The Arkansas House has wrapped up the 2026 Fiscal Session, and attention now turns to a Special Session scheduled to begin next week, focused on tax relief.

During the Fiscal Session, the House passed the Revenue Stabilization Law, outlining a proposed $6.7 billion budget for the upcoming fiscal year. The plan represents an overall increase of $211 million compared to the current year and includes targeted investments in areas such as Educational Freedom Accounts, the Arkansas State Police to support a recent pay plan, and institutions of higher education.

The measure also details how one-time surplus funds will be used. Allocations include $100 million for the Medicaid Sustainability Set-Aside Fund, $70 million for Educational Freedom Accounts, $43.7 million for a simple majority set-aside, $5 million for state vehicle purchases, and $300 million for an economic development project in West Memphis.

In addition, the House adopted an amendment related to school funding. Under this change, newly created isolated school districts will receive 90% of the per-student state funding from the district they separated from during the previous school year.

Lawmakers also took action aimed at providing additional relief for homeowners. The House approved legislation to increase the homestead property tax credit from $600 to $675. The credit has been adjusted several times in recent years, rising from $350 in 2019.

Another key development was the selection of a Speaker-designate for the next General Assembly. Members elected current Speaker Brian S. Evans to serve a second term as Speaker for the 96th General Assembly.

Although the Fiscal Session has concluded, work will continue. The Governor has called a Special Session beginning Monday to consider additional tax relief proposals, including lowering the top individual income tax rate to 3.7% effective January 1, 2026, and reducing the top corporate tax rate to 4.1% beginning January 1, 2027.

As always, House and committee meetings will be livestreamed and archived at arkansashouse.org for those who want to follow along.