Blackburn Targets 5% Annual Cuts in First Legislative Push

Tennessee families can expect a push for lower state spending and new housing options under the next administration. Gov.-elect Marsha Blackburn outlined her initial legislative goals on Wednesday, focusing on workforce housing and a structural review of state budgets. She aims to tackle the rising cost of living, a priority voters emphasized during the election.

The transition period began immediately following Tuesday night's election results. Blackburn won a tighter race than projected, securing the governorship for the Republican Party. Deputy Gov.-elect Stuart McWhorter will lead the transition team as the administration shifts from Gov. Bill Lee to Blackburn.

Blackburn’s first order of business involves a proposal for a 5 percent across-the-board cut to state spending annually. She cited her time in the state Senate, where she first suggested the measure to prevent administrative laxity. "It is good to periodically kind of get inside of your numbers to look at positions that maybe are not being fully utilized," she said. The state legislature has controlled the budget for 16 years under Republican leadership.

This spending review draws a parallel to the federal Department of Government Efficiency efforts. Those federal cuts, led by Elon Musk, resulted in some rehires after initial firings disrupted operations. Blackburn noted that legislators are excited about implementing a similar state-level review. "I am excited about working with them, and it’ll be good for the people of Tennessee," she stated.

Housing is the second pillar of her immediate agenda. Blackburn proposed public-private partnerships to develop affordable and workforce housing on government land that is currently unused. "Tennesseans have been very specific that the cost of living is going to be a top issue for them, and yet, we need the cost of living to go down," she said. The administration intends to focus on this agenda from the start of the transition.

A key fiscal victory for the incoming administration is the passage of Amendment 2. The measure prohibits the state government from collecting property taxes. Residents have not paid this tax since the end of World War II. Blackburn highlighted this protection as a core part of the new legislative platform.

Education policy remains a central focus, specifically the expansion of school choice. The Lee administration introduced Education Freedom Scholarships, worth more than $7,000 per student for private school attendance. The legislature has already voted once to expand the program. Blackburn referenced her own children and grandchildren to illustrate different learning needs. "You want to make certain parents don’t have to win the lottery in order to have a say in their child’s education," she said.

The voucher program faces scrutiny in rural areas. When the legislature passed the program in a special session in 2025, rural lawmakers questioned its utility in districts without private schools. Some voted against the measure. Blackburn has not clarified if she will push for further expansion of the scholarship program beyond the current legislative votes.

The transition team will continue coordinating between the Lee and Blackburn administrations. Gov.-elect Blackburn is scheduled to be sworn into office on Jan. 16. The 2027 legislative session will begin with the new leadership in place.