HB609 • 2026

Weatherization assistance; authorize ADECA to contract with certain nonprofit corporations to administer program; source of funds to Neighbors Helping Neighbors Fund expanded; household income threshold to qualify for assistance revised

Children Energy Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Reynolds
Last action: 2026-04-17
Official status: Enacted
Effective date: 2026-06-01

Plain English Breakdown

The bill defines 'statewide resiliency organization' but does not explicitly define what specific actions constitute 'weatherization assistance,' only that it is provided to eligible recipients.

HB609: Changes to the Neighbors Helping Neighbors Weatherization Fund

This law raises the income limit for weatherization help, expands funding sources by removing taxpayer contributions and adding legislative discretion, and allows a state department to hire specific nonprofit groups to manage it.

What This Bill Does

Increases the maximum household income needed to qualify for assistance from 125 percent to 200 percent of the federal poverty level.
Removes taxpayer contributions sent by the Department of Revenue as a funding source and adds other revenue sources chosen by the Legislature, along with donations, gifts, grants, interest earned on fund money, and any other lawful sources.
Authorizes the Department of Economic and Community Affairs (ADECA) to contract with statewide resiliency organizations to provide energy assistance.
Sets a limit that no more than 10 percent of the fund money can be used for administrative costs.

Who It Names or Affects

Individuals or families whose income is at or below 200 percent of the federal poverty level.
People who are 60 years old or older, handicapped individuals, and families with children under 18.
The Department of Economic and Community Affairs (ADECA).
Alabama nonprofit corporations that meet specific requirements to become statewide resiliency organizations.

Terms To Know

Weatherization assistance: Help provided through the Neighbors Helping Neighbors Fund for eligible recipients, though the bill does not define the specific types of home improvements included.
Federal poverty level: A set of income thresholds determined by the U.S. government used to decide if a household qualifies for certain aid programs.
Statewide resiliency organization: An Alabama nonprofit corporation that is exempt from federal taxes under 501(c)(3), works to improve energy efficiency and safety in homes, has directors who serve without pay, follows a conflict of interest policy, participates in large-scale programs, and can leverage funds.

Limits and Unknowns

The law states the Legislature decides on new revenue sources but does not list specific examples of what those sources will be.
The bill requires ADECA to coordinate with other state and federal home weatherization assistance programs, but it does not detail how that coordination must happen.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

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R 1151

Adopted

Plain English: This amendment changes the rules for Alabama's weatherization assistance program by raising income limits, allowing new types of nonprofit groups to manage funds, and clarifying how money can be added to the fund.

Raises the household income limit from 125% to 200% of the poverty level so more families qualify for help.
Allows the Department of Economic and Community Affairs to hire specific nonprofit organizations, called 'statewide resiliency organizations,' to run the weatherization program instead of only using community action agencies or county governments.
Updates the list of money sources that can go into the Neighbors Helping Neighbors Fund to include gifts, grants, contributions, interest earnings, and other lawful funds.

The text does not specify exactly which nonprofit organizations will be chosen or how many contracts will be awarded.
The amendment defines what a 'statewide resiliency organization' is but does not list the specific names of groups that currently meet these requirements.

Bill History

2026-04-17 House
Enacted
2026-04-09 House
Delivered to Governor
2026-04-09 Senate
Signature Requested
2026-04-09 House
Enrolled
2026-04-09 House
Ready to Enroll
2026-04-08 Senate
Motion to Read a Third Time and Pass - Adopted Roll Call 1292 (Yeas 30, Nays 0)
2026-04-07 Senate
Read for the Second Time and placed on the Calendar
2026-04-07 Senate
Reported Out of Committee Second House
2026-04-02 Senate
Pending Committee Action in Second House
2026-04-02 Senate
Read for the first time and referred to the Senate Committee on Finance and Taxation General Fund
2026-04-01 House
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1152 (Yeas 103, Nays 0)
2026-04-01 House
Motion to Adopt - Adopted Roll Call 1151 (Yeas 102, Nays 0)
2026-04-01 House
Third Reading in House of Origin (Yeas 103, Nays 0)
2026-04-01 House
Engrossed
2026-04-01 House
Ways and Means General Fund Engrossed Substitute Offered
2026-03-19 House
Read for the Second Time and placed on the Calendar
2026-03-18 House
Reported Out of Committee House of Origin
2026-03-11 House
Pending Committee Action in House of Origin
2026-03-11 House
Read for the first time and referred to the House Committee on Ways and Means General Fund

