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Senate allows donated labor and equipment to count toward match for rural community grants
Summary
Senate Bill 254 passed 34-0 with one not voting to let donated labor and equipment count as in-kind matching contributions for the Arkansas Economic Development Commissions Rural Community Grant Program (up to $15,000 per project).
Little Rock — The Arkansas State Senate on March 4 approved Senate Bill 254 to permit donated labor and equipment to be counted as in-kind matching contributions for projects applying to the Arkansas Economic Development Commissions Rural Community Grant Program.
Sponsors explanation: Senator Ervin, the bills sponsor, said the program provides up to $15,000 per project on a 50/50 match basis and that the current law requires the match to be real or personal property. "This is a barrier to rural communities," he said, noting that many small towns can supply volunteer labor and equipment but lack liquid assets or land to meet the statutory match. The change would allow counties and towns to apply for grants using donated labor and equipment as the local match.
Why it matters: Supporters said the change expands access to small grants for community projects such as ballfields, community centers and walking tracks. Sponsor remarks cited fiscal-year 2024 awards totaling $604,878.21 to 61 communities as background for the programs size.
Vote and next steps: The roll call recorded 34 yeas, 0 nays, and 1 not voting. Senate Bill 254 passed and will be transmitted to the House.
Quote: "What these communities do have are skilled laborers who are willing to donate their time, their labor, and their equipment This bill would amend the law to allow this donated labor to be counted as an in kind donation to count towards the matching requirement," said Senator Ervin.
