Principles for allocating Alabama’s Rural Health Transformation Program funds

October 17, 2025

Dear Governor Ivey and Health Policy Advisory staff:

Thank you for the opportunity to share our priorities for the Rural Health Transformation Program. Alabama Arise has three suggested priorities for the use of these funds:

1. Providing payments to health care providers for the provision of health care items or services, as specified by the Administrator.

Our top priority is backfilling rural hospitals for the uncompensated care they have provided and the outstanding costs they still have. RHT funds can be used to fill gaps in care coverage, like uncompensated care or services not covered by insurance. The amount of uncompensated care in a state is a key factor in scoring a state’s application for the “workload funding” component, so it is particularly important to address the high share of uncompensated care that Alabama’s rural hospitals provide in order to strengthen our application.

2. Promoting evidence-based, measurable interventions to improve prevention and chronic disease management.

We recommend Alabama’s application highlight the important role that maternal care plays in ensuring positive lifelong health outcomes. As we consider maternal health investments, we would prioritize regions like the Wiregrass and the Black Belt, which are maternity care deserts.

We also recommend a focus on food as medicine and oral health programs as measurable interventions to address chronic illness. Food as medicine programs which provide supports to purchase, prepare and eat healthier foods are now more important than ever, as food costs are rising and food assistance resources are strapped. Oral health impacts systemic health across the lifespan, and is largely overlooked in care provision.

Programs and models that exist and could be funded or expanded might include:

● Group prenatal care visits at public health departments

● Produce prescription projects, such as those piloted in Birmingham and Mobile

● Medical-dental integration programs

3. Fostering collaboration: Initiating, fostering, and strengthening local and regional strategic partnerships between rural facilities and other health care providers to promote quality improvement, improve financial stability of rural facilities, and expand access to care.

Under this category, we believe a hub and spoke model of coordination would support more effective collaboration between struggling rural providers.

We also believe that support for non-emergency medical transportation should be prioritized as a piece of this approach, acknowledging that transportation is a barrier to care for rural communities and a key piece missing in effective care coordination.

Guiding principles

In 2021, Alabama Arise recommended the following principles in our recommendations for how Alabama should approach the provision of ARPA COVID relief funds. We believe the same principles still apply now:

1. Engage local communities at every step.

2. Aim for equity in outcomes.

3. Invest in existing assets and capacities to help funds work faster, go farther and avoid duplication.

4. Maximize impact by addressing health in all policies. (A focus of the RHTF!)

5. Think big and create a 21st-century infrastructure for the common good.

6. Build public trust and engagement by following the highest standards of documentation, transparency and accessibility of information about funding awards and expenditures.

The issues we face in addressing health care disparities for rural communities are monumental. We hope the Rural Health Transformation Fund will allow us to prioritize some of the most pressing issues affecting rural Alabamians.

We look forward to partnering with your administration and with local communities to improve health care in rural health communities, especially for our state’s most vulnerable people.

Respectfully submitted,

Robyn Hyden

Executive Director

Alabama Arise

Alabama Arise urges federal officials to lift barriers to public transportation funding

Investing in public transportation would increase mobility, strengthen communities and create jobs across our state. Alabama Arise’s worker policy advocate Dev Wakeley recently submitted comments to the U.S. Department of Transportation urging federal officials to take steps to make public transportation more available and reliable in Alabama. The full text of the comments is below.

Dear Secretary Duffy:

Alabama Arise appreciates the opportunity to comment on the prioritization of transportation purposes pursuant to the reauthorization of funding, DOT-OST-2025-0468. Alabama Arise is a member-directed, anti-poverty organization dedicated to building an economy and society that works for all people in our state. We have worked for better policy for nearly 40 years at the federal, state and local levels. Our members decide yearly what priorities will make life better for individuals and families in Alabama. Overwhelmingly, our members support public transportation as a high priority. And our members’ support holds across every demographic, racially, economically and geographically.

This broad support exists because public transportation funding is one of the best ways to improve and secure the well-being of our communities. Transit is fundamental to the economic success of towns, cities and rural areas across Alabama and the entirety of America. Essential workers depend on and operate our state’s buses and vans. Employers depend on transit to get workers to jobs reliably. And historically marginalized people and communities depend on transit. When people can count on the bus or train to get where they need to go, they can contribute to their workplace, receive needed medical care and participate in the daily life of their communities. They benefit from greater economic mobility and lower household costs.

Our Legislature has identified transit as one of the primary obstacles to increased workforce participation and as an avenue where investment provides good return. And the Legislature’s view is also the view of the business community and community advocates focused on all groups of Alabamians. Disability advocates, worker advocates and groups that support the well-being of children and older Alabamians all understand that transit is important for all of us. But throughout Alabama, our transit riders lack adequate service lines, hours and frequency of service. Many of our transit agencies have significant capital deficits and deferred maintenance. However, the recommendations outlined below would allow our agencies to increase availability and reliability of public transportation in Alabama.

The federal government makes a vital contribution to transit funding, and that contribution helps keep transit viable and available in Alabama, deficiencies notwithstanding. The following recommendations focus on how to increase the return on investments in transit while reducing burdensome requirements on transit agencies.

