Governor Kay Ivey has officially signed the state's nearly $14 billion General Fund (GF) and Education Trust Fund (ETF) budgets without sending either back to lawmakers with executive amendments after both cleared the Alabama Legislature last week.
These budgets are significantly less ambitious than in previous years. Despite another year with record income receipts, lawmakers and state leaders have warned about potentially declining revenues.
The budget covers the 2026 fiscal year, which begins in Alabama on Oct 1, 2025, and ends on September 30, 2026. The budgets account for nearly $14 billion in spending. However, multiple supplemental appropriations are still awaiting Ivey's signature, which accounts for over $2 billion.
Notable highlights from the $12.2 billion ETF and supplemental bills include:
- $27 million increase for the Numeracy Act
- $14.4 million increase for Summer/Afterschool Programs
- $9.6 million for Paid Parental Leave
- $15.6 million for Teachers' Workman's Compensation
- $58 million for the Renewing Alabama's Investment in Student Excellence (RAISE) Act, which changes how K-12 public schools are funded in Alabama.
- $80 million increase for the CHOOSE Act, the state's school choice program.
"The budgets we made official this morning will continue investing in proven programs like the Literacy and Numeracy Acts," Ivey said in a Monday speech to the Huntsville/Madison County Chamber. "It will support our Turnaround Schools initiative to target some of our lowest performing schools. It will continue allowing these successful education reform policies to take shape while taking an active approach to do everything we can to support students, teachers and parents. It is fully funding the CHOOSE Act – our education savings account program."
The $3.7 billion GF was diverted slightly from Ivey's initial suggestions. The total amendments increased funding by $6 million from Ivey's proposal, which included several increases and cuts.
Notable cuts from Ivey's recommendation include $250,000 from the Department of Natural Resources, $500,000 from the Electric Vehicle Infrastructure and Planning Grant Program, $1 million from the Alabama Department of Public Health, $1.6 million from the Department of Human Resources, $5 million from Medicaid, $5 million from the Industrial Development Authority, and $3.7 from the Department of Mental Health.
Notable budget increases include $7.5 million for the Airport Development Grant Program, $2.5 million for Capitol security, $3 million for the Metro Area Crime Suppression Unit, $2 million for the Commerce Department, $3 million for the Port of Mobile and $1.5 million for the Forestry Commission.
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