Proposed Budget - Fiscal Year 2026
On November 21, Arkansas Governor Sarah Huckabee Sanders released a $6.49 billion general revenue budget proposal for fiscal 2026. This represents an increase of $182.5 million, or 2.9 percent, over fiscal 2025. Gross general revenues are projected to be $8.5 billion in fiscal 2026, an increase of $96.8 million, or 1.2 percent, from fiscal 2025. After required deductions and refunds, net available revenues are projected at $6.79 billion which is an increase of $203.4 million, or 3.1 percent, over fiscal 2025. The proposed budget projects a surplus of $299 million for fiscal 2026.
Proposed Budget Highlights
The proposed budget delivers on the governor’s priorities of limiting spending growth and improving efficiency while still investing in key priorities of education, maternal health, public safety, and government efficiency. Highlights of the budget include:
Education
- Proposes additional funding for the LEARNS Education Freedom Accounts program for this year and sets aside funding to create a strong fiscal reserve for the program
- Increases funding for higher education
Maternal Health
- Provides new Medicaid funding for proposals created by the Strategic Committee on Maternal Health
- Includes set-aside funding for Medicaid sustainability
Public Safety
- Increases funding for the Department of Corrections for a 10-year contract with its medical provider and for the state’s reimbursement to county jails holding Arkansas prisoners
Other
- Proposes new funding for pay raises for state’s dedicated frontline workers
- Restructures the state employee pay plan to help recruit and retain workers
- Provides increases to the Division of Youth Services and for foster placement