Amends Chapter __ of the Public Acts of 2025 (1st Ex. Sess. – SB 6001 / HB 6004); and TCA Title 49, Chapter 13 and Title 49, Chapter 3.

Tennessee HB1163 amends the funding allocation process for public charter schools under the Tennessee Investment in Student Achievement (TISA) framework. It affects local education agencies (LEAs) and public charter schools by requiring that the state share of funding generated by charter school students be allocated directly to the charter schools rather than the LEAs, with specific provisions for financial accounting and reporting. Key changes include the establishment of a standardized financial reporting system for charter schools and revisions to the funding calculation methods for charter schools based on prior year local student-generated funds and average per pupil funding.