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Arkansas Commerce outlines pandemic relief: $2.5 billion deployed, broadband push under way
Summary
Secretary Preston told the joint Insurance & Commerce committee the Department of Commerce and partner agencies deployed roughly $2.5 billion in unemployment benefits, loans and grants during the pandemic, described fraud-related backlogs in claims, and said the legislature has committed $125 million for rural broadband projects.
Secretary Jose R. Preston, representing the Arkansas Department of Commerce, told a joint meeting of the Senate and House Insurance & Commerce committees that the department and partner agencies have moved quickly to respond to economic damage from COVID-19.
Preston said state and federal programs have paid out roughly $1.3 billion in federal pandemic unemployment compensation, about $700 million in pandemic unemployment assistance for contract workers and roughly $19 million in extended-benefit payments. He added that the state has now stood up a fourth program — the Lost Wages Assistance program administered by FEMA — that will provide a $300 weekly supplement in place of the CARES-era $600 boost.
The secretary described additional state efforts to shore up businesses. He said the Arkansas Development Finance Authority directed $3 million in tenant-based rental assistance to local housing agencies and that a quick-action bridge-loan program helped 483 small businesses retain an estimated 6,610 jobs. The ready-for-business grant program — funded by the legislature — initially targeted social-distancing and PPE costs, with $130 million deployed and 11,409 businesses receiving awards, according to Preston.
Preston also credited Arkansas banks for navigating the federal Paycheck Protection Program, saying institutions in the state processed about 43,600 PPP loans totaling roughly $3.3 billion. He called the state’s financial system “in a great position” compared with the 2008 crisis.
On unemployment operations, Preston acknowledged a continuing backlog of claims flagged for potential fraud. He said roughly 30,000 Pandemic Unemployment Assistance claims and about 15,000 traditional unemployment claims are on hold because of suspected fraud; the department is sending letters and scheduling ID-verification appointments at workforce centers to clear cases. ‘‘We have to run every trap that we possibly can,’’ he said, describing the scale of identity-related abuse the system has seen.
Preston highlighted broadband as a legislative priority. He said the legislature set aside $125 million in CARES Act funds for rural broadband deployment; about $20 million in awards have gone out, and the department is vetting additional requests with a goal of deploying funds before Treasury deadlines.
Committee members asked about the state’s competitive position when recruiting new employers, workforce availability and timelines for clearing benefit backlogs. Preston said business recruitment decisions often hinge on tax comparisons with neighboring states, and he urged continued investments in workforce development. On claims processing, he said the department is using in-person verification appointments, cross-agency staffing support and follow-up outreach to reduce the backlog but cautioned that fraud investigations will continue to slow payouts.
Next steps: Preston told the committee Commerce will follow up with more detailed program-level reports at future hearings and said department staff would provide additional figures on job and hospitalization breakdowns on request.
