TN HB2485

Expands the definition of "economically disadvantaged" students to include Medicaid beneficiaries and students from households receiving SNAP, TANF, or Food Distribution Program on Indian Reservations (FDPIR) benefits who are eligible for free school meals through direct certification

Requires the Tennessee Department of Education to provide hold-harmless funding to LEAs beginning in the 2027-2028 school year if their TISA allocation decreases due to reduced economically disadvantaged student counts, with this provision expiring July 1, 2030

Mandates the Department of Education submit a request to the U.S. Department of Education by January 1, 2027 to amend Tennessee's ESSA plan to align the economically disadvantaged subgroup definition with direct certification standards

Hold-harmless funds must be solely state-funded and take priority over other supplemental TISA allocation calculations

Definition changes take effect July 1, 2026; the federal ESSA amendment request provision takes effect immediately upon becoming law