A three-judge Tennessee panel has dismissed a constitutional challenge to the state’s Education Freedom Scholarship program, leaving the private-school voucher system in place as it serves an expanded second-year enrollment. WSMV reported Wednesday that the judges rejected both claims brought by parent and taxpayer plaintiffs in Young v. Lee.
The lawsuit argued that Tennessee’s Constitution bars the state from funding private education outside the public-school system and that the scholarship law undermines the state’s obligation to maintain public schools. The panel concluded that the constitution does not prohibit private-school funding and that an inadequate-funding claim must be directed at the laws governing public-school finance, rather than the separate scholarship statute.
Tennessee Lookout reported that the judges viewed the constitution’s silence on private-school funding as leaving the General Assembly broad authority to establish the program. The panel also dismissed claims against Gov. Bill Lee, finding that he was not the official responsible for enforcing the law.
The ruling preserves a program that has quickly become a major state budget commitment. The Tennessee Department of Education says scholarships are worth $7,530 for the 2026–27 school year and may be used toward tuition and approved education expenses at registered nonpublic schools. The program expanded from 20,000 awards in its first year to 35,000 available seats this year.
Under the statute, lawmakers may authorize additional expansion in future years, making the court’s interpretation important beyond the current enrollment cycle. The state must continue funding its public-school formula separately, while scholarship appropriations support participating students outside that system. The judges treated those as legally distinct questions.
Demand exceeded capacity. In February, the department reported more than 56,000 applications, including renewals, a 31.8% increase from the first year. It said 18,644 returning families applied again, a 99% renewal rate among those eligible, while new applicants were ranked through statutory priority categories.
The plaintiffs contended that the program directs public money toward private schools that are not governed by the same accountability and admissions requirements as public systems. State officials and two intervening families defended it as a lawful exercise of legislative power and a way for families to choose schools that fit their children’s needs.
The dismissal resolves the trial-court challenge in the state’s favor, but it does not settle the larger policy debate. The panel did not decide whether vouchers improve student outcomes or represent the best use of education funds; it decided that the plaintiffs’ constitutional theories did not invalidate this statute. Future changes to enrollment, funding or eligibility still depend on the General Assembly and annual appropriations.
For families already using the program, the immediate effect is continuity. For lawmakers, the decision removes a near-term legal threat while leaving fiscal and oversight questions to the political process.
