Alabama Senate committee approves historic $12.1 billion education package

An Alabama Senate committee on Wednesday (April 9) approved a $12.1 billion education budget package, marking a historic investment in both K–12 and higher education.

The total includes:

• $9.9 billion in the regular 2026 Education Trust Fund budget, a 6% increase over the current year;
• $524 million in a supplemental appropriation of surplus revenue from FY24;
• $1.25 billion from the Advancement and Technology Fund; and
• $375 million from the Education Opportunities Reserve Fund to pre-fund a new weighted funding model for K–12 schools.

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The regular budget allocates:

• $6.7 billion to K–12 schools (5.9% increase, 68% of the total);
• $2.6 billion to higher education (6.7% increase, 26% of the total); and
• $611 million to other entities (3.9% increase, 6% of the total).

Crafting the budget was particularly challenging this year, said Senate Finance and Taxation Education Chair Sen. Arthur Orr, R-Decatur, as lawmakers had to coordinate across multiple funding sources. Orr said his goal was to maintain fairness between K-12 and higher education while weaving in new priorities.

A major change this year is the introduction of the RAISE Act, which the committee unanimously approved. The act establishes a new system to allocate funding based on student needs. That funding — separate from the existing Foundation Program — will use new weights for students in four categories: special education, poverty, gifted and English learners.

“Research shows that to educate children in those particular areas, it certainly costs more money,” Orr said.

The new funding doesn’t reach the estimated $1,000-per-student threshold it takes, he said.

“But if you don’t start, you won’t get there,” he said.

To fund the RAISE Act, lawmakers plan to draw for the first time from the Educational Opportunities Reserve Fund (EORF), which has a $1.1 billion balance built from recent surpluses.

The committee voted to transfer $375 million into the new RAISE Fund, with $100 million to be distributed in FY26, $125 million in FY27, and $150 million in FY28 – giving school systems the ability to make investments for at least three years.

“The (EORF) was created in 2023 to have available for us in dark times,” Orr said. “But really we want to take advantage of opportunities for public schools and universities across the states and lead with those initiatives with that money.”

The RAISE Act also includes accountability measures: Two new oversight boards will monitor whether the additional funding improves student outcomes, and the Alabama State Department of Education will be required to train school officials on how to use the money effectively.

Supplemental appropriation – $524 million

Orr said higher education would receive a larger share of the $524 million supplemental appropriation than it does in the regular budget, due to K–12 schools receiving additional funding through the RAISE Act.

Supplemental funds are intended for one-time expenses — such as deferred maintenance, capital projects and grants — since the surplus varies from year to year.

The proposed supplemental distribution is as follows:

• K-12: $174 million or 33% of the total,
• Higher education: $204 million or 39%,
• Other entities — $146 million or 28%.

The proposal also includes $50 million to complete the initial funding for the CHOOSE Act, which will provide scholarships to eligible students for educational expenses. The program is set to launch this fall.

Advancement and Technology Fund – $1.25 billion

The $1.25 billion Advancement and Technology Fund allocation is also intended to fund one-time expenses, including capital projects, transportation, school security and education technology. Most of the funding will be split between K–12 school districts and higher education institutions based on enrollment.

Included in the proposal is a $100 million grant program, administered by the Alabama Department of Education, to help K–12 schools expand and improve their career technical programs and facilities.

Regular education budget – $9.9 billion

The $9.9 billion regular budget proposal includes funding increases for existing programs and new initiatives, including:

• $143 million increase for the state’s K-12 Foundation Program;
• $101 million for the CHOOSE Act education savings accounts for FY26;
• $58 million for local K-12 school districts to administer new RAISE Act funds;
• $27 million increase for provisions of the Alabama Numeracy Act;
• $14 million increase for Alabama Summer and Afterschool Programs;
• $12 million more for the Office of School Readiness;
• $9.6 million for costs associated with paid parental leave for K–12 employees;
• $8 million for the Alabama Law Enforcement Officers’ Family Scholarship Program for higher education;
• $5 million increase for behavior analysts for special education students;
• $2.5 million for a mental health tele-counseling pilot project.

The proposed allocation for the Alabama Community College System, which includes the state’s two-year colleges, is $622 million, a 6% increase over the current year’s budget.

The Alabama Commission on Higher Education would receive $84 million under the proposal, an 18% increase, and the state’s four-year colleges’ would receive increases of 6% and 9% over the current year’s budget.

The education budget could be on the Senate floor as early as Thursday.

EDITOR’S NOTE — This story was written by Trisha Powell Crain and originally published by Alabama Daily News.