  1. Federal operating funds would expand capacity and mobility and promote economic growth. The federal transit program provides funding primarily for capital investments, not operating expenses. Transit agencies can purchase new buses or build new rail lines with federal funds, but often lack sufficient funding to cover the costs of fuel and wages for operators. In our small, rural communities that use federal funds for operations, resources are insufficient to address both operating and capital needs. A new bus serves no purpose without the money to operate it. The next reauthorization should include a consistent, predictable source of funding for transit operations. The law should include maintenance of effort requirements to ensure that the additional operations funds increase resources to agencies and do not just swap funding sources. With additional operations funding, transit agencies of all sizes would be able to improve and increase service, which would increase access to jobs and other key destinations, improving economic productivity and reducing household costs.
  1. Eliminating outdated policies and requirements and matching funding to program demand would deliver transit projects faster and more efficiently. Transit is inadequate in America in part because it has been woefully underfunded and subjected to overly burdensome requirements for decades. For example, new transit lines — whether rail or bus rapid transit (BRT) — must undergo an extensive federal analysis to qualify for limited capital investment grant funding, while highways, roads and bridges have no such required analysis. Moreover, transit projects are burdened by disproportionate local match requirements. To meet federal requirements, localities often must provide more than 50% of a new transit project’s cost, while those building new highways must provide only 20%. There is far more demand for transit than the current federal transit program can support. According to the American Public Transportation Association, an additional $36 billion is needed above IIJA levels to build currently planned rail and BRT projects. The Federal Transit Administration and the Volpe Center have estimated that there is a transit state of good repair backlog of more than $140 billion. The next reauthorization must meet this demand by increasing transit funding and making it easier to deploy those dollars, including streamlining requirements and accepting local match for new transit projects on par with that required for highways.
  2. Federal investments to build transit-ready communities would increase safety and catalyze economic development. Transit operates most efficiently on roads designed to accommodate it — through transit lanes, traffic signal priority and safe access for all road users, among other features. Transit also contributes to, and benefits from, economic development along transit corridors. To support efficient operation of transit and grow transit ridership, the reauthorization should:
    • Increase flexibility in roadway design standards to support safe travel for transit riders (whether on the bus or train or traveling to/from the bus or train);
    • Dedicate funding for transit-supportive infrastructure such as sidewalks, bus shelters, ADA access, traffic signal priority, queue jumps and bus lanes; and
    • Incentivize mixed-use, mixed-income private development near transit stations and hubs.
  1. Expanded mobility in small and rural communities would stimulate economic growth and reduce household costs. Transit providers in small and rural areas often struggle to meet their communities’ needs due to a lack of funding and staff capacity. Rural Americans are isolated from jobs, health care and other essential needs. The next reauthorization should remove barriers and improve the federal transit program to increase access to quality transit in small towns and rural areas. This means:
    • Authorizing additional funding for rural transit programs;
    • Raising the federal share of rural transit operating funding from 50% to 80%;
    • Incentivizing coordination across jurisdictional boundaries and across multiple funding sources;
    • Incentivizing innovative solutions and partnerships with competitive grant funding; and
    • Expanding the federal procurement clearinghouse to help small and rural transit agencies right-size their purchases, increase efficiency and facilitate lower capital costs.
  1. Prioritizing road maintenance over building new roads would improve infrastructure conditions, increase safety, and reduce families’ costs. The federal transportation program should prioritize existing roads, bridges and highways ahead of roadway expansion. Deferring needed maintenance leads to increased costs down the road and inhibits asset management. Roads in bad repair increase costs for families who drive as well as undermining the reliability and safety of transit.

Sincerely,

Dev Wakeley

Worker policy advocate

Alabama Arise

205-529-4407

dev@alarise.org

Alabama Arise, 42 partner groups ask lawmakers to stand strong against TVA privatization

Proposals to privatize the Tennessee Valley Authority (TVA) have surfaced repeatedly in recent years. Alabama Arise joined 42 partner groups in a letter urging Alabama’s congressional delegation and state elected officials to speak out in opposition to efforts to privatize TVA and to keep energy reliable, affordable and accountable to Alabamians. The full text of the letter is below.

Letter text

Dear Elected Leaders,

We, the undersigned organizations, stand united in strong opposition to any efforts to privatize the Tennessee Valley Authority (TVA). As Alabamians, we know firsthand that TVA has been one of the most transformative public investments in our state’s history: powering our homes and businesses, creating good-paying union jobs and protecting the natural resources that make our region special.

For more than 90 years, TVA has provided reliable, affordable electricity to communities across the Tennessee Valley while reinvesting in local economies. Its public, nonprofit structure keeps decision-making more accountable to the people it serves, not to distant investors. Privatization would put that at risk, leading to higher energy bills, fewer protections for consumers, loss of good union jobs and more pressure to cut corners on safety and environmental stewardship.

TVA is more than a power provider. It is a cornerstone of our economy and quality of life. Its skilled, unionized workforce sustains families and communities across Alabama. Its low rates and dependable service help small businesses grow and attract new industry. Its stewardship of our rivers, lands and recreational areas protects our health and supports our way of life. These are benefits worth protecting, regardless of political affiliation or background.

Our coalition reflects the diverse voices of workers, community members, faith groups and environmental advocates across the state. While we come from different sectors and perspectives, we are united in calling for action to protect our communities.

We urge you, as Alabama’s elected leaders, to speak out clearly and unequivocally against any proposal to privatize TVA in whole or in part. The people of Alabama deserve to keep this vital public asset in public hands, where it can continue to serve the public good for generations to come.

We stand ready to work together to protect the Tennessee Valley Authority – for our workers, our customers, our environment and our shared future.

Signatories

Sincerely,

  1. Alabama Arise
  2. Alabama Building Trades
  3. Alabama Coalition for Immigrant Justice
  4. Alabama Forward
  5. Alabama Poor People’s Campaign
  6. Bay Area Women’s Coalition, Inc.
  7. Central Alabama Labor Federation
  8. Community Enabler
  9. CWA Local 3905
  10. CWA Local 3908
  11. District Eight Organizing Committee, LiUNA
  12. Energy Alabama
  13. Faith in Action Alabama
  14. First Christian Church (Disciples of Christ) of Montgomery
  15. Flint River Conservation Association 
  16. Greater Birmingham Ministries
  17. Huntsville Environmental Coalition
  18. Interfaith Mission Service
  19. International Chemical Workers Union Council of the UFCW
  20. International Federation of Professional and Technical Engineers (IFPTE)
  21. Ironworkers Local 477
  22. Jobs to Move America
  23. Laborers Local 366
  24. National Association of Letter Carriers, Branch 462
  25. North Alabama Area Labor Council, AFL-CIO
  26. North Alabama Democratic Socialists of America
  27. North Alabama Peace Network
  28. Open Table United Church of Christ 
  29. Project Hope to Abolish the Death Penalty
  30. Sand Mountain Cooperative Education Center
  31. Somos Alabama
  32. Southern Poverty Law Center
  33. Southern Rural Black Women’s Initiative/BAMA Kids, Inc.
  34. SWEET Alabama
  35. Tennessee Building and Construction Trades Council
  36. The Board of the Unitarian Universalist Church of Huntsville
  37. The Sisters 
  38. Thrive Alabama
  39. Together for Hope
  40. United Campus Workers – Alabama (CWA Local 3821)
  41. United for a Fair Economy
  42. United Steelworkers Local 9-265
  43. United Women of Color

Alabama Arise, 49 partner groups urge state lawmakers to oppose federal SNAP cost shift

Congressional leaders are considering cuts to food assistance and other human services in a push to offset the cost of tax cuts for wealthy households. The amount of potential SNAP and health care cuts in the budget reconciliation bill that the U.S. House passed in May would be roughly equal to the cost of extending tax breaks for the wealthiest 2% of households, according to the Center on Budget and Policy Priorities.

