Alabama Lawmakers Approve Bill Restructuring School Principal Stipends
BIRMINGHAM, Ala. – In a significant shift, Alabama lawmakers have finalized Senate Bill 303, which dramatically reduces the eligibility for a $5,000 annual stipend for public school principals from approximately 1,200 schools to just 420. The bill, sponsored by Sen. Arthur Orr (R-Decatur), revises the criteria for schools classified as “high-poverty” or “low performing,” aiming to ensure that the original intent of the stipends—supporting school leaders in challenging environments—is preserved.
Supporters of the legislation emphasized that the wide eligibility criteria established in 2024-25 allowed nearly 80% of Alabama’s public schools to qualify for the second stipend, which was not the intended outcome. “This is not an entitlement program for principals. This is designed to be something to improve the leadership,” stated Rep. Danny Garrett (R-Trussville), who championed the bill in the House.
Under the Principal Leadership and Mentoring Act, passed in 2023, all principals and assistant principals are eligible for a first stipend—$10,000 for principals and $5,000 for assistants—upon completing a leadership development program. The revised stipends target schools facing the greatest challenges, with the new criteria taking effect in the 2025-26 school year. To qualify for the second stipend, schools must meet one of four criteria, including having over 75% of students in poverty or receiving a ‘D’ or ‘F’ grade on the state’s report card.
Currently, stipends are still distributed under broader criteria, allowing 1,200 schools to be eligible. This legislative change aims to enhance leadership effectiveness and student achievement across Alabama’s public schools.
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