State officials direct revenue and reserve fund transfers

The Treasurer of State would distribute available general revenue among listed state funds and fund accounts. The allocations cover public schools, human services, public safety, higher education, local aid, workforce programs, and other listed state accounts. Allocation A would continue until the listed funds receive a combined $6,644,423,348, or as much as is available. Allocation B would follow Allocation A until the listed funds receive a combined $60,747,209, or as much as is available. Monthly payments would follow each fund's share of the total allocation for that group. The transfers would begin with the fiscal year starting July 1, 2026, including a transfer on the last business day of July 2026 and on the last business day of each later month during the fiscal year.

The Chief Fiscal Officer would transfer specified amounts from the General Revenue Allotment Reserve Fund into four restricted reserve set-asides. The transfers would fund set-asides for Medicaid sustainability, the Children's Educational Freedom Account, general discretionary purposes, and motor vehicles. The transfers would be made after other 2026 fiscal-session transfers from the General Revenue Allotment Reserve Fund, or as soon as practical. The amounts would be $100 million for Medicaid, $70 million for the Children's Educational Freedom Account, $43.7 million for general discretionary purposes, and $5 million for motor vehicles. Any money left uncommitted in these set-asides would return to the General Revenue Allotment Reserve Fund. The required transfers would occur immediately after the act takes effect or as soon as practical, and remaining uncommitted money would return on July 1, 2027.

The Chief Fiscal Officer may transfer up to $150 million for an advanced manufacturing facility and up to $150 million for related highway and road work. The transfers would support a non-data-center advanced manufacturing facility in West Memphis, Arkansas, and public roads needed to build and operate it. For facility incentives, the Commerce Secretary must certify that the Arkansas Economic Development Commission has a signed incentive agreement with a positive cost-benefit calculation and obligations if the manufacturer fails to meet the agreement. For road work, the Transportation Department director must provide an estimate after considering other available money, including federal funding. The transfers may occur only as the Chief Fiscal Officer determines funds are available. These sections would take effect on the date of passage and approval, rather than July 1, 2026.