AGP Executive Report

Defense & Manufacturing: Hanwha Defense USA says it will invest $2.2 billion to build an advanced munitions campus at the U.S. Army Pine Bluff Arsenal, targeting about 400 jobs at $50-plus an hour and producing 155mm propellant charges and base bleed units. Local Business & Growth: Hall CPA has acquired Little Rock’s Tooth & Coin, expanding the firm’s dental-focused accounting and advisory services under the Hall CPA brand. Economic Development Policy: Arkansas voters are weighing Issue 3, which would let local governments create economic development districts and use tools like TIFs, STAR bonds and Texas 380-style agreements to attract housing and other investment. Health & Care: Arkansas’ updated Alzheimer’s and Dementia plan calls for permanent caregiver respite funding, rural access improvements, and a statewide caregiver-navigation system. Taxes & State Economy: Arkansas collected $731 million in individual income taxes in Q1 2026, part of $2.9 billion in total tax revenue. Education: Nettleton Public Schools is seeking federal “ed-flex” waivers to gain more control over how it spends certain funds, and the Arkansas School for Mathematics, Sciences, and the Arts is opening registration for its 2026-27 Talent Identification Program. Wildfire Response: Arkansas activated the South Central Interstate Forest Fire Protection Compact, bringing firefighting teams from multiple states to support ongoing wildfire efforts. Banking/Consumer Finance: A $694 million multistate settlement involving Credit Acceptance targets “predatory” auto loans, with Kentucky receiving more than $10 million in relief. Retail/Restaurants: One of Wendy’s biggest franchise operators, Meritage Hospitality Group (314 locations), filed for Chapter 11, citing beef prices and profitability pressure.

Defense & Manufacturing: Hanwha Defense USA opened a Pine Bluff Arsenal office as part of a $2.2 billion plan to build an Arkansas ammunition production hub, targeting 155mm shell components and propellant charges and about 400 jobs over seven years. Higher Ed & NIL: The bipartisan Protect College Sports Act of 2026 advanced in the U.S. Senate, setting federal rules for NIL, revenue sharing, transfers and athlete health, with a possible fast path to the House. State Tax Watch: Arkansas ranked 31st nationwide for corporation net income taxes collected in 2024, pulling in $972.5 million (down 7.8% from 2023). Local Business Support: Conductor’s fall 2026 lineup kicks off Sept. 23 with free in-person and online workshops for entrepreneurs, including marketing, AI and strategic growth. Public Safety & Corrections: The Arkansas Department of Corrections is shifting away from restricting inmates’ access to physical books and instead tightening a 2022 policy to curb drug-laced third-party publications. Bankruptcy: A major Wendy’s franchise operator with 314 locations, including Arkansas, filed for Chapter 11 to restructure while keeping restaurants open. Housing: Yell County’s typical home value rose to $169,588 in August 2026, up 6.3% year over year.

Defense & Jobs: Hanwha Defense USA says it will invest about $2.2 billion at the Pine Bluff Arsenal, expanding a munitions campus plan and targeting up to 400 jobs over seven years, with an administration office already opened. Retail & Growth: Marion officials are drafting a strategic growth plan aimed at expanding housing and retail, and the effort could hinge on whether voters approve Issue 3 to let cities create economic development districts. Logistics & Trade: Arkansas River shipping is mixed: August tonnage fell 2.4%, but January-August is up 7.5%, driven by a big jump in internal shipments as port operators plan more warehouse space. Local Business: Jonesboro’s Downtown Alliance will launch its first “Meal on Main” in October, shutting down part of Main Street for a ticketed, multi-restaurant community dinner. Consumer Costs: Arkansas shoppers are seeing more “checkout fees” tied to credit card surcharges as small businesses try to offset rising payment processing costs. Bankruptcy Watch: One of Wendy’s biggest franchisees, Meritage Hospitality Group (314 locations), filed Chapter 11 after Wendy’s moved to terminate its franchise agreement.

