Little Rock, Arkansas – With summer now in full swing, Arkansas is set to implement a select group of new laws on July 1, ahead of the broader legislative rollout scheduled for August 5.
These early measures, made possible through emergency clauses, touch on areas ranging from school governance and employee benefits to state finance restructuring.
Unified Leadership for State Schools Serving Deaf and Blind Students
A landmark reform reshaping specialized education in Arkansas will see the Arkansas School for the Blind and the Arkansas School for the Deaf combined under a single administration. Lawmakers approved a merger that establishes one superintendent, modifies board governance, and adjusts staffing and student policy rules. The newly unified institution will operate as the Arkansas School for the Deaf and Blind.
Expanded Hiring at Public Colleges
Arkansas higher education institutions are gaining more flexibility to address staffing needs. Act 477 authorizes significant increases in hiring capacities:
• Arkansas State University: 375 → 425 positions
• University of Arkansas: 750 → 1,000
• UA at Pine Bluff: 150 → 200
• Northwest Arkansas Community College: 80 → 100
These institutions also received approval to expand their vehicle fleets to support operational demands.
Revised Cap on Medicaid Lab Tests
Adjustments to Medicaid policy now set new annual spending limits for laboratory diagnostics. Except for radiology, patients will see a maximum yearly benefit of $500—unless they’re being treated for chronic or managed pain, in which case the cap rises to $1,8000. The Department of Human Services must finalize the rule framework by January 1, 2026.
Motor Vehicle Report Fees Go Up
Changes in Act 672 mean higher fees for accessing certain traffic records. Copies of accident or violation reports for those not involved in the incident will now cost $25, up from $10, with a $1.50 per-page surcharge for extra reports. The original $10 fee remains in place for individuals directly connected to the case. Part of the revenue will help fund the State Police Retirement System.
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Increased Support for Fallen First Responders
Act 416 expands benefit eligibility for the families of fallen police and firefighters. A new list of qualifying cancers has been added to ensure certain diagnoses are recognized for benefits “when an active member” of the Arkansas Local Police and Fire Retirement System dies “due to injury or disease while in the line of duty.”
Loan Forgiveness for State Workers
The state’s loan repayment support for public employees has been updated. Under the revised law, eligible employees must:
• Finish a six-month “probationary” employment term
• Show that their educational background aligns with their job
• Prove the loan remains unpaid
• Agree to remain in public service “for a reasonable length of time” without guaranteed continued assistance if they leave
Once approved, up to $10,000 will be paid directly to lenders, divided into a maximum of five payments.
In addition, Act 499 permits someone whose spouse holds an elected constitutional office to work for a state agency, provided their salary remains at or below $50,000.
Arkansas Development Finance Authority Gains Autonomy
A structural change under Act 944 detaches the Arkansas Development Finance Authority from the Department of Commerce, designating it as an “independent instrumentality of the state.” This move is aimed at addressing the ongoing housing shortage and empowering the authority to function more nimbly. Legislators wrote that “many states ‘meet this challenge with a public finance agency’” less burdened by red tape. The authority will now be exempt from certain procedural requirements, including rules around “expenditure of cash funds, procurement, rule promulgation, and state employee compensation and benefits.”
