diff --git a/changelog.d/al-liheap.added.md b/changelog.d/al-liheap.added.md
new file mode 100644
index 00000000000..b8515e3f622
--- /dev/null
+++ b/changelog.d/al-liheap.added.md
@@ -0,0 +1 @@
+Add Alabama LIHEAP regular heating eligibility and payments, applying the HUD allowance before the supplement and requiring a positive remaining regular grant.
diff --git a/policyengine_us/parameters/gov/states/al/adeca/liheap/eligibility/fpg_rate.yaml b/policyengine_us/parameters/gov/states/al/adeca/liheap/eligibility/fpg_rate.yaml
new file mode 100644
index 00000000000..2f2d2065135
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/al/adeca/liheap/eligibility/fpg_rate.yaml
@@ -0,0 +1,10 @@
+description: Alabama limits income to this multiple of the federal poverty guideline under the Low Income Home Energy Assistance Program.
+values:
+  2025-10-01: 1.5
+metadata:
+  unit: /1
+  period: year
+  label: Alabama LIHEAP federal poverty guideline rate
+  reference:
+    - title: Alabama FY2026 LIHEAP State Plan, section 2.1
+      href: https://liheapch.acf.gov/docs/2026/state-plans/AL_Plan_2026.pdf#page=8
diff --git a/policyengine_us/parameters/gov/states/al/adeca/liheap/eligibility/fpg_year_lag.yaml b/policyengine_us/parameters/gov/states/al/adeca/liheap/eligibility/fpg_year_lag.yaml
new file mode 100644
index 00000000000..47485dcde73
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/al/adeca/liheap/eligibility/fpg_year_lag.yaml
@@ -0,0 +1,10 @@
+description: Alabama uses federal poverty guidelines from this many years before the benefit year for regular heating assistance under the Low Income Home Energy Assistance Program.
+values:
+  2025-10-01: 1
+metadata:
+  unit: year
+  period: year
+  label: Alabama LIHEAP heating poverty guideline year lag
+  reference:
+    - title: "Alabama FY2026 LIHEAP State Plan (October-April heating season and 2025 guidelines) #page 4,9"
+      href: https://liheapch.acf.gov/docs/2026/state-plans/AL_Plan_2026.pdf#page=4
diff --git a/policyengine_us/parameters/gov/states/al/adeca/liheap/income/earned_income_min_age.yaml b/policyengine_us/parameters/gov/states/al/adeca/liheap/income/earned_income_min_age.yaml
new file mode 100644
index 00000000000..4682551fb71
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/al/adeca/liheap/income/earned_income_min_age.yaml
@@ -0,0 +1,10 @@
+description: Alabama excludes the earned income of household members below this age under the Low Income Home Energy Assistance Program.
+values:
+  2025-10-01: 18
+metadata:
+  unit: year
+  period: year
+  label: Alabama LIHEAP earned income minimum age
+  reference:
+    - title: "Alabama FY2026 LIHEAP Policy Manual, Income #page 17-19"
+      href: https://adeca.alabama.gov/wp-content/uploads/FY-2026-LIHEAP-Manual-1.pdf#page=17
diff --git a/policyengine_us/parameters/gov/states/al/adeca/liheap/income/sources/earned.yaml b/policyengine_us/parameters/gov/states/al/adeca/liheap/income/sources/earned.yaml
new file mode 100644
index 00000000000..62bbc66c41d
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/al/adeca/liheap/income/sources/earned.yaml
@@ -0,0 +1,17 @@
+description: Alabama uses these sources as earned income under the Low Income Home Energy Assistance Program.
+# Existing net business inputs approximate net farm and nonfarm income without
+# a separate LIHEAP expense deduction. The formula floors each source at zero.
+values:
+  2025-10-01:
+    - employment_income
+    - self_employment_income
+    - sstb_self_employment_income
+    - farm_operations_income
+    - partnership_s_corp_income
+metadata:
+  unit: list
+  period: year
+  label: Alabama LIHEAP earned income sources
+  reference:
+    - title: "Alabama FY2026 LIHEAP Policy Manual, Income #page 17-19"
+      href: https://adeca.alabama.gov/wp-content/uploads/FY-2026-LIHEAP-Manual-1.pdf#page=17
diff --git a/policyengine_us/parameters/gov/states/al/adeca/liheap/income/sources/unearned.yaml b/policyengine_us/parameters/gov/states/al/adeca/liheap/income/sources/unearned.yaml
new file mode 100644
index 00000000000..4ab8e63322e
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/al/adeca/liheap/income/sources/unearned.yaml
@@ -0,0 +1,41 @@
+description: Alabama uses these sources as unearned income for members of all ages under the Low Income Home Energy Assistance Program.
+values:
+  2025-10-01:
+    # Reported unemployment compensation, or modeled Alabama UI (al_ui) when
+    # none is reported.
+    - total_unemployment_compensation
+    - strike_benefits
+    # Social Security is counted gross; the input does not deduct Medicare
+    # premiums.
+    - social_security
+    - ssi
+    # Page 18 excludes "Foster care benefits", read as board payments, not this SSP.
+    - al_ssp
+    # Military retirement pay is a separate input from the pension inputs that
+    # pension_income adds, so both are listed; a household reports the amount
+    # in one or the other.
+    - pension_income
+    - military_retirement_pay
+    - survivor_benefits
+    - veterans_benefits
+    - disability_benefits
+    - workers_compensation
+    - child_support_received
+    - alimony_income
+    - interest_income
+    - ordinary_dividend_income
+    - rental_income
+    - farm_rent_income
+    - estate_income
+    - railroad_benefits
+    - financial_assistance
+# TANF is counted in the formula through the take-up-gated tanf aggregate.
+# Net gambling winnings are calculated separately using existing winnings and
+# losses inputs. Do not also include the gross winnings here.
+metadata:
+  unit: list
+  period: year
+  label: Alabama LIHEAP unearned income sources
+  reference:
+    - title: "Alabama FY2026 LIHEAP Policy Manual, Income #page 17-19"
+      href: https://adeca.alabama.gov/wp-content/uploads/FY-2026-LIHEAP-Manual-1.pdf#page=17
diff --git a/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/additional_person_amount.yaml b/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/additional_person_amount.yaml
new file mode 100644
index 00000000000..fb7ddf01173
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/additional_person_amount.yaml
@@ -0,0 +1,10 @@
+description: Alabama provides this additional amount for each household member after the first, up to the payment household size limit, under the Low Income Home Energy Assistance Program.
+values:
+  2025-10-01: 10
+metadata:
+  unit: currency-USD
+  period: year
+  label: Alabama LIHEAP additional person heating payment
+  reference:
+    - title: Alabama FY2026 LIHEAP Policy Manual, Appendix D (current benefit chart)
+      href: https://adeca.alabama.gov/wp-content/uploads/FY-2026-LIHEAP-Manual-1.pdf#page=57
diff --git a/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/base_amount.yaml b/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/base_amount.yaml
new file mode 100644
index 00000000000..b71aa51c967
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/base_amount.yaml
@@ -0,0 +1,17 @@
+description: Alabama provides this base payment for a one-person household in the lowest income band, by heating fuel, under the Low Income Home Energy Assistance Program.
+propane:
+  2025-10-01: 500
+natural_gas:
+  2025-10-01: 480
+electricity:
+  2025-10-01: 440
+wood_coal_kerosene:
+  2025-10-01: 400
+metadata:
+  unit: currency-USD
+  period: year
+  label: Alabama LIHEAP base heating payment by fuel
+  propagate_metadata_to_children: true
+  reference:
+    - title: Alabama FY2026 LIHEAP Policy Manual, Appendix D (current benefit chart)
+      href: https://adeca.alabama.gov/wp-content/uploads/FY-2026-LIHEAP-Manual-1.pdf#page=57
diff --git a/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/iija_supplement.yaml b/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/iija_supplement.yaml
new file mode 100644
index 00000000000..63c025d5ff1
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/iija_supplement.yaml
@@ -0,0 +1,19 @@
+description: Alabama provides this Infrastructure Investment and Jobs Act supplement with each regular heating assistance award under the Low Income Home Energy Assistance Program.
+values:
+  2025-10-01: 100
+  # The draft FY2027 plan drops the supplement, and the IIJA appropriation ran
+  # through September 30, 2026.