Alabama Arise joined 49 partner groups in a letter asking Gov. Kay Ivey and state legislators to speak out against the devastating budgetary and humanitarian effects of proposed federal food assistance cuts. The full text of the letter is below.

Letter text

Dear Governor Ivey, members of the Legislature and Finance Director Bill Poole:

We, the undersigned Alabama organizations, are writing to raise our concerns about the devastating negative impacts that the Supplemental Nutrition Assistance Program (SNAP) provisions in the federal budget reconciliation bill would have on Alabama.

More than 750,000 Alabamians receive food assistance through SNAP, including 500,000 families with children, 300,000 families with older adults or disabled people, and 24,000 Alabama veterans. The SNAP cuts being considered would increase hunger for every one of these Alabamians and would transfer significant financial obligations from the federal government to Alabama.

The reconciliation bill would shift tens of millions of dollars of costs for SNAP administration and benefits from the federal government to Alabama each year.  At our best estimate, Alabama would become responsible for up to $258 million in direct benefit costs, plus an additional $35 million in administrative costs annually.

Congress is considering expanding the scope of current time limits and adding more work verification red tape for an additional 165,000 Alabamians, including parents with children over age 7. Changes of this magnitude would create additional burdens for Alabama’s already stretched child care and child welfare systems and potentially would leave thousands of Alabama children and families without food on their tables.

Congress also is considering limiting future growth in the value of SNAP benefits. Over time, this would reduce SNAP benefits for nearly 800,000 SNAP participants in Alabama, including more than 300,000 children, even as food costs continue to grow.

Potential cuts to SNAP would damage Alabama’s economy. More than 5,000 stores in Alabama are authorized SNAP retailers, many in small towns and rural communities. The USDA estimates that every $1 in SNAP benefits can generate $1.50 in economic activity. Deep SNAP cuts could force layoffs or closures at grocery stores and other retailers across our state. A reduction or loss of SNAP benefits is a threat to our economy and the local communities where we all live and shop.

We urge you strongly to help protect federal funding for SNAP in Alabama and to communicate your concerns with the members of the Alabama congressional delegation. If you have any questions, please do not hesitate to contact us. We appreciate your service to Alabama.

Signatories

Sincerely,

  1. Alabama Arise
  2. A Beautiful Life Enterprises, LLC (Birmingham)
  3. Alabama Appleseed Center for Law & Justice
  4. Alabama Childhood Food Solutions, Inc. (Sylacauga)
  5. Alabama Dietetic Association
  6. Alabama Institute for Social Justice
  7. Alabama Network of Family Resource Centers
  8. Alabama Poor People’s Campaign
  9. Alabama Possible
  10. Alfred Saliba Family Services Center (Dothan)
  11. All Nations Church of God (Montgomery)
  12. Athens-Limestone County Family Resource Center
  13. Auburn United Methodist Church
  14. Baptist Church of the Covenant (Birmingham)
  15. Bay Area Women Coalition, Inc. (Mobile)
  16. Birmingham Indivisible
  17. Bread for the World, Alabama Chapter
  18. Children and Family Connection of Russell County
  19. Coffee County Family Services Center
  20. Community Food Bank of Central Alabama (Birmingham)
  21. Dallas County System of Services
  22. Family Services of North Alabama (Albertville)
  23. Family Support Center (Prattville)
  24. Feeding Alabama
  25. Feeding The Gulf Coast
  26. First Christian Church of Montgomery, Alabama
  27. Food Bank of East Alabama
  28. Grace Presbyterian Church (Tuscaloosa)
  29. Greater Birmingham Ministries
  30. Great I Am Ministries Outreach International (Birmingham)
  31. Growing Essence Nutrition, LLC (Montgomery)
  32. Heart of Alabama Food Bank (Montgomery)
  33. Hispanic and Immigrant Center of Alabama (¡HICA!)
  34. Jefferson County Family Resource Center
  35. Mary Hill Family Service Center (Ozark)
  36. Mary’s House Catholic Worker (Birmingham)
  37. National Lawyers Guild – Alabama Chapter
  38. Next Step Community Development Center (Tuscaloosa)
  39. North Alabama Area Labor Council
  40. North Alabama Peace Network
  41. Selma Area Food Bank
  42. Southern Poverty Law Center
  43. Southern Rural Black Women’s Initiative (SRBWI)
  44. Thrive Alabama (Huntsville)
  45. Tuscaloosa’s One Place
  46. Unitarian Universalist Congregation of Tuscaloosa
  47. VOICES for Alabama’s Children
  48. Voters Legal Justice Watch Group
  49. Whom It Concerns, Inc. (Montgomery)
  50. Woodlawn Community Table (Birmingham)

Alabama Arise, 111 partner groups urge Congress to oppose cuts to Medicaid, SNAP

Congressional leaders are considering cuts to health coverage, food assistance and other human services in a push to offset the cost of tax cuts for wealthy households. The amount of potential Medicaid and SNAP cuts in the House budget resolution would be roughly equal to the cost of extending tax breaks for the wealthiest 1% of households, according to the Center on Budget and Policy Priorities. Alabama Arise joined 111 partner groups in a letter asking Alabama’s congressional delegation to oppose cuts to Medicaid and SNAP. The full text of the letter is below.

Letter text

Dear Senators Tuberville and Britt and Representatives Aderholt, Rogers, Sewell, Palmer, Moore, Strong and Figures,

We write to request respectfully that, in your deliberations about federal budget and tax policy, you ensure that Congress protects the health and nutrition safety net that keeps so many Alabama children fed and healthy and that helps so many Alabama families make ends meet. 

