Senate Bill 344 Alabama 2026 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

2026 Regular Session

Title

Higher education, College and Higher Education Excellence and Results (CHEER) Act established, bonus funding for eligible institutions authorized based on achievement of performance goals and objectives

Summary

The CHEER Act creates a new College and Higher Education Excellence and Results program that awards bonus funding to Alabama colleges and universities based on student success and workforce outcomes.

What This Bill Does

It establishes the CHEER Fund to provide annual bonus funding to eligible higher education institutions that meet defined performance goals, and creates the Outcomes-Based Higher Education Funding Coordinating Committee to oversee metrics, data collection, and bonus distribution. Eligible institutions include Alabama’s public universities and Alabama Community College System campuses. The program uses weighted performance categories (student success, alignment with economic development, and research/innovation) and a funding multiplier to determine bonuses, with unearned funds staying in the CHEER Fund; funding is to begin Oct 1, 2026 if appropriated and replaces older outcomes-based funding programs.

Who It Affects

• Eligible higher education institutions in Alabama (public universities and ACCS campuses) that could receive bonus funding based on performance.
• Students, especially higher-need, academically underprepared, adult learners, and low-income students, who are affected by outcome-focused funding and supports.
• Premier research universities that may use funds for research-related activities and infrastructure.
• The Alabama Commission on Higher Education and workforce data partners (e.g., Alabama Department of Workforce) responsible for defining high-demand/high-wage fields and monitoring outcomes.

Key Provisions

• Creates the College and Higher Education Excellence and Results (CHEER) Fund in the State Treasury to hold bonus funding for eligible institutions; funds appropriated for this purpose stay in the CHEER Fund.
• Establishes the Outcomes-Based Higher Education Funding Coordinating Committee to set goals, collect data, certify bonuses, and monitor data integrity; committee includes legislative and higher education leadership.
• Defines eligible institutions (Alabama public four-year universities and ACCS colleges); outlines criteria for eligibility and data accuracy requirements.
• Sets performance outcome categories (Student Success factors, alignment with economic development/workforce needs, research/innovation) and uses a weighted funding multiplier to determine bonuses; funds for categories are awarded if goals are met; unmet categories stay in the CHEER Fund.
• Requires annual data collection/verification, annual reporting to the Legislature, and potential adjustments to bonus structures or new categories based on reports and workforce data.
• Program starts in the fiscal year beginning October 1, 2026, contingent on funding and supersedes prior outcomes-based funding programs (Act 2017-217).
• Institutions must use bonus funds to support student needs and to advance identified outcomes; premier research universities may use funds for research expenditures, equipment, personnel, and related research infrastructure.
• Implements data integrity protections; institutions with faulty/manipulated data may have bonuses reduced or withheld and could face future funding reductions.
• Committee may propose adjustments to bonus amounts, define additional student categories, and expand/adjust outcome measures as needed to improve effectiveness.
• Requires an annual statewide and per-institution report on implementation and impact, including eligible students, categories, and bonuses earned.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 5, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education