20th and 21st Centuries

Agitation by white farmers in the 1890's for improved economic and social conditions eventually led to a number of reforms and gained them a degree of political power. In 1901 a new constitution was adopted. Among its provisions was the virtual disenfranchisement of blacks, whose voting power was viewed by whites as a threat to their control of the state.

Early in the century, diversified farming began. This change was brought about by soil depletion, the ravages of the boll weevil, and the demand for food crops during World War I. Rapid industrialization began in the 1930's and 1940's, when expansion was spurred by hydroelectric power from the Tennessee Valley Authority and by World War II production demands. After the war, industrial growth continued. In 1949 a rocket research center was built at Huntsville.

Racial tension was high after the U.S. Supreme Court's 1954 decision on school desegregation. During 1955–56, the modern civil rights movement began in Montgomery, when blacks led by Martin Luther King, Jr., ended segregated seating on municipal buses. In the 1950's and 1960's, Alabama was the scene of widespread civil rights demonstrations and determined resistance by segregationists. In 1965 Selma was the site of violence when police attacked demonstrators, led by King, who were protesting discrimination in voter registration. This incident led to the passage of the federal Voting Rights Act of 1965.

Ongoing financial problems came to a head in 2003, when the state government's general fund had a $675 million shortage. When an attempt to increase taxes was defeated by voters, Governor Bob Riley cut state agency budgets. By 2006, the unemployment rate was the lowest in the history of the state. That same year, Alabama voters elected a woman, Sue Bell Cobb, as the first female justice of the state Supreme Court.