Legislative Session Ends with Salary Funding Secured
The legislature has completed its business for the year and officially adjourned the 2025 session earlier this week. They will reconvene in January 2026.
We are pleased to report that funding for P4P salary increases was included in the final version of the state budget. Both state employees and higher education employees are set to receive raises later this year.
The final budget includes the following appropriations for state employee pay:
- $32.79 million – TEAM Act Performance Bonus Pool
- $58.73 million – TEAM Act Performance Pay Pool
- $13.74 million – Non-TEAM Act Salary Pool
- $106,000 – Market Rate Adjustment
As a reminder, in March, TSEA informed our members that the Finance and Administration Budget Office confirmed the $58.7 million appropriated for TEAM Act agencies represents a 2.6% salary pool. It is important to note that this percentage reflects the size of the funding pool, not a guaranteed raise amount. The Department of Human Resources (DOHR) will determine the actual raise percentage amounts and how those funds are distributed across executive branch employees (which includes the majority of state employees).
Budget Director Thurman also confirmed in March that a 2.63% pool was funded for higher education, with distribution determined by each institution’s governing board. Again, this figure reflects the overall funding level, not the actual raise percentage, which will vary by institution.
TSEA will continue monitoring implementation details to ensure state and higher education employees are informed, represented, and kept up to date as more information becomes available.
Legislative Bills
See below for the status, as of adjournment, of all TSEA-initiated legislation and bills TSEA monitored for support or opposition during the 2025 legislative session.
Bereavement Leave Expansion
Bill Passed | Signed by Gov. Lee | Pub. Ch. 74
SB1285/HB1312 Johnson/Lamberth
Senate: Passed Senate, Ayes 30, Nays 0 – 3/10/2025
House: Passed H., Ayes 92, Nays 0, PNV 1 – 3/17/2025
Legislative Intent: The legislation expands bereavement leave for state employees as follows:
- 3 days of paid leave for death of a sibling, grandparent, grandchild, foster parent, or parent-in-law
- 5 days of paid leave for the death of a parent or stepparent
- 10 days of paid leave for the death of a spouse, child, or stepchild
TSEA Notes: We are pleased to announce the passing of the bereavement leave expansion bill for state employees. Both speakers and the governor have now signed the legislation.
Paid Leave for Family Caregivers
PASSED, Awaiting Governor’s Signature
SB322/HB915 Massey/Sparks
Senate: Passed Senate as amended, Ayes 33, Nays 0 (4/16/2025)
House: Passed H., Ayes 89, Nays 1, PNV 0 (4/22/2025)
TSEA Notes: The bill, as passed, allows eligible state employees to take up to six (6) weeks of paid leave to care for a family member receiving hospice care. While the final version is more limited than initially proposed, it represents an important step toward recognizing the caregiving responsibilities many state employees face.
Paid Leave for Fostering a Minor Child
BILL TAKEN OFF NOTICE
SB938/HB957 Rose/Slater
Senate: Referred to Senate State and Local Government Committee – 2/12/2025
House: Assigned to s/c Public Service Subcommittee – 2/11/2025
TSEA Notes: This bill is not expected to move forward this year. We hope to garner more support before next year. Last year, the bill advanced through all committees but failed on the House floor. There remains some uncertainty from legislators, but we are working to address those concerns.
Eliminating Barriers to Higher Education for Students with Intellectual Disabilities
ACTION DEFERRED UNTIL 2026
SB1151/HB789 Crowe/Vital
Senate: Referred to Senate Finance, Ways, and Means Committee
House: Action Deferred in s/c Higher Education Subcommittee to First Calendar of 2026 – 3/26/2025
TSEA Notes: This bill has been rolled to next year’s calendar.
TEAM Act Clarifications
BILL TAKEN OFF NOTICE
SB1006/HB1067 Walley/Moody
Senate: Taken off notice
House: Taken off notice
TSEA Notes: After many discussions with the Department of Human Resources (DoHR), we decided to move forward with an administrative approach to addressing the issues the legislation was meant to resolve. As a result, we asked our bill sponsors to take the bill off notice.
Retiree Cost-of-Living Adjustment (COLA) Cap Removal
BILL FAILED IN SUBCOMMITTEE
SB1157/HB1296 Kyle/Powell
Senate: Referred to Senate State and Local Government Committee – 2/12/2025
House: Failed in s/c Public Service Subcommittee of State & Local Government Committee
TSEA Notes: Early on during this legislative session, the Joint Council on Pensions issued a negative recommendation on this bill, largely due to the bill’s fiscal note. This week, the bill failed in the House subcommittee. While we anticipated this outcome, especially after the negative recommendation, we’re encouraged to have started the conversation with legislators and appreciate the research and advocacy efforts of our TSEA members. We will continue discussions with all stakeholders as we formulate our next steps.
CLICK HERE to view the Fiscal Note for SB1157/HB1296
Below are bills we monitored
State Employee Pay Period
Bill Passed | Signed by Gov. Lee
SB1278/HB108 Johnson/Lamberth
Senate: Passed Senate, Ayes 29, Nays 0 – 3/10/2025
House: Passed H., Ayes 93, Nays 0, PNV 2 – 2/24/2025
TSEA Notes: The legislation requires that the pay period for state employees be no less than twice per month, as determined by the commissioner of finance and administration, and removes the requirement that the pay period be semimonthly.
Commissioner’s Compensation Plan for Correctional Officers Report
NO LONGER MONITORING
SB1201/HB1090 Walley/Sexton
TSEA Notes: We are no longer monitoring this legislation; the bill as amended is no longer relevant to TSEA.
Establishment of Early Child Care and Education Division
BILL TAKEN OFF NOTICE
SB1378/HB1238 Lundberg/Haston
Senate: Assigned to General Subcommittee of Senate Education Committee – 3/26/2025
House: Reset on Final Calendar of K-12 Subcommittee – 3/11/2025
TSEA Notes: The bill is not expected to make any movement this year. In its current form, TSEA does not support this legislation. We are actively working with DHS in opposition.
Representative Assembly
As a reminder, our 2025 Representative Assembly will be held May 29–31, 2025, at the Sheraton Music City Hotel in Nashville, TN. Chapters should have received their registration materials.
Deadline to register: Monday, May 5, 2025. Check with your chapter leadership for more information if you’d like to attend.
