Alabama Gov. Robert Bentley signs a compromise bill to use the state's oil spill settlement funds for debts, Medicaid and roads.

The Alabama Legislature gave final approval to the bill last night after lawmakers agreed to a compromise on how to use the money.

The plan sends $400 million to repay money borrowed during past budget shortfalls. It will also steer $120 million to the state's Medicaid program and $120 million to build roads in two coastal counties.

State Attorney General Luther Strange says claims forms are being mailed to more than 29,000 Alabama borrowers who lost their homes to foreclosure between 2008 and 2011 and may be eligible for payments. The payments are from a $25 billion national mortgage foreclosure settlement. Borrowers eligible for the settlement had mortgages serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo. Strange said the national settlement administrator mailed postcards to eligible borrowers nationwide last week. The Alabama packets are being mailed between Monday and Oct. 12.