AL HB565

Creates the College and Higher Education Excellence and Results (CHEER) Act establishing bonus funding for Alabama higher education institutions that meet student and institutional performance goals, effective June 1, 2026

Eligible institutions include 14 public universities, Tuskegee University, and Alabama Community College System schools; funding distributed by the Alabama Commission on Higher Education with no administrative fee

Performance metrics include student postgraduation success (employment in high-wage/high-demand jobs), completion rates, retention, adult learner outcomes, and support for higher-need students including low-income and academically underprepared students

Premier research universities (exceeding $100 million in annual external grants/contracts) may receive separate funding for research enhancement, including equipment, recruiting researchers, capital projects, and matching funds for federal grants

Establishes an 11-member Outcomes-Based Higher Education Funding Coordinating Committee led by legislative chairs to oversee the program, determine high-demand occupations every three years, and publish annual implementation reports