Bill > SB1366

This bill establishes comprehensive new requirements for state government agencies when applying for and accepting federal financial assistance (referred to as "federal aid") in Tennessee. The legislation creates a detailed framework requiring state departments to obtain approval from the governor and notify the Joint Committee on Ways and Means before accepting federal funds, with different notification and review procedures depending on the amount of funding (with a $25 million threshold). The bill defines "federal aid" broadly as financial assistance from the U.S. government through grants, loans, or cooperative agreements, and establishes specific reporting obligations for state agencies. Certain types of federal funding are exempt from these requirements, including emergency funds, reimbursement accounts, entitlement programs, and specific educational and agricultural assistance programs. State agencies must now report annually on federal block grant and fund allocations, detailing the amount received, purposes of expenditure, and any unexpended funds. The legislation also requires joint staffing and monitoring of federal grants by legislative budget and fiscal review staff, with the goal of providing more transparency and oversight of federal financial assistance received by Tennessee state government. The new rules will take effect on July 1, 2025, and apply to federal aid applications or acceptances on or after that date.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1366&ga=114