2026 Fiscal Session Week 3

The House wrapped up the third week of the 2026 Fiscal Session, and we expect to complete our work next week. As the session moves forward, our focus remains on passing a responsible budget that prioritizes the needs of Arkansans while maintaining fiscal discipline.

On Thursday, the Joint Budget Committee adopted an amendment to the Revenue Stabilization Act (RSA), the framework that outlines and categorizes state spending for the upcoming fiscal year. The proposed $6.7 billion budget reflects an overall increase of $211 million compared to the current fiscal year, with targeted investments in several key areas.

Funding for the Arkansas State Police would rise by $16.3 million. The Department of Correction would receive an additional $41 million, and general revenue funding for Arkansas's colleges and universities would increase by $5.9 million. Educational Freedom Accounts are set to increase by $122 million.

Current projections estimate a $310.2 million surplus by the end of fiscal year 2027.

The proposal before members also includes a $300 million allocation from existing surplus funds to the Economic Development Quick Action Closing Fund at the Department of Commerce. These funds are intended to support economic incentives tied to a potential advanced manufacturing project in West Memphis-an opportunity that could bring significant job creation and economic growth to the region.

In addition, the House Revenue and Tax Committee advanced HB1103, legislation that would increase the Homestead Property Tax Credit from $600 to $675, providing additional relief for Arkansas homeowners. If passed, the legislation would be effective for assessment years beginning on January 1, 2026.

The House will reconvene Monday at 3 p.m. Arkansans can review the full RSA proposal and watch all House proceedings at arkansashouse.org.