Yesterday, the General Assembly passed the more than $58 billion FY27 budget, following agreement earlier this week between the House and Senate on the spending plan. As Tennessee returns to more typical economic growth after several years of record revenues and continues spending down remaining federal COVID relief dollars, the overall budget has continued to decrease. Even so, Tennessee’s strong fiscal stability and disciplined approach continue to position our state as a great environment for business. 

As with recent years, this year’s budget reflects priorities around public safety, education, infrastructure, and long-term competitiveness. For Greater Memphis, the budget also included several items of regional interest, particularly in public safety, logistics, and support for major institutions.  

Highlights for Greater Memphis include: 

  • $50 million for the Memphis Downtown Public Safety Grant  
  • $5.5 million for the Memphis Art Museum to support construction of the new museum 
  • $311 million for UT Health Science Center to support College of Medicine Interdisciplinary Building
  • $18 million for the University of Memphis for improvements to the Kemmons Wilson School of Hospitality and Resort Management program
  • Additional budget materials also included funding connected to organizations and initiatives such as Code Crew, Memphis Teacher Residency, Teach For America, Moore Tech, Stax Music Academy, and the National Civil Rights Museum expansion design during the process, though some Memphis-related items were later reduced or removed in subsequent budget documents  

The Greater Memphis Chamber is encouraged to see continued state investment in areas that matter to the long-term success of our region, particularly those tied to public safety, economic competitiveness, logistics, and institutional strength. 

The approved budget also included funding for SB 671 / HB 555 related to burglary of a conveyance, a measure the Greater Memphis Chamber has strongly supported as cargo theft becomes an increasing threat to commerce and supply chains. After funding proved to be a hurdle, its inclusion in the budget is a meaningful sign of progress and a strong testament to the Chamber’s advocacy.  

The Path Ahead 

Next week, the General Assembly will reconvene for its final legislative days and work to conclude the 2026 session. In the final stretch, lawmakers will continue taking up budgeted legislation, resolving remaining differences between House and Senate versions of bills, and advancing conference committee reports. The Greater Memphis Chamber will remain engaged through the close of session and continue advocating for policies and investments that strengthen the business climate and support growth across Greater Memphis. A more detailed update on the approved state budget and broader policy developments will be shared once the legislature adjourns.