As you know, federal Medicaid funds 72% of the cost of Alabama Medicaid. At a current level of $6.8 billion, Medicaid is the largest source of federal funds in our state’s budget. Medicaid provides health coverage and protection from medical bankruptcy for 1 in 5 Alabamians. Medicaid funding also supports the ALL Kids program, making Alabama a leader among our neighbors with the highest rate of children’s health insurance in the Deep South. 

It is impossible to overstate the extent to which federal Medicaid funding is integral to the strength and effectiveness of the health care infrastructure that benefits all Alabamians. Medicaid provides: 

  • Pediatric care for half of all Alabama children, including the majority of children with intensive health care needs.
  • Perinatal care for half of Alabama pregnant mothers and their babies.
  • Long-term services and supports for 3 in 4 nursing home residents, and for most children and adults who receive nursing care at home.
  • The leading source of health insurance in rural communities, and an essential source of funding for hard-pressed rural hospitals and clinics.
  • Direct grants to hospitals to sustain costly services, such as neonatal intensive care units, which serve their entire communities.

In short, any cuts to federal Medicaid funding, restrictive policies aimed at encouraging disenrollment just to reduce costs, or caps that limit the ability of federal funding to keep pace with inflation would directly impact more than 1 million Alabama children and families. Such cuts would damage our communities, devastate our state budget and weaken Alabama’s economy.

Similarly, the Supplemental Nutrition Assistance Program (SNAP) is the most effective anti-hunger program in the United States. And in a time of persistently higher food prices, it is more important than ever. Every dollar of federal SNAP funding not only affords families the necessary nutrition, but it also helps stimulate local economies. 

More than 2 in 3 SNAP households are families with children. SNAP provides vital help for working families, as well as for older Alabamians and people with disabilities. Cuts in federal SNAP funding would directly harm the 1 in 7 Alabamians – more than 750,000 people – who participate in the program and would have broader negative effects on communities across our state. 

For all of these reasons, we respectfully urge you to protect federal funding for Medicaid and SNAP, two vital programs that make life better across Alabama. If you have any questions or concerns regarding these matters, please do not hesitate to contact us. We thank you for your public service.

Signatories

Respectfully submitted, 

1. AIDS Alabama – Birmingham
2. AIDS Alabama South – Mobile
3. Alabama Appleseed Center for Law and Justice
4. Alabama Arise
5. Alabama Academy of Family Physicians
6. Alabama Association of Nonprofits
7. Alabama Black Women’s Roundtable
8. Alabama Chapter – American Academy of Pediatrics
9. Alabama Coalition for Immigrant Justice
10. Alabama Disabilities Advocacy Program
11. Alabama Election Protection Network
12. Alabama Forward
13. Alabama Institute for Social Justice
14. Alabama Interfaith Power & Light
15. Alabama Network of Family Resource Centers
16. Alabama Poor People’s Campaign
17. Alabama Possible
18. Alabama Rivers Alliance
19. Alabama Rural Ministry – Auburn
20. Alabama State Association of Cooperatives
21. Alabama State Conference of the NAACP
22. Alabama Sustainable Agriculture Network
23. All Nations Church – Montgomery
24. American Association of University Women the Shoals
25. American College of Nurse-Midwives Alabama Affiliate
26. American Lung Association
27. Auburn United Methodist Church
28. Baptist Church of the Covenant – Birmingham
29. Bay Area Women Coalition, Inc.
30. Beloved Community Church UCC – Birmingham
31. Birmingham Friends Meeting (Quaker)
32. BirthWell Partners
33. Black Belt Community Foundation
34. Center for Fair Housing – Mobile
35. Children First
36. Church & Society Committee, Anniston First United Methodist Church
37. Church Women United – Montgomery
38. Collaborative Solutions
39. Community Enabler Developer, Inc. – Anniston
40. Community Foundation of Greater Birmingham
41. Community Foundation of Northeast Alabama
42. Destiny Driven, Inc.
43. East Lake United Methodist Church – Birmingham
44. Educational Consulting and Training Group, LLC
45. Fairhope Unitarian Fellowship
46. Faith in Action Alabama
47. Feeding Alabama
48. Fernland Community Coalition Group
49. First Christian Church (Disciples of Christ) – Montgomery
50. First Congregational UCC – Birmingham
51. Five Horizons Health Services
52. Forest Lake United Methodist Church
53. Grace Presbyterian Church – Tuscaloosa
54. Gratitude Foundation
55. GASP – Birmingham
56. Greater Birmingham Ministries
57. Hispanic Catholic Social Services – La Casita
58. Hometown Organizing Project
59. Huntsville Bail Fund
60. Independent Living Center – Mobile
61. Interfaith Mission Service
62. Jackson District Women’s Home & Overseas Missionary Society A.M.E. Zion Church
63. Jobs to Move America
64. The Kelsey – Birmingham
65. Kennedy Strategic Communications
66. The Knights & Orchids Society
67. League of Women Voters of Alabama
68. Live2Serve
69. Low Income Housing Coalition of Alabama
70. LunarLab Benefit LLC – Birmingham
71. Macedonia Missionary Baptist Church
72. Mary’s House Catholic Worker – Birmingham
73. The Mothers of Gynecology – Montgomery
74. National Association of Social Workers – Alabama Chapter
75. National Lawyers Guild – Alabama Chapter
76. North Alabama Area Labor Council
77. North Alabama Conference, United Methodist Church – Advocacy for Social Justice Team
78. North Alabama Peace Network
79. One Roof – Birmingham
80. Open Table UCC – Mobile
81. The People’s Justice Council
82. The People’s Loan Program
83. Professional Association of Social Workers in HIV & AIDS (PASWHA)
84. Progressive Women of Northeast Alabama
85. PROJECT.HELP.USA
86. Project Hope to Abolish the Death Penalty
87. Saint Stephen’s Episcopal Church – Birmingham
88. Sapps Community Center, Inc.
89. Shoals Educational Enrichment Resources
90. St. Paul UMC – Birmingham
91. The Sisters
92. Sisters of St. Joseph – Selma
93. Sisters of Mercy in Alabama – Mobile
94. The 6:52 Project Foundation, Inc.
95. Southern Poverty Law Center
96. Southern Rural Black Women’s Initiative
97. Stand Up Mobile
98. Thrive Alabama
99. Together for Hope – Black Belt
100. Trinity Gardens Community Civic Club
101. Unitarian Universalist Fellowship of Auburn
102. Unitarian Universalist Church of Birmingham
103. Unitarian Universalist Church of Huntsville
104. Unitarian Universalist Fellowship of Montgomery
105. Unitarian Universalist Congregation of Tuscaloosa
106. United for a Fair Economy
107. United Way of West Alabama
108. United Women of Color – Huntsville
109. Valley Christian Church – Mountain Brook
110. VOICES for Alabama’s Children
111. WAWC Healthcare – Tuscaloosa
112. West End Community Church – Birmingham

