Arkansas lawmakers have wrapped up their 2026 fiscal session, locking in how billions of dollars will be spent across the state in the year ahead.
The session, which began April 8, focused primarily on setting the state’s budget. It came to a close after Governor Sarah Huckabee Sanders signed the Revenue Stabilization Act, finalizing a $6.7 billion spending plan for Fiscal Year 2027. The budget represents about a 3% increase from last year and will take effect July 1.
From the start of the session to its conclusion, lawmakers spent weeks negotiating how taxpayer dollars would be allocated across agencies, programs, and priorities.
“Because of their work, not only were we able to accomplish some of our top priorities this year, but they’ve set us up for what I think will be a great week next week,” Sanders said.
A significant portion of the budget is dedicated to education. That includes more than $300 million for the state’s Education Freedom Account program, also known as school vouchers, which allows families to use public funds for private education expenses. Lawmakers also set aside additional funding that could expand the program in the future.
Economic development was another major focus. The budget reserves up to $300 million for a potential large-scale project in West Memphis, aimed at bringing jobs and investment to the region.
Lawmakers also approved an increase in the state’s homestead property tax credit, raising it from $600 to $675.
Still, not every proposal made it through. Efforts to limit eligibility for the Education Freedom Account program failed during the session.
“This session sets the financial foundation for the year ahead, but there are more policy debates just around the corner,” Sanders said.
Those debates are expected to begin soon. Lawmakers are planning to return to the Capitol for a special session focused on tax cuts. The governor has proposed reducing the state income tax rate by 0.2 percent, a move that could return more than $180 million to Arkansans.
“We want it to be pretty singularly focused on providing relief to Arkansans, letting them keep more of their hard-earned money,” Sanders said.
If approved, the tax cuts would mark another step in the state’s ongoing effort to lower income taxes, with more decisions expected in the coming days.