The RAISE Act

The RAISE (Renewing Alabama’s Investment in Student Excellence) Act was signed into law on May 5, 2025, marking a major win for all Alabama students. With the passage of the RAISE Act, $166 million will be invested in student needs in the 2025-2026 school year and at least $549 million over the next three years.

The RAISE Act modernizes Alabama’s outdated, 30-year-old school funding formula by creating a hybrid model in which districts receive additional funding based on the needs of the students on top of their regular funding from the existing Foundation Program.

Students with additional needs require more resources. More funds for students can be transformational, with research showing that additional dollars translate to better student outcomes. That could mean more reading specialists or interventionists, expanding afterschool and summer programs, and more innovative initiatives aimed at enhancing Alabama students’ academic success and life opportunities.

The law includes a more efficient application for state and federal funds. There are also accountability measures to ensure all RAISE Act funds are spent on the students who generate them.

RAISE went into effect on June 1, 2025, and districts will receive RAISE funds starting in the 2025–2026 school year.

Read the full bill here.

Frequently Asked Questions

So, what is a hybrid funding formula? As the name suggests, it combines elements of two different funding formulas. In the RAISE Act, we are using Alabama’s existing Foundation Program (a resource-based formula) and adding “weights” on top of it to increase funding, which targets resources to specific student groups (a student-weighted formula). The state’s Foundation Program per-pupil funding average will be considered the “base” amount that every student receives in the state. For the 2025-2026 school year, that base will be $7,547.

The Foundation Program is still the main funding formula for public schools in Alabama, with the RAISE Act formula adding additional funding for student needs. Districts will continue to receive their Foundation Program allocations on the typical timeline, plus additional funds through the RAISE Act for student groups with greater academic needs based on their district’s student population.

The law will ensure that the following student groups will receive more funding: students living in poverty, students with disabilities, English language learners, gifted students, and charter school students. This is significant because students in poverty, English language learners, and students with disabilities have some of the lowest academic outcomes. Furthermore, Alabama has one of the largest populations of economically disadvantaged students in the nation, and our English language learners are our fastest-growing student population. Those groups historically receive minimal investments; less than 2% of the Foundation Program was directed to them. However, through the RAISE Act, at least $549 million total will be invested in those student groups over the next three school years.

The existing Foundation Program is still the main funding formula for public schools in Alabama, with the RAISE Act providing additional funding for student needs. For the first three years of RAISE Act funding, the legislature committed $375 million in new funding from the Educational Opportunities Reserve Fund and $58 million annually from existing funding in the Education Budget, for a total of $549 million for student needs. $166 million will be directed towards students in the first year of implementation, which is the 2025-2026 school year. Funding the RAISE Act will not require new taxes.

The RAISE Act established five student groups to support with additional funding. Each student group has a weight, which is a percentage of the base amount that determines their additional funding. Here is the formula to determine how money flows from the state to districts for RAISE funds:

  1. The state’s Foundation Program per-pupil funding average from the previous year is the “base” amount. For the 2025-2026 school year, the base is $7,547.
  2. Each student group is assigned a weight, which is a percentage of the base amount that determines their additional funding. Weights will be established each year in the Education Trust Fund (ETF) budget.
  3. Districts will receive RAISE Funds based on the number of students they have in each group. In the first year, RAISE student groups and weights are:
    Student GroupWeightFunding Per StudentStatewide Total
    Students in Poverty
    (Direct Certification)    		2.25%$169.90$68,254,016
    Special Education - Tier 12%$150.94$11,566,985
    Special Education - Tier 210%$754.70$21,399,519
    Special Education - Tier 375%$5,660.25$15,831,719
    Total Special Education$48,798,223
    English Language Learners7% for districts with under 9% ELL
    10% for districts with over 9% ELL    		$528.29
    $754.70    		$33,515,261
    Gifted Students4.5% for 5% of students$339.67$12,231,196
    Charter School Students2%$150.94$1,174,494

Districts have flexibility over how to spend their funds in the way that best supports their students. Examples could include additional aides, interventionists, high-dosage tutoring, summer and afterschool programs, or other resources that directly benefit students. RAISE funds must be used on the student groups that generate them. If districts decide to flex over 10% of funds between student groups, approval is needed from the Alabama Department of Education.

All RAISE Act funds must be spent on the students who generate them. There are accountability measures in place to ensure that the funds are spent on students. The act requires districts to set goals, report on progress, and outline their expenditures. Districts that are not making gains may be subject to a hearing process and potential corrective action.

No. All districts will receive more funding than they did in the 2024-2025 school year.

Passing legislation is just the first step to sustainable change. Now, we must turn our attention to implementing the new law. While the Legislature has committed to investing $549 million in student needs over the next three years, leaders, families, and community members must continue to advocate for increases in funding over the long haul to see the positive impacts of the investment. Ultimately, there is the opportunity to implement a full student-weighted formula, as some legislators have expressed interest in joining the 41 other states that have gone this route.

While the RAISE Act is a huge win for students, this journey is not over. Every Child Alabama hopes to continue advocating for student-centered policies and investments so that we can continue to build on this momentum. Additionally, we will be providing resources about best practices and investments, so that grassroots leaders can stay informed on ways to engage local leaders to ensure the dollars impact the students with the most needs. Please continue to follow along as we provide information and opportunities to get involved in the process.

Join The
Conversation