HB1761
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.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1761 amends the Arkansas Children's Educational Freedom Account Program to introduce income-based eligibility criteria for the 2025-2026 school year and beyond. Under the current law, residency is the primary requirement, but this bill mandates that students must now fall within specific income brackets relative to the federal poverty level to qualify for funding. Students with family incomes up to 250% of the federal poverty level remain eligible for full funding. Those with incomes between 250% and 350% of the federal poverty level are eligible for 50% of the prior year's statewide foundation funding per student. Students with incomes between 350% and 400% of the federal poverty level are eligible for 25% of that funding. The bill also specifies that there will be no limit on the total number of student participants in the program. Existing eligibility categories, such as children of active-duty military personnel, students from specific underperforming schools, and kindergarteners, are preserved.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are the state’s fiscal authorities, as the introduction of tiered income limits and partial funding for higher-income brackets is designed to control state expenditures on the program. Additionally, lower-income families who fall below 250% of the federal poverty level may benefit from the prioritization of funds, as the program removes the previous universal eligibility structure.
Who Might Suffer?
Families with gross household incomes exceeding 400% of the federal poverty level would be negatively impacted, as they would no longer be eligible to participate in the Arkansas Children's Educational Freedom Account Program. Furthermore, families with incomes between 250% and 400% of the federal poverty level may experience a decrease in the amount of financial support received compared to the current universal funding model, as their benefits are now restricted to 50% or 25% of the standard per-student allocation.
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