The Arkansas General Assembly adjourned its regular session on May 5, 2025. NFIB State Director Katie Burns held a virtual event to recap the legislative session. During the event, Burns outlined several victories, challenges, and opportunities for reform in future legislative sessions.

CLICK HERE to watch the full virtual event. CLICK HERE for the one-pager.

Below are a handful of the small business victories, challenges, and opportunities discussed during the event.

VICTORIES

• HB 1204 / Act 28: Restoring Fairness in Arkansas’ Judicial System

According to NFIB’s annual survey, more than 82% of Arkansas members who participated in the survey strongly support passing legislation to limit excessive lawsuit awards in personal injury cases. HB 1204, which was passed by the Legislature and signed into law by the Governor, addresses phantom damages and promotes greater transparency and fairness in Arkansas’ judicial system.

• SB 307 / Act 373: Unleashing Economic Opportunity & Development

Known as the Generating Arkansas Jobs Act of 2025, which was advanced by the Legislature and signed into law by the Governor, this bill modernizes the state’s regulatory framework for energy infrastructure projects. It protects consumers from sudden rate increases and allows providers to increase rates gradually. It will improve Arkansas’ competitiveness in recruiting energy-intensive industries and support regional economic development.

• SB 560 / Act 740: Strengthening Arkansas’ Workforce

This bill, which was advanced by the Legislature and signed into law by the Governor, redirects unemployment insurance to bolster job training, all without increasing employer costs.

CHALLENGES

There were multiple bills introduced this session that would have made it harder for you to own and operate your small business, including a proposal that would have increased workers’ compensation costs, increased health insurance premiums, and undermined workforce partnerships.

• SB 287: Larger Paydays for Trial Attorneys

This bill would have raised attorney fee caps in workers’ compensation cases, potentially resulting in more litigation and higher costs for employers. It also allowed attorneys to claim up to 12.5% of medical bills not directly tied to their services.

• HB 1930 / SB 626: Raise Health Insurance Premiums for Small Business Owners

This bill would have mandated minimum reimbursement rates for healthcare providers, potentially raising private employer health insurance premiums by up to 30%.

• HB 1660: Undermine Arkansas’ Workforce Development

This bill attempted to block the use of state training funds for private employers, undermining workforce partnerships.

Though these bills did not pass, it is safe to assume they will be re-introduced next year. NFIB will continue to oppose these bills.

OPPORTUNITIES 

• SB 289: State Sales Tax Relief

Introduced by State Sen. Jim Dotson, SB 289 would cut the statewide sales tax rate by one-eighth percent to reduce the surplus funds collected from Arkansas taxpayers. NFIB supports SB 289 and will continue advocating on this issue.

• HB 1435: Tax Credits for Employer-Provided Childcare

Introduced by State Rep. Brandon Achor, HB 1435 would provide income tax credits to employers who provide childcare services for their employees. The workforce shortage is a complex challenge for small business owners. Expanding access to affordable childcare is a major piece of the workforce puzzle. NFIB supports HB 1435 and will continue advocating on this issue.

• HB 1116: Easing Compliance Burden for Small Businesses

Introduced by State Rep. David Ray, HB 1116 would streamline state income tax rules for remote and short-term workers, reducing the compliance burden for Arkansas small business owners and making Arkansas more competitive.

CLICK HERE to watch the full virtual event. CLICK HERE for the one-pager.

KEY TAKEAWAY: Stay Engaged With Your State Lawmakers 

While there are many pro-small business lawmakers in the Arkansas General Assembly, your advocacy makes a difference! This session, NFIB Arkansas secured several important victories and warded off some harmful proposals through our direct advocacy at the Capitol in Little Rock. We hope you’ll continue to actively reach out and voice your concerns with lawmakers.