Governor Bill Lee announced a $55.6 billion state budget proposal during Monday’s State of the State. This would include funding for roads, state parks, several tax cuts for businesses, state employee pay raises, and more, including an extended grocery sales tax holiday.
The plan is funded by higher-than-expected revenues and is $618.6 million less than the current budget, which was boosted by extra federal funding during the COVID-19 pandemic.

Among the proposals announced Monday, putting $3 billion from the state’s general fund into a transportation fund for road projects across Tennessee and another $300 million for the local highway program. Proposed tax cuts include a three-month grocery sales tax holiday on food, exemptions or reductions to several business taxes, largely aimed at small businesses, and creates a paid family leave credit against franchise and excise taxes.