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ArkansasHB12022025 Regular SessionHouse
AN ACT FOR THE DEPARTMENT OF FINANCE AND ADMINISTRATION - DISBURSING OFFICER APPROPRIATION FOR THE 2025-2026 FISCAL YEAR.
Sponsored By: Joint Budget Committee
Enacted
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Bill Overview
Analyzed Economic Effects
37 provisions identified: 32 benefits, 1 costs, 4 mixed.
Billions for recovery and infrastructure funding
For July 1, 2025–June 30, 2026, the law provides $3 billion in American Rescue Plan spending authority. This includes $2 billion for direct federal awards and a separate $1 billion for awards to public entities. It also provides $3.5 billion for Infrastructure Investment and Jobs Act expenses. Agencies, institutions, cities, and counties receive spending authority subject to federal award rules and state approval and reporting requirements. These appropriations do not identify specific projects or promise household payments.
Federal program funding with spending limits
For July 1, 2025–June 30, 2026, the law authorizes $3 billion for American Rescue Plan programs and $3.5 billion for infrastructure programs. It also authorizes up to $2.1 billion for federal grants and workforce programs, including $100 million for workforce investments. That $2.1 billion authority requires unanticipated federal program funds received by Arkansas or its agencies and deposited in the State Treasury. Infrastructure and American Rescue Plan recipients must stay within the spending amounts and purposes approved by the General Assembly. Unused spending authority cannot support extra spending outside those approvals.
Medical bill help for families
The law provides $2 million for Baby Sharon’s Children’s Catastrophic Illness grants during July 1, 2025–June 30, 2026. Grants help families responsible for medical bills from a child’s catastrophic illness or injury. The law does not set a grant amount for each family.
Funding and spending authority for agencies
For July 1, 2025–June 30, 2026, the law provides $360 million from agency cash funds, including $10 million for pay adjustments. It separately provides $350 million in additional agency and institution spending authority, plus $2.5 million for transfers of agency-collected cash. The Chief Fiscal Officer chooses the cash source for those transfers. Agencies lacking a cash-fund appropriation can request authority for a stated amount, with fiscal-officer approval after legislative review is sought. Deposited insurance proceeds, obligation or salary overpayments, excess federal aid, investment maturities or redemptions, and recovered workers' compensation payments can restore agency spending authority. Those restored amounts cannot exceed qualifying deposits.
Funding state worker pay and overtime
For July 1, 2025–June 30, 2026, the law provides $103.55 million in supplemental state funding. This includes $88.5 million for pay-plan adjustments, $10 million for overtime, and $3.5 million for extra help. It also includes $550,000 for stipends and $1 million to restore spending authority for refunded expenses. Agencies short of eligible overtime funding can request transfers, including related employer benefit costs. Transfers require the Chief Fiscal Officer's approval after legislative committee review; the law does not set individual pay amounts.
Funding to pay unemployment claims
The law provides $4 million from the Unemployment Compensation Trust Fund to pay claims during July 1, 2025–June 30, 2026. Payments must follow the Employment Security Amendments. This funding does not change who qualifies or how much each claimant receives.
Marketing grant funding for Arkansas wineries
The law provides $600,000 from the Arkansas Agricultural Marketing Grants Fund for winery grants during July 1, 2025–June 30, 2026. Grants must follow Arkansas’s existing winery grant law. This appropriation does not specify how much each winery receives.
Funding abuse services and child protection
For July 1, 2025–June 30, 2026, the law provides $363,767 for university staff costs and expenses addressing abuse and violence. The money supports the University of Arkansas for Medical Sciences' child abuse, rape, and domestic violence section. A separate $274,400 funds contracts helping local teams review and process child abuse complaints statewide. These funds support services, not a guaranteed household payment or service entitlement.
Funding Arkansas legal aid organizations
For July 1, 2025–June 30, 2026, the law provides $641,574 in public legal aid grants. The recipients are Legal Aid of Arkansas and the Center for Arkansas Legal Services. Beginning January 1, 2026, the law removes prior fixed distribution percentages and directs fund support to these organizations. This appropriation does not set individual client eligibility or guarantee legal representation.
