Tennessee increases private-school voucher vendor contract by $356M

Folks, not only is TN government spending $270 million this year for school vouchers (payments toward tuition for students who attend private schools), but state lawmakers are spending nearly $637 million, over five years, to an out-of-state firm that runs an online site where parents can apply for funds and receive payments.

Wouldn’t you think that someone already working for the state could handle this task?

Sam Stockard, reporting for the Tennessee Lookout on June 25, 2026, broke this story. He says Student First Technologies received a $356 million increase in its five-year contract when the state increased the aggregate spent on vouchers this year.

The increase for the last two years of the contract comes after the legislature added 15,000 students to the “Education Freedom Scholarship” program this year, pushing it to a total of 35,000 for the 2026-27 school year.

The TN Department of Education hired the Indiana-based company in May 2023 to administer the Education Savings Account program (ESA) for low-income students to attend private schools at a cost of around $40 million.

“Approved in 2019, the ESA was Gov. Bill Lee’s first voucher program, and is available to students in Metro Nashville, Memphis and Chattanooga. Initially, it was administered by Florida-based ClassWallet in a no-bid contract,” Stockard writes. We will pick up his story here.

“The department then widened the Student First Technologies contract to cover a separate private-school voucher program enacted in February 2025, which is projected to cost $270 million next school year after the expansion goes into effect.

“Democratic Sen. Heidi Campbell of Nashville raised questions about the vendor on June 24, saying Student First Technologies won Tennessee’s business even though the state of Arkansas terminated its contract with the vendor and obtained $300,000 in damages for failure to deliver online services.

“The vendor also struggled to run a similar program in West Virginia after receiving a $10 million contract, failing to process nearly 3,000 of 9,000 student applications.

“Campbell asked whether the department conducted an independent performance review of the vendor for ‘accountability.’

“States Newsroom and The 74 reported that the vendor wasn’t supposed to take on other contracts until it cleaned up problems in West Virginia.

“Department of Education officials responded by saying the vendor was selected in a competitive bid process and that the company has been a ‘good partner.’ The Tennessee Comptroller hasn’t reported any problems with the performance of Student First Technologies.

“Keith Minor, an attorney for the department, said the Comptroller’s Office audits all contracts and that the department can seek liquidated damages in case of a breach of contract.”

Checking in on vouchers

  • The scholarship amount for the 2025-26 school year is $7,295.
  • The scholarship amount for the 2026-27 school year is $7,530.
  • The EFS application window closed on Friday, February 6, 2026, at 4 p.m. CT
In Memoriam

Larrissa Henderson

Larrissa Henderson Ed.D. passed away on June 28, 2026. Dr. Henderson worked 25 years for the Oak Ridge Schools, retiring as director of pupil services. Jarnigan & Son Mortuary in Knoxville is handling arrangements. Details were not available at post time. Full obituary here.

Dr. Henderson was candid about her job. “While others may see this position as a ‘complaint department,’ I see it as the ‘customer service department’ for the district,” she posted on social media. “We field calls regarding enrollment, tuition, home school concerns, discipline, residency, etc. I also review and revise policies that are implemented for the district regarding students.

“I find my position a very rewarding one because I get to help all students, assist families and the community. I network with others in a similar position both locally and nationally.”

Dr. Amanda Tinker has been appointed director of student supports (a new name) for the upcoming school year.

Henderson was a three-time graduate of the University of Tennessee, getting a bachelor’s in 1973, a master’s in 1985 and her doctorate in 1997. She taught fifth grade in Knox County Schools (1972-89), working at Farragut Intermediate and Farragut Middle schools. She was a school principal in Knox and Anderson counties from 1998 to 2002.

She graduated from Fulton High School where she was recognized on the school’s Wall of Fame for “outstanding excellence in the field of education and community.” She was active in Alpha Kappa Alpha Sorority. And she once took the youngest team – five third grade boys – to the International Math Bowl in Michigan.

Etta Jane Norris

Etta Jane Hayes Norris of Tazewell, Tennessee, passed away June 24, 2026, at age 86. She was a longtime teacher at Claiborne County High School and a member of the First Baptist Church of New Tazewell.

She was preceded in death by her husband of 58 years, Dr. Roy Kyle Norris, who was an educator who served as director of schools for Claiborne County. Mrs. Norris was inducted into the Lincoln Memorial University Educators’ Hall of Fame in 2023. Her full obituary is here.

Bob and Mary Jo Potts

Mary Jo Garner Potts, a veteran teacher and leader at Webb School of Knoxville, was honored at a celebration of life on Monday, June 29, 2026, in the Central Building at Webb School, along with her late husband, Bob Potts, an accountant and entrepreneur.

The couple met when Bob was 16 and Mary Jo was 14. They dated through high school and college and were married over 65 years before they passed away this year. They “endured a short separation before joining each other in eternity,” per the obituary here.

Mary Jo also attended the University of Tennessee in Knoxville, where she was a Phi Beta Kappa graduate in English and later attained her master’s in English. In her decades at Webb School, she rose from teacher, to Advanced Placement instructor, to department head to dean of faculty. She rose from a grader on the English Advanced Placement exam to ultimately being one of six members of the College Board English Academic Advisory Committee. She was sought after as a teacher’s teacher. She taught many summer programs for literature instructors around the US and in Europe and Asia.

Bob graduated from the University of Tennessee, Knoxville in accounting. He worked for TVA and was an early pioneer in computer programming. After an early retirement, he formed Potts Software Associates and pioneered the use of IBM’s then revolutionary AS400 system.

Notes & Quotes

Outdoor Knoxville for running, rafting and things that start with other letters is free online at Legacy Parks Foundation here.

Karns Community Fair will be Saturday, July 18, at Karns High School, 2710 Byington Solway Rd., Knoxville. Carnival Midway – 10-5 p.m. with Pendleton’s playground, rides, slides, games and classic carnival foods; Inside Vendors – 10-4 p.m.

The Knoxville Area Urban League’s largest community event – Shoes for School on Saturday, August 8, 2026, at Covenant Health Park – will be bigger than ever and in a new location. Talk with a representative about how the event supports local students and involves a lot of community groups. Or donate here.

Quote: “If a man does not keep pace with his companions, perhaps it is because he hears a different drummer. Let him step to the music which he hears, however measured or far away.” – Henry David Thoreau in Walden.

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