One of its statutory requirements is to create a master plan for developing public higher education in Tennessee.
The agency, a traditional higher education coordinating board, serves several important functions, including: Development and proponency for the state public agenda for higher education; Administration of the outcomes based funding formula, a method by which appropriations are distributed to public colleges and universities; Approval of all new academic programs; Formulation and recommendations for capital project funding; General higher education policy development.
THEC is a combined agency with the Tennessee Student Assistance Corporation, the state financial aid agency, and the THEC Executive Director holds a dual appointment as leader of both entities.
[citation needed] In 1984, the THEC awarded a grant to East Tennessee State University to establish the Center of Excellence for Appalachian Studies and Services.
[1] THEC is the official approving agency in Tennessee for any postsecondary institution, public or private, desiring to enroll students receiving veterans' benefits from the United States Department of Veterans Affairs such as those available under the G. I.