Tennessee Changed Its Higher Education Funding Formula

A student can complete a certificate or degree and still struggle to find stable employment. A credential doesn’t lead to strong wages, continued career advancement, or growing employment opportunities just because it is connected to an industry described as “high need.”

In July, the Tennessee Higher Education Commission approved recommendations for the state’s 2026–2030 outcomes-based funding formula. The most consequential workforce change revises the formula’s Workforce Investment Premium. What can we expect this change to do for state residents looking for work?