+  2026-10-01: 0
+metadata:
+  unit: currency-USD
+  period: year
+  label: Alabama LIHEAP IIJA heating supplement
+  reference:
+    - title: Alabama FY2026 LIHEAP State Plan, section 2.5
+      href: https://liheapch.acf.gov/docs/2026/state-plans/AL_Plan_2026.pdf#page=10
+    - title: HHS TAGGS FY2026 Alabama LIHEAP Infrastructure Supplement award 2601ALLIEI
+      href: https://taggs.hhs.gov/Detail/AwardDetail?arg_AwardNum=2601ALLIEI&arg_ProgOfficeCode=31
+    - title: "Alabama draft FY2027 LIHEAP State Plan, section 2.5 (no IIJA supplement) #page 9-10"
+      href: https://adeca.alabama.gov/wp-content/uploads/FY27-LIHEAP-State-Plan.pdf#page=9
+    - title: Infrastructure Investment and Jobs Act, Pub. L. 117-58, Division J, Title VII, 135 Stat. 1412
+      href: https://www.govinfo.gov/content/pkg/PLAW-117publ58/pdf/PLAW-117publ58.pdf#page=984
diff --git a/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/income_band_reduction.yaml b/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/income_band_reduction.yaml
new file mode 100644
index 00000000000..4e608283ac0
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/income_band_reduction.yaml
@@ -0,0 +1,18 @@
+description: Alabama sets this reduction from the lowest-band heating payment for each income band under the Low Income Home Energy Assistance Program.
+# These differences reproduce every fuel and household-size cell in Appendix D.
+1:
+  2025-10-01: 0
+2:
+  2025-10-01: 30
+3:
+  2025-10-01: 120
+metadata:
+  unit: currency-USD
+  period: year
+  label: Alabama LIHEAP heating payment reduction by income band
+  breakdown:
+    - range(1, 4)
+  propagate_metadata_to_children: true
+  reference:
+    - title: Alabama FY2026 LIHEAP Policy Manual, Appendix D (current benefit chart)
+      href: https://adeca.alabama.gov/wp-content/uploads/FY-2026-LIHEAP-Manual-1.pdf#page=57
diff --git a/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/maximum_payment_household_size.yaml b/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/maximum_payment_household_size.yaml
new file mode 100644
index 00000000000..b02c1ed57da
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/al/adeca/liheap/payment/maximum_payment_household_size.yaml
@@ -0,0 +1,10 @@
+description: Alabama uses no more than this many household members to determine the regular heating payment under the Low Income Home Energy Assistance Program.
+values:
+  2025-10-01: 4
+metadata:
+  unit: person
+  period: year
+  label: Alabama LIHEAP maximum payment household size
+  reference:
+    - title: Alabama FY2026 LIHEAP State Plan, section 2.5 (households over four receive the four-person payment)
+      href: https://liheapch.acf.gov/docs/2026/state-plans/AL_Plan_2026.pdf#page=9
diff --git a/policyengine_us/programs.yaml b/policyengine_us/programs.yaml
index 5250ab3aa89..0c8f8fad6fa 100644
--- a/policyengine_us/programs.yaml
+++ b/policyengine_us/programs.yaml
@@ -808,8 +808,16 @@ programs:
     category: Benefits
     agency: HHS
     status: partial
-    coverage: DC, Riverside County, MA, IL, IN, KS, KY, MD, MS, NC, NE, NJ, NY, OR, TX
+    coverage: AL, DC, Riverside County, MA, IL, IN, KS, KY, MD, MS, NC, NE, NJ, NY, OR, TX
     state_implementations:
+      - state: AL
+        status: partial
+        name: Alabama LIHEAP
+        full_name: Alabama Low Income Home Energy Assistance Program
+        variable: al_liheap
+        parameter_prefix: gov.states.al.adeca.liheap
+        verified_years: "2026"
+        notes: FY2026 regular heating with the HUD allowance deduction and the funded IIJA supplement. Crisis, cooling, weatherization and equipment assistance are out of scope.
       - state: DC
         status: complete
         name: DC LIHEAP
diff --git a/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/al_liheap.yaml b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/al_liheap.yaml
new file mode 100644
index 00000000000..c3107ada620
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/al_liheap.yaml
@@ -0,0 +1,221 @@
+# FY2026 plan p10: the funded IIJA supplement is $100 for each regular heating award.
+# The draft FY2027 plan drops it, so it is $0 from October 1, 2026.
+# Manual pp22,57: subtract one monthly HUD allowance from the regular award.
+# Interpret the supplement as requiring a positive regular payment afterward;
+# the plan does not expressly address a regular payment reduced to zero.
+# The discretionary high-need award requires an unobserved agency determination.
+
+- name: Case 1, the funded supplement is added without capping the award at a small bill.
+  period: 2026
+  input:
+    state_code: AL
+    age: 40
+    immigration_status: CITIZEN
+    employment_income: 6_000
+    ssi: 0
+    al_tanf: 0
+    heating_type: PROPANE
+    heating_expense: 50
+    hud_utility_allowance: 0
+  output:
+    al_liheap_base_payment: 500
+    al_liheap: 600
+
+# Four-person electricity, $1,000 monthly income: Appendix D gives $470.
+# The funded $100 is per household; age/disability do not award an automatic $50.
+- name: Case 2, a family with several vulnerable members receives one funded supplement.
+  period: 2026
+  input:
+    people:
+      grandparent:
+        age: 65
+        immigration_status: CITIZEN
+        is_disabled: true
+        ssi: 0
+      parent:
+        age: 40
+        immigration_status: CITIZEN
+        employment_income: 12_000
+        ssi: 0
+      child1:
+        age: 12
+        immigration_status: CITIZEN
+        ssi: 0
+      child2:
+        age: 8
+        immigration_status: CITIZEN
+        ssi: 0
+    spm_units:
+      family:
+        members: [grandparent, parent, child1, child2]
+        al_tanf: 0
+        heating_type: ELECTRICITY
+        heating_expense: 1_200
+    households:
+      household:
+        members: [grandparent, parent, child1, child2]
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_base_payment: 470
+    al_liheap: 570
+
+# Annual HUD allowances below represent $0/$100/$439/$440/$450/$600 per month.
+# The $440 electric base nets to $440/$340/$1/$0/$0/$0. Only the first three
+# households receive the full $100 supplement under the accepted interpretation.
+- name: Case 3, the supplement requires a positive regular payment after the HUD allowance.
+  period: 2026
+  input:
+    state_code: [AL, AL, AL, AL, AL, AL]
+    age: [40, 40, 40, 40, 40, 40]
+    immigration_status: [CITIZEN, CITIZEN, CITIZEN, CITIZEN, CITIZEN, CITIZEN]
+    employment_income: [6_000, 6_000, 6_000, 6_000, 6_000, 6_000]
+    ssi: [0, 0, 0, 0, 0, 0]
+    al_tanf: [0, 0, 0, 0, 0, 0]
+    heating_type: [ELECTRICITY, ELECTRICITY, ELECTRICITY, ELECTRICITY, ELECTRICITY, ELECTRICITY]
+    heating_expense: [1_200, 1_200, 1_200, 1_200, 1_200, 1_200]
+    hud_utility_allowance: [0, 1_200, 5_268, 5_280, 5_400, 7_200]
+  output:
+    al_liheap_base_payment: [440, 440, 440, 440, 440, 440]
+    al_liheap: [540, 440, 101, 0, 0, 0]
+
+# Unit 2 supplies a heating bill, so only the NONE heating type makes it ineligible.
+- name: Case 4, the funded supplement cannot pay an income or heating or immigration ineligible household.
+  period: 2026
+  input:
+    state_code: [AL, AL, AL]
+    age: [40, 40, 40]
+    immigration_status: [CITIZEN, CITIZEN, UNDOCUMENTED]
+    employment_income: [23472.12, 6_000, 6_000]
+    ssi: [0, 0, 0]
+    al_tanf: [0, 0, 0]
+    heating_type: [PROPANE, NONE, PROPANE]
+    heating_expense: [1_200, 1_200, 1_200]
+    hud_utility_allowance: [0, 0, 0]
+  output:
+    al_liheap_eligible: [false, false, false]
+    al_liheap: [0, 0, 0]
+
+# Size one, $1,000 monthly income gives the $450 gas base in Appendix D.
