House Bill 165 Alabama 2026 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

2026 Regular Session

Title

Higher education, to require public colleges and universities to submit annual report on the amount of state and federal funds received and expended, and plans for operating if federal or state funding reduced

Summary

HB165 requires all public higher education institutions in Alabama to report annual state and federal funding receipts and expenditures and outline contingency plans for funding reductions, with oversight by the Executive Budget Office and Legislature, effective October 1, 2026.

What This Bill Does

It creates a new reporting requirement for each public institution of higher education to detail state and federal funds received and expended, including sources and budget share, and to outline plans if funding is reduced. It also removes the Alabama Community College System from federal fund reporting under the existing section and adds nonsubstantive language updates. Department of Education and the Alabama Community College System must include institution-level information for districts and colleges within their reports. The Executive Budget Office will compile these reports, compare them to appropriations, and present them to the Legislature, which will hold biennial hearings to inform budget decisions.

Who It Affects

• Public higher education institutions in Alabama (universities, public colleges, including the Alabama Community College System and its colleges) — must prepare and submit annual reports on state and federal funds received and expended, plus contingency plans for funding reductions.
• Executive Budget Office and state legislative budget committees — will collect, compile, compare, and review the reports and use the information to inform budget decisions, with hearings conducted every even-numbered year.

Key Provisions

• Amends Section 41-4-97 to remove the Alabama Community College System from federal fund reporting requirements (with nonsubstantive technical updates).
• Adds new Section 41-4-98 requiring each public institution of higher education to submit an annual report by October 31 detailing (a) total state and federal funds received and expended by source, (b) amounts appropriated by the Legislature by source, (c) the percentage of the institution's budget from state/federal receipts, and (d) a contingency plan for funding reductions (5%+ or 20%+ thresholds).
• Definitions added for Federal Receipts, Public Institutions of Higher Education, and State Receipts to clarify reporting categories.
• Department of Education and the Alabama Community College System must include institution-level data for districts and colleges within their respective reports.
• Executive Budget Office must compile and summarize reports, compare receipts to appropriations, identify non-submitting institutions, and deliver a report to the Legislature by January 1; legislative committees will hold hearings in even-numbered years to consider budget implications.
• Effective date set at October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 11, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education