In November 2003, fifty-eight percent of Tennessee voters agreed to remove the ban against lotteries, making possible a Tennessee lottery that would provide funding for scholarships for Tennessee students.
In fall 2004 students pursuing higher education were eligible for the first time for Helping Outstanding Pupils Educationally (HOPE) scholarships funded by proceeds from the Tennessee Lottery. The proceeds provided a scholarship for any Tennessee high school graduate with at least a 3.0 high school grade point average and a score of 19 on the ACT test. Scholarships could be used only during the regular academic year. The base award was initially $3,000, with a supplemental award of $1,000 available based on financial need or merit. Students who met continuation standards established by the state could keep the awards for four years. More than 99 percent of freshmen attending UT in fall 2004 qualified for the scholarship. The award amount was increased to $3,800 and then, in 2007, to $4,000. In 2014 as part of the introduction of Governor Bill Haslam’s Tennessee Promise initiative, ensuring free tuition to any community college, the freshman and sophomore awards at four-year institutions were reduced to $3,500, and the junior and senior awards increased to $4,500. The 120-credit-hour cap was removed.
A Hope Access Grant was added to the program in 2007 providing an opportunity for less well academically qualified students from low-income households. Students who did not meet the test score requirement for a HOPE Scholarship and whose family income bracket was $36,000 or less, were eligible for a one-year grant. If students met the grade point average requirement for continuation of the regular HOPE Scholarship in their freshman year, they could qualify for the HOPE starting in the second year.
In June 2011 Governor Bill Haslam signed into law a bill advocated by students and faculty throughout the state, making it possible to use HOPE scholarships during the summer term. The approval came with a 120-hour cap on the scholarship’s use. The bill had passed 27-1 in the state Senate and 96-0 in the state House. Students were first able to use the HOPE scholarships for summer 2012.