Arkansas Reserves $300 Million for a Megaproject
On April 29, 2026, the Arkansas General Assembly gave final approval to House Bill 1100 (HB 1100) and its identical Senate companion, Senate Bill 75 (SB 75), the Revenue Stabilization Act setting the state's $6.7 billion budget for fiscal year 2027. With it came authorization to transfer up to $300 million in surplus funds into the state's deal closing incentive fund for a single unnamed advanced manufacturing project in West Memphis. The Senate passed HB 1100 32-2 and the House passed SB 75 70-27, a day after each chamber passed its own version, and Governor Sarah Huckabee Sanders (R) signed them that afternoon as Act 143 and Act 144 as the three-week fiscal session adjourned.
Key Takeaways
| 01 | Arkansas has set aside up to $300 million to land a single advanced manufacturing megaproject in West Memphis. It pairs up to $150 million in direct incentives with up to $150 million for public highway and road improvements serving the facility. |
| 02 | The $150 million in incentives moves only after the Arkansas Economic Development Commission (AEDC) signs a definitive incentive agreement. Act 143 conditions that transfer on the Secretary of Commerce certifying an executed agreement with a positive cost-benefit calculation. The $150 million for roads moves after the Arkansas Department of Transportation estimates the work needed, net of other funding such as federal money. |
| 03 | The deal runs through the Quick Action Closing Fund, which Arkansas has used to close incentive deals since 2007. Measured against the 4,000 jobs Speaker Brian Evans projects at the outset, the set-aside works out to $75,000 per initial job. |
| 04 | A separate ballot measure, Issue 3 (Senate Joint Resolution 15), goes to Arkansas voters on November 3. It would let the Legislature create economic development districts whose bonds sit outside constitutional debt limits and whose property is exempt from taxes other than the district's own, effective January 1, 2027. |
| 05 | The deal remains unannounced, and the state is funding it from surplus. The company's identity and industry remain confidential under a nondisclosure agreement, and the money comes from the General Revenue Allotment Reserve Fund rather than the fiscal year 2027 operating budget. |
Passage was not smooth. The set-aside nearly stalled in the House on April 27, clearing a procedural vote 54-36, barely above the 51 votes required, after Republicans objected to a $300 million commitment bundled into a must-pass budget bill on days' notice. Rep. David Ray (R-Maumelle) argued that creating jobs by handing out taxpayer dollars is not the role of state government. Rep. Hope Duke (R-Gravette) objected to the last-minute request and said Arkansans want transparency about the decision. The transfer language also needed at least 67 House votes to take effect immediately upon signing, and the House cleared that mark when it adopted HB 1100's emergency clause 73-22 on April 28.
The target is a "non-data center" advanced manufacturing facility that Speaker Brian Evans (R-Cabot) estimates would create 4,000 jobs at the outset and 2,000 more once the project is complete, a total of up to 6,000 jobs. A nondisclosure agreement kept the company's identity, and even its industry, out of the floor debate. Speaker Evans has said several states are competing for the deal.
What the $300 Million Package Includes
The package is structured as two $150 million tranches, one for closing incentives and one for road infrastructure. Exhibit 1 shows the split. Sections 8 and 9 of Act 143 allow the Chief Fiscal Officer to move the funds from the General Revenue Allotment Reserve Fund into the Economic Development Incentive Quick Action Closing Fund.
Exhibit 1
Half the money is closing cash and half is for roads, and each half moves only when its condition in Act 143 is met.
The $300 million West Memphis set-aside, Act 143, Sections 8 and 9
| Tranche | Amount | Purpose |
|---|---|---|
| Economic incentives | Up to $150M | Direct incentives to the "advanced manufacturing, non-data center" facility, deployed through the Quick Action Closing Fund |
| Infrastructure | Up to $150M | Public highway and other road improvements necessary to build and operate the West Memphis facility |
Sources: Act 143 of 2026 (HB 1100), Sections 8 and 9; Arkansas Advocate, April 27, 2026.
Each tranche has its own trigger. Under Act 143, the incentive tranche transfers only after the Secretary of Commerce certifies that AEDC has executed a definitive incentive agreement with the manufacturer, and the infrastructure tranche transfers only after the Director of the Arkansas Department of Transportation estimates the road work required, net of other funding such as federal money.
How the Quick Action Closing Fund Works
Arkansas is running this deal through the Quick Action Closing Fund, which the state has used to close incentive deals since 2007. The fund was created by Act 510 of 2007, now codified at Ark. Code § 19-5-1231. Every proposed use requires the governor's approval and review by the Arkansas Legislative Council, and AEDC must report annually on each recipient.
Per job, the set-aside works out to $75,000 at the outset. Measured against the 4,000 jobs Speaker Evans projects at the project's outset, the set-aside works out to $75,000 per initial job, or $50,000 per job across all 6,000 positions. Both figures count the full $300 million, including the $150 million for roads, and exclude any local or federal support.
What Is Known About the Company
The identity, the industry, and the investment figure remain confidential, but the outline of the project is visible in the budget language. AEDC is bound by a nondisclosure agreement, and Joint Budget Committee co-chair Sen. Jonathan Dismang (R-Searcy) told colleagues the agency "can't disclose to us anything about the project," per the NEA Report. What lawmakers were told is that the facility is "advanced manufacturing, non-data center," that Speaker Evans believes Arkansas is a finalist, and that the second $150 million is for public highway and road improvements necessary for the facility. Talk Business & Politics reported that East Arkansas has long been considered for an automobile plant and that the project's profile is consistent with one, with a parts-supplier cluster likely to follow. Until AEDC signs an agreement, the company's identity, the investment figure, and the final job count remain unconfirmed, and another state could still win the project.
