HB183 Alabama 2025 Session

Updated Feb 22, 2026

Notable

Summary

Primary Sponsor: Pebblin W. WarrenRepresentative
Democrat
Session: 2025 Regular Session
Title: Children First Trust Fund, appropriations from for fiscal year ending September 30, 2026, 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
Summary: HB183 would appropriate tobacco settlement funds to the Children First Trust Fund for FY2026, set rules for deposits and quarterly allocations, transfer some funds to the General Fund, and allocate additional tobacco money to several programs with oversight and investment planning requirements.
What This Bill Does
It appropriates 36,616,436 from the Children First Trust Fund for FY2026 to various agencies listed in Section 41-15B-2.2 under an approved plan of investment. It requires tobacco settlement revenues to be deposited into the Children First Trust Fund within 30 days of receipt and allocated quarterly only when those revenues are available, including transferring the portion currently allocated for the State Board of Education to the State General Fund in FY2026. It appropriates 44,177,773 from other tobacco settlement funds for FY2026 to specific entities (including the Department of Early Childhood Education, Medicaid, and others) and makes any additional tobacco revenue allocations conditional on recommendations and Governor approval.

Who It Affects
Agencies and funds named in Section 41-15B-2.2 (such as Alcoholic Beverage Control Board; Department of Forensic Sciences; Department of Public Health; Department of Youth Services; Alabama Medicaid Agency; Department of Mental Health; Senior Services Trust Fund; and others) that receive funding for FY2026 under the plan.
State General Fund, which would receive the portion of Children First Trust Fund receipts currently allocated to the State Board of Education during FY2026.
Department of Early Childhood Education, which would manage plan approvals, investment plans, quarterly allocations, and reporting, and would notify legislators about grants.
Legislative bodies (Joint Interim Legislative Oversight Committee and the Alabama Children's Policy Council) and the Governor, which would receive investment reports and approve any additional allocations.
The Director of Finance and related budget offices, which would handle notifications, certifications, and authorization of allocations.
Remaining funds in the Children First Trust Fund, which would stay in the fund at year-end rather than reverting to the General Fund.

Key Provisions
Section 1(a): Appropriates 36,616,436 from the Children First Trust Fund for FY2026 to designated agencies per the approved plan of investment.
Section 1(b): Requires tobacco settlement revenues to be deposited within 30 days; requires written notification to agencies of anticipated allocations by Sept 1, 2025; requires at least one-fourth of annual allocations to be made each quarter when revenues are available, or equal quarterly sums if not; requires allocations to be available for expenditure within five working days of the quarter’s start; and states that additional sums will be allocated as available.
Section 1(b)(3): Transfers the portion of Children First Trust Fund receipts currently allocated for the State Board of Education to the State General Fund in FY2026; remaining allocations are conditioned on receipt of tobacco revenues.
Section 3: Adds a separate appropriation of 44,177,773 from other tobacco settlement funds for FY2026 to specified entities (including DECE, 21st Century Debt Service, Senior Services Trust Fund, Alabama Medicaid Agency, and Medicaid Waiver).
Section 4: Allows conditional appropriations for additional tobacco revenues based on recommendations from the Director of Finance and certain legislative chairs, with Governor’s approval.
Section 5: Requires the Executive Budget Office and Director of Finance to allot funds only after the DECE Secretary certifies an approved plan of investment for each agency; the plan must include a four-item minimum quality assurance framework and measurable performance reporting; DECE must notify legislators 10 days before funds reach recipients.
Section 6: Requires DECE to report approved plans of investment to the Joint Interim Legislative Oversight Committee and the Alabama Children's Policy Council and allows the Secretary to approve adjusted plans upon agency request.

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