+- name: Case 5, nonsubsidized heat in rent receives the funded award without a separate bill.
+  period: 2026
+  input:
+    state_code: [AL, AL]
+    age: [40, 40]
+    immigration_status: [CITIZEN, CITIZEN]
+    employment_income: [12_000, 12_000]
+    ssi: [0, 0]
+    al_tanf: [0, 0]
+    heating_type: [NATURAL_GAS, NATURAL_GAS]
+    heating_expense: [0, 0]
+    heat_expense_included_in_rent: [true, true]
+    receives_housing_assistance: [false, true]
+    hud_utility_allowance: [0, 0]
+  output:
+    al_liheap: [550, 0]
+
+- name: Case 6, the regular Alabama award remains restricted to Alabama in a mixed state population.
+  period: 2026
+  input:
+    state_code: [AL, GA, FL]
+    age: [40, 40, 40]
+    immigration_status: [CITIZEN, CITIZEN, CITIZEN]
+    employment_income: [6_000, 6_000, 6_000]
+    ssi: [0, 0, 0]
+    al_tanf: [0, 0, 0]
+    heating_type: [PROPANE, PROPANE, PROPANE]
+    heating_expense: [1_200, 1_200, 1_200]
+    hud_utility_allowance: [0, 0, 0]
+  output:
+    al_liheap: [600, 0, 0]
+
+# Manual p18 counts "Government employee pensions (including military retirement pay)".
+# Military retirement 24_000 > size-one limit 23_472 (1_956 x 12), so no regular award
+# or supplement. Without the military pay, income 0 would have paid electricity 440 + 100 = 540.
+- name: Case 7, military retirement pay above the income limit means no award.
+  period: 2026
+  input:
+    state_code: AL
+    age: 62
+    immigration_status: CITIZEN
+    military_retirement_pay: 24_000
+    ssi: 0
+    al_tanf: 0
+    heating_type: ELECTRICITY
+    pre_subsidy_electricity_expense: 1_200
+    hud_utility_allowance: 0
+  output:
+    al_liheap_countable_income: 24_000
+    al_liheap_income_limit: 23_472
+    al_liheap_eligible: false
+    al_liheap: 0
+
+# Manual p17 counts cash receipts from all sources, so the rental loss is floored at zero:
+# max(24_000, 0) wages + max(-3_000, 0) rent = 24_000 > 23_472 limit, so no award.
+# Netting the loss would give 21_000 (1_750 per month, band 3) and electricity 440 - 120 + 100 = 420.
+- name: Case 8, a rental loss does not bring wages under the income limit.
+  period: 2026
+  input:
+    state_code: AL
+    age: 40
+    immigration_status: CITIZEN
+    employment_income: 24_000
+    rental_income: -3_000
+    ssi: 0
+    al_tanf: 0
+    heating_type: ELECTRICITY
+    pre_subsidy_electricity_expense: 1_200
+    hud_utility_allowance: 0
+  output:
+    al_liheap_countable_income: 24_000
+    al_liheap_eligible: false
+    al_liheap: 0
+
+# Both units have $6,000 of wages, $500 a month, within the $1,956 size-one limit, and
+# neither heating type is NONE, so both are eligible. Unit 1 pays a $1,200 fuel-oil bill;
+# unit 2 has heat in unsubsidized rent with an unknown fuel (manual 6.1.3, p22).
+# Manual 3.1 (p9) names electricity, natural gas, propane, wood, coal and kerosene, and
+# Appendix D (p57) has no fuel-oil or unspecified column, so the chart amount is $0.
+# The supplement requires a positive regular payment, so both awards are $0.
+# See PolicyEngine/policyengine-us issue 9754 for the unspecified-fuel default.
+- name: Case 9, eligible households with a fuel outside the chart receive no payment.
+  period: 2026
+  input:
+    state_code: [AL, AL]
+    age: [40, 40]
+    immigration_status: [CITIZEN, CITIZEN]
+    employment_income: [6_000, 6_000]
+    ssi: [0, 0]
+    al_tanf: [0, 0]
+    heating_type: [FUEL_OIL, UNSPECIFIED]
+    fuel_oil_expense: [1_200, 0]
+    heat_expense_included_in_rent: [false, true]
+    receives_housing_assistance: [false, false]
+    hud_utility_allowance: [0, 0]
+  output:
+    al_liheap_eligible: [true, true]
+    al_liheap_base_payment: [0, 0]
+    al_liheap: [0, 0]
+
+# Period 2027 reads the values in force on January 1, 2027. With a one-year lag, the
+# 2026 guideline is $15,960 for one person (draft FY2027 plan p9): 15,960 x 1.5 / 12
+# = 1,995, or 23,940 a year. Band 1 runs to floor(1,995 / 3 + 0.5) = 665, the plan's
+# "$0 - $665"; wages of 6,000 / 12 = 500 fall in band 1. Electricity: 440 - 0 = 440.
+# The IIJA supplement is $0 from October 1, 2026, so the award is 440, not 540.
+- name: Case 10, the IIJA supplement ends after FY2026.
+  period: 2027
+  input:
+    state_code: AL
+    age: 40
+    immigration_status: CITIZEN
+    employment_income: 6_000
+    ssi: 0
+    al_tanf: 0
+    heating_type: ELECTRICITY
+    pre_subsidy_electricity_expense: 1_200
+    hud_utility_allowance: 0
+  output:
+    al_liheap_income_limit: 23_940
+    al_liheap_income_band: 1
+    al_liheap_base_payment: 440
+    al_liheap: 440
diff --git a/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/al_liheap_household_size.yaml b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/al_liheap_household_size.yaml
new file mode 100644
index 00000000000..6c3c77c9642
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/al_liheap_household_size.yaml
@@ -0,0 +1,84 @@
+# Source: ADECA FY2026 LIHEAP Policy Manual and its Appendix D Payment Assistance Chart.
+
+# Manual pp13,22: qualified size excludes nonqualified members; no SNAP five-year bar is applied.
+- name: Case 1, citizens permanent residents and asylees count while nonqualified members do
+    not.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+      person2:
+        age: 39
+        immigration_status: LEGAL_PERMANENT_RESIDENT
+        ssi: 0
+      person3:
+        age: 19
+        immigration_status: ASYLEE
+        ssi: 0
+      person4:
+        age: 17
+        immigration_status: DACA
+        ssi: 0
+      person5:
+        age: 8
+        immigration_status: UNDOCUMENTED
+        ssi: 0
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        - person2
+        - person3
+        - person4
+        - person5
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        - person2
+        - person3
+        - person4
+        - person5
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_household_size: 3
+
+# Manual p22: all nonqualified members are excluded from benefit household size.
+- name: Case 2, a household without any qualified member has size zero.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: UNDOCUMENTED
+        ssi: 0
+      person2:
+        age: 8
+        immigration_status: DACA
+        ssi: 0
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        - person2
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        - person2
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_household_size: 0
diff --git a/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/eligibility/al_liheap_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/eligibility/al_liheap_eligible.yaml
new file mode 100644
index 00000000000..2c57636adf6
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/eligibility/al_liheap_eligible.yaml
@@ -0,0 +1,313 @@
+# Source: ADECA FY2026 LIHEAP Policy Manual and its Appendix D Payment Assistance Chart.
+
+# Manual p21: the $1,956 monthly limit is inclusive; the accepted plan has no asset test.
+- name: Case 1, exact rounded monthly income ceiling is eligible without an asset test.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 23_472
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+        spm_unit_assets: 1_000_000
+    households:
+      household:
+        members:
+        - person1
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_eligible: true
+
+# $1,956.01 a month exceeds the published $1,956 limit.
+- name: Case 2, one cent per month above the income ceiling is ineligible.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 23472.12
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_eligible: false
+
+# Manual pp13,21: a heating responsibility is necessary.
+- name: Case 3, no separate bill and no heat in rent means no heating responsibility.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 12_000
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 0
+    households:
+      household:
+        members:
+        - person1
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_eligible: false
+
+# Canonical NONE means no heating; a nonheating gas bill does not change it.
+- name: Case 4, explicit no heating fails despite an unrelated fuel bill.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 12_000
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: NONE
+        al_tanf: 0
+        gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_eligible: false
+
+# Manual p22: verified nonsubsidized heat-in-rent arrangement is eligible.
