2025 State Legislative Session Takeaways: Alabama

By Tyler Knolhoff

The Alabama legislative session adjourned on May 14. Over the course of the year, the legislature introduced 968 bills. In total, 310 were enacted.

Education

On May 14, Governor Ivey signed HB 166, or “the FOCUS Act.” The bill requires all local school systems to adopt a classroom cellphone ban policy by July 1, 2025, while also mandating the development of a policy for safe student internet use and directing the State Department of Education to create a digital course on the risks and safe use of social media. Exceptions to the cellphone ban include emergency situations and cases where phone use is part of a student’s individualized education plan, such as for students with special needs. This measure took effect immediately upon signature.

Alabama joins a growing number of states taking action on student cell phone use in schools. Since the start of the 2024 legislative session, more than half of state legislatures have filed legislation restricting cell phone use in schools. The push for classroom bans has been fueled by rising concerns over the negative effects of screen time on children’s mental health, as well as mounting frustration from educators who say phones are a constant source of distraction.

 

Healthcare

On April 15 of this year, Governor Ivey signed SB 252 which creates new regulations on reimbursements and fees pharmacy benefit managers (PBMs) charge to pharmacies. Senator Bill Beasley (D), the bill’s sponsor, expressed deep concern over the role PBMs play in driving independent pharmacies out of business, citing the closure of nearly one pharmacy per week due to inadequate reimbursement rates.

States are increasingly taking action on PBM reform. In 2024 alone, 24 states passed 33 PBM-related bills, with measures ranging from banning spread pricing to requiring greater transparency around rebates.

 

Budget

On May 5, the Alabama legislature approved the general fund budget for the 2026 fiscal year that was over $3.7 billion supporting Medicaid, prisons, state troopers, courts and state agencies. This represents a $348 million increase over this year’s budget, with the 2026 General Fund coming in approximately $14 million higher than Governor Ivey’s original proposal.

Governor Ivey made a significant investment in education, allocating more than $12.1 billion to the state’s education budget. Some key provisions include:

  • $9.9 billion to the Education Trust Fund supporting K-12 and higher education
  • $1.25 billion for the technology and advancement fund
  • $180 million for the CHOOSE a voucher-like program that provides tax credits for nonpublic education expenses, including private school tuition

 

What’s next:

At the end of the legislative session, the governor has 10 days to either sign or veto any bills passed by the legislature. If no action is taken within that period, the bills automatically become law without a signature. That 10-day window has now closed, meaning all pending legislation is either officially law or has failed.

Alabama operates on a four-year legislative cycle, known as a quadrennium. Legislators are elected to serve four-year terms, and during this cycle, there are rules about when bills can be prefiled for the next session. Alabama just completed the third year of the current quadrennium, so legislators are now allowed to begin prefiling bills for the upcoming legislative session. Among the bills that have already been prefiled for the 2026 session include legislation to change reference to the Gulf of Mexico by state and local entities to the Gulf of America and legislation to prohibit an employer from discriminating against an employee or applicant on the basis of the individual’s refusal of certain drugs, vaccines, or face coverings for reasons of conscience.