The Economic Development District Act of 2025 aims to create a structured framework for establishing economic development districts in Arkansas municipalities, counties, or cooperative areas. It introduces Chapter 177 to the Arkansas Code, defining key terms such as "economic development" and "economic development construction," and outlines the responsibilities of the Department of Commerce in supporting these districts. The bill details the process for forming a district, which requires a proposal from property owners or local officials, public hearings, and the adoption of a formation charter. It also specifies financial mechanisms for funding, including property and sales charges, and establishes guidelines for the allocation of funds to the Department of Commerce.

Additionally, the bill introduces provisions for the governance and financial oversight of these districts, including the ability to place a district into receivership under certain conditions. It allows for the imposition of additional property and sales charges, with specific requirements for increases, and establishes a framework for grants and abatements to incentivize economic development. The bill also outlines the process for issuing bonds to finance construction projects, requiring a two-thirds majority for approval and creating a bond oversight committee. The act is set to take effect on January 1, 2027, contingent upon the adoption of Senate Joint Resolution 15 in the 2026 general election.