By SPEAKIN’ OUT NEWS

MONTGOMERY, Ala. — Alabama lawmakers are moving forward with a major investment in education, as the State Senate has approved a $10.5 billion education budget that includes pay raises for teachers and potential bonuses for retirees.
The spending plan now heads back to the Alabama House of Representatives for final approval, with only days left in the 2026 legislative session.
The Senate’s version maintains a 2% pay raise for current public education employees, a move supporters say reflects continued efforts to support educators across the state. Lawmakers also approved additional funding aimed at students with the greatest needs.
“This is something you should be very proud of,” said Sen. Arthur Orr, R-Decatur. “You’ll see a lot more money… for poverty students, for special education students, and for gifted students.”
The updated budget increases funding through the RAISE program, directing an additional $25 million toward students in poverty, special education, and gifted programs.
In a move impacting retired educators, lawmakers also added a one-time bonus for Teachers’ Retirement System members. The proposal would provide $1 for every month worked, meaning a retiree with 30 years of service could receive $360. Retirees have not received a cost-of-living adjustment since 2007.
The budget also includes $251.2 million for the CHOOSE Act, a school-choice program that provides up to $7,000 per student for private-school expenses.
While the Senate approved the plan with strong bipartisan support, some details — including health insurance funding levels for education employees — remain under review.
With final approval pending, the budget represents a significant step in shaping Alabama’s education system, impacting teachers, students, and families statewide.

