AL HB165

Requires each public institution of higher education in Alabama to submit annual reports to the Executive Budget Office by October 31, detailing state and federal funds received and expended for the preceding fiscal year

Mandates institutions include contingency plans for operating under funding reductions of 5% or more, and separately for reductions of 20% or more in state or federal receipts

Removes the Alabama Community College System from existing state agency federal fund reporting requirements under Section 41-4-97, placing it instead under the new higher education-specific reporting framework

Executive Budget Office must compile all higher education reports and submit a summary to the Legislature by January 1, including a list of any non-compliant institutions

House Ways and Means Education Committee and Senate Finance and Taxation Education Committee must conduct hearings on the report every even-numbered year during budget hearings; effective October 1, 2026