The Republican-led House’s 41-46 vote Monday dealt Haslam a defeat in the final days of his last annual legislative session as governor. Haslam has touted the proposal as helping push students toward graduating on time.
Opposition came from lawmakers from both parties, including Republican House Speaker Beth Harwell. Some criticized how the bill would penalize those Tennessee Promise and HOPE scholarship students.
In support of the bill, Republican Caucus Chairman Ryan Williams pointed out that some students would be eligible for hardship exemptions and wouldn’t lose portions of scholarship money.