Alabama Legislature Approves $3.7 Billion Budget for 2026

The Alabama Legislature has approved its largest-ever General Fund budget for the 2026 fiscal year, allocating significant increases to Medicaid, corrections, human resources, and mental health services despite tight fiscal constraints. Meanwhile, key bail reform bills are advancing, including a proposal to let judges accept partial bond payments from defendants, shifting more bail money from private bond companies to the courts—a move opposed by the bail bond industry. Other major bills, such as those targeting illegal immigration and regulating labor brokers, remain uncertain as the session nears its end, with lawmakers expressing both optimism and readiness to refile measures if they fail to pass this year. The Legislature is also considering a range of other bills, from tax exemptions for optical aids to the establishment of a licensing structure for low-alcohol mixed spirit beverages. House and Senate leaders anticipate a relatively smooth conclusion to the session, though time constraints may leave some legislation unresolved.