Funding disaster relief grants in Arkansas
For July 1, 2025–June 30, 2026, Arkansas provides $16.25 million for disaster grants and related emergency-services requirements. Grants must be authorized by the Disaster Relief Act of 1974. This appropriation does not set household eligibility or individual grant amounts.
Funding drug enforcement, education, and treatment
For July 1, 2025–June 30, 2026, the law provides $5 million for drug-crime grants and $500,000 for task-force operations. A separate $2 million from forfeited assets supports drug enforcement, education, treatment, and purposes allowed by Arkansas Code 5-64-505. Beginning July 1, 2025, a new Drug Task Force Fund can receive designated public or private grants and legally authorized revenue. Recipients must meet law-enforcement standards, report seizures and arrests annually, and meet additional state eligibility rules. Finance officials set those rules with prosecutor and task-force officials; no amount is specified for the new fund.
Grants fund sheriffs' prevention and education
For July 1, 2025–June 30, 2026, the Arkansas Sheriffs' Association receives $450,000 in grant authority. Money is limited to crime prevention, alcohol and drug abuse programs, and a study supporting office administration and education. Monthly installments must be at least one-twelfth of the annual allocation, limited by available money. These are program grants, not household payments.
Grants support child and family organizations
For July 1, 2025–June 30, 2026, the law provides $1.313406 million for listed grants and agency expenses. This includes $400,000 for the Morgan Nick Foundation and $50,000 for Baby Sharon's Children's Catastrophic Illness Grant Program. Funds must cover the listed purposes. This appropriation does not set household eligibility or payment amounts.
Justice funding supports crime victim claims
For July 1, 2025–June 30, 2026, the law provides $21.00003 million from the State Administration of Justice Fund. This includes $20.00003 million for state programs and agencies and $1 million for government court-cost and filing-fee refunds. The Chief Fiscal Officer can transfer money for crime victim claims, staff, and operations when the receiving fund falls below $1 million. The transfer cannot exceed $1 million or available source-fund balances above $7 million, whichever is less. Government refunds are not household refunds, and the law does not set individual victim awards.
Operating grants for juvenile detention facilities
For July 1, 2025–June 30, 2026, the law provides $400,000 for local juvenile detention operating costs. Arkansas, Craighead, Crittenden, Independence, Jefferson, Miller, Pulaski, Sebastian, Washington, and Yell County facilities each receive a $31,167 allocation. Benton receives $22,082; Faulkner, $20,783; Garland, $28,574; and Mississippi, $16,891. Each share adjusts proportionally to actual available funding. If a facility closes during the fiscal year, its remaining money goes proportionally to the other facilities.
Funding for children’s hospital care
For July 1, 2025–June 30, 2026, Arkansas Children’s Hospital receives $3.5336 million in grant spending authority. This includes $1 million for burns, $1.2336 million for intensive care, $700,000 for hospital payments, and $600,000 for reproductive health monitoring. At the hospital’s request, Medicaid matching transfers have caps of $1 million, $233,600, $700,000, and $600,000 for those services, respectively. The hospital can also request up to $1 million from intensive-care nursery funds for Medicaid matching for helicopter transport. Its president and CEO can request that Human Services retain up to $1 million for supplemental Medicaid payment matching.
Funding for medical marijuana oversight
The law provides $5 million in spending authority for medical marijuana implementation costs during July 1, 2025–June 30, 2026. The state’s chief fiscal officer can transfer money from the medical marijuana operations fund to agencies. Transfers must cover necessary costs of implementing, administering, or enforcing Arkansas’s medical marijuana law.
Funding for pandemic health assistance
The law provides $5 million for emergency assistance and health care response related to the 2020 coronavirus pandemic. State agencies, constitutional offices, and institutions can use the funding during July 1, 2025–June 30, 2026. It does not set individual eligibility rules or direct payment amounts.
Funding prostate cancer detection and research
For July 1, 2025–June 30, 2026, the Arkansas Prostate Cancer Foundation receives a $197,750 grant. The money must support prostate cancer detection and research. The appropriation does not establish individual patient payments or coverage.
Funding public education about organ donation
For July 1, 2025–June 30, 2026, the law provides $25,000 for public education about organ donation. The Arkansas Regional Organ Recovery Agency, or its successor, receives the funding. It must use the money for educational materials and related public-information costs.
