ADEM defends plan as municipalities warn of lost federal surplus access

State emergency management officials told the Joint Budget Committee they are working through a formal closeout and liquidation process for the federal surplus property (FSP) program and preparing to repurpose the state warehouse for disaster response logistics.

AJ Gary, director of the Arkansas Division of Emergency Management, said the agency submitted a liquidation plan and is coordinating with the federal General Services Administration on approval and a public‑comment period. “We are in the process of working through the closure of federal surplus property… that is not something that happens quickly,” Gary told the committee.

Municipal officials and several legislators warned the closure will reduce local access to low‑cost equipment used by rural fire departments, police and volunteer emergency services. Senator Rice flagged widespread concern across cities and towns and asked whether the state had assessed the value of goods previously distributed through the program. ADEM acknowledged the program previously supplied substantial equipment and said the agency is documenting the warehouse inventory and will provide additional information to the committee.

ADEM and the Department of Public Safety said the warehouse property deeded to the agency can be repurposed. Gary described contingency uses that will support disaster readiness: staging and stockpiling pandemic‑era PPE, tarps and water, housing sandbag machines, and operating a joint field‑office logistics hub during declared disasters. The agencies said prior experience using the facility during COVID‑era PPE distribution shows it can serve a broader disaster‑response role.

Lawmakers asked whether the facility could be sold and proceeds returned to the state or used to offset program losses. ADEM said disposition options depend on deed restrictions and federal closeout conditions and that the agency will work with the Governor’s Office and the General Services Administration on any sale or repurposing.

Committee members flagged the item for follow‑up and requested a written accounting of recent yields from surplus distributions and the agency’s plan for warehouse use, including any forecast of municipal impacts. The committee adopted the executive recommendations for emergency‑management line items while requesting documentation ahead of the fiscal decisions.

ADEM said it will provide a property inventory, a summary of historic distributions to local governments and a plan for how the warehouse would be used for disaster logistics going forward.