Alabama House passes $3.7B General Fund budget

MONTGOMERY – The Alabama House of Representatives passed the 2026 General Fund budget and its supplemental appropriation today.

“It’s no coincidence that the state is in a position to meet its financial commitments and make meaningful investments while carrying little to no debt year-over-year,” said  House Speaker Nathaniel Ledbetter (R-Rainsville). “This achievement is the result of 16 years of conservative governance focused on ensuring every dollar of taxpayer money is spent effectively and responsibly. Our budgeting process is calculated, transparent, and guided by the principle of not spending every dollar that comes in.

“I commend Rep. (Rex) Reynolds and the members of the House for their work in developing the state’s financial plan for 2026 and setting Alabama up for continued success.”

General Fund budget highlights:

• Site Evaluation Economic Development Strategy Program (SEEDS) – $18 million
• ALEA – $2.5 million for Capitol Police and $3 million for the Metro Area Crime Suppression Unit (MACS)
• Department of Mental Health – $244,467,967, plus $8 million increase for community mental health beds
• Airport Development Grants – increased by $7.5 million to $15 million
• Port of Mobile – increased to $3 million

Reynolds (R-Huntsville), who chairs the House Ways and Means General Fund Committee, touted the Legislature’s streak of passing balanced budgets and stressed the importance of funding government with sustainability in mind.

“With the passage of the 2026 General Fund Budget, Alabama is extending its 16-year streak of funding government in a responsible, cost-effective manner, ensuring our state remains on solid financial footing,” he said. “Sustainability is always my priority when developing the budget — we must make decisions that the state can afford not only now but, in the future, as well.

‘While high interest rates are driving revenue growth in state accounts, that will not always be the case, which is why we must continue to approach this process from a fiscally conservative standpoint.”