+- name: Case 5, nonsubsidized heat included in rent qualifies with no separate bill.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 12_000
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: NATURAL_GAS
+        al_tanf: 0
+        gas_expense: 0
+        heat_expense_included_in_rent: true
+    households:
+      household:
+        members:
+        - person1
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_eligible: true
+
+# Manual p21: subsidized energy-in-rent household needs out-of-pocket costs.
+- name: Case 6, subsidized heat included in rent without excess charge is ineligible.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 12_000
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: NATURAL_GAS
+        al_tanf: 0
+        gas_expense: 0
+        heat_expense_included_in_rent: true
+        receives_housing_assistance: true
+    households:
+      household:
+        members:
+        - person1
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_eligible: false
+
+# Manual pp21–22: positive primary heating charge approximates a verified public-housing excess charge.
+- name: Case 7, reported primary heating excess charge restores public housing eligibility.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 12_000
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: ELECTRICITY
+        al_tanf: 0
+        pre_subsidy_electricity_expense: 120
+        heat_expense_included_in_rent: true
+    households:
+      household:
+        members:
+        - person1
+        state_code: AL
+        hud_utility_allowance: 0
+        is_in_public_housing: true
+  output:
+    al_liheap_eligible: true
+
+# The accepted plan answers No to categorical eligibility (item 1.4, p5), so SSI receipt
+# does not waive the income test. The full 2026 SSI federal rate is $994 a month
+# (90 FR 49047): 994 x 12 = 11,928. Two adult children each work full time at the $7.25
+# federal minimum wage (29 U.S.C. 206(a)(1)(C); Alabama has none): 2,080 x 7.25 = 15,080.
+# al_ssp is 0 under the default NONE care setting. Income 11,928 + 15,080 + 15,080 = 42,088.
+# Size-3 limit: (15,650 + 2 x 5,500) x 1.5 / 12 = 3,331.25, rounded to 3,331, x 12 = 39,972.
+# 42,088 > 39,972, so the household is ineligible; without the SSI, 30,160 would qualify.
+- name: Case 8, SSI receipt does not bypass the income ceiling.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        immigration_status: CITIZEN
+        ssi: 11_928
+      person2:
+        age: 42
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 15_080
+      person3:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 15_080
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        - person2
+        - person3
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        - person2
+        - person3
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_countable_income: 42_088
+    al_liheap_income_limit: 39_972
+    al_liheap_eligible: false
+
+# Manual pp13,22: at least one citizen or qualified household member is necessary.
+- name: Case 9, no qualified person receives no regular heating benefit.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: UNDOCUMENTED
+        ssi: 0
+        employment_income: 12_000
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_eligible: false
+
+# Manual p13 requires Alabama residence; mixed-state lookups must remain safe.
+- name: Case 10, out of state households do not qualify for Alabama assistance.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 12_000
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        state_code: GA
+        hud_utility_allowance: 0
+  output:
+    al_liheap_eligible: false
+
+# Manual 6.1.1 (p21): "Subsidized housing tenants whose home energy costs are included in
+# their rent and do not pay anything out-of-pocket are not eligible for assistance."
+# Unit 1 lives in public housing with heat in rent and a $0 bill, so it is not responsible
+# for heat. Unit 2 has heat in unsubsidized rent, so it qualifies (6.1.3, p22):
+# 12,000 / 12 = 1,000 falls in the size-one band 2 ($653-$1,305), and electricity
+# 440 - 30 = 410, plus the $100 IIJA supplement, is 510.
+- name: Case 11, public housing with heat in rent and no out-of-pocket cost is ineligible.
+  period: 2026
+  input:
+    state_code: [AL, AL]
+    age: [40, 40]
+    immigration_status: [CITIZEN, CITIZEN]
+    employment_income: [12_000, 12_000]
+    ssi: [0, 0]
+    al_tanf: [0, 0]
+    heating_type: [ELECTRICITY, ELECTRICITY]
+    pre_subsidy_electricity_expense: [0, 0]
+    heat_expense_included_in_rent: [true, true]
+    receives_housing_assistance: [false, false]
+    is_in_public_housing: [true, false]
+    hud_utility_allowance: [0, 0]
+  output:
+    al_liheap_eligible: [false, true]
+    al_liheap: [0, 510]
diff --git a/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/eligibility/al_liheap_income_limit.yaml b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/eligibility/al_liheap_income_limit.yaml
new file mode 100644
index 00000000000..40b7d744bbc
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/eligibility/al_liheap_income_limit.yaml
@@ -0,0 +1,27 @@
+# Source: ADECA FY2026 LIHEAP Policy Manual and its Appendix D Payment Assistance Chart.
+
+# Appendix D, sizes 1-15: each published monthly limit is annualized once; this isolated unit test supplies size directly.
+- name: Case 1, all fifteen published monthly limits are reproduced annually.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    state_code: [AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL]
+    heating_type: [PROPANE, PROPANE, PROPANE, PROPANE, PROPANE, PROPANE, PROPANE, PROPANE, PROPANE,
+      PROPANE, PROPANE, PROPANE, PROPANE, PROPANE, PROPANE]
+    al_liheap_household_size: [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15]
+  output:
+    al_liheap_income_limit: [23_472, 31_728, 39_972, 48_228, 56_472, 64_728, 72_972, 81_228, 89_472,
+      97_728, 105_972, 114_228, 122_472, 130_728, 138_972]
+
+
+# The 2025 model year uses the 2024 guidelines of $15,060 and $20,440: 150% a month is $1,882.50 and $2,555,
+# rounded to $1,883 and $2,555. Historical estimate; 2025 is not a verified year.
+- name: Case 2, backfilled prior year still uses its own lagged federal guideline.
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    state_code: [AL, AL]
+    heating_type: [PROPANE, PROPANE]
+    al_liheap_household_size: [1, 2]
+  output:
+    al_liheap_income_limit: [22_596, 30_660]
diff --git a/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/income/al_liheap_countable_income.yaml b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/income/al_liheap_countable_income.yaml
new file mode 100644
index 00000000000..0a2afca1ca3
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/income/al_liheap_countable_income.yaml
@@ -0,0 +1,657 @@
+# Source: ADECA FY2026 LIHEAP Policy Manual and its Appendix D Payment Assistance Chart.
+
+# Manual pp17–18: 12000 + 6000 + 600 + 2400 + 1800 = 22800; no additional business deduction.
+- name: Case 1, adult wages and existing net business sources are counted.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 12_000
+        self_employment_income: 6_000
+        sstb_self_employment_income: 600
+        farm_operations_income: 2_400
+        partnership_s_corp_income: 1_800
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_countable_income: 22_800
+
+# Manual pp17-19: earned income under 18 is excluded, but annual SSI of 2,400 and survivor benefits of 1,200 count: 12,000 + 2,400 + 1,200 = 15,600.
+- name: Case 2, age 17 earned income follows the under eighteen boundary.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 12_000
+      person2:
+        age: 17
+        immigration_status: CITIZEN
+        ssi: 2_400
+        employment_income: 6_000
+        self_employment_income: 2_400
+        survivor_benefits: 1_200
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        - person2
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        - person2
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_countable_income: 15_600
+
+# Manual pp17-19: earned income counts from age 18: 12,000 + 6,000 + 2,400 + 2,400 + 1,200 = 24,000.
+- name: Case 3, age 18 earned income follows the under eighteen boundary.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 12_000
+      person2:
+        age: 18
+        immigration_status: CITIZEN
+        ssi: 2_400
+        employment_income: 6_000
+        self_employment_income: 2_400
+        survivor_benefits: 1_200
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        - person2
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        - person2
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_countable_income: 24_000
+
+# Manual p18: all six distinct sources count; farm_rent_income and survivor_benefits are independent inputs.
+- name: Case 4, independent farm rent and survivor receipts are included.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 12_000
+        rental_income: 2_400
+        farm_rent_income: 1_200
+        survivor_benefits: 600
+        pension_income: 4_800
+        disability_benefits: 1_200
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_countable_income: 22_200
+
+# Manual p18: annual wages of 1,200 plus annual TANF of 3,600 = 4,800. The YEAR test supplies an annual amount to the MONTH-defined al_tanf.