Workplace & Growth: Arkansas Business Best Places to Work spotlights companies building retention through structured operations and benefits, including healthcare and accounting firms, plus Best Places to Work All Stars profiles that show what keeps teams engaged. Entrepreneurship: The Leadership Mountain Home Class of 2026 launched The Hatchery, a youth pitch contest awarding $5,000 total with applications due Oct. 23. Infrastructure & Business Access: XNA got a direct road link as Highway 642 opened, tying into the Springdale Northern Bypass redesignated as Interstate 42. Real Estate & Development: North Little Rock’s NorthShore Business Park story traces decades of planning and institutional growth; meanwhile, a North Little Rock mobile home park sold for $7.1M. Local Government & Compliance: Fort Smith will review hiring a firm to manage a costly federal consent decree for sewer upgrades. Public Safety: Little Rock Mayor Frank Scott responded to a River Market shooting, urging parental accountability. Banking: Arvest is testing new checking fees after customer backlash. Health Services: Medic One is expanding ambulance coverage into Greene County via a St. Bernards partnership.

Education & Workforce Pipeline: West Memphis leaders say Google-backed tech and cybersecurity pathways are moving more students toward job-ready skills, with CodeCrew robotics starting in kindergarten and a senior-year tech internship planned. Energy & Water Policy: Arkansas’ state water board approved a one-year, state-run water conservation program. Healthcare Systems: A look back at the Change Healthcare cyberattack argues the disruption exposed a broader clearinghouse “infrastructure” problem that still leaves healthcare payment and claims processing fragile. Consumer & Business Risk: Walmart recalled a Great Value frozen berry blend in 16 states over possible E. coli contamination; the affected lot wasn’t shipped to Michigan. State Politics & Regulation: Arkansas pharmacies are pushing PBM reform efforts, pointing to underpayments and competition concerns as Missouri’s similar attempts failed again. Local Business/Community: Jonesboro broadcaster Trey Stafford was inducted into the Arkansas Broadcasters Association Hall of Fame. Rural Development: UAPB will host its 66th Rural Life Conference Nov. 4-6, aiming to expand rural economic opportunities and preserve agricultural heritage.

Medicaid Budget Pressure: Arkansas finance secretary Jim Hudson told lawmakers the state spent about $400 million more on Medicaid in the last fiscal year than the year before, citing an “unfavorable” claims experience; lawmakers approved $200 million in restricted reserve funds to cover the state match, with Medicaid covering nearly 840,000 people and costing more than $9.8 billion. Workforce Policy: Arkansas will require new teachers to complete a yearlong supervised residency starting spring 2027, with minimum in-class time ramping from 270 hours in the first semester to 360 hours in the second. Local Business Growth: Maple Leaf Awning & Canvas acquired Don’s Canopies and Metal Products, expanding its Northwest Arkansas footprint and naming Bradley Wright as general manager. Charity & Community: A Ronald McDonald House Arkansas & North Louisiana golf scramble and Las Vegas-themed fundraiser are set for late September, with Tyson Foods backing the scramble. Sports & Economy Tie-In: UAPB opened at home with a 41-35 win over Central State, while Georgia beat Arkansas 45-17 in the SEC opener—another reminder of how big games drive local spending.

Medicaid Funding Watch: Arkansas Finance and Administration Secretary Jim Hudson told lawmakers the state spent about $400 million more on Medicaid in the last fiscal year than the year before, citing an “unfavorable” claims experience; the Legislative Council approved $200 million in restricted reserve funds to cover the state match, with Hudson urging lawmakers to keep Medicaid fully funded and ensure the trust fund stays “adequately capitalized.” Housing Market Snapshot: Zillow data shows Lawrence County’s typical home value rose 0.8% to $136,213 in August 2026, while Scott County climbed 18% to $172,824, Sebastian County rose 3.9% to $204,531, and Izard County increased 4.4% to $174,880. Community Giving: K-MAC Enterprises’ Taco Bell Foundation grant effort included $50,000 for the Boys & Girls Club of Magnolia’s “Own Your Future” program as part of a record $32 million national foundation push. Defense & Industry: Lockheed Martin unveiled Germany’s first F-35A for a 35-jet program, with Ebbing Air National Guard Base in Arkansas set to receive the first eight aircraft for pilot training. Local Culture: Walton Arts Center’s “Our Art, Our Region, Our Time” exhibit opens with 100+ works by 86 artists from 22 cities, running through Dec. 20.