Official Summary Text

This act amends Sections 41-23-100 and 41-23-101, Code of Alabama 1975, to: (1) increase the maximum household income to qualify for weatherization assistance under the Neighbors Helping Neighbors Fund from 125 percent to 200 percent of the federal poverty level; (2) revise the sources of monies that may be deposited into the fund by removing taxpayer contributions received by the Department of Revenue and adding other revenue sources at the Legislature's discretion and other lawful sources; and (3) authorizes the Department of Economic and Community Affairs to contract with statewide resiliency organizations to provide energy assistance to individuals eligible to receive assistance under the fund.

Current Bill Text

Read the full stored bill text

HB609 ENROLLED
Page 0
HB609
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By Representatives Reynolds, Whitt, Crawford, Lomax, Hall,
Underwood
RFD: Ways and Means General Fund
First Read: 11-Mar-26
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HB609 Enrolled
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First Read: 11-Mar-26
Enrolled, An Act,
Relating to weatherization assistance; to amend
Sections 41-23-100 and 41-23-101, Code of Alabama 1975; to
revise the threshold household income to qualify for
weatherization assistance under the Neighbors Helping
Neighbors Fund; to expand sources of monies that may be
deposited in the fund; and to authorize the Department of
Economic and Community Affairs to contract with certain
nonprofit corporations to implement the weatherization
assistance program.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 41-23-100 and 41-23-101, Code of
Alabama 1975, are amended to read as follows:
"§41-23-100
(a) The Neighbors Helping Neighbors Fund is established
in the State Treasury to provide eligible recipients
weatherization assistance.
(b) The monies in the fund shall consist of any of the
following:
(1) Contributions from taxpayers received by the
Department of Revenue and transferred to the fund.
(2)(1) Appropriations from made by and at the
discretion of the Legislature.
(3)(2) Other revenue sources made by and at the
discretion of the Legislature.
(3) Donations from private sources Proceeds from any
gifts, grants, or contributions .
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HB609 Enrolled
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gifts, grants, or contributions .
(4) Interest earned on principal remaining in the fund.
(5) Any other lawful sources.
(c) The monies in the fund shall not revert to the
General Fund at the end of the fiscal year."
"§41-23-101
(a) Eligible recipients of assistance are individuals
who have a household income at or below 125 200 percent of the
poverty level or individuals who are 60 years of age or older
or handicapped and families with children under 18 years of
age as determined by the United States Office of Management
and Budget and reported in the federal register.
(b) Beginning July 1, 1996, the The Director of the
Department of Economic and Community Affairs shall provide
assistance funds to designated community action agencies and
county governments currently providing may contract with
statewide resiliency organizations to provide energy
assistance to people individuals who are eligible to receive
assistance under this article. Disbursement of assistance
funds shall be coordinated with all other state and federal
home weatherization assistance programs administered by the
Department of Economic and Community Affairs.
(c) An amount of not more than 10 percent of the fund
monies may be used for administrative costs in providing
services specified under this article.
(d) On or before October 15 of each year, the director
shall submit a report to the appropriate legislative
committees. The report shall include a summary of the total
monies collected and distributed under this article and such
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monies collected and distributed under this article and such
other information as the legislative committees may request.
(e) For purposes of this section, "statewide resiliency
organization" means an Alabama nonprofit corporation in the
state that:
(1) Is exempt from federal income tax under 26 U.S.C. §
501(c)(3);
(2) Is charged with improving the resiliency, energy
efficiency, and safety of the state's residential housing
stock for low and moderate income communities.
(3) Has adopted a conflict of interest policy
consistent with the sample policy provided by the Internal
Revenue Service and requires its directors to serve without
compensation;
(4) Participates in large-scale residential energy
efficiency programs within the state; and
(5) Possesses the capacity to leverage private,
federal, and state funds to maximize the impact of the
assistance provided under this section. "
Section 2. This act shall become effective on June 1,
2026.
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2026.
________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 01-Apr-26.
John Treadwell
Clerk
Senate 08-Apr-26 Passed
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