Tennessee 2026 Legislative Session Adjourned This Week and Several New Laws Will Reshape Life in Nashville

The Tennessee General Assembly adjourned its 2026 regular session on Tuesday April 28 after passing 1,847 bills since convening in January. Governor Bill Lee has 10 days to sign or veto each measure, with most expected to receive signatures and take effect July 1, 2026. Several of the new laws will have direct impact on Nashville and Davidson County residents. The list includes changes to local property tax limits, K through 12 education funding allocation, immigration enforcement cooperation requirements, and statewide preemption of short term rental regulations. The state government coverage that follows is straight reporting on what passed and what each measure does.

Senate Bill 392, sponsored by Senator Brent Taylor of Memphis and Representative William Lamberth of Sumner County, requires all Tennessee counties to enter into 287(g) agreements with U.S. Immigration and Customs Enforcement by January 1, 2027. The 287(g) program deputizes local law enforcement to perform certain federal immigration functions during normal duties. The bill passed the Senate 24 to 8 and the House 73 to 24 along largely party lines. Davidson County Sheriff Daron Hall has stated publicly that the office will comply with the new law. The Davidson County Council has not yet announced its response.

Senate Bill 1042 caps annual property tax increases at 3 percent for single family residential properties without a successful local referendum. Sponsored by Senator Bill Powers of Clarksville and Representative Bryan Richey of Maryville, the bill passed the Senate 27 to 6 and the House 71 to 26. Metro Nashville property tax revenue grew 8.2 percent in fiscal year 2025 and was budgeted to grow 6.4 percent in fiscal year 2026 before the new cap takes effect. Mayor Freddie O'Connell's office has not released a specific budget impact estimate, though the administration confirmed in a Wednesday statement that mid year budget adjustments will be required.

Senate Bill 247 changes the Tennessee Investment in Student Achievement education funding formula by adding 380 million dollars in additional state allocation for fiscal year 2027. The new funding is weighted toward districts with higher percentages of economically disadvantaged students and English language learners. Metro Nashville Public Schools, which serves the largest English language learner population in the state, is projected to receive 41.2 million dollars in additional state funding under the formula. The Director of Schools Adrienne Battle issued a statement Wednesday calling the increased allocation a meaningful step but noted the district faces additional fiscal year 2027 cost pressures from negotiated contracts.

House Bill 612 preempts local short term rental regulations and establishes a statewide framework. The bill removes the ability of cities and counties to ban short term rentals in residential zones, requires platforms to remit occupancy taxes, and creates a state level registration system. Sponsored by Representative Chris Todd of Madison County and Senator Paul Bailey of Sparta, the bill passed the House 64 to 32 and the Senate 22 to 11. The Metro Nashville short term rental ordinance, which currently restricts non owner occupied rentals in single family zones, is preempted under the new law. The Metro Council voted Tuesday night 27 to 8 to file suit challenging the preemption on home rule grounds.

Senate Bill 88 establishes new requirements for medical debt reporting to credit agencies. The bill prohibits the reporting of medical debt under 500 dollars and requires a 365 day delay before any medical debt can be reported. Sponsored by Senator Heidi Campbell of Nashville and Representative Caleb Hemmer of Nashville, the bill passed both chambers with broad bipartisan support, with the Senate vote at 31 to 2 and the House vote at 87 to 8. Tennessee Hospital Association data shows that approximately 14 percent of Tennesseans have medical debt in collections. The new law follows similar measures adopted in 27 other states.

House Bill 1140 expands eligibility for the Tennessee Promise scholarship to include students up to age 30, an increase from the prior limit of age 19. Sponsored by Representative Mark White of Memphis and Senator Bo Watson of Hixson, the bill passed unanimously in both chambers. The Tennessee Promise covers tuition at community colleges and TCAT technical schools for eligible students who maintain GPA and service requirements. The Tennessee Higher Education Commission projects 12,400 additional students will enroll under the expanded eligibility in fiscal year 2027. The fiscal note attached to the bill estimates 24 million dollars in additional state cost.

Senate Bill 461 establishes a tax credit of up to 7,500 dollars per employee for Tennessee businesses that hire returning citizens within 12 months of release from incarceration. Sponsored by Senator Raumesh Akbari of Memphis and Representative G.A. Hardaway of Memphis, the bill passed the Senate 29 to 4 and the House 78 to 17. The credit is available for up to two years per employee. The Tennessee Department of Correction releases approximately 12,000 people per year, with roughly 18 percent returning to Davidson County. The Nashville Mayor's Office of Reentry estimated the credit could affect 1,400 Davidson County hires annually.

The 2026 session ran 109 calendar days, two days longer than the 107 day average over the prior decade. The legislature is scheduled to reconvene for its 2027 regular session on Tuesday January 12. The Davidson County legislative delegation, which includes Senators Heidi Campbell, Charlane Oliver, and Jeff Yarbro on the Democratic side and Senator Mark Pody on the Republican side, has scheduled a constituent town hall for Saturday May 16 at the Nashville Public Library to walk through the new laws and answer questions. The full text of all enacted legislation is available on the Tennessee General Assembly website.