House Bill 251 Alabama 2026 Session

Summary

Primary Sponsor

Pebblin W. WarrenRepresentative

Democrat

Session

2026 Regular Session

Title

Children First Trust Fund, appropriations from for fiscal year ending September 30, 2027, 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

HB251 would allocate FY2027 funding from the Children First Trust Fund to designated child-focused programs, set rules for tobacco settlement revenues and quarterly allocations, and authorize additional tobacco funds subject to oversight and governor approval.

What This Bill Does

It appropriates 36,635,222 from the Children First Trust Fund for the fiscal year ending September 30, 2027 to the agencies and purposes listed in Section 41-15B-2.2. It requires tobacco settlement revenues to be deposited into the Children First Trust Fund within 30 days of receipt and allocated in quarterly installments, conditioned on revenue availability, and it transfers the portion currently allocated to the State Board of Education to the State General Fund for FY2027. It appropriates 43,789,530 from other tobacco settlement funds for FY2027 to specified entities (including the Department of Early Childhood Education, Medicaid, and other programs) and allows for additional tobacco revenue allocations upon certain recommendations and governor approval. It imposes planning, reporting, and oversight requirements for investments of the funds, requires notification to legislators before grants reach recipients, and ensures any remaining funds stay in the Children First Trust Fund with the act becoming effective immediately upon passage and governor approval.

Who It Affects

• Child-focused state agencies and programs listed in the bill would receive targeted appropriations for FY2027 to fund services for children and related initiatives (as designated in Section 41-15B-2.2).
• State government entities and oversight bodies responsible for managing and supervising these funds would be affected, including the State Director of Finance (allocation notices and quarterly distributions), the Governor (approval of conditional allocations), the chairs of the House Ways and Means General Fund Committee and the Senate Finance and Taxation-General Fund Committee (participation in conditional allocations), and the Department of Early Childhood Education (plan approval, investment reporting, and legislators' notification).

Key Provisions

• Appropriates 36,635,222 from the Children First Trust Fund for FY2027 to designated agencies and purposes per Section 41-15B-2.2, 1975 Code (plan of investment required for each agency).
• Requires tobacco settlement revenues to be deposited into the Children First Trust Fund within 30 days of receipt.
• The Director of Finance must notify each agency by September 1, 2026, of the expected allocation for FY2027.
• At the beginning of each quarter in FY2027, agencies must receive at least one-fourth of their total appropriation when funds are available; if not available, equal quarterly allotments until funds are available, with five working days to become available after the quarter starts.
• Allocations are conditioned on the receipt of tobacco revenues.
• Transfers the portion of Children First Trust Fund receipts currently allocated for the State Board of Education to the State General Fund in FY2027.
• Appropriates 43,789,530 from other tobacco settlement funds for FY2027 to specified entities (including Department of Early Childhood Education, 21st Century Debt Service, Senior Services Trust Fund, Medicaid, and Medicaid Waiver programs).
• Provides for conditional additional tobacco revenue allocations upon recommendations from the Director of Finance and the chairs of the two appropriations committees and with the Governor's approval.
• Requires a plan of investment with at least four quality assurance items, ongoing reporting and audits, and notification to legislators about grants ten days before funds reach recipients.
• Remaining funds at the end of the fiscal year stay in the Children First Trust Fund and do not revert to the General Fund or another fund.
• Effective immediately upon passage and governor approval.

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

Subjects

Appropriations