Alabama lawmakers have cut Gov. Kay Ivey’s proposed $400 tax rebate to $100 per tax filer, reducing the cost from more than a billion dollars to $275 million.

A Senate committee approved the rebate with little discussion other than questions about who is eligible and how the rebate would be sent to taxpayers.

The cost would be funded as part of a $2.8 billion supplemental appropriation, which the committee also approved Wednesday.

The discussion was part of the first round of education budget talks.

Senate Education Budget Chair Arthur Orr, R-Decatur, told AL.com in early April that Ivey’s $400 rebate would be “moderated” and House Education Budget Chair, R-Trussville, said support for the $400 rebates had “softened.”

The $2.8 billion supplemental now heads to the Senate chamber, where it could be considered as early as Thursday.

The $400 tax rebate was a key piece of Ivey’s budget proposal and a talking point in her State of the State speech at the start of the legislative session.

“Folks, this is the people’s money,” Ivey said in the address, “and it’s only right, while still acknowledging we are recording revenues far exceeding normal and sustainable levels, we give a fair share of this money directly back to the people of Alabama.”

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