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Arkansas Panel Backs $32 Million More for School Vouchers, Pushing Year’s Cost to $309 Million

State finance officials say future funding will be built into the governor’s budget instead of using one-time reserves.

Overview

  • The Legislature’s PEER Subcommittee advanced twin requests for a $32 million appropriation and an equal transfer from the Restricted Reserve Fund, sending both to the full Arkansas Legislative Council for a vote this week.
  • If approved, total Education Freedom Account funding for FY2026 would rise to about $309.4 million, up from $277.4 million previously authorized, leaving about $31.3 million in the set-aside.
  • Education officials report roughly 43,000–44,000 active participants after universal eligibility began this school year, following more than 50,000 applications.
  • Lawmakers questioned oversight after reports of questionable purchases; officials said ClassWallet flags anomalous activity, the department does not conduct home inspections, and Act 920 caps certain spending categories at 25%.
  • Finance Secretary Jim Hudson told lawmakers the administration intends to move away from one-time reserve transfers, with the program expected in the governor’s proposed budget ahead of the April fiscal session.