+- name: Case 5, Alabama TANF receipts are counted once and annualized once.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 1_200
+      person2:
+        age: 8
+        immigration_status: CITIZEN
+        ssi: 0
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        - person2
+        heating_type: PROPANE
+        al_tanf: 3_600
+        bottled_gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        - person2
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_countable_income: 4_800
+
+# Manual pp18–19 excludes SNAP, capital gains and utility allowances; allowance deduction is a benefit rule.
+- name: Case 6, capital gains SNAP and HUD allowances do not become income.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 12_000
+        capital_gains: 30_000
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+        snap: 6_000
+    households:
+      household:
+        members:
+        - person1
+        state_code: AL
+        hud_utility_allowance: 1_200
+  output:
+    al_liheap_countable_income: 12_000
+
+# Manual p17 counts "total monthly cash receipts ... from all sources", so each source is floored at zero.
+# max(6_000, 0) wages + max(-18_000, 0) self-employment = 6_000 + 0 = 6_000.
+- name: Case 7, a business loss does not offset wages.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 6_000
+        self_employment_income: -18_000
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        heating_type: PROPANE
+        al_tanf: 0
+        bottled_gas_expense: 1_200
+    households:
+      household:
+        members:
+        - person1
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_countable_income: 6_000
+
+# Manual p18 counts net gambling winnings; gambling losses cannot create negative gambling income.
+- name: Case 8, gambling receipts are net of losses without a negative gambling offset.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        employment_income: 12_000
+        gambling_winnings: 5_000
+        gambling_losses: 2_000
+        ssi: 0
+      person2:
+        age: 39
+        immigration_status: CITIZEN
+        gambling_winnings: 1_000
+        gambling_losses: 3_000
+        ssi: 0
+    spm_units:
+      spm_unit:
+        members:
+        - person1
+        - person2
+        heating_type: PROPANE
+        bottled_gas_expense: 1_200
+        al_tanf: 0
+    households:
+      household:
+        members:
+        - person1
+        - person2
+        state_code: AL
+  output:
+    al_liheap_countable_income: 15_000
+
+
+
+# Manual p22 mixed-status example: the nonqualified parent's $500 monthly income counts in full,
+# but only the two citizen children determine size. The current propane matrix gives $510.
+- name: Case 9, nonqualified parent income counts in full for two qualified children.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: UNDOCUMENTED
+        self_employment_income: 6_000
+        ssi: 0
+      person2:
+        age: 8
+        immigration_status: CITIZEN
+        ssi: 0
+      person3:
+        age: 6
+        immigration_status: CITIZEN
+        ssi: 0
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        heating_type: PROPANE
+        bottled_gas_expense: 1_200
+        al_tanf: 0
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: AL
+  output:
+    al_liheap_household_size: 2
+    al_liheap_countable_income: 6_000
+    al_liheap_income_limit: 31_728
+    al_liheap_income_band: 1
+    al_liheap_base_payment: 510
+
+# Manual p18 counts periodic estate or trust receipts. Existing estate_income is disjoint
+# from separately reported interest, dividends and capital gains; this is not a lump inheritance.
+# Wages 23,400 + periodic estate income 1,200 = 24,600 exceeds the annualized 23,472 income ceiling.
+- name: Case 10, periodic estate income raises income above the eligibility limit.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        employment_income: 23_400
+        estate_income: 1_200
+        ssi: 0
+    spm_units:
+      spm_unit:
+        members: [person1]
+        heating_type: PROPANE
+        bottled_gas_expense: 1_200
+        al_tanf: 0
+    households:
+      household:
+        members: [person1]
+        state_code: AL
+  output:
+    al_liheap_countable_income: 24_600
+    al_liheap_eligible: false
+
+# Manual p18 counts railroad retirement, financial support from family or friends,
+# and dividends. 21,000 + 1,200 + 1,200 + 600 = 24,000 exceeds the 23,472 annual ceiling.
+- name: Case 11, railroad benefits regular family support and dividends raise income above the limit.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 65
+        immigration_status: CITIZEN
+        employment_income: 21_000
+        railroad_benefits: 1_200
+        financial_assistance: 1_200
+        ordinary_dividend_income: 600
+        ssi: 0
+    spm_units:
+      spm_unit:
+        members: [person1]
+        heating_type: PROPANE
+        bottled_gas_expense: 1_200
+        al_tanf: 0
+    households:
+      household:
+        members: [person1]
+        state_code: AL
+  output:
+    al_liheap_countable_income: 24_000
+    al_liheap_income_limit: 23_472
+    al_liheap_eligible: false
+
+# Manual p18 counts "Government employee pensions (including military retirement pay)".
+# Military retirement pay 6_000 + civilian pension 1_200 = 7_200; 7_200 / 12 = 600 <= 652
+# size-one band 1 top, so electricity 440 - 0 + IIJA 100 = 540.
+- name: Case 12, military retirement pay is counted alongside a civilian pension.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 58
+        immigration_status: CITIZEN
+        ssi: 0
+        military_retirement_pay: 6_000
+        taxable_pension_income: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1]
+        heating_type: ELECTRICITY
+        pre_subsidy_electricity_expense: 1_200
+        al_tanf: 0
+    households:
+      household:
+        members: [person1]
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_countable_income: 7_200
+    al_liheap_income_band: 1
+    al_liheap: 540
+
+# Manual p17 counts cash receipts from all sources, so each person's source is floored at zero.
+# person1: wages 12_000 + rent 6_000 = 18_000. person2: max(-4_000, 0) business
+# + max(-6_000, 0) rent + farm rent 1_200 = 1_200. Total 19_200; 19_200 / 12 = 1_600 is above
+# the size-two band 1 top 881 and at most the band 2 top 1_763. Propane 500 - 30 + 10 + 100 = 580.
+- name: Case 13, one member's losses offset neither another source nor another member's income.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 45
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 12_000
+        rental_income: 6_000
+      person2:
+        age: 44
+        immigration_status: CITIZEN
+        ssi: 0
+        self_employment_income: -4_000
+        rental_income: -6_000
+        farm_rent_income: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        heating_type: PROPANE
+        bottled_gas_expense: 1_200
+        al_tanf: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_countable_income: 19_200
+    al_liheap_income_limit: 31_728
+    al_liheap_income_band: 2
+    al_liheap: 580
+
+# Both families have the same 3_600 annual (300 per month) Alabama TANF entitlement.
+# The first takes up TANF: wages 1_200 + tanf 3_600 = 4_800.
+# The second does not: tanf is 0, so countable income is wages 1_200 only.
+- name: Case 14, TANF is counted only when the family takes it up.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 1_200
+      person2:
+        age: 5
+        immigration_status: CITIZEN
+        ssi: 0
+      person3:
+        age: 30
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 1_200
+      person4:
+        age: 5
+        immigration_status: CITIZEN
+        ssi: 0
+    spm_units:
+      spm_unit1:
+        members: [person1, person2]
+        heating_type: PROPANE
+        bottled_gas_expense: 1_200
+        al_tanf: 3_600
+        takes_up_tanf_if_eligible: true
+      spm_unit2:
+        members: [person3, person4]
+        heating_type: PROPANE
+        bottled_gas_expense: 1_200
+        al_tanf: 3_600
+        takes_up_tanf_if_eligible: false
+    households:
+      household1:
+        members: [person1, person2]
+        state_code: AL
+        hud_utility_allowance: 0
+      household2:
+        members: [person3, person4]
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_tanf: [3_600, 3_600]
+    tanf: [3_600, 0]
+    al_liheap_countable_income: [4_800, 1_200]
+
+# Manual p17 counts cash receipts from all sources; the pp18-19 exclusions do not list
+# the Alabama State Supplementary Payment, so it counts alongside SSI.
+# person1 (70) receives SSI in their own household, computed rather than input:
+# 2026 individual FBR 994 x 12 = 11_928. Independent Homelife Care Level A in a
+# private home adds the al_ssp supplement: 60 x 12 = 720.
+# person2, the adult child, works full time at the 7.25 federal minimum wage
+# (29 U.S.C. 206(a)(1)(C); Alabama has no state minimum wage law per
+# https://www.dol.gov/agencies/whd/minimum-wage/state): 7.25 x 2_080 hours = 15_080.
+# Separate tax and marital units keep the child's wages out of SSI spousal deeming.