Alabama Arise, 55 partner groups urge Congress to oppose more tax cuts for wealthy households

The Tax Cuts and Jobs Act (TCJA), enacted in 2017, increased federal deficits by nearly $2 trillion while lavishing tax cuts on the country’s wealthiest households. Many TCJA provisions are set to expire this year, including numerous provisions that disproportionately benefit wealthy people. Alabama Arise joined 55 partner organizations in a letter asking Alabama’s congressional delegation to oppose additional tax cuts for wealthy households and to support expansions of tax provisions that support working people and families. The full text of the letter is below.

Letter text

Dear Senators Tuberville and Britt and Representatives Aderholt, Rogers, Sewell, Palmer, Moore, Strong and Figures:

Congratulations on your election to the 119th Congress. As you know, the new Administration and Congressional Majority have made plans to prioritize extending and potentially expanding the 2017 tax law (Tax Cuts and Jobs Act, or TCJA), which is set to expire. We urge you to use the expiration of these provisions as an opportunity to address long-standing inequities with our tax code and to raise more revenue to meet our country’s current obligations and address critical unmet needs.

No matter what you look like or where you’re from, we all believe in caring for our families and community. People in our state work hard and are watching what happens in Congress. We give our all in so many ways: working as teachers, delivery drivers and nurses, volunteering at the local food bank or neighborhood cleanup, and caring for our friends and loved ones. Regardless of who they voted for in November, the vast majority of Americans were not voting to give another tax cut to the wealthy, or for another corporate tax cut.

The 2017 tax law failed in many ways, and there’s no mandate to repeat the mistakes of the past.

  • The proponents of these tax cuts said big corporate tax cuts would trickle down to big increases in wages for workers – but the typical worker got nothing from it.
  • They said the bill would pay for itself – but it actually increased the deficit by $2 trillion.
  • They said the tax cuts would create jobs – but the evidence doesn’t show that.

If Congress decides to give new corporate tax cuts and extend other provisions of the TCJA, the Committee for a Responsible Federal Budget says it would increase deficits by about $7.5 trillion over 10 years. We also know that the Administration’s tax plan favors the rich. The Institute on Taxation and Economic Policy found that it would lead “to a tax cut for the richest 5 percent of Americans and a tax increase for the other 95 percent of Americans.”

Americans want you to meet the moment and put the future and well-being of all of us ahead of tax cuts for the wealthy and well-connected. Alabamians prioritize funding services and taxing the wealthy by a wide, bipartisan margin. According to a recent survey:

  • 75% of Alabamians support raising taxes on wealthy corporations.
  • 75% of Alabamians support raising taxes on the wealthiest households in the nation.
  • 76% of Alabamians support raising taxes on households earning more than $400,000 annually.
  • 73% of Alabamians support increasing child tax credits for Alabama families.

Our 56 collective organizations work daily to reduce poverty, expand economic opportunity and create good jobs here in Alabama. Our missions speak directly to the importance of how you and the new Congress act on taxes in the next few months.

The tax code is one of our most powerful tools to shape the economy, but it too often has been used to divide us. For too long, the tax code has been slanted toward the wealthy and large corporations, and the economy, our country, and communities and families across Alabama have suffered as a result. The expiration of key provisions of the TCJA in 2025 is a rare opportunity to unite the vast majority of people who want to correct longstanding inequity in our tax code, and to help produce an economy that works for all Americans.

We urge you and all members of the Alabama delegation to reject renewed or expanded tax cuts for the wealthiest people in our society. And we urge you instead to provide meaningful tax reductions for ordinary families in Alabama and nationwide through an expanded Child Tax Credit and expanded Earned Income Tax Credit.

We appreciate your service and look forward to watching your efforts in the new year.

Signatories

Sincerely,

  1. AIDS Alabama
  2. Alabama Arise
  3. Alabama Black Women’s Roundtable
  4. Alabama Council on Human Relations
  5. Alabama Disabilities Advocacy Program (ADAP)  
  6. Alabama Forward
  7. Alabama Institute for Social Justice
  8. Alabama Justice Initiative
  9. Alabama Poor People’s Campaign
  10. Alabama Rivers Alliance
  11. Alabama State Association of Cooperatives
  12. Alabama State Conference of the NAACP
  13. All Saints Episcopal Church – Mobile
  14. Auburn United Methodist Church
  15. Baptist Church of the Covenant – Birmingham
  16. Bay Area Women Coalition – Mobile
  17. Beloved Community Church (United Church of Christ) – Birmingham
  18. Church Women United – Mobile
  19. Church Women United – Montgomery
  20. Collaborative Solutions, Inc.
  21. Community Enabler – Anniston
  22. East Lake United Methodist Church
  23. Faith in Action Alabama
  24. Fall Injury Prevention and Rehabilitation Services
  25. Feeding Alabama
  26. First Christian Church (Disciples of Christ) – Montgomery
  27. Five Horizons Health Services
  28. Grace Presbyterian Church – Tuscaloosa
  29. Greater Birmingham Ministries
  30. Interfaith Mission Service – Huntsville
  31. Jobs to Move America
  32. The Knights & Orchids Society
  33. League of Women Voters of Alabama
  34. Low Income Housing Coalition of Alabama
  35. Mary’s House Catholic Worker – Birmingham
  36. National Association of Social Workers – Alabama Chapter
  37. National Lawyers’ Guild – Alabama Chapter
  38. North Alabama Area Labor Council, AFL-CIO
  39. North Alabama Peace Network
  40. Open Table United Church of Christ – Mobile
  41. The People’s Justice Council
  42. The People’s Loan Program
  43. Professional Association of Social Workers in HIV & AIDS
  44. Progressive Women of Northeast Alabama
  45. Project Hope to Abolish the Death Penalty
  46. St. Paul UMC – Birmingham
  47. Sisters of Mercy in Alabama – Mobile
  48. Stand Up Mobile
  49. Thrive Alabama
  50. Unitarian Universalist Church of Birmingham
  51. Unitarian Universalist Fellowship of Montgomery
  52. United for a Fair Economy
  53. United Women of Color – Huntsville
  54. Valley Christian Church (Disciples of Christ) – Mountain Brook
  55. WAWC Healthcare – Tuscaloosa
  56. Youth Towers – Birmingham