Funding to expand abuse survivor services
Human Services can provide up to $300,000 to expand the University of Arkansas for Medical Sciences’ abuse and violence services. These services address child abuse, rape, and domestic violence. The transfer cannot exceed the available amount certified by the Human Services secretary or the $300,000 cap. This authority runs from July 1, 2025, through June 30, 2026.
Funding for technical and vocational colleges
The law provides $35 million in Work Force 2000 funding during July 1, 2025–June 30, 2026. It includes $30 million for technical-college accreditation and $5 million for vocational-technical accreditation. After each institution’s amount is determined by law, funds move to the treasury account supporting that institution. Equal spending authority is added for staff and operating costs at technical colleges, technical institutes, and lifelong learning centers.
Arkansas funds contributions to interstate groups
For July 1, 2025–June 30, 2026, Arkansas provides $1.74749 million for contributions to listed interstate organizations. This includes $318,300 for the Multi-State Tax Commission and $235,000 for the Delta Regional Authority. The appropriation funds organizations, not household payments or a change in tax rates.
Available funds can pay state debt
The state can consider discretionary American Rescue Plan funds and funds not required for another purpose for existing debt payments. Debt selection can consider the highest interest rates owed. Big River Steel general obligation bonds and GARVEE transportation bonds receive priority. The law does not require debt repayment or specify an amount.
Funding police pensions and fire services
For July 1, 2025–June 30, 2026, the law provides $75 million for municipal police and fire pension systems. The money pays pension and relief fund taxes; it does not change pension eligibility or individual benefit amounts. A separate $25 million supports Arkansas fire departments. Fire funding must follow existing state distribution laws.
Funding state technology and innovation projects
For July 1, 2025–June 30, 2026, the law provides $1 million for the Information Network of Arkansas. It covers operations and technology projects approved by the network's board. The law also creates an innovation appropriation and general-revenue account for the Division of Information Systems. It reimburses documented state technology projects whose costs cannot be charged to federal programs. Reimbursements require the Chief Fiscal Officer's approval and prior legislative committee review; no total innovation-fund amount is stated.
Funding vehicle purchases for state agencies
For July 1, 2025–June 30, 2026, the law provides $15 million for state agency vehicle purchases. The money comes from the Motor Vehicle Acquisition Revolving Fund. Purchases must follow Arkansas Code 22-8-201.
Government employee bond premiums receive funding
For July 1, 2025–June 30, 2026, the law pays government employee blanket surety bond premiums. It provides $250,000 for the state, $500,000 for counties, $500,000 for municipalities, and $250,000 for public schools. County, municipal, and school funding is limited to participants in their respective employee blanket bond programs. These payments cover government expenses, not household insurance premiums.
Governments can use property sale proceeds
For July 1, 2025–June 30, 2026, the law provides $2.5 million in authority to use government property-sale proceeds. State and local governments can spend or receive net proceeds from sales through the state's property redistribution division. Related agency spending-authority transfers must match proceeds deposited and transferred for the benefiting agency or institution. The money supports government operations, not household payments.
Public employee bond budgets gain flexibility
During July 1, 2025–June 30, 2026, the finance secretary can move spending authority among blanket surety bond program budgets. These budgets cover state, county, municipal, and public school employees. This authority does not change employee eligibility or coverage.
West Central district joins planning grants
For July 1, 2025–June 30, 2026, metro planning grants are divided evenly among planning and development districts. The distribution includes the West Central Arkansas Economic Development District. This provision does not specify the total funding or each district’s amount.
Funding state medical marijuana regulation costs
For July 1, 2025–June 30, 2026, the law provides $5 million for state medical marijuana implementation and regulation. State and federal balances cover expected and unexpected agency expenses. This appropriation does not change patient eligibility, set prices, or provide patient payments.
Transfers help cover state worker pay
Through June 30, 2026, eligible state entities can request transfers for payroll shortfalls caused by enacted pay or benefit-cost increases. Requests must identify the amount needed and the fund currently paying employees. The Chief Fiscal Officer approves transfers, generally with review by the legislative budget oversight subcommittee. An emergency transfer for an underfunded final payroll requires a report to that subcommittee. Performance Fund transfers also support approved compensation increases after review, and affected entities must make salary savings available.