+# Countable income: SSI 11_928 + al_ssp 720 + wages 15_080 = 27_728.
+# Leave SSI unset for both people so the model computes receipt.
+# FY2026 Appendix D gives 390 for two people, propane and the third income band;
+# with no HUD allowance, the plan's 100 IIJA supplement makes the final award 490.
+- name: Case 15, Alabama SSP of an SSI recipient living with a working adult child is counted.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        immigration_status: CITIZEN
+        al_ssp_care_setting: PRIVATE_HOME_IHC
+        al_receives_elderly_disabled_medicaid_waiver: true
+        al_meets_snf_criteria: true
+      person2:
+        age: 42
+        immigration_status: CITIZEN
+        employment_income: 15_080
+    tax_units:
+      tax_unit1:
+        members: [person1]
+      tax_unit2:
+        members: [person2]
+    marital_units:
+      marital_unit1:
+        members: [person1]
+      marital_unit2:
+        members: [person2]
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        heating_type: PROPANE
+        bottled_gas_expense: 1_200
+        al_tanf: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    ssi: [11_928, 0]
+    al_ssp: [720, 0]
+    al_liheap_countable_income: 27_728
+    al_liheap: 490
+
+# Plan item 1.9 (p6) checks "Including MediCare deduction", so Social Security counts gross.
+# The 2026 standard Part B premium is 202.90 x 12 = 2,434.80, but countable income stays
+# 20,000, not 20,000 - 2,434.80 = 17,565.20. 20,000 / 12 = 1,666.67 is above the size-one
+# band 2 top of 1,305 and at most the 1,956 limit, so band 3. Natural gas: 480 - 120 = 360,
+# plus the $100 IIJA supplement, is 460.
+- name: Case 16, Social Security counts gross of the Medicare Part B premium.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        immigration_status: CITIZEN
+        ssi: 0
+        social_security_retirement: 20_000
+        medicare_part_b_premium: 2_434.8
+    spm_units:
+      spm_unit:
+        members: [person1]
+        heating_type: NATURAL_GAS
+        gas_expense: 1_200
+        al_tanf: 0
+    households:
+      household:
+        members: [person1]
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_liheap_countable_income: 20_000
+    al_liheap_income_band: 3
+    al_liheap: 460
+
+# Manual 5.5.1 (pp17-18) counts "Unemployment compensation". With none reported, the
+# modeled Alabama UI counts. Base period: full-time work at the $7.25 federal minimum wage
+# (29 U.S.C. 206(a)(1)(C); Alabama has none) is 520 x 7.25 = 3,770 a quarter, 15,080 a year.
+# Weekly benefit (Code of Ala. 25-4-72(b)): (3,770 + 3,770) / 52 = 145, under the $275
+# maximum. The January 2026 rate of 2.7% gives 14 weeks (25-4-74); the maximum benefit is
+# min(14 x 145 = 2,030, 0.25 x 15,080 = 3,770) = 2,030. After the one waiting week, 15 weeks
+# unemployed pay 14 x 145 = 2,030. Wages for the other 37 weeks: 37 x 40 x 7.25 = 10,730.
+# Countable income: 10,730 + 2,030 = 12,760, or 1,063.33 a month, in the size-one band 2
+# ($653-$1,305). Electricity: 440 - 30 = 410, plus the $100 IIJA supplement, is 510.
+- name: Case 17, modeled Alabama unemployment insurance counts as unearned income.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        ssi: 0
+        employment_income: 10_730
+        al_ui_base_period_wages: 15_080
+        al_ui_high_quarter_wages: 3_770
+        al_ui_second_high_quarter_wages: 3_770
+        al_ui_quarters_with_wages: 4
+        weeks_unemployed: 15
+    spm_units:
+      spm_unit:
+        members: [person1]
+        heating_type: ELECTRICITY
+        pre_subsidy_electricity_expense: 1_200
+        al_tanf: 0
+    households:
+      household:
+        members: [person1]
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    al_ui: 2_030
+    # No reported unemployment compensation, so the total falls back to modeled al_ui.
+    total_unemployment_compensation: 2_030
+    al_liheap_countable_income: 12_760
+    al_liheap_income_band: 2
+    al_liheap: 510
+
+# Manual pp17-19: each listed unearned source is set to 100 times its position in the
+# list, so 100 x (1 + 2 + ... + 20) = 100 x 210 = 21,000, with no earnings or gambling.
+# A nonzero reported amount overrides modeled UI. ssi and al_ssp are MONTH-defined, so
+# their annual inputs are split across months and summed back.
+- name: Case 18, every listed unearned source counts.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        immigration_status: CITIZEN
+        unemployment_compensation: 100
+        strike_benefits: 200
+        social_security: 300
+        ssi: 400
+        al_ssp: 500
+        pension_income: 600
+        military_retirement_pay: 700
+        survivor_benefits: 800
+        veterans_benefits: 900
+        disability_benefits: 1_000
+        workers_compensation: 1_100
+        child_support_received: 1_200
+        alimony_income: 1_300
+        interest_income: 1_400
+        ordinary_dividend_income: 1_500
+        rental_income: 1_600
+        farm_rent_income: 1_700
+        estate_income: 1_800
+        railroad_benefits: 1_900
+        financial_assistance: 2_000
+    spm_units:
+      spm_unit:
+        members: [person1]
+        heating_type: PROPANE
+        bottled_gas_expense: 1_200
+        al_tanf: 0
+    households:
+      household:
+        members: [person1]
+        state_code: AL
+        hud_utility_allowance: 0
+  output:
+    total_unemployment_compensation: 100
+    al_liheap_countable_income: 21_000
diff --git a/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/payment/al_liheap_base_payment.yaml b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/payment/al_liheap_base_payment.yaml
new file mode 100644
index 00000000000..91a9355e94e
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/payment/al_liheap_base_payment.yaml
@@ -0,0 +1,50 @@
+# Source: ADECA FY2026 LIHEAP Policy Manual and its Appendix D Payment Assistance Chart.
+
+# Current Appendix D: the 48 printed cells in size, band, fuel order. This isolates the chart lookup from eligibility and supplements.
+- name: Case 1, all forty eight published size band and fuel amounts are retained.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    state_code: [AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL,
+      AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL,
+      AL, AL, AL]
+    heating_type: [PROPANE, NATURAL_GAS, ELECTRICITY, WOOD, PROPANE, NATURAL_GAS, ELECTRICITY, WOOD,
+      PROPANE, NATURAL_GAS, ELECTRICITY, WOOD, PROPANE, NATURAL_GAS, ELECTRICITY, WOOD, PROPANE, NATURAL_GAS,
+      ELECTRICITY, WOOD, PROPANE, NATURAL_GAS, ELECTRICITY, WOOD, PROPANE, NATURAL_GAS, ELECTRICITY,
+      WOOD, PROPANE, NATURAL_GAS, ELECTRICITY, WOOD, PROPANE, NATURAL_GAS, ELECTRICITY, WOOD, PROPANE,
+      NATURAL_GAS, ELECTRICITY, WOOD, PROPANE, NATURAL_GAS, ELECTRICITY, WOOD, PROPANE, NATURAL_GAS,
+      ELECTRICITY, WOOD]
+    al_liheap_household_size: [1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2, 2,
+      2, 3, 3, 3, 3, 3, 3, 3, 3, 3, 3, 3, 3, 4, 4, 4, 4, 4, 4, 4, 4, 4, 4, 4, 4]
+    al_liheap_income_band: [1, 1, 1, 1, 2, 2, 2, 2, 3, 3, 3, 3, 1, 1, 1, 1, 2, 2, 2, 2, 3, 3, 3, 3,
+      1, 1, 1, 1, 2, 2, 2, 2, 3, 3, 3, 3, 1, 1, 1, 1, 2, 2, 2, 2, 3, 3, 3, 3]
+  output:
+    al_liheap_base_payment: [500, 480, 440, 400, 470, 450, 410, 370, 380, 360, 320, 280, 510, 490, 450,
+      410, 480, 460, 420, 380, 390, 370, 330, 290, 520, 500, 460, 420, 490, 470, 430, 390, 400, 380,
+      340, 300, 530, 510, 470, 430, 500, 480, 440, 400, 410, 390, 350, 310]
+
+
+# The printed Wood/Coal/Kerosene column applies to all three distinct canonical enum values.
