Gov. Lee Delivers Final State of the State to General Assembly
By State Senator Page Walley
February 6, 2026
As our district continues to recover from the ice storm Fern, I want to pause again to thank the heroes who have been assisting our people in the recovery. There are too many to mention individually, but I plan to host an appreciation event (details to be announced soon) to thank and honor as many as possible. Hundreds have already told me they would like to volunteer to express their gratitude as well.
In Nashville last week Governor Bill Lee delivered his eighth and final State of the State address, outlining his proposed budget and legislative priorities for the 2026-27 fiscal year to a joint session of the General Assembly.
The governor’s $57.8 billion budget proposal reflects Tennessee’s long-standing commitment to responsible fiscal stewardship and makes targeted investments to strengthen the economy, improve education, support families, enhance public safety, and prepare the state for long-term growth. The General Assembly will review the proposal in the coming months as part of the budget process.
Key priorities in the governor’s proposal include:
Infrastructure, Housing and Rural Investment
● $425 million for new and existing transportation projects across rural and urban Tennessee
● $165 million to renovate and replace Tennessee’s rest areas and welcome centers
● $56.2 million to support aviation infrastructure
● $30 million to the Starter Home Revolving Loan Fund to support construction of new, affordable starter homes
● $25 million to the Rural Development Fund to business development and infrastructure
Education
● $339 million for public education, including additional TISA funding, summer learning camps, and raising starting teacher pay to $50,000
● $20 million for K-12 facilities maintenance
● $40 million for facilities improvement at public charter schools
● $3 million to expand school-based behavioral health liaison program
Strong and Healthy Families
● $205 million utilizing Shared Savings to strengthen healthcare initiatives, including funding Rural Health Transformation Resiliency Grants
● $230 million to TennCare to cover increasing costs associated with medical inflation, including higher prescription drug prices and Medicare payments, and increased utilization and services
● $34.5 million to Department of Children’s Services (DCS) to assist with reducing caseload ratios
● $10.7 million to enhance staff safety at DCS facilities that accommodate delinquent youth
● $24.2 million to continue a Department of Health Dental Pilot Program to address unmet dental service needs and increase the number of dentists in Tennessee
Conservation
● $81.6 million to create three new Tennessee State Parks
● $1.6 million for the Subsurface Sewage Disposal Program, reducing waiting times for permitting services and oversight
● $1.1 million to support further enhancement of Tennessee’s electric grid
There are too many additional proposals to mention them all, but you will be hearing about them in the coming weeks in my weekly updates.
Protecting Tennesseans from AI therapist impersonations
While I am sponsoring many important initiatives, including increasing funding for our roads, this last week one of my bills advanced at the request of our community mental health centers. To protect Tennesseans from false advertising of AI mental health systems, the Health and Welfare Committee passed Senate Bill 1580. The measure prohibits claims that an AI system is or can act as a qualified mental health professional such as licensed therapists, counselors or psychologists. Each violation of the measure results in a $5,000 fine. The bill now advances to the Senate Floor for final consideration.
Thank you again for allowing me to serve our district. Please continue to reach out to me on the issues and topics that interest you. Email me at sen.page.walley@capitol.tn.gov or call my office at 615-741-2368.
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