The 114th Tennessee General Assembly adjourned its second and final session on Thursday evening at 8:16 PM, concluding fifteen weeks of legislative action that produced a $58.3 billion budget, landmark healthcare reform relative to pharmacy benefits managers and certificates of need, and significant legislation in education, immigration, infrastructure, and public safety. It was the final session for Governor Bill Lee, who is term limited, and the final session for Senate Speaker/Lt. Governor Randy McNally (R-Oak Ridge), who is retiring following a nearly 50-year career in the General Assembly. While Governor Lee accomplished many of his top legislative priorities, such as voucher expansion and public safety, the session – like many others in recent years – was highlighted by a number of legislatively-led initiatives, ranging from a sweeping healthcare deregulation agenda to redirecting nearly $300 million from the Governor’s proposed budget toward its own initiatives. Now, with Lee just months away from completing his second and final term, and McNally’s announced retirement, Tennessee will enter the 2027 session with a new Governor and a new Lieutenant Governor, a surprisingly rare occurrence that last took place in 1971.
Below is a summary of the session's most consequential legislative outcomes and political developments.
Immigration
Immigration was one of the session's most active policy areas, with lawmakers advancing a broad package of enforcement and licensing measures. The standalone noncitizen student enrollment bill, HB0793/SB0836, passed the House but stalled in the Senate when Finance Chair Bo Watson concluded he lacked the votes—elements were ultimately folded into the voucher expansion bill. Beyond that measure, the legislature passed several immigration bills, all of which cleared both chambers:
- HB1704/SB1779, sponsored by Majority Leader William Lamberth (R-Portland) and Senate Majority Leader Jack Johnson (R-Franklin), creates state misdemeanor offenses for individuals who fail to comply with a federal order of removal or who enter the state after being deported. The bill was signed by Governor Lee on April 21.
- HB1706/SB1587, sponsored by Rep. Jason Zachary (R-Knoxville) and Sen. Jack Johnson, makes it a Class A misdemeanor for a person unlawfully present in the U.S. to operate a commercial motor vehicle in Tennessee and requires law enforcement to notify federal immigration authorities upon arrest. If the operation of a tractor trailer by a person who is unlawfully present in Tennessee results in an accident caused by the driver, then it is important that companies have not “knowingly” hired a driver who are in violation of this law or have used E-Verify to verify immigration status. The bill was substantially narrowed from its original form, retaining punitive damages caps, limiting applicability to “direct employers”, maintaining coverage under existing insurance policies, eliminating the previously proposed minimum fines and damages of one million dollars, and removing provisions for private non-party (“qui tam”) actions against companies. As a key takeaway for employers, to be exempt from the requirements of this legislation, an employer must either utilize E-Verify or have a documented system in place to verify the immigration status of CDL holders.
- HB1708/SB1889, sponsored by Rep. Kip Capley (R-Summertown) and Sen. Brent Taylor (R-Memphis), requires driver's license applicants who cannot read and speak English to receive a restricted one-year license and retake the exam in English, and requires proof of lawful status to register a vehicle.
- HB1710/SB1915, sponsored by Sen. Ed Jackson (R-Jackson) and Rep. Dennis Powers (R-Jacksboro), requires state and local government entities and local health departments to verify the citizenship or lawful presence of individuals seeking taxpayer-funded public benefits. The legislation addresses concerns that benefits were not being consistently limited to legal residents and that uneven enforcement allowed some local governments to avoid accountability, undermining public trust in the responsible use of taxpayer dollars. The bill empowers the Attorney General to investigate noncompliant local governments and withhold state funds, makes it a Class A misdemeanor for officials to intentionally fail to report individuals who are not lawfully present, and preserves emergency and disaster exemptions.
- HB1817/SB1748, sponsored by Rep. Lowell Russell (R-Vonore) and Sen. Janice Bowling (R-Tullahoma), requires enforcement officers to issue out-of-service orders to commercial drivers who cannot read and speak English in violation of federal requirements.
Infrastructure and Transportation
Subterranean Transportation Infrastructure Coordination Act. HB2450/SB2205, sponsored by Senate Majority Leader Jack Johnson and Rep. Johnny Garrett (R-Goodlettsville), cleared the Senate 26-5 and the House 69-23. The Act creates an 11-member board to oversee subterranean infrastructure projects such as The Boring Company’s Music City Loop, an ongoing project to dig a tunnel to connect downtown Nashville, Nashville International Airport, and Vanderbilt University, as well as to streamline permitting and to provide a central regulatory scheme, thus avoiding a patchwork of local regulations. Sen. Johnson, who has championed both the Boring project and the creation of the authority, maintains that such a body is necessary to allow critical issues like fire, safety and environmental concerns to be handled “thoroughly but efficiently,” arguing that the challenge to the rapid deployment of such projects is often “a patchwork of bureaucratic delay.” Boring has said that it anticipates the first section of the Nashville tunnel will be operational by the end of the year.