+- name: Case 2, wood coal and kerosene share the printed fuel column.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    state_code: [AL, AL, AL]
+    heating_type: [WOOD, COAL, KEROSENE]
+    al_liheap_household_size: [1, 1, 1]
+    al_liheap_income_band: [1, 2, 3]
+  output:
+    al_liheap_base_payment: [400, 370, 280]
+
+
+# Chart note: households of more than 4 people receive the size-4 amount and keep their own income band.
+- name: Case 3, large households retain their income bands but cap the payment size increment.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    state_code: [AL, AL, AL]
+    heating_type: [ELECTRICITY, ELECTRICITY, ELECTRICITY]
+    al_liheap_household_size: [4, 5, 15]
+    al_liheap_income_band: [1, 1, 1]
+  output:
+    al_liheap_base_payment: [470, 470, 470]
diff --git a/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/payment/al_liheap_income_band.yaml b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/payment/al_liheap_income_band.yaml
new file mode 100644
index 00000000000..7a3314d7877
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/al/adeca/liheap/payment/al_liheap_income_band.yaml
@@ -0,0 +1,28 @@
+# Source: ADECA FY2026 LIHEAP Policy Manual and its Appendix D Payment Assistance Chart.
+
+# Plan p9 and chart: monthly 0, 652, 652.01, 1,305, 1,305.01 and 1,956 map to bands 1, 1, 2, 2, 3, 3; fractional dollars do not create gaps.
+- name: Case 1, one person band boundaries include exact tops and adjacent cents.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    state_code: [AL, AL, AL, AL, AL, AL]
+    heating_type: [PROPANE, PROPANE, PROPANE, PROPANE, PROPANE, PROPANE]
+    al_liheap_household_size: [1, 1, 1, 1, 1, 1]
+    al_liheap_countable_income: [0, 7_824, 7824.12, 15_660, 15660.12, 23_472]
+  output:
+    al_liheap_income_band: [1, 1, 2, 2, 3, 3]
+
+
+# Chart monthly band tops: size 2 881/1,763; size 3 1,110/2,221; size 4 1,340/2,681; each paired with the next cent.
+- name: Case 2, published household specific rounded band boundaries are retained.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    state_code: [AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL, AL]
+    heating_type: [PROPANE, PROPANE, PROPANE, PROPANE, PROPANE, PROPANE, PROPANE, PROPANE, PROPANE,
+      PROPANE, PROPANE, PROPANE]
+    al_liheap_household_size: [2, 2, 2, 2, 3, 3, 3, 3, 4, 4, 4, 4]
+    al_liheap_countable_income: [10_572, 10572.12, 21_156, 21156.12, 13_320, 13320.12, 26_652, 26652.12,
+      16_080, 16080.12, 32_172, 32172.12]
+  output:
+    al_liheap_income_band: [1, 2, 2, 3, 1, 2, 2, 3, 1, 2, 2, 3]
diff --git a/policyengine_us/variables/gov/states/al/adeca/liheap/al_liheap.py b/policyengine_us/variables/gov/states/al/adeca/liheap/al_liheap.py
new file mode 100644
index 00000000000..a23c5a98977
--- /dev/null
+++ b/policyengine_us/variables/gov/states/al/adeca/liheap/al_liheap.py
@@ -0,0 +1,39 @@
+from policyengine_us.model_api import *
+
+
+class al_liheap(Variable):
+    value_type = float
+    entity = SPMUnit
+    definition_period = YEAR
+    unit = USD
+    label = "Alabama LIHEAP regular heating assistance"
+    defined_for = StateCode.AL
+    reference = (
+        # PDF pages 22-23
+        "https://adeca.alabama.gov/wp-content/uploads/FY-2026-LIHEAP-Manual-1.pdf#page=22",
+        "https://liheapch.acf.gov/docs/2026/state-plans/AL_Plan_2026.pdf#page=10",
+    )
+
+    def formula(spm_unit, period, parameters):
+        p = parameters(period).gov.states.al.adeca.liheap.payment
+        eligible = spm_unit("al_liheap_eligible", period)
+        base = spm_unit("al_liheap_base_payment", period)
+        # The monthly HUD allowance reduces the award, not countable income.
+        # AL local allowance schedules are not encoded in the shared input;
+        # an observed annual allowance can be supplied directly.
+        allowance = spm_unit.household("hud_utility_allowance", period) / MONTHS_IN_YEAR
+        regular_payment = max_(base - allowance, 0)
+        # The plan pays the $100 IIJA supplement "if funding is available".
+        # The FY2026 award (2601ALLIEI, $1,359,705, roughly 13,600 supplements
+        # across heating and cooling) can run out during the season; the model
+        # assumes it does not, so population totals overstate funded awards.
+        # The draft FY2027 plan drops the supplement, which ends after FY2026.
+        # Interpret the plan's "receives a Heating benefit" as requiring a
+        # positive regular payment after the HUD adjustment. The plan does
+        # not expressly address a regular payment reduced to zero.
+        supplement = where(regular_payment > 0, p.iija_supplement, 0)
+        # The separate $50 high-need addition requires an agency decision
+        # unavailable in existing inputs, so demographic traits alone do not
+        # add it. Fixed regular payments have no cap at the reported heating
+        # expense.
+        return eligible * (regular_payment + supplement)
diff --git a/policyengine_us/variables/gov/states/al/adeca/liheap/al_liheap_household_size.py b/policyengine_us/variables/gov/states/al/adeca/liheap/al_liheap_household_size.py
new file mode 100644
index 00000000000..1c6acb93f48
--- /dev/null
+++ b/policyengine_us/variables/gov/states/al/adeca/liheap/al_liheap_household_size.py
@@ -0,0 +1,16 @@
+from policyengine_us.model_api import *
+
+
+class al_liheap_household_size(Variable):
+    value_type = int
+    entity = SPMUnit
+    definition_period = YEAR
+    label = "Alabama LIHEAP household size"
+    defined_for = StateCode.AL
+    # PDF pages 7, 13, 22
+    reference = "https://adeca.alabama.gov/wp-content/uploads/FY-2026-LIHEAP-Manual-1.pdf#page=7"
+
+    # Nonqualified members' income counts, but they do not increase size.
+    # The SPM unit approximates the economic unit buying energy together.
+    # Existing inputs do not identify temporary absences or custody documents.
+    adds = ["is_citizen_or_legal_immigrant"]
diff --git a/policyengine_us/variables/gov/states/al/adeca/liheap/eligibility/al_liheap_eligible.py b/policyengine_us/variables/gov/states/al/adeca/liheap/eligibility/al_liheap_eligible.py
new file mode 100644
index 00000000000..4761ff36863
--- /dev/null
+++ b/policyengine_us/variables/gov/states/al/adeca/liheap/eligibility/al_liheap_eligible.py
@@ -0,0 +1,31 @@
+from policyengine_us.model_api import *
+
+
+class al_liheap_eligible(Variable):
+    value_type = bool
+    entity = SPMUnit
+    definition_period = YEAR
+    label = "Alabama LIHEAP eligibility"
+    defined_for = StateCode.AL
+    # PDF pages 13, 21-22
+    reference = "https://adeca.alabama.gov/wp-content/uploads/FY-2026-LIHEAP-Manual-1.pdf#page=13"
+
+    def formula(spm_unit, period, parameters):
+        size = spm_unit("al_liheap_household_size", period)
+        income = spm_unit("al_liheap_countable_income", period)
+        limit = spm_unit("al_liheap_income_limit", period)
+        heat_in_rent = spm_unit("heat_expense_included_in_rent", period)
+        subsidized = spm_unit("receives_housing_assistance", period) | (
+            spm_unit.household("is_in_public_housing", period)
+        )
+        pays_for_heat = spm_unit("heating_expense", period) > 0
+        # Heat included in nonsubsidized rent can qualify without a separate
+        # bill. The rent flag stands for the agency's verified arrangement.
+        # In subsidized housing, a positive heating bill approximates verified
+        # excess charges; the input does not distinguish the excess component.
