Senate committee approves bill to extend Arkansas water and sewer bond authority, raise total cap to $500 million

State Sen. Bart Hester asked the Senate Agriculture, Forestry and Economic Development Committee to advance Senate Bill 421, a measure to extend Arkansas’ general obligation bond authority for water and sewer projects and increase the program’s total ceiling to $500 million. The committee voted to pass the bill on a voice vote after lawmakers' questions and a brief public comment period.

The bill would continue a program Hester described as one “we've been doing for 40 years,” using general obligation bonds to leverage federal resources for local water and sewer projects. Hester said the measure is not a constitutional amendment and “it will be on the ballot, the whole, all the people of Arkansas have to vote on it,” noting the proposal would go to voters in November 2026 and — if approved — not take effect until July 1, 2027.

Why it matters: the program is the state's primary tool for financing local water and wastewater needs by combining state bond authority with federal resources. Committee discussion focused on the proposed increase from $300 million to $500 million in total bond authority, the program’s structure, and the fiscal…