HB1 Alabama 2022 1st Special Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

First Special Session 2022

Title

Supplemental appropriations from the American Rescue Plan Act-Coronavirus State Fiscal Recovery Fund, the American Rescue Plan Act-Coronavirus State Fiscal Recovery Revenue Replacement Fund, and the American Rescue Plan Act-Coronavirus Capital Projects Fund for the fiscal year ending September 30, 2022.

Summary

HB1 redirects multiple American Rescue Plan funds to Alabama for 2022 to support health care, broadband, water and sewer projects, rural hospitals, emergency services, telemedicine, and administration, with legislative oversight and fund rollovers.

What This Bill Does

The bill places specific ARP funds into state agency accounts and directs how they should be spent, including health care reimbursements, broadband expansion, water and sewer infrastructure, unemployment tax relief, and admin costs. It also funds rural hospitals, emergency responders, and telemedicine, and sets aside money to reimburse inmate costs in county jails. Additionally, it creates a framework for rolling unspent money forward and adds a new legislative oversight committee to monitor how funds are used and require reports.

Who It Affects

• Department of Finance and other state agencies (they manage and allocate the funds according to the bill).
• Hospitals and nursing homes (receive reimbursements and targeted grants related to the pandemic).
• Broadband providers and Alabama residents (funds to expand broadband access and telemedicine).
• Water and sewer utilities and communities (grants and matching funds for infrastructure, with priority for COVID-impacted or underfunded areas).
• Rural hospitals (grants determined by bed counts).
• Emergency response providers (EMS, rescue squads, volunteer fire departments, 911 boards receive grants).
• State inmates housed in county jails (reimbursement of certain costs).
• Unemployment system and employers (funding to reduce 2022 unemployment tax rates).
• Legislature and oversight bodies (gains new Joint Legislative Oversight Committee to monitor spending).

Key Provisions

• Section 1: Appropriates $443,343,362.50 of ARP SF Recovery Funds to the Department of Finance for health care reimbursements, broadband expansion, water/sewer investments (with grants and matching grants), Unemployment Compensation Trust Fund relief, and admin costs.
• Section 1a: Up to $80,000,000 for health care and related pandemic services; MOAs with the Alabama Hospital Association and Alabama Nursing Home Association.
• Section 1b: Up to $51,000,000 for broadband expansion; MOAs with ADECA's Alabama Digital Expansion Division.
• Section 1c: Up to $225,000,000 for water/sewer infrastructure; includes grants ($120,000,000 emergency/high-need projects), matching grants ($100,000,000), and STEP-based demonstrations ($5,000,000) within Alabama Black Belt.
• Section 1d: Up to $79,500,000 to the Unemployment Compensation Trust Fund to reduce 2022 employer rates.
• Section 1e: Up to $7,843,362.50 for administration and auditing reimbursements.
• Section 2: Appropriates $136,796,346 of ARP SF Revenue Replacement Funds to the Department of Finance for broadband, telemedicine, health care delivery (including assisted living facilities), rural hospital support, emergency providers, and inmate cost reimbursements.
• Section 2a: Up to $34,000,000 for broadband expansion; MOAs with ADECA.
• Section 2b: Up to $5,000,000 to expand and use telemedicine; allocations to health agencies or providers.
• Section 2c: Up to $36,796,346 for health care services related to COVID-19, including assisted living facilities.
• Section 2d: Up to $30,000,000 for rural hospital grants based on hospital bed counts.
• Section 2e: Up to $20,000,000 for emergency response providers (EMS, rescue squads, volunteer fire departments, 911 boards).
• Section 2f: Up to $11,000,000 to reimburse state inmate costs in county jails (Mar 3, 2021–Dec 31, 2021).
• Section 3: Appropriates $191,887,857 of ARP Capital Projects Funds to the Department of Finance for broadband and technology infrastructure, to be used with ADECA's Digital Expansion Division.
• Section 4: Unexpended funds roll forward to 2023–2026 for the same purposes; allows reallocations with majority approval from legislative leaders and budget chairs; requires reporting from delegates/subrecipients.
• Section 5: Creates the Joint Legislative Oversight Committee on American Rescue Plan Act State Funds to monitor funds and review reports and memoranda of agreement.
• Section 6: Department of Finance must provide expenditure reports to the Legislature within five days of Treasury filing.
• Section 7: Act becomes effective immediately upon governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Supplemental Appropriations