Arkansas Budget Hearings Begin Amid Medicaid Expansion Uncertainty
Arkansas lawmakers opened a monthlong series of state budget hearings this week, starting with the military and labor departments, as part of the process leading to the 2027 budget the governor will unveil in late November. The Department of Human Services will present its budget October 29 amid unresolved uncertainty over the state's Medicaid expansion program: CMS verbally declined to renew it in July, and DHS requested a two-year grace period in August to maintain coverage while the state selects a new Medicaid model, but has received no formal notification or response from CMS. DHS's budget was not increased for fiscal year 2026, raising advocate concerns about the agency's capacity to handle rising administrative costs, including an expected $24 million increase in SNAP administrative costs. The full Legislature will consider agency budget recommendations when its regular session begins in January.