The Tennessee General Assembly has officially passed its $59.8 billion budget for FY 25-26, which includes top priority investments benefitting University of Tennessee campuses and institutes. We are especially grateful to the Tennessee General Assembly and Gov. Bill Lee for their continued support and investment in the UT System. Their commitment helps fuel our momentum as we continue building the greatest decade in UT history.
Key investments included in the budget:
Record Infrastructure Investment
- UT Knoxville Chemistry Building – With a $165.2 million state investment, this long-awaited and highly anticipated project will modernize critical lab spaces, ensuring our research and workforce preparation remain at the highest level. This is the largest state investment ever awarded for a single higher education project in Tennessee’s history.
- UT Martin College of Business and Global Affairs – A $57.5 million investment to replace the aging facility, originally constructed as a dormitory nearly 70 years ago. The new facility will expand capacity to support West Tennessee’s economic growth, including surging business and logistics demands.
- 4-H Camp enhancements – $45.5 million in grant funding to support capital enhancements at the UT Institute of Agriculture’s 4-H camps statewide, improving facilities and expanding opportunities for Tennessee’s youth to engage in agricultural education and leadership development.
- Capital maintenance – $18.35 million in capital maintenance funding across the UT System.
Investments in People and Operations
- Funds to support a 2.6 percent salary pool for higher education employees.
- $1.9 million recurring to support growing enrollment and performance at UT Southern.
- $10.3 million to replace educational and scientific equipment at UT non-formula medical education units
- $7.8 million to the UT Health Science Center
- $2.5 million to the UT College of Veterinary Medicine
- $2 million recurring to enable the Institute for Public Service to establish a dedicated local planning function, assisting Tennessee’s cities and counties with economic development, zoning and infrastructure planning. This funding will also allow UT Extension to offer a statewide landowner education program.
- $20 million to launch a new state research and development innovation matching fund, housed within the Tennessee Department of Economic and Community Development, to provide state cost-sharing on significant higher education federal grant opportunities, spurring research and development innovation aligned with state interests.
- $1.4 million recurring to expand the Institute of American Civics work supporting K-12 educators and their students.
- Approval to begin design and planning work for the new UTHSC College of Medicine facility.
- $500,000 for the UT Law Enforcement Innovation Center to establish a statewide law enforcement leadership development program.
These strategic investments directly advance our mission of education, research and service. They strengthen the UT System’s ability to drive innovation, improve lives and support communities in every corner of our state. With this momentum, we’re expanding our impact and helping shape a brighter future for all Tennesseans. Much appreciation to the many UT colleagues whose commitment and collaboration were instrumental during this legislative session and to all those across the system whose diligent work contributes to the student outcomes that serve to elevate the reputation of the University in the eyes of state policymakers.
