Sanders Signs Executive Order to Speed Permitting for Economic Development Projects

LITTLE ROCK, Ark. - As part of her Arkansas Forward initiative to save money and improve efficiency within state government, Governor Sarah Huckabee Sanders today signed an Executive Order to make Arkansas the best state in America to do business through streamlined, clear, and expeditious permitting that protects natural resources and fosters economic development.

"Arkansas is one of the best states in the nation to start, build, and grow a business - but we have to do better to compete across the country and globe," said Governor Sanders. "This Executive Order puts people before paperwork, adding transparency and speed to our permitting process to ensure major economic development projects aren't held up by unnecessary red tape. Whether it's for a barber getting a license, a city building new water lines, or an international corporation setting up a new supply chain, we want Arkansas to be the best place in America to do business."

The Executive Order requires each Cabinet-level state agency and board or commission that issues permits, licenses, certifications, or other regulatory approvals to conduct a comprehensive review of all such processes within 120 days. Specific agencies mentioned in the Order include the Department of Agriculture, the Department of Energy and Environment, the Department of Labor and Licensing, and the Department of Health.

Within 180 days of the Order, those agencies must submit a written improvement plan to the Governor focused on current performance metrics and proposed process improvements. Where possible, the Order requires agencies to establish clear, publicly available timelines for all major permits and licenses, develop "one-stop" online application portals, expand concurrent reviews across agencies, and provide applicants with real-time status updates and single points of contact.

Governor Sanders established Arkansas Forward in 2024 and received a progress report on December 15, 2024, outlining at least $300 million in potential cost savings and cost avoidance across five main areas: information technology, procurement, fleet management, personnel, and real estate. This Executive Order is demonstrative of the cross-agency coordination Governor Sanders has prioritized through Arkansas Forward to improve Arkansans' experience with state government.

"Reducing risk and removing uncertainty is an essential part of winning in business, and one of the key ways that we can derisk projects is through speedy and efficient permitting in the State of Arkansas," said Arkansas Secretary of Commerce Hugh McDonald. "Governor Sanders' executive order will eliminate unnecessary bureaucracy and outdated processes. Arkansas is recognized as a great place for business because of our low costs, our workforce, and supportive business environment. We are competing in a global marketplace, and we must always look for policies and practices that improve our position compared to our competitors."

"Agriculture is our state's largest industry, and each year we confront many challenges, like weather, markets, and input costs, that are outside of our control," said Arkansas Secretary of Agriculture Wes Ward. "Licensing, permitting, and registration from the Department of Agriculture should never be one of those unpredictable challenges. The Department of Agriculture and our ten different boards and commissions are proud to work with Governor Sanders to streamline processes, reduce uncertainty, and help our state's agriculture industry be successful."

"I applaud Governor Sanders' challenge to seek innovative approaches to streamlining permitting processes in Arkansas," said Arkansas Secretary of Energy and Environment Shane Khoury. "Under this executive order, E&E will continue to remove bureaucratic hurdles that may impede progress without compromising necessary environmental protections of the Natural State. Our goals of issuing valid, timely, and defensible permits while promoting economic development are not competing interests, but shared values. I believe Governor Sanders' action will serve as a catalyst for meaningful permitting improvements across Arkansas."

"The Arkansas Department of Health is committed to protecting public health while ensuring our review processes are efficient, transparent, and responsive. We look forward to implementing processes that better serve applicants and stakeholders while maintaining strong health and safety standards," said Secretary of the Arkansas Department of Health Renee Mallory.

"The Department of Labor and Licensing applauds the Governor's business-friendly approach and will continue to improve its user-friendly licensing procedures by expanding its online, interactive licensing platform as funding permits," said Arkansas Secretary of Labor and Licensing Daryl Basset. "The Department works closely with Arkansas businesses to provide the licensing resources and assistance needed to foster the state's economic growth and prosperity."

Arkansas ranks highly on business friendliness metrics, including:

• #1 state for affordability, per U.S. News and World Report
• #1 state for inbound movers, per Atlas Van Lines
• #1 state for workforce development in the South Central region, per Site Selection Magazine
• #1 state for opportunity share for entrepreneurs, per the Ewing Marion Kauffman Foundation
• #2 state for construction environment, per the Associated Builders and Contractors
• #3 state to start a new business, per Forbes Advisors
• #3 state for least expensive states to start a new business, per SimplifyLLC
• #7 state for micropolitan projects, per Site Selection Magazine

"We support efforts to strengthen the efficiency and coordination of review processes for water and wastewater infrastructure projects," said Arkansas Water Environment Association Government Affairs Chair Jerry Martin. "Streamlined reviews, paired with strong technical, environmental, and public safety standards, help communities prioritize public health and long-term resilience while addressing aging systems, meeting regulatory requirements, and responding more quickly to growth and economic development needs."

"Governor Sanders' forward thinking vision will not only help drive the State of Arkansas forward for economic development, it will expedite health and safety for everyone in Arkansas," said Arkansas Water & Wastewater Managers Association President Lance McAvoy. "Although standards are necessary to ensure everyone is provided the same level of safe drinking water and environmental protection, far too often unnecessary red tape delays the ability to construct and provide the very protection our citizens, customers, and the state need. This Executive Order shows the level of diligence and commitment by Governor Sanders to ensure the State of Arkansas and its citizens come first."

"We thank Governor Sanders for her leadership in modernizing the state's permitting processes. As an association representing manufacturers and regulated industries across Arkansas, including many companies that have operated here for generations, we are proud to do business in a state that values both environmental stewardship and economic strength," said Arkansas Environmental Federation Executive Director Ava Roberts. "This Executive Order reinforces that commitment and strengthens Arkansas's reputation as a place where responsible industry can thrive. Predictable timelines and stronger coordination will help existing businesses grow, modernize, and continue investing in Arkansas communities while maintaining effective environmental protections."

A copy of the Executive Order is available here.

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