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Tennessee Lookout

5 stories

State Policy·TN·2d ago

Tennessee Faces $220M SNAP Cost Shift Under Federal Law

New federal cost-sharing rules under the One Big Beautiful Bill Act could force Tennessee to cover an estimated $220 million in additional SNAP costs next year, according to state budget data and the Sycamore Institute. The law raises states' share of SNAP administrative costs from 50% to 75%, adding $58 million to Tennessee's Department of Human Services budget in fiscal year 2026, and requires states with payment error rates above 6% to begin covering a share of SNAP benefit costs starting October 2027. Tennessee's 2025 error rate was 9.44%, which would trigger a 10% benefit cost share worth an estimated $162-171 million if it doesn't improve. States can choose 2025 or 2026 error-rate data to calculate contributions, but 2026 figures won't be released until June 2027, leaving Tennessee's exact liability uncertain. The changes took effect Thursday and arrive alongside tightened SNAP work requirements that have already removed over 100,000 Tennesseans from the program.

Legal·TN·8d ago

Planned Parenthood Sues Tennessee AG Over Investigation Demanding Patient Records, Donor Details

Planned Parenthood of Tennessee and North Mississippi filed a legal challenge in Davidson County Chancery Court on Wednesday to block Attorney General Jonathan Skrmetti's investigative demand for donor information, provider credentials, and medical records of patients who received abortion referrals or gender-affirming care. The Sept. 3 demand letter targets the organization's post-abortion-ban services — providing information and out-of-state abortion referrals — and seeks records of patients treated for gender dysphoria, including named individuals and all minors who received gender-affirming care after July 1, 2023, when Tennessee's ban on such care for minors took effect. Planned Parenthood argues the demands violate free speech protections and constitute political intimidation; the AG's office says it has authority to request information when state law violations may have occurred. Abortion Care Tennessee disclosed this week it faces a similar investigation targeting medication abortion referral services.

Federal Policy·TN·34d ago

Economic Policy Institute Calculates State-by-State Taxpayer Cost of Federal Immigration Enforcement

The Economic Policy Institute released an online calculator estimating federal taxpayers' share of $268.9 billion in deportation costs through the end of the current presidential term. The tool provides state-level breakdowns, estimating Tennessee taxpayers will contribute $4.5 billion total, or $1,961 per taxpayer. The calculator compares immigration enforcement spending to alternative uses such as Medicaid coverage, teacher salaries, or firefighter positions. DHS disputed the analysis, stating illegal immigration costs taxpayers $150 billion annually.

State Policy·TN·34d ago

Tennessee Faces TennCare Funding Gap as Federal Match Rate Declines

Tennessee's next governor will confront tightening budget constraints driven by reduced federal Medicaid matching funds and declining highway revenues. The state's federal Medicaid reimbursement rate has fallen as Tennessee's per capita income rises, forcing the state to cover more TennCare costs or reduce enrollment. Federal legislation passed in June 2025 reduced state funding further, adding $77 million in required state SNAP spending and potentially $171 million more in federal penalties. The state faces these pressures after years of surpluses that funded tax cuts and infrastructure projects using one-time cash rather than sustainable revenue sources.

State Policy·TN·34d ago

12 Tennessee Rural Hospitals Face Immediate Closure Risk, Report Finds

A Center for Healthcare Quality and Payment Reform report identifies 12 Tennessee rural hospitals at immediate risk of closure due to multi-year losses and limited assets, with 19 additional facilities also at risk. Tennessee ranks 6th nationally for rural hospitals facing imminent closure and has lost 10 rural hospitals since 2015, second only to Texas. The report attributes closures primarily to private insurance reimbursement below cost of care, with Tennessee hospitals also facing potential future Medicaid cuts and the state's decision not to expand Medicaid eligibility. The report does not name specific hospitals but warns that even hospitals remaining open may eliminate essential services.

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