Tennessee's economy is projected to outpace national growth in 2025, with the state's GDP expected to expand by 2.5% compared to 2% for the U.S. overall, according to a report from the University of Tennessee's Boyd Center. The state is anticipated to add around 36,400 new jobs next year, up from 22,500 in 2024, though labor shortages persist in many sectors.

Governor Bill Lee delivered his 2025 State of the State address, outlining key priorities including education funding, nuclear energy development, and fiscal responsibility. Lee proposed a $59.5 billion budget with significant investments in public education, economic development, and public safety. Notably, he announced plans to develop the Clinch River Site for small modular nuclear reactors, allocating $50 million to demonstrate the state's commitment to the project.

In legislative news, the Tennessee Senate passed a bill allowing Knoxville's new multi-use stadium to apply for a liquor license, potentially boosting economic activity in the area. Meanwhile, the House is considering a joint resolution, though details are limited at this time.

Recent severe weather has impacted the state, with deadly flash flooding reported in parts of Kentucky and Tennessee over the weekend. The Tennessee Valley is now bracing for a winter storm that could bring heavy snow, potentially affecting cleanup and recovery efforts. The Tennessee Department of Transportation has issued its weekly construction report, warning of various road closures and repair projects across East Tennessee.

On the education front, Governor Lee's budget includes over $580 million in additional funding for public schools, including teacher pay raises. The state is also expanding its vocational education programs, with a $10 million investment in the Governor's Investment in Vocational Education (GIVE) grant program to support partnerships between colleges, school districts, and industry for nuclear energy career pathways.

Looking ahead, Tennessee is set to break ground on a new visitor center at the Carter House State Historic Site in Franklin on March 28, 2025. The state is also preparing for potential economic impacts from federal policy changes, with business leaders expressing a strong preference for federal tax cuts and inflation control measures in a recent University of Tennessee survey. As Tennessee continues to navigate economic growth and challenges, attention will likely focus on workforce development, infrastructure improvements, and the state's emerging role in nuclear energy and artificial intelligence research.

This content was created in partnership and with the help of Artificial Intelligence AI