AlabamaSB1532026 Regular SessionSenate

Children First Trust Fund, appropriations from for fiscal year ending September 30, 2027, use of allocation pursuant to Section 41-15B-2.2, Code of Alabama 1975 and this act, tobacco settlement revenues deposited in fund within 30 days of receipt

Sponsored By: Greg Albritton (Republican)

Enacted

Appropriations

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Alabama funds services for children

For the fiscal year ending September 30, 2027, Alabama provides $36.635222 million from the Children First Trust Fund. Human Resources receives $8.853073 million; Youth Services, $8.107317 million; Public Health, $4.771403 million; and the State Multiple Needs Children's Fund, $4.35855 million. The Juvenile Probation Services Fund receives $3.972864 million; Mental Health, $2.142457 million; the Children's Trust Fund, $2 million; and Medicaid, $1.390782 million. Forensic Sciences receives $418,413; the Alcoholic Beverage Control Board, $414,077; and Rehabilitation Services, $206,286. Payments depend on tobacco revenue and approved agency investment plans, and spending must follow Alabama's existing investment-plan law. When revenue is available, agencies receive at least one-fourth of their annual allocation at each quarter's start. Money becomes available for spending within five working days; delayed revenue is divided equally among available quarters. Added allocations are spread across remaining quarters or paid at once when revenue permits.

Children's trust fund keeps unspent money

Tobacco settlement money designated for the Children First Trust Fund must reach that fund within 30 days of state receipt. At fiscal year-end, remaining money stays in the trust fund instead of returning to the General Fund or another fund. By September 1, 2026, the Finance Director must give agencies and the Department of Early Childhood Education written notice of expected allocations for the fiscal year ending September 30, 2027. The Director must also notify that department of all trust fund appropriations and allocations.

Alabama funds Medicaid and senior services

For the fiscal year ending September 30, 2027, Alabama provides another $43.78953 million in tobacco settlement money. Medicaid receives $24.836383 million, and the Department of Senior Services' Medicaid Waiver receives $1.682759 million. The Senior Services Trust Fund receives $1.141922 million; early childhood education receives $128,466; and 21st Century Debt Service receives $16 million. Additional tobacco revenue available that year is conditionally appropriated, with no amount or recipients specified. This requires recommendations from the Finance Director and the chairs of the House Ways and Means General Fund and Senate Finance and Taxation-General Fund committees, plus the Governor's approval. These appropriations do not change who qualifies for benefits or set household payment amounts.

Children's funding requires plans and checks

The Executive Budget Office and Finance Director cannot release children's trust fund money until the Early Childhood Education Secretary certifies approved agency investment plans. Agencies must use the Secretary's required form and include at least four quality checks. These include children served, a clear measure of service success, and ranked success standards for future plans. Plans provide for periodic reports and audits by the Examiners of Public Accounts. The Secretary must set success measures, check that investments can work, help funds go further, and prevent waste or duplicate spending. Legislators representing a grant area receive notice ten days before money reaches the recipient agency. The Secretary reports each approved plan to the Joint Interim Legislative Oversight Committee and Alabama Children's Policy Council. Those bodies can request changes, which the Secretary can approve, to address children's most immediate needs.

Education allocation moves to General Fund

During the fiscal year ending September 30, 2027, the State Board of Education's Children First Trust Fund allocation goes to Alabama's General Fund instead. The law does not state the amount transferred or how the General Fund will spend it. It does not identify a resulting change in household services or payments.

Sponsors & Cosponsors

Sponsor

Greg Albritton
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 276 • No: 0

House vote • 4/1/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 1141

Yes: 103 • No: 0

House vote • 4/1/2026

Third Reading in Second House

Yes: 103 • No: 0

Senate vote • 3/11/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 828

Yes: 35 • No: 0