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Need‑based 'Challenge Plus' proposal also fails as committee votes stall

EDUCATION COMMITTEE - SENATE · April 19, 2021
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Summary

Senate Bill 6 48 would have created 'Arkansas Challenge Plus,' a need‑based supplement to increase first‑year scholarship support up to $5,000 using FAFSA information; the committee vote recorded three ayes and five non‑voting members, and the bill did not pass.

Senate Bill 6 48, sponsored by Senator Landseeds (Eads), would have created an “Arkansas Challenge Plus” supplement to the existing Academic Challenge scholarship, using FAFSA data to scale first‑year awards in $1,000 increments up to $5,000 and potentially increase students' ability to enroll; the joint committee did not advance the bill.

Senator Eads said the measure aimed to help students overcome the first‑year financial hurdle by allowing an additional need‑based award on top of the Academic Challenge base; rules and award levels would vary year‑to‑year depending on available net lottery proceeds and would not replace the core challenge scholarship. Eads added that the bill was designed to preserve the solvency of the base scholarship while targeting additional dollars by need.

Fiscal staff presented a maximum fiscal estimate for SB 6 48 of $25,213,713, with a note that the bill's language ties award levels to available funding so amounts could flex downward. Members asked whether the bill would replace existing award schedules and how need would be determined; sponsors said the bill would be supplemental and would use FAFSA information as the need indicator.

When put to a vote, roll call recorded ayes from Senators Eads, Lehi and Beckham (three ayes) with five not voting; the chair announced the bill did not pass and no bills were sent to the House Joint Committee.

Because the bill ties supplemental awards to available funds, its legislative sponsors may return with amended language to reduce maximum exposure or craft a phased approach.