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House approves $50M target water infrastructure program using Security Reserve Fund interest
Summary
The House approved legislation creating a 10-year program to direct interest from the Security Reserve Fund toward water and wastewater projects, with allocations split to support larger systems (matching required) and small rural systems (no match required).
House approves $50M target water infrastructure program using Security Reserve Fund interest
Representative Vaught explained House Bill 16-81 to create a state program to help address Arkansas’ water and wastewater infrastructure needs. The sponsor said a 2021 Department of Agriculture survey estimated a state need of $5–9 billion and argued that a near-term program is needed to prevent further system deterioration and lost economic opportunity.
Why it matters: The bill establishes a time-limited (10-year) program intended to move projects forward in communities unable to finance capital construction on their own. The sponsor said the program would draw from Security Reserve Fund interest after existing obligations are met and that rules would be set by the Arkansas Natural Resources Commission (ARMC) and approved by ALC.
Program design as explained on the floor: Vaught described two funding buckets — an 80% bucket for larger systems (projects would require matching funds and be shovel-ready) and a 20% bucket for very rural systems that would not be required to provide matching funds or be shovel-ready. Projects must be underway within the first year; systems may apply once. The sponsor estimated $50,000,000 as a target allocation but clarified that available funds depend on interest remaining after four existing obligations are met.
Sponsor quote: “This is truly a statewide opportunity to actually move projects forward in our state,” Representative Vaught said.
Vote and next steps: The House approved the bill and the emergency clause on a roll-call vote of 96 yeas, 0 nays. The sponsor said ARMC would administer rules and that no general fund appropriation was used.
Ending: The approved measure directs agencies to start rulemaking and grant administration work in the coming months.
