Alabama State House Construction Update: Under Budget and Ahead of Schedule
Montgomery, AL – The construction of the new Alabama State House is progressing well and is projected to open in fall 2026, with costs coming in slightly under budget, according to a recent update from Othni Lathram, secretary of the Legislative Council.
The $400 million project includes a $325 million State House adjacent to the current building, a $35 million parking deck, and $40 million allocated for essential furnishings and technology. Lathram confirmed that all bids have been finalized, and he anticipates completing the State House for a few million less than the projected $325 million.
Both the new State House and its parking structure are being developed by the Retirement Systems of Alabama (RSA). Encouragingly, bids for the parking garage have also come in below budget. The joint agreement with RSA ensures that the state will pay an 8% return on its investment during the leasing phase.
To finance the project wisely, the goal is to have $255 million in cash available upfront. So far, lawmakers have allocated $155 million, with seeks for an additional $75 million expected during the upcoming legislative session. This approach aims to avoid financing the entire $400 million, which Lathram criticized as impractical.
The new State House will address longstanding issues with the current facility, which has been in use since 1985. Current problems include inadequate accessibility and limited capacity in committee rooms. The new building is set to feature 11 committee rooms, significantly increasing public access for meetings and events.
While promising improvements are underway, lawmakers are also bracing for anticipated revenue declines in 2027 and beyond, signaling a need for fiscal prudence moving forward.
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