BIRMINGHAM, Ala. – A bill approved by the state Senate on Thursday would require Alabama’s public universities to develop contingency plans for major reductions in federal funding, a safeguard lawmakers say is needed amid ongoing uncertainty in federal budget priorities under President Donald Trump.
Senate Bill 59, sponsored by Education Budget Chairman Arthur Orr, R-Decatur, directs universities to prepare a written plan for two potential scenarios: a 5% reduction in federal funding and a more severe 25% cut. The requirement mirrors an existing rule for the state’s General Fund agencies but would not apply to K-12 schools or community colleges.
Under the bill, institutions would be required to review those plans annually and submit them to lawmakers each year. However, universities would not be required to follow the plans they submit, and the legislation includes no penalties for noncompliance.
Instead, Orr framed the plans as a flexible tool administrators could draw on if funding declines.
“Just so they’re thinking forward and they have something on the shelf,” Orr said during floor debate. Universities could modify the plans as circumstances change, he said, but would have already identified “the low-hanging fruit” if cuts become necessary.
Whether facing a modest reduction or a sharp downturn, Orr said the goal is to help institutions preserve their core missions.
Orr has pointed to recent history as justification for the bill. Some of Alabama’s universities were hit hard early in Trump’s presidency, when federal research dollars and grants were rescinded or delayed.
State agencies funded through the General Fund already operate under similar requirements, Orr said, and those agencies told him the process forced significant evaluation and planning, leaving them better prepared than they were heading into the Great Recession.
“Higher ed is the one that takes it on the chin the worst in a downturn,” he said.
The bill passed unanimously and now heads to the House for consideration. The House’s version of the bill, sponsored by Rep. Danny Garrett, R-Trussville, already passed that chamber.
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