Cargo Theft. HB2139/SB2466 sponsored by Rep. Pat Marsh and Sen. Paul Bailey addressed a long-standing problem with reporting and investigating cargo claim theft.
This legislation amended Tennessee Code Annotated Section 39-14-146(a) by adding a new subdivision that specifically criminalizes entering a cargo container and removing merchandise as an act of cargo theft. The change broadens the scope of actions considered cargo theft, providing law enforcement and prosecutors with clearer authority to pursue charges in such cases. The law takes effect immediately upon becoming law.
- Adds a new subdivision to Tennessee Code Annotated Section 39-14-146(a).
- Specifically includes entering a cargo container and removing merchandise as cargo theft.
- Expands the legal definition of cargo theft in Tennessee.
- Enables prosecution of individuals who commit this specific act under cargo theft statutes.
- Clarifies law enforcement authority regarding cargo containers and theft.
- The act becomes effective immediately upon becoming law.
Trucking Industry Targeted in Surprise Floor Amendment. Finally, we want to bring your attention to a vote on an amendment sponsored by Rep. John Ray Clemmons (D-Nashville) which was nothing more than an attempt to target the trucking industry by adding language to legislation having no relation to the trucking industry in Tennessee. HB2450 is specifically related to establishing a board to govern the Boring Company’s Music City Loop that is being constructed in Nashville connecting BNA to downtown. Rep Clemmons’ amendment would have prohibited tractor trailers from using “Choice Lanes” in Tennessee. Our legislative team was on top of it but credit also goes to the House leadership for being aware of the action taken by Rep. Clemmons, and the amendment failed miserably on the House floor. The amendment was never filed in a committee and subject to debate at that level. We are certain that this will not be the last time we face this issue as choice lanes are constructed. For reference purposes, please see the list below of all members who voted for the amendment. Of note, most all the legislators who voted for the amendment represent areas that are affected by major congestion.
The yes votes for John Ray Clemmons’ amendment to HB2450 (SB2205):
Aftyn Behn (D-Nashville)
Shaundelle Brooks (D-Nashville)
Karen Camper (D-Memphis)
Jesse Chism (D-Nashville)
John Ray Clemmons (D-Nashville)
Bob Freeman (D-Nashville)
Monty Fritts (R-Kingston)
Ronnie Glynn (D-Clarksville)
Yusuf Hakeem (D-Chattanooga)
Torrey Harris (D-Memphis)
Caleb Hemmer (D-Nashville)
Gloria Johnson (D-Knoxville)
Justin Jones (D-Nashville)
Harold Love Jr. (D-Nashville)
Sam McKenzie (D-Knoxville)
Larry Miller (D-Memphis)
Bo Mitchell (D-Nashville)
Antonio Parkinson (D-Memphis)
Jason Powell (D-Nashville)
Gabby Salinas (D-Memphis)
Johnny Shaw (D-Bolivar)
Joe Towns Jr. (D-Memphis)
The 2026 Election Cycle
With the 114th General Assembly concluded, Tennessee now enters a pivotal offseason that has been circled for years. With both the Governor's mansion and the Lt. Governor's office open, state-level politics look to take a very prominent role throughout the summer and fall.
On the gubernatorial front, the Republican primary appears to be a two-candidate race between U.S. Senator Marsha Blackburn (R) and Congressman John Rose (R), who represents Tennessee's Sixth Congressional District. Given Tennessee's well-earned reputation as a Republican stronghold, the victor of the August primary should be considered the strong favorite in the general election.
McNally's departure also opens the door for a contest among Senate Republicans to lead the upper chamber—a race that could reshape legislative priorities for years to come. Senate Commerce Chairman Paul Bailey (R-Sparta), Speaker Pro Tempore Ferrell Haile (R-Gallatin) and Majority Leader Jack Johnson (R-Franklin) have all announced their candidacies for Senate Speaker.
The McNally ripple effect will also impact other Senate leadership roles, such as Senate Majority Leader—a likely contest between Ken Yager (R-Kingston) and Dawn White (R-Murfreesboro) and Senate Republican Caucus Chair, which looks to be a race between Becky Massey (R-Knoxville) and Brent Taylor (R-Memphis).
With all of the House seats and half of the Senate up for election, members will now turn their attention to fundraising, either for their own races or for their leadership PACs to help them support other candidates. PACs and interested parties can expect a flood of solicitations to begin shortly. Thank you for your continued support of Tennessee Truck PAC as we approach a busy campaign season.