Limits on agency spending and staffing
From July 1, 2025–June 30, 2026, transferred property marketing and redistribution funds cover maintenance and operations, not conferences, travel, or professional services. Covered transfers must follow state budget purposes and rules; transfer spending authority does not authorize equal current general-revenue funding. Agency cash spending authority cannot establish spending authority for new or unanticipated federal funds or programs. Covered federal funds must enter the State Treasury. The cash section cannot create positions beyond agency appropriation acts, and salaries paid from transferred funds remain subject to state salary rules.
Court funding with payment priorities
During July 1, 2025–June 30, 2026, the justice fund allows maximum allocations totaling $39.309767 million for courts, defense, victims, and related programs. During shortfalls, trial court administrators, the District Court Coordinator, and court reporters receive funding first. Remaining recipients share the balance at an equal percentage of their allocations; shortages are adjusted later as money becomes available. Bond repayment pledges made before January 1, 2001, cannot fall below their listed allocations. The separate public defender reimbursement funding can only reimburse Pulaski County’s public defender for defending people who are mentally ill.
Legal aid funding shares become flexible
Beginning January 1, 2026, the Public Legal Aid Fund no longer uses fixed 45% and 55% shares. The fund continues supporting Legal Aid of Arkansas and the Center for Arkansas Legal Services. The law gives no replacement formula for dividing the money. The fiscal year 2025–2026 appropriation for the fund is $641,574.
Pregnancy support grants with eligibility limits
The law provides $2 million in pregnancy help grants for July 1, 2025–June 30, 2026. Eligible nonprofits or federally tax-exempt groups must have existed by January 1, 2024. They must encourage birth after unintended pregnancy and offer listed nutrition, prenatal, or support services promoting maternal and infant health. Groups that perform, prescribe, refer for, or encourage abortion—or affiliate with groups that do—cannot receive grants. Applicants must submit spending plans; payments follow those plans in installments, and the finance department reports funding amounts and purposes annually.
Sponsors & Cosponsors
Sponsor
Joint Budget Committee
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 4/15/2025
Senate Vote - Tuesday, April 15, 2025 2:29:43 PM
Yes: 32 • No: 0 • Other: 1
House vote • 4/14/2025
House Vote - Monday, April 14, 2025 2:23:36 PM
Yes: 96 • No: 0 • Other: 2
Actions Timeline
Notification that HB1202 is now Act 1006
4/22/2025HouseCorrectly enrolled and ordered transmitted to the Governor's Office.
4/16/2025HouseTO BE ENROLLED
4/15/2025HouseReturned from the Senate as passed.
4/15/2025HouseReturned to the House as passed.
4/15/2025SenateEMERGENCY CLAUSE ADOPTED
4/15/2025SenateRead the third time and passed.
4/15/2025SenateRead the first time, rules suspended, read the second time and placed on the calendar.
4/14/2025SenateReceived from the House.
4/14/2025SenateEMERGENCY CLAUSE ADOPTED
4/14/2025HouseRead the third time and passed and ordered transmitted to the Senate.
4/14/2025HouseConsidered in the Committee of the Whole, and recommended do pass.
4/14/2025HouseRULES SUSPENDED
4/14/2025HouseREPORTED CORRECTLY ENGROSSED
4/10/2025HouseAmendment No. 3 read and adopted and the bill ordered engrossed.
4/10/2025HousePlaced on second reading for the purpose of amendment.
4/10/2025HouseReturned by the Committee with the recommendation that it do pass as amended 3
4/9/2025HouseREPORTED CORRECTLY ENGROSSED
4/1/2025HouseAmendment No. 2 read and adopted and the bill ordered engrossed.
4/1/2025HousePlaced on second reading for the purpose of amendment.
4/1/2025HouseREPORTED CORRECTLY ENGROSSED
3/12/2025HouseAmendment No. 1 read and adopted and the bill ordered engrossed.
3/12/2025HousePlaced on second reading for the purpose of amendment.
3/12/2025HouseRead the first time, rules suspended, read the second time and referred to the Committee on JOINT BUDGET COMMITTEE
1/22/2025HouseFiled
1/22/2025House
Bill Text
HB1202 - Introduced
1/22/2025
Act Version
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