+        responsible = pays_for_heat | (heat_in_rent & ~subsidized)
+        heating_type = spm_unit("heating_type", period)
+        fuel = heating_type.possible_values
+        return (
+            (size > 0) & (income <= limit) & responsible & (heating_type != fuel.NONE)
+        )
diff --git a/policyengine_us/variables/gov/states/al/adeca/liheap/eligibility/al_liheap_income_limit.py b/policyengine_us/variables/gov/states/al/adeca/liheap/eligibility/al_liheap_income_limit.py
new file mode 100644
index 00000000000..344ec073c87
--- /dev/null
+++ b/policyengine_us/variables/gov/states/al/adeca/liheap/eligibility/al_liheap_income_limit.py
@@ -0,0 +1,31 @@
+from policyengine_us.model_api import *
+from policyengine_us.variables.gov.hhs.tax_unit_fpg import fpg
+
+
+class al_liheap_income_limit(Variable):
+    value_type = float
+    entity = SPMUnit
+    definition_period = YEAR
+    unit = USD
+    label = "Alabama LIHEAP annualized income limit"
+    defined_for = StateCode.AL
+    reference = (
+        "https://adeca.alabama.gov/wp-content/uploads/FY-2026-LIHEAP-Manual-1.pdf#page=57",
+        "https://liheapch.acf.gov/docs/2026/state-plans/AL_Plan_2026.pdf#page=9",
+    )
+
+    def formula(spm_unit, period, parameters):
+        p = parameters(period).gov.states.al.adeca.liheap.eligibility
+        size = spm_unit("al_liheap_household_size", period)
+        state_group = spm_unit.household("state_group_str", period)
+        guideline = fpg(
+            max_(size, 1),
+            state_group,
+            period,
+            parameters,
+            year_lag=p.fpg_year_lag,
+        )
+        monthly_limit = guideline * p.fpg_rate / MONTHS_IN_YEAR
+        # Nearest-dollar, half-up rounding reproduces all 15 printed limits.
+        # The FY2026 heating season ends before the May 2026 chart update.
+        return np.floor(monthly_limit + 0.5) * MONTHS_IN_YEAR
diff --git a/policyengine_us/variables/gov/states/al/adeca/liheap/income/al_liheap_countable_income.py b/policyengine_us/variables/gov/states/al/adeca/liheap/income/al_liheap_countable_income.py
new file mode 100644
index 00000000000..fee93a40f59
--- /dev/null
+++ b/policyengine_us/variables/gov/states/al/adeca/liheap/income/al_liheap_countable_income.py
@@ -0,0 +1,45 @@
+from policyengine_us.model_api import *
+
+
+class al_liheap_countable_income(Variable):
+    value_type = float
+    entity = SPMUnit
+    definition_period = YEAR
+    unit = USD
+    label = "Alabama LIHEAP annual countable household income"
+    defined_for = StateCode.AL
+    # PDF pages 17-19, 22
+    reference = "https://adeca.alabama.gov/wp-content/uploads/FY-2026-LIHEAP-Manual-1.pdf#page=17"
+
+    def formula(spm_unit, period, parameters):
+        p = parameters(period).gov.states.al.adeca.liheap.income
+        person = spm_unit.members
+        adult = person("age", period) >= p.earned_income_min_age
+        # Annual income approximates the preceding calendar month's income.
+        # Existing net business inputs need no further expense deduction.
+        # Manual 5.5.1 counts "total monthly cash receipts before taxes from
+        # all sources", so each source is floored at zero and a loss in one
+        # source cannot offset another.
+        earned = 0
+        for source in p.sources.earned:
+            earned = earned + max_(person(source, period), 0)
+        unearned = 0
+        for source in p.sources.unearned:
+            unearned = unearned + max_(person(source, period), 0)
+        net_gambling = max_(
+            person("gambling_winnings", period) - person("gambling_losses", period),
+            0,
+        )
+        # Earned income under age 18 is excluded; unearned income is included
+        # at every age. Immigration status does not remove anyone's income.
+        # Estate income captures existing net estate/trust income separately
+        # from interest and dividends; it cannot classify distributions of
+        # principal or nonperiodic receipts. Financial assistance covers cash
+        # support from family or friends; royalties, stipends, and some
+        # severance payments remain unavailable as distinct inputs.
+        # The annual tanf aggregate includes al_tanf and applies take-up;
+        # al_tanf alone is the entitlement and would count benefits a
+        # nonrecipient could get.
+        return spm_unit.sum(earned * adult + unearned + net_gambling) + spm_unit(
+            "tanf", period
+        )
diff --git a/policyengine_us/variables/gov/states/al/adeca/liheap/payment/al_liheap_base_payment.py b/policyengine_us/variables/gov/states/al/adeca/liheap/payment/al_liheap_base_payment.py
new file mode 100644
index 00000000000..44a969e971f
--- /dev/null
+++ b/policyengine_us/variables/gov/states/al/adeca/liheap/payment/al_liheap_base_payment.py
@@ -0,0 +1,51 @@
+from policyengine_us.model_api import *
+
+
+class al_liheap_base_payment(Variable):
+    value_type = float
+    entity = SPMUnit
+    definition_period = YEAR
+    unit = USD
+    label = "Alabama LIHEAP base heating payment"
+    defined_for = StateCode.AL
+    reference = "https://adeca.alabama.gov/wp-content/uploads/FY-2026-LIHEAP-Manual-1.pdf#page=57"
+
+    def formula(spm_unit, period, parameters):
+        p = parameters(period).gov.states.al.adeca.liheap.payment
+        heating_type = spm_unit("heating_type", period)
+        fuel = heating_type.possible_values
+        base = select(
+            [
+                heating_type == fuel.PROPANE,
+                heating_type == fuel.NATURAL_GAS,
+                heating_type == fuel.ELECTRICITY,
+                (heating_type == fuel.WOOD)
+                | (heating_type == fuel.COAL)
+                | (heating_type == fuel.KEROSENE),
+            ],
+            [
+                p.base_amount.propane,
+                p.base_amount.natural_gas,
+                p.base_amount.electricity,
+                p.base_amount.wood_coal_kerosene,
+            ],
+            default=0,
+        )
+        size = spm_unit("al_liheap_household_size", period)
+        additional_people = clip(size - 1, 0, p.maximum_payment_household_size - 1)
+        # Cross-state rows have band zero before defined_for masks the result;
+        # keep the eager lookup within the published three bands.
+        band = clip(spm_unit("al_liheap_income_band", period), 1, 3)
+        amount = (
+            base
+            - p.income_band_reduction[band]
+            + additional_people * p.additional_person_amount
+        )
+        # This compact representation reproduces Appendix D's entire matrix.
+        # The manual's worked example on page 22 uses an older payment amount.
+        # No published category was identified for fuel oil, solar, other, or
+        # unspecified heat (manual 3.1 names kerosene, not fuel oil). Returning
+        # zero leaves those estimates incomplete; it does not establish legal
+        # ineligibility, including heat in rent. Issue 9754 tracks the
+        # unspecified-fuel default.
+        return where(base > 0, amount, 0)
diff --git a/policyengine_us/variables/gov/states/al/adeca/liheap/payment/al_liheap_income_band.py b/policyengine_us/variables/gov/states/al/adeca/liheap/payment/al_liheap_income_band.py
new file mode 100644
index 00000000000..184c0a34af6
--- /dev/null
+++ b/policyengine_us/variables/gov/states/al/adeca/liheap/payment/al_liheap_income_band.py
@@ -0,0 +1,23 @@
+from policyengine_us.model_api import *
+
+
+class al_liheap_income_band(Variable):
+    value_type = int
+    entity = SPMUnit
+    definition_period = YEAR
+    label = "Alabama LIHEAP monthly income band"
+    defined_for = StateCode.AL
+    reference = "https://liheapch.acf.gov/docs/2026/state-plans/AL_Plan_2026.pdf#page=9"
+
+    def formula(spm_unit, period, parameters):
+        monthly_limit = spm_unit("al_liheap_income_limit", period) / MONTHS_IN_YEAR
+        monthly_income = spm_unit("al_liheap_countable_income", period) / MONTHS_IN_YEAR
+        first_upper = np.floor(monthly_limit / 3 + 0.5)
+        second_upper = 2 * first_upper + 1
+        # Published upper bounds are inclusive. Fractional dollars immediately
+        # above an upper bound enter the next band without a one-dollar gap.
+        return select(
+            [monthly_income <= first_upper, monthly_income <= second_upper],
+            [1, 2],
+            default=3,
+        )