Alabama Arise joins state commission on elimination of state grocery tax

The state sales tax on groceries is a cruel tax on survival, and Alabama Arise is committed to eliminating it. That is why I am grateful that Sen. Bobby Singleton nominated me to serve on the Joint Study Commission on Grocery Taxation on behalf of Arise. I am extremely excited about and honored for this opportunity, and I know that together, we will move Alabama closer to the goal of untaxing groceries once and for all.

How the commission came to be

After years of persistent advocacy by Arise members, policymakers took an important step toward tax justice this year by passing HB 479, a law that will cut the state grocery tax in half. The first decrease – from 4% to 3% – took effect in September 2023. The next decrease – from 3% to 2% – will occur in September 2024, or in the first year when Education Trust Fund (ETF) revenues grow by at least 3.5% annually.

Arise supports eliminating the state grocery tax sustainably and responsibly. That means ending the tax while also protecting vital funding for public schools. Lawmakers created the Grocery Tax Commission this year to figure out a pathway to do that.

This commission formed as the result of HJR 243 by Rep. Penni McClammy, D-Montgomery. The commission’s purpose is “to study a proposed elimination of the sales and use tax on food items,” according to the enabling legislation.

Arise’s testimony on untaxing groceries

I testified during the Grocery Tax Commission’s first meeting on Nov. 14 about the importance of untaxing groceries to help Alabama families make ends meet. And I suggested ways that Alabama could make it happen, including capping or eliminating the state deduction for federal income taxes.

Watch my testimony here, and download my presentation here.

I was one of three presenters at the first meeting. The others were representatives from the Alabama Grocers Association and the Fiscal Division of the Legislative Services Agency. During my presentation, I spoke about:

  • Arise’s 30-year history of advocating to reduce and ultimately eliminate the state’s grocery tax.
  • The harmful impact that taxing groceries has on families with low incomes.
  • Ways in which Alabama compares to other states regarding taxing groceries.
  • Innovative solutions and ways to eliminate the remainder of the state’s grocery tax while protecting the ETF.

What will happen next

In serving on the commission, Arise is charged with helping to evaluate the effects of eliminating the state sales and use tax on groceries. The factors we will help assess include:

(1) Household expenses of Alabamians with low and moderate incomes.
(2) Education Trust Fund revenues.
(3) County and municipal revenue collection.
(4) Community food banks and other nonprofit organizations that provide food.
(5) Hunger and malnutrition experienced by children and older adults.

Here is the full list of commission members:

  • Sen. Andrew Jones, R-Centre – co-chair of the Grocery Tax Commission 
  • Rep. Penni McClammy, D-Montgomery – co-chair of the Grocery Tax Commission 
  • Rep. Danny Garrett, R-Trussville – House Ways and Means Education Committee chair and sponsor of HB 479
  • Sen. Arthur Orr, R-Decatur – Senate Finance and Taxation Education Committee chair
  • Rep. Troy Stubbs, R-Wetumpka – appointee of Speaker Nathaniel Ledbetter
  • Akiesha Anderson (Alabama Arise) – appointee of Sen. Bobby Singleton, D-Greensboro
  • Michael Coleman (Heart of Alabama Food Bank) – nonprofit representative appointed by Senate President Pro Tem Greg Reed, R-Jasper
  • Rosemary Elebash – representative of the National Federation of Independent Business
  • Catherine Gayle Fuller – staffer for and appointee of Lt. Gov. Will Ainsworth
  • Allison King (Alabama Education Association) – designee of House Minority Leader Anthony Daniels, D-Huntsville
  • Wade Payne (Mitchell Grocery Co.) – representative of the Alabama Grocers Association

The Grocery Tax Commission will meet periodically between now and 2026, when it will release findings and recommendations. The next meeting will be in 2024. Arise will work closely with the commission in the coming years to lay the groundwork for eliminating the state grocery tax forever.

Alabama Arise testimony in support of untaxing groceries

Alabama Arise’s Robyn Hyden testified Wednesday before the House Ways and Means Education Committee in support of a bill to reduce the state sales tax on groceries. HB 479, sponsored by Rep. Danny Garrett, R-Trussville, would reduce the state grocery tax from 4% to 2% over time. It also would make this cut contingent on growth in the Education Trust Fund (ETF). Here’s the full text of Hyden’s prepared remarks:

Good morning! I’m Robyn Hyden, executive director of Alabama Arise. We’re a nonprofit coalition of 150 congregations, organizations and individuals promoting public policies to improve the lives of Alabamians who are struggling because of poverty. I want to say thank you to the 100 House co-sponsors and the 35 Senate co-sponsors who support HB 479 and its Senate companion bill.

For decades, Alabama Arise has hosted community conversations and listening sessions around to state to understand what we can do to build fairer opportunities for people to succeed and thrive. Untaxing groceries has always been at the top of the list for regular, everyday, working-class Alabamians, who spend a disproportionate amount of their income on sales taxes, like the grocery tax. Last month, we brought more than 125 grassroots advocates to the State House to ask you all to consider several ways to remove the grocery tax. And we are very pleased to see this bill receive your attention today.

