Governor Sarah Huckabee Sanders presented her proposed balanced budget to the Arkansas legislature, highlighting investments in education, public safety, and healthcare while maintaining a commitment to fiscal responsibility and potential future tax reductions.
“This year’s balanced budget continues my administration’s record of fiscal responsibility on behalf of the people of Arkansas, making investments in key priorities while still holding the line on the growth of government to provide room for tax cuts,” Sanders said. “I’m excited to work with our legislature to make these investments, and when we pass this budget, I’m confident we’ll be able to cut taxes and continue to lower costs for Arkansans.”
The proposed budget totals $6.97 billion, reflecting a $311.6 million—or 3.94%—increase from last year. Arkansas ended the last fiscal year with a $655 million surplus and has already exceeded revenue forecasts by over $150 million in the current fiscal year, including $45 million in October alone.
Key investment areas in the budget include early childhood education, Medicaid, and operations at state human development centers. Individual proposals include a $150 million boost for Medicaid services, $70 million for Education Freedom Accounts enacted under Sanders’ LEARNS Act, and $25 million to cover administrative costs for the Supplemental Nutrition Assistance Program (SNAP). It also includes a $20 million allocation for early childhood education programs and $9 million in higher education funding tied to productivity-based metrics.
Department of Finance and Administration Secretary Jim Hudson praised the proposal, citing Sanders’ record of reducing income tax rates by 25% and building state reserves to nearly $3 billion—among the highest in the nation. “This budget builds on her approach, with responsible investments in healthcare, education, and public safety, while continuing to reduce Arkansans’ income taxes,” Hudson said.
The Arkansas Department of Education’s Secretary, Jacob Oliva, noted that the budget prioritizes strengthening the foundation implemented under the LEARNS Act, increasing access to high-quality early learning programs, and aligning higher education with workforce needs.
The Department of Human Services (DHS) would receive funds to support children and family programs, enhance Medicaid’s long-term sustainability, and expand services for individuals on waitlists for the Community and Employment Support Waiver. DHS Secretary Janet Mann said the plan would enable DHS to bolster key services while improving operational efficiency.
Other budget highlights include $4.4 million for the Division of Youth Services, $6.1 million for the state’s Human Development Centers, and smaller allocations aimed at supporting municipal and county aid programs. A one-time investment of $200 million is set aside for Medicaid sustainability alongside $50 million for implementing updates from Arkansas’ State Water Plan.
Secretary of Agriculture Wes Ward highlighted the $50 million directed toward water planning, describing it as a critical step in protecting the resource, which is essential for economic growth and agriculture—the state’s largest industry.
The proposal now heads to the Arkansas legislature for further evaluation and discussion.