The Alabama Commission on Higher Education voted Friday in favor of a $2.6 billion budget request for all two- and four-year colleges and universities along with other higher education-related programs in fiscal 2026.
That is a $145 million, or 6% increase over the current year’s $2.4 billion.
Under the proposal, two-year colleges would receive $485 million, which is $27 million or 5.9% more than this year’s $458 million. Four-year universities would receive $1.8 billion, which is a $106 million or 6.4% increase over this year’s $1.7 billion.
The commission held budget hearings in November for colleges and universities and said most of the proposed increases are due to rising personnel costs, including insurance, retirement benefits and mandatory contributions to PEEHIP, the state’s educators health insurance program.
Commissioners also approved a $77.9 million budget request for the agency and related programs for the 2026 fiscal year. The agency rolled over $25 million in unspent funding from recent years and supplementary appropriations, resulting in what appears as a decrease in the total budget from last year to this year.
Closer look at funding request
Within that request, the agency asked for funding for the following programs:
- $500,000 in increased funding for each of three student financial assistance programs, for a total of $1.5 million: The Alabama Student Assistance Program, the Alabama Student Grant Program and the Alabama National Guard Scholarship Program;
- $1 million increase for STEM teacher recruitment through the UTeach program;
- $200,000 increase for the Network of Alabama Academic Libraries to expand materials focusing on workforce and economic development;
- $2 million for the (Re)Engage Alabama initiative, which offers financial help for adults who have some college credit but want to return to complete their degrees. Funding for (Re)Engage Alabama was previously included in supplemental appropriations, but the agency is including it as part of the regular budget request;
- Hunger-Free Campus Initiative: $200,000 to expand access to healthy foods for college students;
- Historically Black Colleges and Universities Consortium: $650,000. This funding was part of the agency’s regular budget in FY23, but was covered by supplemental appropriations for the past two years;
- Alabama Literacy and Numeracy Initiative: $100,000 to support teacher preparation programs in aligning programs with requirements of the Alabama Literacy and Numeracy Acts;
- Alabama Special Education Rural Teacher Scholarship: $250,000 to establish a scholarship for rural students pursuing education degrees.
Alabama’s community colleges have approved a separate $694 million request, and four-year institutions approve their own individual budgets as well. State law requires ACHE to consolidate community colleges and universities into one higher education budget request that then goes to Gov. Kay Ivey for consideration. Ivey will present her final budget request to lawmakers at the start of the 2025 legislative session, which begins Feb. 4.
K-12 education approved a $6.4 billion FY26 budget request in October.
EDITOR’S NOTE — This story was written by Trisha Powell Crain and originally published by Alabama Daily News. It is reprinted with permission.
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