Little Rock, Arkansas – In a major move to secure the future of Arkansas’ water systems, Governor Sarah Huckabee Sanders has signed into law a set of transformative bills aimed at addressing water and wastewater infrastructure challenges across the state. The legislation, passed during the 2025 session, lays out a long-term strategy for ensuring every Arkansan has access to safe, clean, and reliable water — a basic resource that continues to pose complex problems in both rural and urban areas.
The package includes three major legislative acts — Act 736, Act 812, and Act 578 — each targeting a different piece of the state’s water infrastructure puzzle. Together, they represent an unprecedented investment of over half a billion dollars, marking one of the most aggressive water policy reforms in Arkansas history.
“If our state is going to continue to grow and thrive, then every Arkansan needs access to safe and reliable water infrastructure,” said Governor Sanders. “I was proud to work with the legislature to support this legislation and invest more than half a billion dollars in Arkansas’ water issues, and I will work closely with the Department of Agriculture to ensure we provide assistance to the communities that need it most.”
Breaking Down the New Laws
Act 736 (formerly SB420) takes aim at expanding access to public funding by giving more private entities the option to convert into public water authorities. This change opens the door for those systems to become eligible for vital state funds — a critical adjustment that could provide relief to private systems that have long operated without enough financial backing to modernize or repair their infrastructure.
Act 812 (previously HB1681) establishes the Water and Sewer Treatment Facilities Grant Program, which will allocate $25 million annually over the next three years from interest earnings. What sets this program apart is that 20% of the funds are set aside specifically for small, rural systems that serve populations of 1,200 people or fewer. These systems often face the greatest hurdles in securing funding or maintaining aging equipment, and the earmarked support could be the lifeline they need to survive — and thrive.
The most ambitious of the three, Act 578 (formerly SB421), sets in motion a ballot initiative for the 2026 election. If voters approve, Arkansas will authorize $500 million in new water and wastewater funding, which will be distributed over the next two decades. Importantly, the program is structured around loan repayments, meaning it won’t increase the burden on the state’s general revenue funds.
A Vision for Long-Term Sustainability
Arkansas’ current bond authority for water infrastructure is set to expire in 2027, making the 2026 ballot measure a critical pivot point in the state’s water funding timeline. The proposed extension would stretch the funding window through 2043 — a time horizon that underscores just how serious the state is about planning for the long haul.
“Reliable water and wastewater infrastructure is vital for the sustainability of communities and industries throughout our state as well as the quality of life for every Arkansan,” said Arkansas Secretary of Agriculture Wes Ward. “We appreciate Governor Sanders’ continued leadership to ensure the long-term success of our state.”
Officials from the Arkansas Department of Agriculture echoed Ward’s sentiment, pointing out that the legislative victories will give the state better tools to solve local water issues with more precision and speed.
“This legislative package provides critical tools to improve how we plan, fund, and deliver water projects across the state,” said Chris Colclasure, Director of the Arkansas Department of Agriculture’s Natural Resources Division. “We appreciate the Governor’s leadership and look forward to working with communities and partners to implement these programs and make meaningful progress where it’s needed most.”
Bipartisan Backing and Rural Focus
Support for the legislation came from both sides of the aisle, with lawmakers emphasizing the importance of clean water for both everyday life and long-term economic development. Rural communities, which often struggle to attract funding for basic infrastructure needs, are especially poised to benefit from the changes.
“From Arkansas’ fastest growing urban areas to our most rural communities, we have critical water needs,” said Sen. Bart Hester. “I am proud of the work from my colleagues and Governor Sanders on actions taken this session to address these needs that will be felt in our communities very soon.”
“As Arkansas takes proactive steps to enhance water development programs, the recent approval of SB420 and SB421 by the State Legislature signals a crucial milestone in fostering sustainable water infrastructure,” said Rep. Howard M. Beaty Jr. “These bills not only expand funding and eligibility, but underscore the state’s commitment to ensuring a cleaner and more accessible water supply for all Arkansans. The future looks brighter with these legislative advancements paving the way for a more resilient water landscape.”
Rep. DeAnn Vaught was even more direct in her remarks, reinforcing the moral imperative of ensuring basic infrastructure is in place for everyone.
“Clean water isn’t a luxury — it’s a necessity,” said Rep. DeAnn Vaught. “This legislation is a crucial first step toward repairing what’s broken, preparing for the future, and ensuring every Arkansas community has the water infrastructure it needs to thrive.”
Building on Past Progress
The legislative push builds on ongoing efforts by the Sanders administration. Since taking office, Governor Sanders has already directed $2.5 billion toward 478 water and wastewater projects, touching all 75 counties in the state. In 2023, she launched a full update of the Arkansas Water Plan — the first such review in nearly a decade — and began the state’s first complete levee inventory to improve flood preparedness.
She also made headlines by stepping in to address serious water issues in Helena-West Helena, approving loans, providing clean drinking water, and even activating the Arkansas National Guard to assist the community.
From emergency investments in rural water systems to long-term financing tools for large-scale projects, the state’s new water strategy is shaping up to be one of the most comprehensive in the region.
As the legislation begins to take effect and the 2026 ballot measure moves forward, Arkansas is setting itself on a course for smarter, safer, and more equitable water access — not just for today, but for generations to come.
