The proposed College and Higher Education Excellence and Results (CHEER) Act aims to enhance funding for higher education institutions in Alabama by establishing a performance-based funding model. It introduces a new Chapter 5B in Title 16 of the Code of Alabama 1975, creating the CHEER Fund, which will provide bonus funding to eligible institutions that meet specific performance metrics related to student success and institutional goals. The bill defines key terms such as "academically underprepared student" and "student postgraduation success," and outlines the criteria for institutions to qualify for funding, emphasizing the importance of accurate data reporting. Any manipulation of data could lead to funding reductions, ensuring accountability in the funding process.

Additionally, the bill establishes the Outcomes-Based Higher Education Funding Coordinating Committee, responsible for overseeing the implementation of the CHEER Act and determining performance metrics. The CHEER Act will replace existing outcomes-based funding programs, including those for the Alabama Community College System, streamlining the funding process. The program is set to commence on October 1, 2026, contingent upon legislative appropriations, and will include an annual report assessing the program's impact and effectiveness. The act is scheduled to take effect on June 1, 2026, marking a significant shift towards incentivizing higher education institutions to improve student outcomes through structured funding mechanisms.

Statutes affected:
Introduced: 16-5B-1, 16-5B-1, 16-5B-2, 29-9-4, 16-5B-6, 16-5B-5, 16-5B-3
Engrossed: 16-5B-1, 16-5B-1, 16-5B-2, 29-9-4, 16-5B-6, 16-5B-5, 16-5B-3
Enrolled: 16-5B-1, 16-5B-1, 16-5B-2, 29-9-4, 16-5B-6, 16-5B-5, 16-5B-3