The 2025 Regular Legislative Session begins next week! From opening day next Tuesday, February 4, the Alabama Legislature will have 105 calendar days and 30 legislative days to meet and conduct its business, making May 19 the last possible day of session. Similar to 2024, legislative leadership has indicated that two breaks will likely be taken in March, including a “district work week” the week of March 10, and spring break the week of March 24.  

Leadership largely stays the same in both chambers, except for the top position in the Senate, the Senate President Pro Tempore. In the Senate, Sen. Garlan Gudger (R-Cullman) will be voted on to take over as President Pro Tem., replacing former Sen. Greg Reed, who is now a member of Gov. Kay Ivey’s cabinet. Sen. Bobby Singleton (D-Greensboro) will return as House Minority Leader. As per Alabama’s Constitution, Lt. Governor Will Ainsworth (R) will preside over the Senate body.

In the House, Speaker Nathaniel Ledbetter (R-Rainsville) will continue to preside over the chamber, with Rep. Chris Pringle (R- Mobile) as Speaker Pro Tem. and Rep. Anthony Daniels (R-Huntsville) as Minority Leader. 

The 2023 to 2026 quadrennial session (4-year cycle) began with 37 new legislators. After one special session and two regular legislative sessions, those freshman legislators have had a taste for the legislative process, and are even more prepared going into their third year.

Each quadrennium, the legislature loses members midterm for various reasons. The Governor will call Special Legislative Elections for voters in these districts to elect their new legislator. The only new face this year is Rep. Kelvin Datcher (D-Birmingham) representing House District 52, who replaced former Rep. John Rogers after he resigned due to a criminal investigation. Senate District 5, formerly represented by Sen. Greg Reed, is vacant and unlikely to be filled before the session’s conclusion, with the general election scheduled for June 24. 

A package of bills is expected to be filed addressing public safety, specifically focused on violent crime. While the details of the package have yet to be announced, legislative leadership has indicated that several focus areas would include law enforcement hiring and retention, and the expansion of crime suppression groups. Cracking down on human trafficking is also one of the big issues falling under public safety. 

Illegal immigration is a hot topic on the national level, and that interest is mirrored in Alabama. Similar to the crime package, the specifics are unknown and will, to some extent, depend on what happens nationally. Legislators discussing the issue have mentioned wire transfers to other countries, driver’s licenses, unaccompanied minors, and forged paperwork as potential focus areas. 

Labor participation and workforce development will continue to be a priority topic for legislators. While Alabama’s unemployment rate continues to hover at record lows, our workforce participation rate continues to struggle. Data shows that almost half of Alabamians at working age are neither employed nor looking to be in the workforce. Efforts over the last several years have included a child-care tax credit, workforce housing tax credit, and an overtime tax exemption. 

Alabama’s tax and other revenues have seen tremendous growth over the last four or so years, but that has leveled off. The Education Trust Fund (which funds the education system) is expected to have a surplus for this past year (FY 2025), allowing legislators to allocate the extra funds in a supplemental, while the General Fund (which funds state agencies/operations) does not.

The FY 2026 budget (begins October 2025) in both the ETF and General Fund will see some growth from the prior year, but lawmakers are cautious as COVID dollars end their course through the state’s economy. 

The expiration of the Overtime Tax Exemption and funding the CHOOSE Act (school choice) will be featured budgetary topics. Legislators passed a state income tax exemption for overtime pay in 2023 with an estimated cost at around $50 million. That cost is now around $250 million, and the exemption expires June 30, 2025. House Minority Leader, Rep. Daniels, has stated that he will file a bill to make the exemption permanent.

The CHOOSE Act passed in 2024 and was funded with $100 million in education money. A high number of applications for the program were received when the program opened on Jan. 1, 2025, but with state receipts stagnating, lawmakers will have to decide how much the state can afford to put toward the program. 

Currently illegal in Alabama, gambling is always a topic of discussion for our state’s lawmakers, but how large the discussion will be depends on the Senate. In 2024, a significant effort to pass gambling legislation failed in the Senate, leading House leadership to state that any attempts this year must originate in the Senate. 

Ethics reform will likely be back this year. Last year, several legislators tackled a large scale re-write of Alabama’s Ethics Act, which largely stems from a bill passed in 2010 when Republicans took control of the legislature. Many legislators agree that the 2010 law could be improved, but finding consensus on how to address the issues and balance the various interests has been difficult. 

Additional areas of interest during the 2025 Legislative Session range from mandated pre-marital counseling to elections to Medicaid expansion. Funding of hospitals, especially rural hospitals, is a large area of concern for lawmakers and is expected to be part of budget discussions this year.

Alabama REALTORS® will advocate strenuously on behalf of real estate professionals and private property rights during the 2025 Regular Legislative Session. These efforts are guided by our Public Policy Committee. Your Alabama REALTORS® public policy team is honored to work on your behalf and advocate for you, your businesses, and private property rights in Alabama. 

Stay up-to-date on the 2025 Legislative Session by reading Capitol News and Notes in our weekly newsletter, Real Estate Alabama, or on our website under the Public Policy tab here.