Little Rock, Arkansas – Governor Sarah Huckabee Sanders has introduced two major legislative measures aimed at reducing financial burdens on Arkansas families and strengthening food donation efforts across the state. The Grocery Tax Relief Act seeks to eliminate the state’s grocery tax, while the Good Neighbor Act expands protections for food donors and food banks.
Grocery Tax Relief Act: Lowering Costs for Families
Governor Sanders announced the Grocery Tax Relief Act as a key initiative to support working families struggling with rising food costs. If passed, this legislation will repeal the state grocery tax on food ingredients, effectively returning an estimated $10.9 million to taxpayers annually. However, local county and municipal grocery taxes will remain unaffected.
“The reckless tax-and-spend policies of the Biden Administration drove food prices through the roof. The Grocery Tax Relief Act ends our state’s most regressive tax, the state grocery tax, and eases the burden on families just trying to put food on their tables,” said Governor Sanders.
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State Senate President Bart Hester (District 33) and Representative Kendon Underwood (District 16) are leading efforts to pass the bill. Hester emphasized the positive impact this measure will have on households across Arkansas.
“Working families deserve every break we can help provide, especially at the grocery store. I am proud to do my part in helping deliver relief by letting them keep more of their hard-earned money,” said Hester.
Underwood echoed these sentiments, underscoring the broader tax relief efforts under Governor Sanders’ leadership.
“For too long, too much has been taken out of hard-earned paychecks, but under Governor Sanders’ leadership, families will pay less in income tax, property tax, and now less tax at the grocery store too,” Underwood stated.
Good Neighbor Act: Strengthening Food Donation Efforts
Alongside the Grocery Tax Relief Act, Governor Sanders introduced the Good Neighbor Act, which aims to encourage food donations by reducing liability concerns for donors and food banks. This bill, spearheaded by Senator Breanne Davis (District 25) and Representative Chad Puryear (District 25), expands legal protections for businesses and organizations that donate surplus food.
“We’ve seen how often food goes to waste instead of helping a family in need. The Good Neighbor Act opens the door for more organizations to donate leftover food and ensures generous Arkansans don’t have to worry about lawsuits,” Governor Sanders explained.
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Davis highlighted the importance of connecting surplus food with families facing hunger, stating, “With so many hungry people across our state, good food should not be going to waste. I’m proud to work with Governor Sanders to ensure good food goes to those who need it most.”
The Good Neighbor Act extends liability protections to a wide range of food donors, including retail grocers, wholesalers, hotels, motels, restaurants, caterers, farmers, nonprofit food distributors, schools, churches, religious organizations, and hospitals. It also shields food banks that distribute donated food to those in need, ensuring they can continue their critical work without legal concerns.
Representative Puryear praised the initiative, noting that increased participation from food donors will further support communities struggling with food insecurity.
“We have some great organizations working across our state to address food insecurities. The Good Neighbor Act encourages more donors to participate by addressing liability barriers. Anything we can do to encourage good faith donors is a win, and I appreciate the Governor for making this a priority,” said Puryear.
A Broader Effort to Combat Food Insecurity
The Grocery Tax Relief Act and Good Neighbor Act are part of a broader push by the Sanders Administration to tackle food insecurity in Arkansas. Earlier this legislative session, Governor Sanders signed SB59 into law, which guarantees free school breakfast for every student in Arkansas. Additionally, the bill repurposes Medical Marijuana tax revenue to fund both the Summer EBT program and Arkansas’ free lunch and breakfast initiatives for the foreseeable future.
Governor Sanders has also committed to continuing Arkansas’ Summer EBT program, which provided assistance to 260,000 children last year. Moreover, she has already signed legislation ensuring that students who previously qualified for reduced-price meals will now receive school lunches at no cost.
What’s Next?
With strong support from lawmakers, the Grocery Tax Relief Act and Good Neighbor Act are expected to gain momentum in the legislative process. These measures represent a significant step toward easing financial pressure on families while ensuring that excess food reaches those who need it most.
Governor Sanders’ proposals align with her broader vision of economic relief and community support, demonstrating a commitment to practical solutions that benefit everyday Arkansans. As discussions continue, families and advocacy groups alike will be watching closely to see how these bills progress through the legislature.
