If you’ve driven past the Alabama State House in Montgomery lately, you’ve probably seen the dust clouds. There is a massive, $325 million construction project happening right across the street. But while that new building is going up, the real story is what’s going down inside the old one.
Honestly, it feels a bit like the end of an era. The Alabama Legislature just gaveled in for its 2026 session, and this is the final time they’ll do it in the building they’ve called home for 40 years. It was only supposed to be a "temporary" spot when they moved there in 1986. Talk about a long temporary stay.
But beyond the nostalgia of old mahogany and cramped committee rooms, there’s a lot of actual news breaking right now. From Governor Kay Ivey’s final State of the State address to some pretty major shifts in how the state handles everything from hemp to your Netflix account, things are moving fast.
The Ivey Legacy: What’s Happening in Alabama Politics
Governor Kay Ivey isn't exactly slowing down just because it's her final year in office. On Tuesday, January 13, 2026, she stood in the Old House Chamber and laid out a roadmap that’s going to spark some heated debates over the next few months.
She’s pushing for a 2% pay raise for teachers and state employees. Now, a 2% raise might not sound like a lot when you're staring at the price of eggs, but it’s a significant chunk of the Education Trust Fund, which is looking to be the largest in state history. Representative Danny Garrett, who chairs the House Ways and Means Education Committee, seems to think it’ll pass, though the specifics of the numbers are still being crunched.
One of the more controversial bits? The CHOOSE Act. Ivey wants to pump $250 million into this school choice program. It basically lets families use public money for private or homeschool education. People have strong feelings about this. Supporters say it gives kids better options; critics worry it’s draining funds from the public schools that need it most.
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New Year, New Rules: The Laws That Just Hit
While the politicians are arguing about the budget, a whole slew of laws actually went live on January 1, 2026. If you haven't been paying attention, you might run into some surprises.
For one, the state is getting way stricter about hemp. If you’ve noticed your local shop changing its inventory, that’s why. New regulations mean tighter controls on any hemp products with psychoactive compounds. The goal is to stop minors from getting their hands on them and to clear up the "is this legal?" confusion between hemp and marijuana.
Then there’s the digital side of things. Alabama is now enforcing age verification for certain online platforms. It’s an attempt to protect kids' mental health and privacy, but it’s also a massive headache for tech companies who have to figure out how to verify ages without being creepy about data collection.
The Economic Engine: Meta, Aluminum, and AI
It’s not all just laws and politics, though. The economy is doing some weird and interesting things. Meta—the Facebook folks—is scheduled to launch a massive $1.5 billion AI data center in Montgomery later this year. It’s over a million square feet. That is a lot of servers.
Down in Bay Minette, Novelis is working on a low-carbon aluminum plant that should be opening up by the end of 2026. And in Prattville, Owens Corning is dropping a ton of money into a new asphalt shingle plant. We’re talking about the largest initial capital investment in that city's history.
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So, while the national news might be talking about a cooling economy, Alabama seems to be doubling down on manufacturing and tech infrastructure. It's creating thousands of construction jobs, but the real test is whether those turn into long-term, high-paying "21st-century jobs" like Lieutenant Governor Will Ainsworth keeps talking about.
Basketball, Football, and the Post-Saban Blues
You can't talk about Alabama without talking sports. The Crimson Tide basketball team is currently ranked No. 18 and just came off a solid 97-82 win against Mississippi State. Labaron Philon Jr. went off for 32 points. If you aren't watching this team, you're missing out on some of the most exciting hoops in the SEC.
On the football side, things are a little more stressed. The 2025 season didn't end with a trophy. Instead, it ended with a 38-3 thumping by Indiana in the Rose Bowl. Ouch.
Now, everyone is looking at the 2026 roster. Quarterback Ty Simpson is headed to the NFL, which has some fans panicking. But there is a silver lining: safety Keon Sabb and linebacker Yhonzae Pierre just announced they are staying for another year. In a world of transfer portals and early exits, keeping veterans like that is a huge win for Kalen DeBoer.
What Most People Get Wrong About Alabama’s Growth
A lot of folks think the state is just stuck in its ways, but the data tells a different story. A recent report called “Higher Expectations Set and Met” showed that Alabama’s high school graduation rate is now over 90%. That’s a huge jump from where it was a decade ago.
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The state also moved from 52nd in the nation for fourth-grade math (yes, we were behind even the territories at one point) up to 32nd. It’s not #1, but it’s progress. The focus has shifted heavily toward "workforce readiness." Basically, the state is trying to make sure that when these big companies like Meta or Novelis move in, there are actually people in Alabama who know how to do the work.
Actionable Insights for Alabamians
If you live here or are moving here, keep these things on your radar for the next six months:
- Watch the Budget: The 2% pay raise for teachers is likely, but the "cost of living" adjustments for retirees are still up in the air. If you're a state employee, keep an eye on those Education Trust Fund debates.
- Compliance for Businesses: If you sell hemp products or run a digital platform, the January 1 deadline has passed. Make sure your licensing is up to date or you’re looking at some hefty fines.
- Real Estate Trends: With interest in the 2026 elections ramping up, keep an eye on "REALTOR® Day at the Capitol" on January 20. It's usually a good indicator of where property laws and infrastructure spending are headed.
- Local Infrastructure: If you’re in Hoover, watch the I-459 Exit 9 project. It’s finally getting moving thanks to federal grants, and it’s going to change the traffic patterns in Jefferson and Shelby counties significantly.
Alabama is in the middle of a massive transition. We’re moving into new buildings, trying out new school systems, and attempting to pivot from a traditional economy to a tech-heavy one. It’s messy and loud, but it’s definitely not boring.
To stay ahead of the changes, check your local municipal websites for updates on the "Alabama Forward" initiatives, especially regarding the new community centers and park upgrades happening in Montgomery and Mobile. These projects are often the first to feel the impact of the legislative sessions currently underway.