Lottery, Scholarships and Programs - As introduced, requires the Tennessee higher education commission to submit a report to the education and finance committees of the senate and house of representatives identifying any fiscal year, beginning with the 2004 fiscal year, for which net lottery proceeds were insufficient to fully fund certain scholarships and grants, resulting in a pro rata reduction in award amounts or a draw upon the general shortfall reserve subaccount. - Amends TCA Title 4, Chapter 49; Title 4, Chapter 51 and Title 49, Chapter 4.

HB 1863 requires Tennessee's Higher Education Commission (THEC) to report on past funding shortfalls for state scholarship programs. Specifically, THEC must document every fiscal year since 2004 when lottery revenue was insufficient to fully fund scholarships under Title 49, Chapter 4, Part 9, including instances where scholarship amounts were reduced or the general shortfall reserve was used to cover gaps. The report, due by October 1, 2027, will cover all years from 2004 through 2026. This bill does not change current funding rules but mandates a historical review for transparency.