There are pinned threads about automatic merit award schools, which include Alabama and others. For schools which do not use a simple stat based system to award merit, you want to be in the top 25% of admitted students plus bring leadership or other desirable skills/experience to campus. Hope, St Olaf’s and Case are good to have on your list for merit purposes. Michigan and Illinois do not give/give very little merit money to OOS students, so not good options to meet the merit goal. I also believe that Claremont College consortium does not give merit awards, so again, not an option.
As a parent, I suggest that your family run the Net Price Calculator at a few schools (if you haven’t already) to get a sense of what the financial aid eligibility might look like. If you can afford close to full pay, but not quite full pay, then some state flagships like Wisconsin (no merit aid), Minnesota, which are around $10-12k less than privates per year, might be affordable. Midwest publics which do give merit awards to OOS students include Indiana and Iowa.
In the midwest, the schools I know well which give good merit include Denison, Kalamazoo, Wooster, Knox, Earlham, Lawrence, Beloit. Dickinson and St Lawrence in central PA and upstate NY respectively, also give about 1/2 tuition in merit awards, I don’t believe their awards go higher than that. Rhodes College in Memphis, Centre College in KY, also give good merit awards. Many highly ranked schools on the east coast do not give merit awards so – the NESCAC schools like Amherst, Williams – as well as Haverford, Swarthmore, Vassar do not give merit awards.
At a certain point – and preferably sooner rather than later – you and your family will want to have a good handle on finances. Depending on where that stands, reaches could have to come off your list, because they won’t give merit to students for whom they are reaches. For what it’s worth, my own student had only safety/matches on his list because we are full pay but cannot afford full pay price – so only schools which would give close to 1/2 tuition awards remained on his list. That kind of adjustment in expectations is reality for many students.