The Alabama Legislature convened its 2026 regular session earlier today. This session marks the final meeting of the quadrennium and is expected to be the last held in the current Alabama State House.

Gov. Kay Ivey is also scheduled to present her final State of the State Address this evening and will use the event to outline her administration’s legislative priorities and policy objectives before ending her record ten consecutive years as chief executive next January.

With party primaries scheduled for late May, legislative leaders have indicated they plan to burn through session days at a rapid pace, with the first few weeks meeting in the chambers for three days rather than the traditional two so lawmakers may return to their districts and campaign.

State law prohibits candidates from raising campaign funds when the Legislature is in session in order to avoid the appearance of conflicts of interest. However, the fundraising window automatically reopens 120 days from an election. With the 2026 regular session beginning in mid-January and the party primaries taking place in May, the blackout period for fundraising will last for only six days, beginning on January 13 and ending on January 19.

Because it is an election year, the Legislature is likely to steer clear of any controversial issues and focus on legislation that is popular with voters. 

Among the expected topics of discussion are:

The Legislature’s only constitutional obligation each year is to pass balanced budgets, and early outlook for the FY2027 General Fund budget appears positive. Major budget drivers—such as Medicaid and Corrections—are expected to remain relatively flat, while Mental Health funding may see an increase.

Looking ahead, lawmakers are also keeping an eye on longer-term pressures, including the expiration of federal COVID dollars by late 2026, shifting interest-rate trends that impact investment revenue, and ongoing inflation. While these factors could affect future budgets, state finances are expected to remain adequate for this session.

Like the General Fund, the Education Trust Fund (ETF) budget is in good condition for at least the coming year.

Alabama’s education budgets have been more stable in recent years due to reforms that base spending on realistic revenue averages rather than overly optimistic projections. As a result, the state has avoided mid-year education cuts for more than a decade.

For the upcoming fiscal year, education spending growth is expected to be moderate, with additional revenues directed to reserve and education-focused funds that support technology, safety, and long-term education initiatives. While the ETF does face some challenges—such as rising costs for educator health insurance and funding requests from higher education—legislative leaders expect education funding to remain adequate during this session.

Looking ahead, the Education Trust Fund faces the same long-term pressures as the General Fund, including lower interest earnings, fewer federal dollars, and persistent inflation, but remains on solid footing for now.

Leaders in both the House and Senate have declared rural development as a priority, so it is likely that lawmakers will consider legislation related to the Rural Roadmap Initiative. The initiative focuses of five specific areas that impact growth and the quality of life for residents in rural Alabama —Infrastructure, Business Growth, Workforce Training, Health Care, and Quality of Life.

These issues also directly affect rural communities’ ability to attract and retain employers, strengthen local economies, and support long-term housing demand.

Perhaps the most pressing issue, and one that will demand the most focus, is rural health care. Since 2011, more than a half-dozen rural hospitals in Alabama have been forced to close because of funding issues. Out of the 52 remaining, roughly half are considered to be at risk of closure. In addition, it is estimated that close to 20 rural hospitals could shut their doors any day. 

Alabama has already applied for Rural Health Transformation funds under the federal One Big Beautiful Bill Act, and its application included requests to address maternal and fetal health, EMS access and expansion, cancer treatment, and other essential services currently denied to citizens living in rural areas.

Each time a gaming bill is brought up for consideration, it commands the spotlight and focuses all the attention on that one matter, so it is an issue that is better addressed in the first half of the next quadrennium rather than the final session of the current quadrennium.

Neither the House nor the Senate show an appetite to tackle the issue in the 2026 session, but votes are already being counted for the 2027 regular session. It is important to remember that gaming legislation requires a constitutional amendment, and that demands a supermajority in both chambers before it could go to Alabama voters.

The Alabama High School Athletic Association (AHSAA) recently denied athletic eligibility to students participating in the state’s CHOOSE Act school choice program, despite language in the law prohibiting such denials. The decision has drawn criticism from state leaders and is expected to lead to legislation aimed at reforming the AHSAA. Governor Kay Ivey and House Speaker Nathaniel Ledbetter filed a lawsuit challenging the action, and a Montgomery circuit judge has issued a stay temporarily pausing the eligibility denials.

Lawmakers are expected to take up the Child Predator Death Penalty Act early in the session. The bill would allow prosecutors to seek the death penalty for certain crimes against children under age 12, despite existing U.S. Supreme Court precedent. Supporters argue the measure could ultimately prompt the Court to revisit its earlier ruling.

Alabama REALTORS® will continue its mission of standing tall on behalf of real estate professionals and private property rights throughout the 2026 regular legislative session. Guided by our Public Policy Committee, your Alabama REALTORS® team is honored to protect the interests of you, your businesses, and private property rights in Alabama. 

Stay up-to-date on the 2026 Legislative Session by reading Capitol News and Notes in our weekly newsletter, Real Estate Alabama, or on our website here.