Education, Higher - As introduced, requires the commission to review and update the outcomes-based funding formula model at least once every five years to provide incentives for institutions that offer programs leading to job placement in high-demand fields in this state. - Amends TCA Title 9; Title 49 and Title 62.

SB 1340 requires Tennessee's higher education commission to review and update the state's outcomes-based funding formula for public colleges and universities at least every five years. This change directly affects public institutions receiving state funding by creating a structured process to adjust funding based on program outcomes. The key mechanism mandates that the commission prioritize incentives for schools offering programs that lead to job placement in high-demand fields within Tennessee. The bill aims to align state funding with workforce needs by making funding decisions increasingly tied to measurable job placement results in priority industries.