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HB 251

Children First Trust Fund, appropriations from for fiscal year ending September 30, 2027, use of allocation pursuant to Section 41-15B-2.2, Code of Alabama 1975 and this act, tobacco settlement revenues deposited in fund within 30 days of receipt

2026 Regular Session Introduced by Pebblin Warren

Alabama bill directs tobacco settlement revenues into Children First Trust Fund with mandated 30-day deposits and fiscal 2027 appropriations authorization.

Re-referred to Committee in House of Origin (Ways and Means General Fund)
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Bill Summary · HB 251

Legislative bill overview

HB 251 directs tobacco settlement revenues to Alabama's Children First Trust Fund and establishes appropriations from that fund for fiscal year 2027. The bill requires that tobacco settlement funds be deposited into the trust account within 30 days of receipt, and authorizes spending according to existing statutory guidelines under Section 41-15B-2.2.

Why is this important

Tobacco settlement revenues represent a significant, ongoing funding source for states—Alabama receives these payments as part of the 1998 Master Settlement Agreement with major tobacco manufacturers. How these funds are allocated directly affects public health, education, and children's welfare programs. This bill essentially locks in the funding mechanism and spending authority for a fiscal year, ensuring predictable resources for designated purposes.

Potential points of contention

  • Fund prioritization: Questions about whether tobacco settlement money should prioritize children's health initiatives, general education funding, or other state needs—and whether "Children First" is the optimal use
  • Spending flexibility: The 30-day deposit requirement and rigid statutory reference may limit state fiscal management flexibility if economic conditions change during the fiscal year
  • Accountability mechanisms: The bill doesn't specify performance metrics or oversight procedures for how allocated funds are actually used, raising questions about effectiveness monitoring

Compiled from official sources — confirm details with the bill’s official record.

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