Medicaid & Drug Pricing: Arkansas is among all 50 states signing on to Trump’s “most favored nation” Medicaid drug pricing plan, aimed at cutting Medicaid drug costs and boosting savings for states. Consumer Finance: Arkansas joined a $694 million multistate settlement with subprime auto lender Credit Acceptance, with $660,000 in civil penalties for the state and $60 million in cash restitution plus more than $634 million in debt relief for eligible consumers. State Budget Watch: Arkansas lawmakers questioned a $200 million transfer into the Medicaid trust fund after a year of rising costs, with officials citing higher-than-expected claims experience. Agriculture Costs: Record-high diesel prices are hitting farmers during harvest, with Arkansas diesel averaging about $6.14 a gallon, raising costs across the food supply chain. Local Economic Development: Laura Fine was appointed to the Little Rock Technology Park Authority Board, strengthening the city’s innovation and small-business push. Infrastructure: Trumann began a million-dollar water pipe project tied to ARDOT’s Highway 69 widening, with utility relocation work nearing completion. Workforce & Education: AGFC and AEDC opened a grant application period for conservation education in schools, funded by hunting and fishing violation fines. Sports Business: The UA Board of Trustees ordered a review of Razorback athletics competitiveness and football resources after concerns about the program’s roster budget.

University Research & Agriculture: A $1.9 million NSF grant will fund University of Kansas work with Arkansas State and other partners to test soil fungi that could boost drought tolerance in wheat and rice—an effort aimed at protecting yields as arable land shrinks. Higher Ed Finance & Athletics: Henderson State says it has stabilized finances and is seeing enrollment gains, but it won’t pay players, underscoring how Arkansas schools are navigating the post–name, image and likeness era. Public Health & Consumer Protection: Arkansas joined a multistate push for stronger federal action against counterfeit GLP-1 drugs, warning that some products may use ingredients tied to fentanyl supply chains. USDA & Food Industry Oversight: USDA is rolling out a $50 million “Stand-Up” program to help states start or expand meat inspection programs, giving cattle producers more options for selling their own beef. Local Business & Compliance: Pulaski County restaurant inspections flagged issues ranging from missing food manager certification to temperature and storage problems. Banking & Restructuring: Meritage Hospitality Group, a large Wendy’s operator, filed for Chapter 11 to strengthen its balance sheet. Education Accountability: Pine Bluff and Watson Chapel districts received failing grades again, while some local schools improved by at least one letter.

Auto Finance Settlement: Arkansas Attorney General Tim Griffin announced a $694 million multistate settlement with Credit Acceptance Corp., including $660,000 in civil penalties and cash/debt relief for borrowers tied to alleged predatory lending. Utility Legal Fight: Entergy Arkansas dropped its lawsuit seeking to block publication of details from a West Memphis data center agreement after a judge denied a temporary gag order. Retail Connectivity: Cox customers in western and Northwest Arkansas are shifting to the Spectrum brand now that Charter’s Cox deal has closed, with promised service and support upgrades. NWA Business Expansion: UL Solutions expanded its Lowell Retail Center of Excellence, integrating softlines testing (apparel/textiles) with hardlines testing (furniture, toys, electronics). Local Economy & Jobs: Arkansas’ corn and soybean outlook got a boost as NASS forecast record yields for Arkansas crops, despite heat and drought impacts on early plantings. Housing Pressure: A new analysis says listing prices per square foot are falling in many major metros, with Memphis and other Southern markets seeing notable declines. Consumer Costs: AAA reports gas prices have pushed past $4 a gallon in Tennessee and Arkansas, squeezing Mid-South budgets. Education & Workforce: The University of Arkansas hit record graduation rates, citing new student success programs aimed at boosting completion.

