School Vouchers - As introduced, establishes various audit and reporting requirements for the department of education and private schools that enroll recipients of an education freedom scholarship; limits eligibility for the scholarship program to students who are members of a family with an annual household income that does not exceed 300 percent of the amount required for a student to qualify for free or reduced lunch; requires scholarship recipients to be administered the same TCAP tests administered to public school students enrolled in the same grade level or course subject. - Amends TCA Title 4, Chapter 29; Title 8, Chapter 44; Title 10, Chapter 7 and Title 49, Chapter 6.

SB 1978 updates Tennessee's education freedom scholarship program (school vouchers) by setting new eligibility rules and oversight requirements. It limits scholarships to students from families earning no more than 300% of the income threshold for free/reduced lunch, and requires voucher students to take the same state standardized tests (TCAP) as public school peers. Private schools receiving voucher funds must undergo annual audits, disclose admissions data and test outcomes publicly, and report student progress to parents twice yearly. The bill directly affects low-income families seeking scholarships and private schools participating in the program, adding transparency and accountability measures to the existing scholarship system.