On May 2, 2025, Governor Kay Ivey signed into law the Alabama Development Fund, a transformative initiative designed to provide a sustainable, long-term funding source for the state’s economic development efforts.
“Today, we are taking a bold step to secure Alabama’s economic future,” Governor Ivey stated during the signing ceremony. “The Alabama Development Fund will allow us to strengthen our communities, attract new investment, and ensure that Alabama remains competitive on the global stage.”
The Alabama Development Fund was inspired by the Alabama Growth Alliance (AGA), a panel of 15 distinguished leaders from the public and private sectors, co-chaired by Governor Ivey and Secretary of the Alabama Department of Commerce Ellen McNair. The AGA has played a pivotal role in shaping the state’s economic development strategies.
Secretary McNair emphasized the significance of the fund, stating, “In just over six months of existence, the AGA has made an impact on economic development that will allow Alabama to not only be more competitive but to engage in ways we have never been able to in the past.”
The legislation received overwhelming bipartisan support in both the Alabama House of Representatives and the Senate. State Senator April Weaver and State Representative Andy Whitt sponsored the bill, with legislative leaders praising its potential impact. Garlan Gudger, President Pro Tem of the Alabama Senate, remarked, “The Alabama Development Fund represents the kind of forward-thinking solution we need to keep Alabama growing strong. It’s a smart, sustainable approach that supports economic development across every corner of our state without raising taxes or cutting vital services.”
Nathaniel Ledbetter, Speaker of the House of Representatives, added, “By creating a reliable stream of resources for economic development, we’re empowering our communities, strengthening our infrastructure, and setting the stage for long-term success.”
The Alabama Development Fund is set to become effective on June 1, 2026. It will generate new funding for economic development by retaining a small portion of sales and property taxes that are abated in qualified economic development projects initiated after that date. This approach ensures a dedicated, sustainable funding source without increasing taxes or cutting existing programs.
Secretary McNair highlighted the broader vision of the initiative, stating, “Economic development is about more than just job creation — it’s about building thriving communities, strengthening industries, and improving the quality of life for all Alabamians. With a dedicated, sustainable funding source, we can invest in rural assistance programs, an increased international footprint, and local initiatives aimed at attracting and maintaining a quality workforce — key priorities outlined in our ‘Catalyst’ plan.”
The establishment of the Alabama Development Fund marks a significant milestone in the state’s commitment to fostering economic growth and ensuring long-term prosperity for its residents.
