ArkansasSB6252025 Regular SessionSenateWALLET

TO AMEND PROVISIONS OF THE ARKANSAS CODE CONCERNING THE ARKANSAS CHILDREN'S EDUCATIONAL FREEDOM ACCOUNT PROGRAM; AND TO DECLARE AN EMERGENCY.

Sponsored By: Breanne Davis (Republican), Keith Brooks (Republican)

Enacted

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 1 costs, 5 mixed.

More Education Expenses Covered for Families

Arkansas education accounts cover fine arts, music, and STEM courses offered by Arkansas public schools. Disability services in nontraditional settings qualify when recommended and approved by a licensed or accredited practitioner or physician. Communication devices qualify when students cannot communicate otherwise or a clinician specifies them as an academic modification. Transportation has a 25% yearly account limit; extracurricular activities, physical education, and educational field trips together have a separate 25% limit. Those activities and trips must take place in Arkansas.

Lower Fees and Direct Payments for Families

Arkansas must offer direct payments for qualifying education account expenses, alongside reimbursement requests, at a parent's direction. The system can use electronic transfers, debit cards, or another payment method. A contracted payment vendor can withhold no more than 2% of each account's yearly allocation, down from 5%. At the maximum rates, this leaves 3% more available for education; actual savings depend on the vendor's fee.

Switching Schools Does Not Increase Family Funding

Changing from one participating school to another does not entitle a family to more education account funding. This rule does not itself reduce the student's existing funding.

Family Account Closures, Appeals, and Recovery

Expulsion or loss of eligibility are grounds for closing a student's education account. Parents can appeal closures on either ground to the State Board of Education under its appeal rules. The board can also close accounts early based on evidence of intentional misuse under state rules. The state division can seek recovery of account funds when intentional misuse is shown through legally allowed means. This authority does not create a general repayment duty for parents.

New Education Account Application Rules for Parents

The application window for the upcoming school year starts no earlier than February 1 and ends no later than June 1. Arkansas must set rules for qualifying applications outside that window, including some families moving into Arkansas or near participating schools. Applications are complete only after all required fields and documents are submitted. Paper applications must be postmarked before the deadline. At submission, parents must state whether the student will attend private school or file a notice of intent to homeschool.

Private School Choices Depend on Accreditation

Private schools must earn accreditation within four years of becoming eligible for education account payments. The state division can find a school ineligible if it misses that deadline or cannot finish accreditation within four years. It also uses accrediting-group information to decide whether a school is ineligible or unable to continue the process. A school regains eligibility after accreditation and a state finding that it meets all other legal and program requirements. These decisions affect where families can spend account funds.

Provider Bans Protect Families but Limit Choices

Arkansas can bar providers from education account payments and restrict them from serving additional participating students. Grounds include lost eligibility, serious or ongoing academic failures, major or intentional misrepresentations, delayed overpayment refunds, unprovided services, and fraud. Providers must receive notice and a way to appeal. Within three business days of a ban, the department must notify parents and students through its website and attempted direct contact. These rules protect families from poor providers but can remove a provider they use.

Sponsors & Cosponsors

Sponsors

  • Breanne Davis

    Republican • Senate

  • Keith Brooks

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 151 • No: 23

Senate vote • 4/16/2025

Senate Vote - Wednesday, April 16, 2025 12:25:53 PM

Yes: 29 • No: 1 • Other: 4

House vote • 4/16/2025

House Vote - Wednesday, April 16, 2025 10:13:53 AM

Yes: 74 • No: 9 • Other: 12

Senate vote • 4/10/2025

Senate Vote - Thursday, April 10, 2025 2:48:50 PM

Yes: 29 • No: 4 • Other: 1

Senate vote • 4/10/2025

Senate Vote - Thursday, April 10, 2025 2:46:14 PM

Yes: 19 • No: 9 • Other: 3

Actions Timeline

  1. Notification that SB625 is now Act 920

    4/22/2025Senate
  2. DELIVERED TO GOVERNOR.

    4/16/2025Senate
  3. Reported correctly enrolled and ordered delivered to the Governor.

    4/16/2025Senate
  4. ORDERED ENROLLED

    4/16/2025Senate
  5. EMERGENCY CLAUSE ADOPTED

    4/16/2025Senate
  6. Read the third time and passed.

    4/16/2025Senate
  7. Rules suspended.

    4/16/2025Senate
  8. House Amendment No. 1 read first time, rule suspended, read second time and concurred in.

    4/16/2025Senate
  9. Placed on second reading for purpose of amendment.

    4/16/2025Senate
  10. Rules suspended.

    4/16/2025Senate
  11. Returned from the House as passed as amended # 1 .

    4/16/2025Senate
  12. Returned to Senate as passed, as amended # 1

    4/16/2025House
  13. EMERGENCY CLAUSE ADOPTED

    4/16/2025House
  14. Read the third time and passed and ordered transmitted to the Senate.

    4/16/2025House
  15. REPORTED CORRECTLY ENGROSSED

    4/15/2025House
  16. Amendment No. 1 read and adopted and the bill ordered engrossed.

    4/15/2025House
  17. Placed on second reading for the purpose of amendment.

    4/15/2025House
  18. Returned by the Committee with the recommendation that it do pass as amended 1

    4/14/2025House
  19. Read the first time, rules suspended, read the second time and referred to the Committee on EDUCATION COMMITTEE- HOUSE

    4/10/2025House
  20. RECEIVED FROM THE SENATE

    4/10/2025House
  21. Ordered immediately transmitted to the House.

    4/10/2025Senate
  22. EMERGENCY CLAUSE ADOPTED

    4/10/2025Senate
  23. Motion to Expunge the Vote by which the Emergency Clause failed of Adoption. Motion Carried.

    4/10/2025Senate
  24. Emergency Clause failed of adoption.

    4/10/2025Senate
  25. Read the third time and passed.

    4/10/2025Senate

Bill Text

  • SB625 - Introduced

    4/3/2025

  • Act Version

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