Alabama Arise supporters gather outside the State House in Montgomery during Arise’s Legislative Day on April 11, 2023. More than 100 Alabamians came to urge their lawmakers to end the state sales tax on groceries.

An unjust burden

We believe that the grocery tax is an unjust burden on people who simply need to eat. While we had hoped that this bill would include a way to replace the revenue lost over the four years that we cut the tax in half, we are pleased to see that the bill offers a safeguard by limiting the tax cut if the ETF fails to grow.

We share concerns about cutting more revenue to support education. However, we believe that of all the proposals that have been introduced this year to divert ETF funds away from public schools, this bill provides a benefit to low-wage and working-class families who are struggling with the high cost of food. We urge this committee to consider additional ways to cut the full 4% state sales tax on food by finding ways to replace the lost revenue.

Arise appreciates the unprecedented levels of support for this bill from across the political spectrum. We support Rep. Garrett’s proposal and urge you to pass this bill promptly.

Alabama Arise, 51 partner groups urge U.S. senators to support Child Tax Credit, EITC improvements

The American Rescue Plan Act (ARPA) temporarily expanded the Child Tax Credit (CTC) for hundreds of thousands of Alabama children last year. The law also temporarily increased the maximum Earned Income Tax Credit (EITC) for workers without children and broadened the age range for EITC eligibility. Alabama Arise joined 51 partner organizations Tuesday in a letter asking Alabama’s U.S. senators, Richard Shelby and Tommy Tuberville, to support renewing these CTC and EITC improvements this year. The full text of the letter is below.

Letter text

Dear Senators Shelby and Tuberville,

Our nation’s historically high child poverty rate is a choice. Recent U.S. Census data reveals a fundamental truth: Congress has the power to make a different choice. Congress can and should put families and workers first by expanding the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC). These strategies have proved effective to reduce child poverty and boost incomes for people who work but aren’t paid enough to make ends meet.

We, the undersigned organizations representing people with low incomes in Alabama, are writing to urge you to prioritize expanding these programs as part of the anticipated end-of-year budget bill. The time to pass these policies is now, as this may be the last chance this Congress has to act.

Even as Congress has this tremendous opportunity to deliver for families and workers, press reports indicate lobbyists are pressuring Congress to deliver more significant tax breaks for businesses and corporations. One example is the push for a tax break for companies engaged in “research and experimentation,” including tech, pharmaceuticals and other large corporations.

We urge you to put families and workers first. There should be no expanded tax breaks for businesses and corporations without expanding the CTC and EITC.

Under current law, too many children in families with the lowest incomes receive no CTC or receive a smaller credit than children in families with higher incomes. Expanding the CTC so that it reaches more of those children will go a long way toward improving families’ ability to make ends meet and reducing child poverty.

As you know, the American Rescue Plan Act (ARPA) temporarily expanded the CTC for 480,000 children in Alabama, but the expansion has expired. The overwhelming majority of families with low incomes used ARPA’s monthly CTC payments to cover everyday challenges and basic expenses, such as food, utilities, rent and diapers. Before ARPA was passed, roughly 27 million children received less than the full CTC, including many who got no credit at all — not because their families earned too much, but because of a flaw in the law that excludes kids from families with the lowest incomes. Those children excluded from the full credit include roughly half of all children in rural areas.

The Rescue Plan’s CTC expansion, combined with other relief efforts, helped lower child poverty by more than 40% between 2020 and 2021, Census data shows. Investing in children in low-income families by expanding programs like the Child Tax Credit also has shown success in improving outcomes for those children over their whole lives, including higher educational attainment, better health and higher earnings as adults.

We also urge you to expand the EITC for workers paid low wages who do not have children living with them. This part of the EITC has not been adjusted for nearly 30 years (outside of a temporary, one-year Rescue Plan expansion). As a result, about 6 million of these workers 19 and older have incomes below the poverty line, once federal taxes are taken into account.  This commonsense proposal is long overdue and has enjoyed bipartisan support in the past.

Congress has a critical choice to make now: Will it expand the CTC and EITC, to put more kids on an upward trajectory for life and help working people make ends meet? Or will it go home without reaching a bipartisan agreement on these straightforward policies?

We hope we can count on you to fight for these policies to support kids and workers – and to make sure any final legislative package in December doesn’t give more tax breaks for corporations without supporting Alabamians.

Should you have any questions, please do not hesitate to contact Robyn Hyden with Alabama Arise at robyn@alarise.org. We appreciate your time and your consideration of our views.

Signatories

¡HICA! Hispanic Interest Coalition of Alabama

Advocacy for Social Justice Team of the North Alabama Conference of the United Methodist Church

AIDS Alabama

Alabama Appleseed Center for Law and Justice

Alabama Arise

Alabama Civic Engagement (ACE) Coalition

Alabama Coalition for Immigrant Justice

Alabama Council on Human Relations (ACHR)

Alabama Forward

Alabama Institute for Social Justice

Alabama Justice Initiative

Alabama Possible

Alabama State Nurses Association

Bay Area Women Coalition, Inc.

Beloved Community Church, UCC

Chat World Home Daycare

Childcare Resources

Cody S. King Home Daycare

Communities of Transformation

Community Action Association of Alabama

Community Enabler Developer, Inc.

Community Food Bank of Central Alabama

DayKara’s Group Home

Dee’s Daycare

Edmundite Missions

Fairhope Friends

Faith in Action Alabama

First Christian Church (Disciples of Christ) of Montgomery

First Presbyterian Church of Birmingham

Gadsden Outreach Ministries

Grace Presbyterian Church, Tuscaloosa

Greater Birmingham Ministries

Hometown Action

Jobs to Move America

League of Women Voters of Alabama

Monte Sano UMC

Montgomery PRIDE United

Mrs. Mazaheri’s Day Care

NAACP: Tuscaloosa Branch

Nana’s Nursery

North Alabama Peace Network

Open Table UCC

Project Hope to Abolish the Death Penalty

Redemption Earned, Inc.

