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Gov. Bill Lee's $100 million Hurricane Helene loan program sparks controversy, state lawmakers concerned over how funds will be spent

One state lawmaker is worried storm recovery funds from Hurricane Helene will be used as a way to create another school voucher plan.

MEMPHIS, Tenn. — State lawmakers are concerned about a $100 million relief effort to Hurricane Helene victims in east Tennessee, spear headed by Gov. Bill Lee. 

Lawmakers are specifically concerned how the money will be spent due to the governor claiming that the federal funds are a loan. 

State Representative John Ray Clemmons (D-Nashville) said the state has more than enough money to aid with infrastructure needs. He told ABC24 he believes the money from Hurricane Helene will be used as a loan that TennCare funds will be pulled for this disaster relief. 

Clemmons said after the state is paid back for the loan money used for Hurricane Relief, he believes Lee will use those funds as a way to create another school voucher plan. 

"We have some of the lowest funded per pupil schools in the entire country, and now he's talking about stealing another billion dollars a year from our public school system," Clemmons said. 

Clemmons is also the Tennessee House Democrat Caucus Chairman. He told ABC24 that he disapproves Lee asking those counties impacted by Hurricane Helene to pay back the funds they receive. Clemmons said the state has over 75 percent left of its $3.7 billion from the American Rescue Plan. 

"These aren't wealthy counties to begin with," Clemmons added. "The state of Tennessee should be prioritizing these counties. Rural and urban counties deserve investment." 

State Representative Mark White (R-Germantown) said he has yet to speak directly with Lee about his loan program. He does believe all taxpayers should agree to help pay for costs when people are in need. 

"I would think everybody in the state of Tennessee should be willing to go along if it's a loan or however the money has to be appropriated, that the state of Tennessee would take care of each other," White said. 

According to White, he is also awaiting confirmation from Lee by November on whether the topic of school vouchers will be discussed during the 2025 legislative session. He said he's focused on how to better serve Memphis-Shelby County Schools. 

"I think it's a much bigger picture we need to make first of all sure that every child has an opportunity to receive the best education for that child," White said. "That includes parental choice. That includes choice for all children"

ABC24 Political Analyst Otis Sanford said he is surprised Lee is taking another approach to push legislation for school vouchers. In April, the bill failed during last year's legislative session. 

"It just doesn't look good to say I'm going to still continue to try to push to give $144 million to private schools when we have public schools in some very hard-hit areas that are in shambles and can't open because of flooding and damage," Sanford said. 

Sanford said the school voucher bill did not pass due in-house Republicans fighting. They hold the super-majority. 

"There are enough Republicans who don't like vouchers because their local schools, including schools in Shelby County, don't want vouchers because they feel it hurts the public school," he said. 

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