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AR food tax could be going away

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Wednesday, March 12, 2025   

Organizations working to fight food insecurity across Arkansas support two bills before state legislators.

The Grocery Tax Relief Act would repeal the state grocery tax and the Good Neighbor Act would expand protections for food donors and food banks.

Brian Burton, CEO of Arkansas Foodbank, said several recent bills passed by lawmakers have helped Arkansans who cannot afford food.

"Expanding school lunch programs and raising the asset limit on SNAP Benefits," Burton outlined. "And in the current session they passed the universal Free School Breakfast bill."

Arkansas is one of only 10 states in the country with a grocery tax. It generates approximately $10 million a year.

The U.S. Department of Agriculture has ranked Arkansas number one for food insecurity for the last two years. If the bills are passed, they will go into effect in January 2026.

Burton noted they are monitoring possible changes in federal funding because of cuts by the Trump Administration.

"When they talk about cutting the federal budget, they are hurting low-resource states like Arkansas because we are very dependent on all the myriads of federal government programs," Burton pointed out. "Some of which have been funded for decades."

Nearly 11,000 more Arkansans are struggling to make ends meet than in 2022. It's estimated nearly 47% of Arkansas households are living paycheck to paycheck. Burton stressed those residents will be affected the most by any changes.

"Programs like SNAP and WIC, the Farm bill, these are mission-critical and central to the fight against food insecurity," Burton contended. "In fact, 80% of food insecurity is solved through some form of federal nutrition program."


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