Consumer Safety Watch: Walmart shoppers are being warned about multiple food recalls, including Great Value frozen berries flagged for possible E. coli contamination and a candy recall tied to a choking hazard. Local Business & Community: The Little Rock Zoo is moving ahead with “Project Zoo: Wildly Reimagined,” boosted by a $1.2 million donation and new leadership, with renovations to entrances, habitats and the return of capybaras. Arkansas Economy & Jobs: Walmart is piloting a pharmacist-led “Health Ambassador” role in Searcy and other markets to connect rural customers with health and nutrition resources. State Policy & Families: Arkansas families of children with disabilities renewed calls for action over a Medicaid waiver waitlist affecting thousands, after DHS moves to expand supportive living services starting in January. Energy & Regulation: The Arkansas Public Service Commission denied Entergy Arkansas’ request for a 20-year power purchase agreement with Big Island Solar, saying it wouldn’t deliver reasonable savings for customers. Finance & Fraud Risk: A new warning highlights how cryptocurrency kiosks are used in scams, citing large complaint and loss totals nationwide. Auto Lending Crackdown: Arkansas is part of a broader multistate push that secured a $694 million settlement with Credit Acceptance over predatory auto loans.

College Sports Overhaul: The Senate advanced the Protect College Sports Act, setting federal rules on eligibility, compensation, transfers and conference realignment, with NCAA antitrust protections in the mix—likely headed for a House vote after the midterms. NIL & HBCU Pay: Florida A&M’s Quinn Gray says more “guarantee-game” money could help HBCUs compete in the NIL era. Arkansas Medicaid Waitlist: Families of children with disabilities renewed calls for a special legislative session as Gov. Sarah Huckabee Sanders’ plan to start supportive in-home services in January faces pressure to clear the long CES waiver waitlist. Utility & Data Center Fight: Entergy Arkansas dropped its federal lawsuit against the Arkansas Times, Arkansas Democrat-Gazette and a citizen after a judge rejected a bid to block publication of data-center deal details. Economic & Jobs: Taber Extrusions marked its $85M Russellville expansion with a new direct extrusion press expected to add 70 jobs. Water Infrastructure: Arkansas approved $8.2M for water and wastewater projects, including emergency loans for sewer and wastewater upgrades. Retail & Rates: Retail sales rose 1.2% in August, while the Fed raised rates again—Arkansas economists warn higher borrowing costs could hit farmers and consumers. Local Business Calendar: Rogers’ free Community Showcase highlights nearly 70 downtown businesses; Russellville’s Taber expansion and other community grants underscore steady regional investment.

Manufacturing & Jobs: Taber Extrusions opened an $85 million Russellville expansion, bringing the largest new direct extrusion press in North America and expected to add 70 jobs, with aerospace, defense and heavy industry in the mix. Sports & Local Economy: The Arkansas Diamonds are bringing arena football back to Little Rock, relocating to Barton Coliseum and investing $1.5 million in renovations. Education & Community Growth: Arkansas State University and the First Community Bank Sportsplex in Jonesboro announced a multiyear partnership naming A-State the Sportsplex’s official education partner, with the 200,000-square-foot complex set to open in early 2027. Water Infrastructure Funding: Gov. Sarah Huckabee Sanders announced $8.2 million for Arkansas water and wastewater projects, including an $8 million loan for irrigation construction and emergency loans for sewer and wastewater upgrades. Real Estate & Demand Signals: A local analysis points to Northwest Arkansas’ steady commercial vacancy and fast population growth as a draw for out-of-state investors. Consumer & Business News: Slim Chickens launched a limited-time Dr Pepper “Blasted” chicken lineup nationwide, adding a new menu push through mid-November. Legal/Brand Watch: Buc-ee’s settled two trademark infringement cases, including an $850,000 payment tied to beaver-logo merchandise.

