AlabamaAlabama sets aside tobacco settlement money for agencies and debt
For the fiscal year ending September 30, 2027, Alabama sets aside $36,635,222 through Children First and $43,789,530 from other tobacco settlement funds; Children First payments require revenue and approved spending plans.
What it does
The Children First Trust Fund sets aside $36,635,222 for agencies for the fiscal year ending September 30, 2027. Payments depend on tobacco revenue and approved spending plans; unused money stays in the fund.
Other tobacco settlement funds set aside $43,789,530 for Medicaid, debt payments, early childhood education, and senior services for the fiscal year ending September 30, 2027.
The State Board of Education's share of Children First Trust Fund receipts goes to the State General Fund during the fiscal year ending September 30, 2027.
Additional tobacco revenue can fund further spending for the fiscal year ending September 30, 2027, only with recommendations from three state officials and the governor's approval.
Argument forApproved spending plans and reports on children served could help the state track whether funded services achieve their goals.
Argument againstMoving the education share into the State General Fund could leave less tobacco settlement money dedicated specifically to education.
More detail
The law sets aside $36,635,222 from the Children First Trust Fund for designated agencies and funds. Recipients include the Alabama Department of Human Resources, Department of Youth Services, and State Multiple Needs Children's Fund. Spending must follow the purposes in Section 41-15B-2.2. Payments depend on tobacco revenue arriving and the early childhood education secretary certifying that each agency has an approved spending plan. Tobacco settlement revenue designated for the Children First Trust Fund must reach the fund within 30 calendar days of receipt. Spending plans must include at least four service quality measures, periodic reports, and audits. Measures must include children served and service success. The secretary must report approved plans to the Joint Interim Legislative Oversight Committee and Alabama Children's Policy Council. Agencies may request approval of adjusted plans. When revenue is available, agencies receive at least one-fourth of their annual allocation at each quarter's start, within five working days. Later revenue is divided equally among quarters with funds available at their start. Additional allocations may be divided among remaining quarters or paid at once.
The law sets aside $43,789,530 from other tobacco settlement funds. The Alabama Medicaid Agency receives a $24,836,383 allocation, and 21st Century Debt Service receives $16 million. The remaining money is allocated to early childhood education and senior services, including Medicaid waiver services. These allocations apply to the fiscal year ending September 30, 2027.
The state must transfer the State Board of Education's share of Children First Trust Fund receipts to the State General Fund. The transfer covers the portion of Children First Trust Fund receipts currently allocated to the State Board of Education. The transfer must occur during the fiscal year ending September 30, 2027.
Additional available tobacco revenue can be set aside with the required recommendations and the governor's approval. This provision covers additional tobacco revenue available for the fiscal year ending September 30, 2027. The Director of Finance and the chairs of the House Ways and Means General Fund Committee and Senate Finance and Taxation-General Fund Committee must recommend the funding. The governor must approve the funding, and additional tobacco revenue must be available.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 9EnactedBecame Law
- Apr 2Ready to Enroll
- Apr 2EnrolledTo Governor
- Apr 2Signature Requested
- Apr 2Delivered to GovernorMinor
- Apr 1Third Reading in Second House
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 1141. Result: pass.Lower
- Vote recorded Third Reading in Second House. Result: pass.Lower
- Apr 1Motion to Read a Third Time and Pass - Adopted Roll Call 1141Passed House
- Mar 31Reported Out of Committee Second House
- Mar 31Read for the Second Time and placed on the Calendar (Ways and Means General Fund)Minor
- Mar 12Read for the first time and referred to the House Committee on Ways and Means General FundMinor
- Mar 12Pending Committee Action in Second House (Ways and Means General Fund)
- Mar 11Third Reading in House of Origin
- Vote recorded Third Reading in House of Origin. Result: pass.Upper
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 828. Result: pass.Upper
- Mar 11Motion to Read a Third Time and Pass - Adopted Roll Call 828Passed Senate
- Mar 10Reported Out of Committee House of Origin
- Mar 10Read for the Second Time and placed on the Calendar (Finance and Taxation General Fund)Minor
- Jan 14Read for the first time and referred to the Senate Committee on Finance and Taxation General FundMinor
- Jan 14Pending Committee Action in House of Origin (Finance and Taxation General Fund)Introduced
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