allocation towards the Education Freedom Scholarship program will allow for the number of scholarships to be doubled, increasing access to 40,000 total students for the 2026-27 school year. Gov. Lee emphasized the importance of this measure, stating that “right now, 34,000 students are still waiting for a shot at Education Freedom. We owe it to them.” 

 

Memphis Safe Task Force

 

In regard to combatting crime in Memphis, Gov. Lee praised the accomplishments of the Memphis Safe Task Force explaining that “the federal resources delivered by the Trump Administration, the dozens of agencies working side-by-side, the relentless bipartisanship that has proven all the critics wrong – this herculean effort has, in fact, created generational change in Memphis.” 

 

• Gov. Lee reported a decrease in crime in Shelby County of 55% in 2025. 

 

• $80 million is budgeted towards grants for early crime intervention and downtown safety in Memphis, in an effort to continue to see a decline in crime in Shelby County.

 

• Highway patrol in both Memphis and across the state should expect an expansion with the proposed addition of 100 officers in Shelby County and a plan to reach a total of 1,300 highway patrol officers statewide.

 

Rural Healthcare

 

The Rural Healthcare Transformation (RHT) Program, as authorized by the One Big Beautiful Bill Act, is central to Gov. Lee’s plan to improve healthcare in rural communities across the state of Tennessee. 

 

• $1 billion in funds will be available to transform rural healthcare in Tennessee through the RHT Program, given that the General Assembly can take legislative action to make it easier for medical professionals and rural healthcare facilities to operate.

 

• Specifically, Gov. Lee called out Tennessee’s Certificate of Need Laws as a place for reform, claiming these laws have stood as a barrier to over $1.5 billion of investments into rural healthcare in the past. 

 

Economic Development

 

Gov. Lee highlighted the state’s growing economy, referring to Tennessee as the “best business environment in the country.”

 

• In 2025, $11 billion was invested in Tennessee, with Gov. Lee noting that nearly half of that investment went to rural counties, and an additional 300,000 jobs were created. 

 

• Gov. Lee emphasized the importance of fiscal responsibility as an essential partner to Tennessee’s growth, stating, “We balance our budget, we grow our savings, we spend wisely, and we cut taxes…This disciplined approach that [the legislators] have taken has earned Tennessee a triple-AAA bond rating for the last decade – proof that smart management keeps our state strong.”

 

Innovation

 

Gov. Lee’s final policy focus of his address was innovation, casting a vision for Tennessee as a leader in both nuclear energy and quantum computing. 

 

• Gov. Lee reaffirmed his commitment to nuclear energy, stating, “Tennessee was just named the #1 state for nuclear energy development, and it’s clear why. Tennessee’s Nuclear Fund that you helped create has already recruited $8 billion in investment from leading nuclear companies around the world, creating thousands of new jobs, and more are on the way.” 

 

• The proposed budget includes $25 million towards nuclear energy innovation, continuing to push Tennessee towards the goal of becoming the first state in America to build a small modular reactor.

 

• Additionally, $20 million is being allocated to the Tennessee Quantum Computing Initiative in an effort to have Tennessee emerge as a national leader in this field.

 

Gov. Lee closed his address by reflecting on Tennessee’s role not only as the original frontier, but as the frontier of the future. He emphasized that while his time as governor is coming to a close, the opportunities ahead for the state are greater than ever. His remarks served as both a vision for what’s next and a reminder of the lasting impact of his leadership. One that is defined by economic growth, educational opportunity, and a commitment to putting Tennessee families first. As he prepares to leave office, Tennessee does so stronger than when he arrived, and his legacy will continue to shape the state for years to come.