The proposed bill aims to enhance fiscal responsibility by establishing income limits for students eligible for the Arkansas Children's Educational Freedom Account Program starting in the 2025-2026 school year. It amends existing eligibility criteria by removing the provision that allowed students enrolling in kindergarten for the first time to qualify. Instead, it introduces new categories of eligibility, including children of active-duty military personnel and students previously enrolled in underperforming public schools.

Additionally, the bill outlines specific income thresholds for families to qualify for the program. Families with a gross income not exceeding 250% of the federal poverty level will be fully eligible, while those with incomes between 250% and 350% will receive only 50% of the prior year's statewide foundation funding per student. Families earning between 350% and 400% of the federal poverty level will receive 25% of the prior year's funding. This restructuring aims to ensure that the program is targeted towards those who need it most while maintaining fiscal accountability.

Statutes affected:
HB 1761: 6-18-2506(a)