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Tennessee court dismisses challenge to state-funded private-school scholarships

A three-judge panel has rejected a lawsuit seeking to block Tennessee’s Education Freedom Scholarship program, allowing it to continue. The program grew from 20,000 scholarships in its first year to 35,000 for the 2026–27 school year.

Tennessee court dismisses challenge to state-funded private-school scholarships

A three-judge Tennessee court panel on Monday dismissed a lawsuit challenging the state’s Education Freedom Scholarship program, leaving in place a policy that directs public funds toward eligible students’ private-school tuition and other approved education costs.

The case, Young et al. v. Lee et al., was brought by parents and taxpayers against Gov. Bill Lee and other state officials. Parents Alicia Denise Fair, Michael Sweeney and Monica Sweeney intervened in the case to oppose the challenge, according to the court order.

The plaintiffs argued that the Tennessee Constitution bars state funding for education outside the public-school system and that the scholarship program conflicts with the state’s duty to fund public schools. The panel rejected both claims.

The court concluded that the state constitution does not prohibit public funding for private education. It also ruled that a claim that public schools are inadequately funded must challenge the laws governing public-school funding, rather than the separate scholarship program.

Tennessee enacted the program in February 2025 and awarded 20,000 scholarships in its first year. The state expanded the program to 35,000 scholarships for the 2026–27 school year, broadening the number of families who may use public money for private-school tuition and other eligible expenses.

The ruling resolves this challenge to the program but does not address the wider debate over how state education dollars should be distributed between public schools and private-school options.

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