A legislative panel on Monday endorsed the Arkansas Economic Development Commission’s request for $15 million in state restricted reserve funds for the community assistance grants program.
In a voice vote, the Legislative Council’s Performance Evaluation and Expenditure Review Committee recommended that the Legislative Council approve the Arkansas Economic Development Commission’s request for the one-time restricted reserve funds.
The Legislative Council will consider taking final action on the request during its meeting on Thursday.
The $15 million in restricted reserve funds will support grants under the Rural Services Division’s Community Assistance Grants Program, state Department of Commerce Secretary Hugh McDonald said in a letter dated May 6 to state Department of Finance and Administration Secretary Jim Hudson.
The Arkansas Economic Development Commission is part of the state Department of Commerce.
The program provides grants to eligible community and economic development projects, as well as qualifying non-profit organization initiatives, McDonald said in his letter to Hudson.
In response to questions from lawmakers, Clint O’Neal, executive director of the Arkansas Economic Economic Development Commission, told lawmakers that the application period for the grants started Monday and runs through July 31 and an internal review committee will consider the applications and bring back the recommended grants for the Legislative Council’s review.
O’Neal said the Arkansas Economic Development Commission will notify economic developers and other officials about the ability to apply for grants, and promote the opportunity to apply for the grants at the state’s Rural Development conference that begins Tuesday.
About an hour before the legislative committee started meeting on Monday to consider the Arkansas Economic Development Commission’s request for funding for the program, Gov. Sarah Huckabee Sanders and the Arkansas Economic Development Commission announced the Community Assistance Grant Program will fill funding gaps for projects that reduce poverty, promote self-sufficiency, and revitalize communities, and that the governor is seeking approval from the Arkansas Legislative Council for a $15 million allocation to fund the program.
The Community Assistance Grant Program allows eligible applicants, such as community-based nonprofits and cities, to apply for up to $1,500,000 per fiscal year to support programs that increase Arkansans’ quality of life, the governor’s office said in its news release.
Funding through the Community Assistance Grant Program supports projects that fight childhood food insecurity, address unemployment, promote education, offer resources for victims of crime, and provide housing, nutrition, or emergency services to promote self-sufficiency and revitalize communities, according to the governor’s office.
“Arkansas can further support the great work of its non-profit organizations like food banks, foster care support, crime victims’ advocacy, and more — the definition of the ‘neighbors helping neighbors’ mentality that defines our state,” the governor’s office said in its news release.
Sanders said in the news release that “If we’re going to help every corner of our state thrive, then the effort is going to come from the bottom up — not just from the top down.
“The goal of the Community Assistance Grant program is to fund programs that are making a real difference in Arkansans’ lives,” the Republican governor said in the news release.
“I look forward to continuing my administration’s support for community-based programs that address some of the toughest the issues facing our state,” Sanders said.
Applicants for the grants will be required to match grant awards with cash, in-kind labor, or in-kind land, according to the governor’s office. Match amounts will be determined on a case-by-case basis during the application review process.
Funding awards are expected to be announced in early fall of 2025, the governor’s office said.
For more information and to apply, visit AEDC’s website.
