The bill establishes the Arkansas Challenge Plus Scholarship Program, which is designed to provide additional financial assistance to students who are already eligible for the Arkansas Academic Challenge Scholarship Program. To qualify for the Arkansas Challenge Plus Scholarship, students must apply for and maintain eligibility for the existing scholarship program and demonstrate financial need through the Free Application for Federal Student Aid (FAFSA). The scholarships will be awarded based on financial need, with amounts ranging from $1,000 to a maximum of $4,000 per academic year, ensuring that the total funding from both scholarships does not exceed $5,000 per student annually.

The funding for the Arkansas Challenge Plus Scholarships will come from the net proceeds of the Arkansas Lottery, after necessary transfers and deposits are made to maintain the Scholarship Shortfall Reserve Trust Account. The bill stipulates that scholarships will not be awarded if certain financial thresholds are not met, such as having less than $250,000 available or if a loan was taken from the account for the previous academic year. The total amount allocated for these scholarships is capped at $25 million for the 2023-2024 academic year. The Division of Higher Education will oversee the administration of the program and has the authority to create rules for its implementation. The act is set to take effect on July 1, 2023.