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Enacted

Alabama Establishes CHEER Act to Award Performance-Based Bonus Funding to Public Colleges and Universities

Original title: Higher education, College and Higher Education Excellence and Results (CHEER) Act established, bonus funding for eligible institutions authorized based on achievement of performance goals and objectives

Last action · April 9, 2026: EnactedSponsor: Danny Garrett

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Does

Beginning October 1, 2026, public higher education institutions in Alabama can earn annual bonus funding by meeting specific student success, workforce alignment, research, and institutional innovation goals. The legislation creates the College and Higher Education Excellence and Results (CHEER) Fund, administered by the Alabama Commission on Higher Education, and establishes a coordinating committee to set performance categories and oversee data collection.

Why it matters

Public universities and community colleges across Alabama will have a portion of their state funding tied directly to measurable student outcomes such as graduation rates, post-graduation employment in high-wage or high-demand fields, and research expenditure growth.

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

Eligible higher education institutions

Public universities, Tuskegee University, and community colleges are eligible to receive or be denied annual bonus funding based on institutional performance outcomes.

Directly affected

Alabama Commission on Higher Education

The commission is tasked with administering the CHEER Fund, verifying institutional data, and certifying annual distributions.

Directly affected

Outcomes-Based Higher Education Funding Coordinating Committee

The newly created committee is responsible for selecting performance outcome categories, collecting necessary data, and making recommendations to the Legislature.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Which institutions are eligible for bonus funding under the CHEER Act?
Eligible institutions include all state four-year public universities (such as Alabama A&M, Auburn, and the University of Alabama campuses), Tuskegee University, and community and technical colleges within the Alabama Community College System.
What criteria are used to measure whether an institution receives bonus funds?
Institutions are evaluated based on performance outcome categories that include student success factors (such as post-graduation employment, retention, and completion rates), workforce and economic development alignment, research performance for premier research universities, and institutional innovation.
Who administers the CHEER Fund?
The Alabama Commission on Higher Education (ACHE) administers and distributes the fund without charging any administrative fees.

What else do you want to know?

News Coverage

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Where This Stands

Current status: Became law.

Procedural history

20 actions
  1. Apr 9, 2026HouseEnrolled
    Enacted
  2. Apr 2, 2026HouseEnrolled
    Delivered to Governor
  3. Apr 2, 2026Senate
    Signature Requested
  4. Apr 2, 2026House
    Enrolled
  5. Apr 2, 2026House
    Ready to Enroll
  6. Apr 2, 2026SenateFloor
    Motion to Read a Third Time and Pass - Adopted Roll Call 1118
Show 14 earlier actions
  1. Apr 2, 2026Senate
    Third Reading in Second House
  2. Apr 1, 2026Senate
    Read for the Second Time and placed on the Calendar
  3. Apr 1, 2026SenateCommittee
    Reported Out of Committee Second House
  4. Mar 12, 2026SenateCommittee
    Pending Committee Action in Second House
  5. Mar 12, 2026SenateIntroduced
    Read for the first time and referred to the Senate Committee on Finance and Taxation Education
  6. Mar 12, 2026House
    Engrossed
  7. Mar 12, 2026HouseFloor
    Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 871
  8. Mar 12, 2026House
    Motion to Adopt - Adopted Roll Call 870
  9. Mar 12, 2026House
    Ways and Means Education Engrossed Substitute Offered
  10. Mar 12, 2026House
    Third Reading in House of Origin
  11. Mar 11, 2026House
    Read for the Second Time and placed on the Calendar
  12. Mar 11, 2026HouseCommittee
    Reported Out of Committee House of Origin
  13. Mar 3, 2026HouseCommittee
    Pending Committee Action in House of Origin
  14. Mar 3, 2026HouseIntroduced
    Read for the first time and referred to the House Committee on Ways and Means Education

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Consolidation of Outcomes-Based Funding

The legislation explicitly repeals and replaces previous disparate outcomes-based funding initiatives, such as the community college program established under Act 2017-217, unifying state higher education incentives under a single framework.

Connected Entities

The University of Alabama at Birmingham, The University of Alabama in Huntsville, Alabama State University and 17 more
OrganizationThe University of Alabama at Birmingham“Eligible institution under the CHEER Act”Map →
OrganizationThe University of Alabama in Huntsville“Eligible institution under the CHEER Act”Map →
OrganizationAlabama State University“Eligible institution under the CHEER Act”Map →
OrganizationAuburn University“Eligible institution under the CHEER Act”Map →
OrganizationUniversity of West Alabama“Eligible institution under the CHEER Act”Map →
OrganizationUniversity of Montevallo“Eligible institution under the CHEER Act”Map →
OrganizationTuskegee University“Eligible institution under the CHEER Act”Map →
OrganizationAlabama Department of Workforce“Department providing recommendations to determine high-demand fields and high-wa”Map →
OrganizationAuburn University at Montgomery“Eligible institution under the CHEER Act”Map →
PersonDanny Garrett“Representative who sponsored HB 565”Map →
OrganizationJacksonville State University“Eligible institution under the CHEER Act”Map →
OrganizationAthens State University“Eligible institution under the CHEER Act”Map →
OrganizationUniversity of North Alabama“Eligible institution under the CHEER Act”Map →
OrganizationThe University of Alabama in Tuscaloosa“Eligible institution under the CHEER Act”Map →
OrganizationAlabama Commission on Higher Education“Commission responsible for administering the CHEER Fund and certifying annual di”Map →
OrganizationAlabama A&M University“Eligible institution under the CHEER Act”Map →
OrganizationAlabama Community College System“System containing eligible community and technical colleges”Map →
OrganizationTroy University“Eligible institution under the CHEER Act”Map →
OrganizationOutcomes-Based Higher Education Funding Coordinating Committee“Committee established to select performance outcome goals, collect data, and mak”Map →
OrganizationUniversity of South Alabama“Eligible institution under the CHEER Act”Map →

Sources

Open source document

alison.legislature.state.al.us

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy25
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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