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Tennessee Senate and House pass new $23 billion state budget, including 30-day grocery tax break

The budget includes a 30-day grocery tax break for consumers, meant to help ease the burden of rising prices across the state.

NASHVILLE, Tenn. — Lawmakers approved the new Tennessee budget on Thursday, allocating $22.9 billion to a long list of departments, programs and agencies.

The budget includes money for a tax break on groceries throughout August, meant to help people across the state make ends meet as prices rise on many kinds of food items. 

It would remove 4% from a grocery bill. That can end up saving people around $5 to $10 off a $100 grocery bill, depending on local sales taxes.

The Tennessee Investment in Student Achievement was also included in the budget, changing how public schools receive funding across the state. The Department of Education is set to receive around $6.4 billion. The University of Tennessee will also get around $756 million from the state.

The Tennessee Department of Health is set to get around $253 million from the state, while the Department of Children's Services is set to get around $464 million.

The Department of Intellectual and Developmental Disabilities will also get around $114 million. However, the Department of Transportation will receive around $1.8 billion.

Several projects will also receive funding in East Tennessee, including a project at the Watt Road I-40 interchange in Knox County. It will get $35 million in funding and a project at the interchange at Campbell Station Road will get $48 million.

Governor Bill Lee still needs to sign the budget before it starts on July 1.

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