Sycamore Institute
Coverage of Sycamore Institute in the Nexus archive.
- The potential budget challenges for Tennessee’s next governor
Tennessee faces potential budgetary challenges for its next governor due to a cooling economy and reduced federal funding following President Donald Trump’s One Big Beautiful Bill. The state must address unresolved issues like road funding, which lacks a dedicated new source despite historical surpluses. Furthermore, increased costs are anticipated for SNAP and Medicaid (TennCare) because of lower federal matching funds or potential penalties.
- Tennessee reports $1.2 billion surplus during past fiscal year
Tennessee reported a $1.2 billion surplus for fiscal year 2025-26, which officials stated was partly driven by inflation and higher corporate tax collections. This surplus revenue will factor into the state's future budget planning. Separately, Tennessee is scheduled to elect a new governor in November.
- Tennessee taxpayers could foot bill for some SNAP costs if state’s error rate doesn’t improve
Tennessee could face a financial penalty of up to $171 million for its 9.44% SNAP payment error rate under the One Big Beautiful Bill Act starting October 2027. The state’s overpayment rate was 7.84%, and underpayment rate was 1.60%, exceeding Congress’s 6% goal. States with error rates between 8% and 10% must cover 10% of SNAP costs, which are typically federally funded.