The Alabama House of Representatives passed the Fiscal Year 2027 Education Trust Fund budget Thursday, a $10.9 billion spending plan that includes a 2% pay raise for teachers and a new $150 million investment in career and technical education.
The total includes a $419.7 million supplemental appropriation and $1 billion from the Advancement and Technology Fund for K-12 schools, community colleges, and universities.
Of the total, $7.59 billion goes to K-12 education and $2.89 billion to higher education.
The budget funds a range of existing education initiatives, including $114 million for the Alabama Numeracy Act, $151.9 million for the Alabama Literacy Act, $226 million for the First-Class Pre-K Program — extending coverage to 47 percent of Alabama’s four-year-olds — and $81 million for the RAISE Act, which provides needs-based funding for school systems.
The CHOOSE Act school choice program is funded at $250 million total, combining $100 million in direct ETF appropriations with $150 million directed from this year’s revenues before entering the fund.
A new $65 million College and Higher Education Excellence and Results (CHEER) Act establishes an outcome-based funding model for higher education institutions.
Speaker Nathaniel Ledbetter (R-Rainsville) credited the budget as part of a sustained legislative effort that has produced national recognition for Alabama’s education gains.
“With the nation’s largest gains in fourth-grade math and reading, Alabama is leading what many are calling the ‘Southern Surge’ in education,” Ledbetter said. “This historic progress is no accident.”
State Rep. Danny Garrett (R-Trussville), Chairman of the House Ways and Means Education Committee, said the budget reflects a responsible approach to education spending.
“Whether it be delivering record levels of support to public schools or investing in Alabama’s nation-leading school choice program, the Legislature’s approach to funding education is beginning to pay significant dividends for our students, teachers, and the future of our state,” Garrett said.
Thursday was the 22nd legislative day. There are eight days remaining in the 2026 legislative session.
Sawyer Knowles is a capitol reporter for Yellowhammer News. You may contact him at [email protected].
