The Alabama House of Representatives on Wednesday unanimously passed a $3.7 billion General Fund Budget, a 1 percent increase over last year.
The House version differs slightly from the version the Senate passed last month, so the budget will return to that chamber for senators to either concur or set up a conference committee to reach a compromise.
“My number one priority for our state’s budgetary process is ensuring that every dollar of taxpayer money is spent in a manner that positions Alabama for success, and I am proud of our conservative record in doing so,” Speaker Nathaniel Ledbetter said. “The 2027 General Fund Budget represents the 17th consecutive year that House Republicans have funded government responsibly, and I commend Chairman Reynolds and our members for working to place Alabama on a firm financial footing.”
The state’s financial leaders warned lawmakers at the beginning of the 2026 Legislative Session to pass a conservative budget as they forecast changes that will require further belt-tightening next year.
The budget includes a 2 percent pay raise for state employees and $18 million to help offset rising health care premium costs for state employees.
The Unified Judicial System also would receive a $5 million increase under the budget, and the House voted to add another $2 million to help fund district attorneys.
Most departments funded through the General Fund saw level funding for core operations while taking some decreases in earmarks and nonessential functions.
“The most basic responsibility of government is to be a good steward of taxpayer dollars while providing the essential services Alabamians depend on, and this budget does exactly that,” Chairman Rex Reynolds, R-Huntsville, said. “I am especially proud that even with costs growing across the board, this year’s budget is only growing by 1 percent compared to fiscal year 2026. Make no mistake about it—this budget was challenging, and with interest rates dropping and COVID-era funding coming to an end, I expect the next several budgets to present even greater challenges. Now more than ever, we must lean into the same fiscally conservative approach to government that has delivered stability and success, ensuring we continue to meet our obligations while safeguarding taxpayer dollars in the years ahead.”
