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TN House report makes five recommendations on federal education funding, but does not recommend rejecting funds

The committee that prepared the report also said it would continue working to "evaluate options" on replacing federal funding or eliminating federal restrictions.

NASHVILLE, Tenn. — An interim report from a working group tasked with evaluating the feasibility of Tennessee rejecting federal education funding made five specific recommendations. Most of those recommendations were focused on clearing up communication between federal and state leaders when it comes to education and evaluating the impact of federal funds.

The interim report did not outright recommend rejecting around $1.2 billion in federal funding, an idea floated by Republican leadership in the Tennessee House of Representatives. Anti-LGBTQ+ laws passed by the General Assembly last year risked those federal funds, such as one which defined sex as a "person's immutable biological sex as determined by anatomy and genetics existing at the time of birth," effectively rejecting federal guidelines on gender identity. 

It prevents transgender people, among other groups, from changing their driver's licenses and birth certificates, and could conflict with federal protections. Part of the federal funding requires the state to follow anti-discrimination laws, which include protections for a person's gender identity. 

The federal education funding that Tennessee receives is largely used to support students with disabilities and to help make sure students facing food insecurity at home can eat meals at school. Federal laws on equal education for kids with disabilities make up around $300 million in Tennessee's budget.

Although no other state has ever rejected federal funding, the House's interim report noted legislation was introduced in Oklahoma to create a plan to phase out federal education funding over ten years. 

It also said if a state chooses not to comply with federal requirements, the General Education Provisions Act lists the authorities that the U.S. Secretary of Education has "to administer federal education laws and regulations." Part of those authorities include recovering funds, and the consequences of specific instances of noncompliance can vary case-by-case, the report said.

Aside from the recommendations, the House's interim report was similar to a report issued by the Tennessee Senate near the start of the legislative session. The Senate's version did not include such recommendations.

Those recommendations in the House's interim report are listed below:

  1. New federal rules and directives pertaining to the Tennessee Department of Education shall be presented before the House Government Operations Committee. As new federal rules and directives arise, hearings shall be included in the routine House Government Operations review hearings.
  2. Letters or other communications providing interpretations or directives concerning implementation of rules from the U.S. Department of Education providing guidance to states relative to regulations and compliance shall be promptly made available to the House Government Operations Committee, House Education Instruction Committee, House Education Administration Committee, Speaker of the House of Representatives, and Speaker of the Senate. Review of the letters shall occur in the routine House Government Operations review hearings.
  3. Direct Fiscal Review to implement evaluation of federal funds in their fiscal impact analysis. As part of the analysis, indication of the probability of grant approval and sustainability of continued federal funding as it pertains to federal grants, federal funding agency, cooperative or competitive grants should be included.
  4. Direct the House Education Instruction Committee and Education Administration Committees to implement an annual hearings to review federal education testing requirements. Any consideration of change to federal education testing requirements shall occur during session.
  5. Direct the Tennessee Department of Agriculture and the Tennessee Department of Education to undertake a comprehensive evaluation of food waste in Tennessee public school systems. A report detailing the outcomes of the study is to be prepared and submitted to the House Government Operations Committee, House Education Instruction Committee, House Education Administration Committee, Speaker of the House of Representatives, and Speaker of the Senate. Determine the feasibility and desirability of contracting with an outside agency for a statistically based process improvement effort to reduce identified waste along with potential cost bracket estimates and execution time requirements for such. Review of letters or other communications providing interpretations or directives concerning implementation of rules shall occur in routine House Government Operations review hearings.

The report also said the Joint Working Group on Federal Education Funding would continue deliberating after receiving some requested data. It also said members of the House of Representatives would continue evaluating options on how to replace some federal funding, or how to "eliminate unwanted restrictions placed on the state due to the receipt of such federal funds."

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