Governor Sarah Huckabee Sanders has introduced two new legislative proposals aimed at food affordability and accessibility: the Grocery Tax Relief Act and the Good Neighbor Act.
“The Grocery Tax Relief Act ends our state’s most regressive tax, the state Grocery Tax, and eases the burden on families just trying to put food on their tables,” Gov. Sanders said. “The Good Neighbor Act opens the door for more organizations to donate leftover food and ensures generous Arkansans don’t have to worry about lawsuits.”
The Grocery Tax Relief Act, sponsored by Senate President Bart Hester (District 33) and Representative Kendon Underwood (District 16), would eliminate the state grocery tax on food ingredients, returning an estimated $10.9 million annually to taxpayers, according to a press release. Local grocery taxes imposed by counties and municipalities would remain unchanged.
“Working families deserve every break we can help provide, especially at the grocery store. I am proud to do my part in helping deliver relief by letting them keep more of their hard-earned money,” Hester said.
The Good Neighbor Act, led by Senator Breanne Davis (District 25) and Representative Chad Puryear (District 25), seeks to expand liability protections for food donors, including retailers, wholesalers, farmers, restaurants, schools, churches and hospitals. The measure also extends protections to food banks that distribute donated food.
“With so many hungry people across our state, good food should not be going to waste. I’m proud to work with Governor Sanders to ensure good food goes to those who need it most,” said Davis.
Earlier this legislative session, the governor signed SB59 into law, ensuring free school breakfast for all students. The law also redirects medical marijuana tax revenue to support the state’s summer nutrition and school meal programs.
Arkansas’ Summer EBT program, which reportedly served 260,000 children last year, will continue in 2025. Gov. Sanders has also signed legislation guaranteeing free school lunches for students who previously qualified for reduced-price meals.
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