Energy & Data Centers: Arkansas lawmakers grilled Entergy over data-center projects and ratepayer impact, including a fight with the Arkansas Democrat-Gazette over Google contract details. Tech & Power Demand: Google told the Joint Energy Committee it’s engaging communities and described massive electricity needs for hyperscale sites, including a West Memphis project. Local Governance & Public Safety: Warren is offering up to $2,000 rewards in two separate homicide cases, with Arkansas State Police investigating. Transportation Infrastructure: Tennessee and Arkansas are seeking public input on an $800 million I-55 bridge replacement, with federal funding covering $400 million and a five-year build timeline. Higher Education & Sports Finance: A Senate push for the Protect College Sports Act cleared a key hurdle, aiming to curb runaway spending and lawsuits in college athletics. Workforce & Hiring: A new hiring-focused piece argues Arkansas employers can win talent by moving faster and communicating clearly on pay and expectations. Agriculture & Research: The Anheuser-Busch Foundation awarded $140,000 to Arkansas universities for rice research, including quality, brewing uses and water stewardship. Retail & Community Aid: Domino’s collected canned goods statewide for Hunger Action Month through local stores. Business Growth: The Systems Group created a new industrial HVAC division, Systems Cool Air Solutions, to serve steel mills nationwide. Public Health & Health Costs: Arkansas pharmacies sued Express Scripts, alleging PBM underpayment for tens of thousands of prescriptions.

Leadership & Policy: State Sen. Jonathan Dismang, a key architect of Arkansas’ hybrid Medicaid expansion, resigned from the Senate to become vice president of external affairs for Arkansas Electric Cooperatives, a move that puts him in the middle of utility policy for 17 distributors serving about 1 million customers. Healthcare Access: Gov. Sarah Huckabee Sanders announced additional supportive living services for families of children with disabilities on the CES Medicaid waiver waitlist, with eligibility expanded to address a backlog of nearly 2,500 families. Economy & Jobs: Northwest Arkansas added jobs in July, with tourism and professional/business services posting double-digit gains and the metro reaching a record 309,800 nonfarm jobs in May. Retail Leadership: Harps Food Stores named J. Max Van Hoose to succeed retiring CEO/chairman Kim Eskew in early 2027. Business & Tech: Cargobull North America appointed Markus Dechering as president and COO, signaling continued growth in refrigerated transport. Public Safety/Consumer Tech: AG Lynn Fitch and other attorneys general urged the FCC to strengthen “Know Your Upstream Provider” rules to curb robocalls and scams. Education: An Ascension Public Schools superintendent was selected for a national educator advisory board, while UA Little Rock’s business/health symposium set for Sept. 17-18 highlights research and grants.

College Sports Policy: The Protect College Sports Act is back in the spotlight as supporters push for a Senate vote soon, while critics warn it could amount to “illegal collusion” over NIL and revenue-sharing rules. Arkansas Business Leadership: Harps Food Stores announced CEO Kim Eskew will retire Jan. 15, 2027, with President J. Max Van Hoose stepping up. Local Economic Development: Jonesboro is weighing a tax incentive tied to SANY Nutrition Group’s new manufacturing operation, which opened after a $30M renovation and plans to add 150+ jobs over three years. Energy Costs: Costco raised prices and purchase limits on Kirkland motor oil as oil prices climb; Arkansas regular gas averaged about $3.95 Monday, per AAA. Housing Stability: Little Rock officials say a new HUD-approved organization will disburse federal rental assistance funds left in limbo after People Trust delays contributed to evictions. Public Safety/Industry: A wildfire in the Highland Industrial Park burned about 200 acres and led to evacuations, with defense contractors in the area. Health Coverage: Guardant Health said its Shield blood test for colorectal cancer screening will be covered by EviCore by Evernorth starting Jan. 1, 2027.