Little Rock, Arkansas – Governor Sarah Huckabee Sanders has announced two new legislative initiatives aimed at reducing the financial burden on families and addressing food insecurity in Arkansas. The Grocery Tax Relief Act seeks to eliminate the state grocery tax, while the Good Neighbor Act expands protections for food donors and food banks.
Eliminating the Grocery Tax to Ease the Burden on Families
The Grocery Tax Relief Act, sponsored by Senate President Bart Hester (District 33) and Representative Kendon Underwood (District 16), will repeal the state grocery tax, returning nearly $10.9 million to taxpayers annually. However, this legislation will not affect county and municipal grocery taxes, which will remain in place.
Governor Sanders emphasized the need to relieve families struggling with high food prices, placing blame on federal policies for the increased cost of groceries. “The reckless tax-and-spend policies of the Biden Administration drove food prices through the roof. 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,” said Governor Sanders.
State leaders supporting the legislation also voiced their commitment to putting money back into the hands of Arkansas families. “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,” said Senate President Bart Hester. “For too long, too much has been taken out of hard-earned paychecks, but under Governor Sanders’ leadership, families will pay less in income tax, property tax, and now less tax at the grocery store too,” said Representative Kendon Underwood.
Encouraging Food Donations With the Good Neighbor Act
Alongside the tax relief bill, Governor Sanders also introduced the Good Neighbor Act, sponsored by Senator Breanne Davis (District 25) and Representative Chad Puryear (District 25). This legislation expands liability protections for food donors, ensuring that businesses and organizations donating food in good faith are protected from lawsuits.
The bill extends protections to retail grocers, wholesalers, hotels, motels, restaurants, caterers, farmers, nonprofit food distributors, schools, churches, religious organizations, and hospitals, as well as the food banks that distribute these donations. “We’ve seen how often food goes to waste instead of helping a family in need. 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,” said Governor Sanders.
Senator Breanne Davis highlighted the importance of ensuring food reaches those who need it instead of going to waste.”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 Senator Breanne Davis.
Representative Chad Puryear echoed this sentiment, emphasizing the need to encourage more donors to participate. “We have some great organizations working across our state to address food insecurities. The Good Neighbor Act encourages more donors to participate by addressing liability barriers. Anything we can do to encourage good faith donors is a win, and I appreciate the Governor for making this a priority,” said Representative Chad Puryear.
Building on Previous Efforts to Address Food Insecurity
Governor Sanders’ fight against food insecurity in Arkansas did not start with these two bills. Earlier this legislative session, she signed SB59 into law, ensuring that every student in Arkansas has access to free school breakfast. The law also redirects Medical Marijuana tax revenue to fully fund Summer EBT and the state’s free lunch and breakfast programs into the future.
Additionally, Sanders reaffirmed her administration’s commitment to continuing the Summer EBT program, which served 260,000 students last summer. She had also previously signed legislation to provide free school lunches for students who had previously only qualified for reduced-price meals.
By introducing the Grocery Tax Relief Act and the Good Neighbor Act, Governor Sanders aims to reduce financial strain on families while ensuring more food reaches those in need. Arkansas leaders believe these policies will have a long-lasting impact on both affordability and accessibility for households across the state.