Restorative Strategies

Sisters of Mercy in Alabama

SPLC Action Fund

Unitarian Universalist Church of Birmingham

University of Montevallo Alabama Arise Student Chapter

Valley Christian Church

Volunteers of America, Southeast (VOA)

YWCA Central Alabama

Alabama Arise, 81 partner groups urge Alabama to fund public transportation

American Rescue Plan Act (ARPA) relief funding provides an opportunity for Alabama to jump-start public transportation across the state. Alabama Arise joined 81 partner organizations Wednesday in a letter asking lawmakers to allocate ARPA money to public transportation. The full text of the letter is below.

Letter text

Dear Governor Ivey, Lieutenant Governor Ainsworth, members of the Cabinet and the Alabama Legislature:

Public transportation creates jobs, improves lives and keeps people connected to their communities. As you consider how to allocate the remaining estimated $1 billion of state funds from the American Rescue Plan Act (ARPA), we strongly encourage you to support Alabama’s public transportation systems. Specifically, we ask you to invest $20 million of ARPA funds into Alabama’s Public Transportation Trust Fund (PTTF).

The PTTF was established in 2018 but remains unfunded to this day. Alabama is one of only three states that provide no state funding for public transportation. A 1952 constitutional amendment bars the Alabama Department of Transportation (ALDOT) from using revenue from the state gas tax or license fees for public transportation, which is how most states fund public transportation. Instead, nearly all money for public transportation in Alabama comes from federal dollars administered by ALDOT.

It is clear to the undersigned organizations that the COVID-19 pandemic only worsened the harm resulting from lack of state support for public transportation. Limited funding has forced some local transit systems to curtail specialized services for riders with disabilities or serious health conditions.

We know robust investments in public transit will provide strong benefits for people across Alabama. Greater access to work, school, child care and medical care are just a few examples of how public transit is critical not only for an individual’s quality of life but for the state’s economic development and prosperity.

We urge you to invest $20 million in the PTTF using ARPA’s designated revenue replacement funds. This move will allow those funds to go even further by matching incoming federal dollars for public transportation. And it will make Alabama a better place to live and work for years to come.

Thank you for your consideration.

Signatories

Sincerely,

82 Alabama community-based organizations:

  1. AIDS Alabama
  2. Alabama Arise
  3. Alabama Black Women’s Roundtable
  4. Alabama Coalition Against Domestic Violence
  5. Alabama Coalition for Immigrant Justice
  6. Alabama Forward
  7. Alabama Rivers Alliance
  8. Alabama Rural Ministry
  9. Alabama State Conference of the NAACP
  10. All Nations Church of God (Montgomery)
  11. All Saints Episcopal Church (Mobile)
  12. Amalgamated Transit Union Local 770
  13. American Association of University Women Alabama (AAUW)
  14. American Association of University Women (AAUW) – Huntsville Branch
  15. Anniston First United Methodist Church – Church & Society Committee
  16. Baldwin County Trailblazers
  17. Bay Area Women Coalition, Inc. (Mobile)
  18. Beloved Community Church, UCC (Birmingham)
  19. Birmingham Footmad
  20. Birmingham Friends Meeting (Quakers)
  21. Bold Goals Coalition (Central Alabama)
  22. Childcare Resources (Birmingham)
  23. Christian Methodist Episcopal Church – Birmingham District Lay Leadership
  24. Church Women United Montgomery
  25. Citizens’ Climate Lobby – Alabama
  26. Collaborative Solutions (Birmingham)
  27. Communities of Transformation
  28. Community Action Association of Alabama
  29. Community Enabler (Anniston)
  30. Eastwood Neighborhood Association (Birmingham)
  31. Edgewood Presbyterian Church (Homewood)
  32. Fairhope Unitarian Fellowship
  33. Faith in Action Alabama
  34. First Presbyterian Church of Birmingham
  35. GASP
  36. Grace Presbyterian Church, PCUSA (Tuscaloosa)
  37. Greater Birmingham Ministries
  38. Gulf Coast Creation Care
  39. ¡HICA! Hispanic Interest Coalition of Alabama
  40. H.I.V.E. Alabama
  41. Heritage Training and Career Center (Montgomery)
  42. Holy Comforter Episcopal Church Gadsden Missions Committee
  43. Hometown Action
  44. Immanuel Presbyterian Church PCUSA (Montgomery)
  45. Independent Living Center of Mobile
  46. Inspire United Appeal Fund Corporation (Mobile)
  47. Jackson District Women’s Home and Overseas Missionary Society A.M.E. Zion Church
  48. Jobs to Move America
  49. League of Women Voters of Alabama
  50. Lighthouse Community Development Corporation (Mobile)
  51. Low Income Housing Coalition of Alabama
  52. Mary’s House Catholic Worker (Birmingham)
  53. Mission Committee, First Presbyterian Church of Auburn
  54. Mobile Environmental Justice Action Coalition
  55. Monte Sano United Methodist Church – Missions Chair
  56. NAACP Tuscaloosa Branch
  57. National Federation of the Blind of Alabama
  58. Neighborhood Concepts, Inc. (Huntsville)
  59. North Alabama Peace Network
  60. One Roof (Birmingham)
  61. Open Table United Church of Christ (Mobile)
  62. Ozanam Charitable Pharmacy, Inc. (Mobile)
  63. Project Hope to Abolish the Death Penalty
  64. Sisters of Mercy Alabama
  65. SPLC Action Fund
  66. St. Luke’s Episcopal Church (Jacksonville)
  67. St. Peter AME Church (Montgomery)
  68. SWEET Alabama (Birmingham)
  69. Systems Change/Economic Justice Workgroup – Greater Birmingham Ministries
  70. The Downtown Jimmie Hale Mission (Birmingham)
  71. The Horizons School (Birmingham)
  72. The Institute for Community, Youth & Family Services (Birmingham)
  73. The Right Place, Inc. (Anniston)
  74. The Sisters (Tuscaloosa)
  75. Thrive Alabama (Huntsville)
  76. Transform Alabama
  77. Transit Citizens Advisory Board (Birmingham)
  78. Trinity United Methodist Church (Homewood)
  79. Unitarian Universalist Church of Birmingham
  80. Unitarian Universalist Church of Huntsville
  81. YMBC Civic Forum (Birmingham)
  82. Youth Towers Incorporated (Birmingham)