Fast Facts:

Law enacted: 2002

Most recently amended: 2025

Number of charter schools: 114

Number of charter students: 44,500

Cap on the number of schools allowed: No

Virtual charters allowed: Yes

Charter Law Analysis:

AUTHORIZERS: Local school districts; the Achievement School District for charter schools within a local education agency (LEA) for students who live in a low-performing school zone; and, as of 2020, the Tennessee Public Charter School Commission (the Commission) for applications sponsored by local school boards. The Commission replaced the state board as an authorizer, as well as the appeals board. 

GROWTH: No cap here on the number of charter schools allowed, but there are provisions in Tennessee law that make it difficult for successful charter schools to expand; one example is a requirement that successful charters that wish to expand begin the application process anew each time.

OPERATIONS: Charter schools do not have a blanket waiver from state rules and regulations that apply to traditional district schools. Instead, they must apply to the local district and state education commissioner for waivers from specific regulations, a practice that creates unnecessary challenges for fledgling applicants. Tennessee prevents operators that have a for-profit corporate structure from managing charter schools which is an unusual restriction in states.

EQUITY: Law prescribes district authorized schools receive an amount equal to the per-pupil local and state funds and all applicable federal dollars. Commission-authorized schools receive an amount equal to the per-pupil state fund from the LEA in which the student resides. The state provides a small amount of money (around $300 per student) for charter school facilities funding. Tennessee doubled the state's previous contribution to the Charter School Facilities Fund, bringing the total to $12 million for the coming grant year. Transportation funding may be made available but not mandated. Recently introduced legislation would allow charter schools the right of first refusal on vacant or underutilized traditional district schools buildings.   

Fast Facts:

Number of programs: 2

Statewide participation: 2,700

Types of programs: Education Savings Account

Choice Laws & Analysis:

Education Savings Account
Education Freedom Act
Law Enacted: 2025
Most Recently Amended: N/A
Enacted in 2025, the Education Freedom Scholarship Program was created in the Office of the Comptroller to allocate a new pool of funds for scholarship accounts to fund educational expenses, including tuition and fees.  Scholarship amounts are equal to the base funding amount, which was $7,075 per student in 2024. The program has a phased implementation and complex eligibility requirements, which are dependent on year of program operation. Beginning in the 2025-26 school year, a total of 20,000 will be awarded to two groups of students: 10,000 scholarships for students whose annual household income does not exceed 300% of the amount required for the student to qualify for free and reduced lunch (FRL), and 10,000 scholarships for students regardless of socio-economic status. For the 2026-27 school year, the number of scholarships available will depend on both appropriated funds and any returned funds. Priority will be given to students who previously received scholarships, then to students whose annual household income does not exceed 100% of FRL, and then to students whose annual household income does not exceed 300% FRL, and finally to students who are currently enrolled in a public school or are eligible for Kindergarten. If, during the application period, the department receives applications exceeding 75% of the total available scholarships for that year, an additional 5,000 scholarships must be added each year. Although this bill represents the most comprehensive choice program in the state to date, improvements such as ensuring state education funds follow students could expand student access to scholarships and improve all schools. In addition, eliminating the provision that protects districts from disenrollment would ensure families have greater flexibility in choosing their preferred educational options.

Education Savings Account
Education Savings Account Pilot Program
Law Enacted: 2019
Most Recently Amended: 2025
After overcoming court challenges, the Metro Nashville and Memphis-Shelby County program allowed eligible low-income families to access up to $8,192 per student for approved private school expenses. An opponent-led injunction delayed the program for two years, compounding learning loss from the COVID-19 pandemic. Despite the setback, enrollment surged by 362% in 2024, with 2,088 students participating. The program was absorbed into the new ESA initiative in 2025 and is now defunct.

Education Savings Account
Individualized Education Account Program
Law Enacted: 2019
Most Recently Amended: 2025
An Education Savings Account program enacted in 2015 gives parents of students with specific special needs access to an Individualized Education Account (IEA). Initially the EA program allowed only students with disabilities including autism, hearing and vision impairments, dyslexia and traumatic brain injury to use education funds in the private school determined by their parents to best serve their needs. Approximately 300 families were using approximately their education funds to obtain customized education for their students at private schools and specialized education centers, which is roughly equivalent to 100 percent of the state and local funds reflected in the state funding formula that would have gone to the student had he or she attended a zoned public school - about $7,800. In 2023, the IEA was modified to include students with dyslexia, which opened up the program to approximately 36,000 students. There is no cap on the program, but less than 5 percent of Tennessee students are eligible to receive a scholarship.

USE OF STUDENT DATA IN EVALUATING TEACHER PREP

"Tennessee reports data on program completer effectiveness, as measured by student growth data. The state also collects value-added scores of completers."

This is just one indicator from The National Council on Teacher Quality, which collects and analyzes states on how well their policies and practices lead to well-prepared teachers. They collect data on state laws and regulations concerning the preparation of teachers, the policies that govern their oversight and the contracts that guide their employment. Learn more about your state here.