Lee seeks $200M for rural health, $100M for behavioral health from shared‑savings program

NASHVILLE — Governor Bill Lee proposed a multi‑year investment package aimed at expanding rural health care and behavioral‑health services across Tennessee, saying the funding would come from shared savings and not add cost to taxpayers.

Lee said the administration will propose $200,000,000 over the next five years as the largest single investment in rural health in the state’s history, built on recommendations from the rural health care task force formed in 2021. The package would expand apprenticeships, telehealth, specialty‑care access, and pathways from high school into health careers.

The governor also announced more than $100,000,000 over five years from shared savings to support behavioral health and substance‑abuse services, citing that nearly four in 10 Tennesseans report symptoms of anxiety or depression. He credited Tennessee’s "10 care waiver" and said the savings make these investments possible without new taxes.

Lee proposed reorganizing state agencies to create a new Department of Disability and Aging overseen by Commissioner Brad Turner to improve coordination for older adults and those with intellectual and developmental disabilities.

What happens next: The governor presented the funding concepts and organizational changes to the General Assembly; he did not provide bill texts, eligibility rules, or implementation schedules in the address.