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HB 1761

TO INCREASE FISCAL RESPONSIBILITY THROUGH THE ESTABLISHMENT OF INCOME LIMITS FOR STUDENTS ELIGIBLE FOR EDUCATIONAL FREEDOM ACCOUNTS IN THE 2025-2026 SCHOOL YEAR AND THEREAFTER.

2025 Regular Session Introduced by Denise Garner

HB 1761 aimed to set income limits for Arkansas Educational Freedom Accounts, ensuring funding based on family income, but it died in committee before implementation.

Died in House Committee at Sine Die adjournment.
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Bill Summary · HB 1761

Summary of House Bill 1761

Bill Overview

  • Bill Number: HB 1761
  • Title: To Increase Fiscal Responsibility Through the Establishment of Income Limits for Students Eligible for Educational Freedom Accounts in the 2025-2026 School Year and Thereafter
  • Status: Died in House Committee at Sine Die adjournment
  • Introduced: March 12, 2025
  • Sponsor: Representative D. Garner

Purpose and Intent

House Bill 1761 aimed to enhance fiscal responsibility within the Arkansas Children's Educational Freedom Account Program by establishing income limits for students eligible for these accounts starting in the 2025-2026 school year. The bill sought to ensure that financial resources are allocated more effectively based on family income levels.

Key Provisions

The bill proposed the following amendments to Arkansas Code § 6-18-2506 regarding student eligibility for the Educational Freedom Accounts:

  1. Income Eligibility Criteria:

    • Students would be eligible if their family's gross income did not exceed 250% of the federal poverty level.
    • Students from families with incomes between 250% and 350% of the federal poverty level would receive 50% of the prior year's statewide foundation funding allocated per student.
    • Students from families with incomes between 350% and 400% of the federal poverty level would receive 25% of the prior year's funding.

  2. Continuity of Participation:

    • Students who were already participating in the program from the previous school year would continue to be eligible.

  3. No Limit on Participation:

    • The bill stated that beginning in the 2025-2026 school year, there would be no limitation on student participation in the program, provided they met the income criteria.

Affected Parties

  • Students and Families: The bill would primarily affect students eligible for Educational Freedom Accounts, particularly those from varying income levels.
  • Educational Institutions: Public elementary and secondary schools would need to adjust to the new funding allocations based on student eligibility.

Fiscal Impact

According to the fiscal impact statement prepared by the Arkansas Department of Education, the bill was projected to have no fiscal impact on the overall funding available for Educational Freedom Accounts, which was stated to be $187,487,318.

Legislative Timeline

  • March 12, 2025: Bill filed and read for the first time.
  • March 12, 2025: Rules suspended, read a second time, and referred to the House Education Committee.
  • May 5, 2025: Bill died in the House Committee at Sine Die adjournment.

Conclusion

While HB 1761 aimed to introduce income limits to promote fiscal responsibility in the Educational Freedom Accounts program, it ultimately did not progress past the committee stage. The proposed changes would have impacted eligibility and funding for students based on family income, but the bill's failure to advance means these changes will not be implemented.

Compiled from official sources — confirm details with the bill’s official record.

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