Lee Gives State of the State Address

Gov. Bill Lee delivered his seventh State of the State Address Monday night, outlining budget and legislative priorities for the upcoming year to the General Assembly and Tennesseans.

Lee proposed a $59.5 billion budget focused on economic growth, education, and family support with the theme “Tennessee Innovates.”

Details included $1 billion for road and bridge work to the Department of Transportation and $580 million to boost education spending and increase teacher salaries.

His speech also highlighted new housing help for families by creating a $60 million Starter Home Revolving Loan Fund, which would provide 0% interest construction loans for building new, single-family homes.

Families Spend Nearly 50% of Income on Housing

Housing costs in Tennessee have reached a 10-year high, consuming nearly half of an average family’s monthly income, according to a new report.

The Tennessee Housing Development Agency Board of Directors report estimated the Tennessee Housing Cost Index (HCI) for 2025, showing that stable housing will cost Tennesseans 45.5% of their gross income, up from 28% in 2016—a 17.55% increase.

The 2025 HCI also surpasses 2024’s rate of 44.44%, increasing by over 1% in one year. Read the full report in PDF here.

Nashville ranked among the top 10 U.S. cities with the highest 10-year home price increases, rising 136.5%, while Memphis placed No. 20 with a 113.5% increase.

I-40 Reopening Date Set for March 1

Interstate 40 is set to reopen on March 1, nearly six months after Hurricane Helene damaged sections of the highway along the border of Tennessee and North Carolina.

The North Carolina Department of Transportation announced Monday that the interstate will reopen in the Pigeon River Gorge near the Tennessee border.

The announcement came as new Transportation Secretary Sean Duffy visited the area on Monday with North Carolina Gov. Josh Stein.

Once open, traffic will be limited to one lane in each direction, with speed restrictions as low as 40 mph in some areas.

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➤ Lynchburg: The Barrel house at Jack Daniel’s Distillery partially collapsed on Monday, though no injuries were reported. (More)

➤ Chattanooga: A pastor’s sermon commenting on potential violence against Elon Musk has led to controversy, including a call for him to resign his role from a regional planning commission. (More)

➤ Estill Springs: A video captured a firefighter’s dramatic rescue of a woman from a burning home that saved the life of 76-year-old Joanne Armstrong. (Watch Video)

➤ Nashville: Eight Venezuelan nationals have been indicted for their involvement in an “unlawful sex business enterprise” that facilitated the transportation of women from Central and South America to the U.S. (More)

➤ Knoxville: The president of FIFA, soccer’s global governing organization, visited the University of Tennessee on Monday as part of a project related to field safety ahead of the North America 2026 FIFA World Cup. (More)

➤ Grand Junction: The 126th running of the national Field Trial Championship was held Monday, offering hunting dogs the opportunity to show off their skills in competition. (Watch Video)

➤ The Memphis Tigers men’s basketball team moved up three spots to No. 14 in the latest AP Top 25 poll, with an overall 20-4 record. (More)

➤ Former Cumberland University baseball coach Woody Hunt is being inducted into the College Baseball Hall of Fame following 41 seasons of coaching, 1,630 wins, and three national championships. (More)

➤ The Tennessee Vols men’s basketball team dropped one spot to No. 5 in the latest AP Top 25 rankings, while the women’s team ranked No. 15 after defeating UConn last Thursday. (More)

➤ Vanderbilt University unveiled its plans for a new business and tech campus in West Palm Beach, Florida, offering graduate programs in business, computing, and engineering. (Watch Video)

➤ West Star Aviation LLC is expanding manufacturing operations at its Chattanooga location, bringing 200 new jobs to Hamilton County. (More)

➤ Artazn LLC in Greene County, the nation’s only company that creates penny blanks, is concerned about its future after President Trump’s announcement to stop minting the one-cent coin. (More)

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➤ An Amish buggy driver and his horse were rescued from floodwaters on Monday in Lawrence County off Beasley Road. (See Picture)

➤ A 96-year-old woman and 6-year-old child from Tennessee became unlikely coauthors in a new book called “90 Years Between Them: The Imparting of a Legacy.” (Watch Video)

➤ A GoFundMe page for the family of the mother and daughter killed in last week’s tornado in Deer Lodge has raised over $27,000 at the time of this writing. (More)

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