Crawford Insights
Get articles and client alerts like this one by email.
Funding windows, legislation, and policy decisions that shape outcomes, sent when there is something worth reading. No noise between issues.
Issue 3 Would Allow Economic Development Districts
On November 3, 2026, Arkansas voters will decide Issue 3, the constitutional amendment referred as Senate Joint Resolution 15 in the 2025 regular session. The amendment would authorize the General Assembly to create economic development programs, including economic development districts, and to make loans and grants of public money for development. Sponsored by Sen. Jonathan Dismang (R-Searcy) and Rep. Howard Beaty (R-Crossett), it would permit districts within cities, counties, or cooperative areas; exclude district bonds from the debt limits of Article 12, Section 4 of the Arkansas Constitution and from the restrictions of Article 16, Section 1 and Amendments 62 and 65; and exempt property inside a district from taxation except for taxes, assessments, or charges levied by the district itself. If approved, it takes effect January 1, 2027.
Arkansas has tried this once before. Voters approved a similar measure, Amendment 78, in 2000, by a vote of roughly 427,000 to 356,000, but a legal challenge that reached the Arkansas Supreme Court led to the repeal of several provisions, per the Arkansas Senate. Section 7 of SJR 15 provides that the amendment supersedes conflicting constitutional provisions, laws, and judicial interpretations.
Arkansas Is Paying From Surplus
Arkansas is making the $300 million commitment from a position of surplus. The West Memphis money comes from the General Revenue Allotment Reserve Fund, which holds accumulated surplus, rather than from the fiscal year 2027 operating budget. The budget as proposed in April projected a $310.2 million surplus for fiscal year 2027, per the NEA Report. Exhibit 2 sets out the dates.
Exhibit 2
The money is authorized, and the transfers wait on an incentive agreement and a road-cost estimate.
West Memphis set-aside and Issue 3 dates, as of April 30, 2026
| Date | Action |
|---|---|
| Apr. 23, 2026 | Joint Budget Committee adds $300M West Memphis set-aside to Revenue Stabilization Act amendment |
| Apr. 27, 2026 | House procedural vote clears 54-36, three votes above the 51 required |
| Apr. 28, 2026 | House passes HB 1100 64-30 and adopts its emergency clause 73-22; Senate passes identical SB 75 33-1 |
| Apr. 29, 2026 | Senate passes HB 1100 32-2; House passes SB 75 70-27; HB 1100 becomes Act 143 and SB 75 Act 144; fiscal session adjourns |
| Nov. 3, 2026 | Voters decide Issue 3 (SJR 15) on economic development districts |
| Jan. 1, 2027 | Issue 3 takes effect if approved |
| Pending | AEDC executes definitive incentive agreement and Commerce certifies it ($150M incentive transfer); Arkansas Department of Transportation estimates road costs ($150M infrastructure transfer) |
Sources: Act 143 of 2026; Arkansas General Assembly bill pages and roll calls for HB 1100 and SB 75; Arkansas Advocate; Arkansas Senate.
What to Do Now
This is for manufacturers weighing Mid-South sites and for suppliers positioning around a potential West Memphis anchor. The incentive half of the $300 million waits on a definitive AEDC agreement and the road half on a state cost estimate, and Issue 3 on the November 3 ballot would let the Legislature create economic development districts. If you want a read on fit before November 3, reach out to our team.
References
- Arkansas General Assembly, HB 1100 (2026 Fiscal Session), Act 143, final passage Apr. 29, 2026; Act 143 text, Sections 8 and 9.
- Arkansas Advocate, Arkansas lawmakers give $6.7B budget final OK, adjourn session, April 29, 2026.
- Arkansas Advocate, Arkansas Legislature passes budget, homestead tax credit increase, April 28, 2026.
- Arkansas Advocate, $300M set-aside for West Memphis super project faces resistance in Arkansas House, April 27, 2026.
- Arkansas Advocate, Arkansas lawmakers propose sending $300M to economic incentive fund for West Memphis 'super project', April 23, 2026.
- Talk Business & Politics, Arkansas lawmakers near fiscal session end, set aside $300 million for superproject, April 2026.
- NEA Report, West Memphis Super Project Could Get $300M Incentive Fund, April 24, 2026.
- Arkansas House of Representatives, 2026 Fiscal Session Week 3, April 2026.
- Arkansas General Assembly, Act 510 of 2007, Economic Development Incentive Quick Action Closing Fund; codified at Ark. Code § 19-5-1231.
- Arkansas General Assembly, SJR 15 (2025 Regular Session); amendment text.
- Ballotpedia, Arkansas Authorize Legislature to Create Programs for Economic Development Including Economic Development Districts Amendment (2026).
- Arkansas Senate, Legislature Places Three Proposed Amendments on 2026 Ballots, April 2025.
© Copyright 2026 TC Policy Group, LLC (d/b/a Crawford Partners). The views expressed herein are those of the author(s) and not necessarily the views of Crawford Partners, its management, its subsidiaries, its affiliates, or its other professionals. Crawford Partners is not a law firm and cannot provide legal advice.