Arkansas Issue 3: Understanding the Economic Development Proposal

November’s ballot includes a proposal that could change how Arkansas communities finance development.

What Arkansas Issue 3 would change

On November 3, 2026, Arkansas voters will consider Issue 3, a proposed constitutional amendment concerning economic development. It would authorize the legislature to establish new programs and allow the creation of economic development districts within cities, counties, or cooperative areas.

An economic development district would be a designated area with tools to finance projects. The proposal would allow districts to issue bonds and authorize programs involving public loans and grants for economic growth, transportation, commerce, and improvements to real estate. The legislature would determine how the amendment is implemented.

Supporters, opponents, and tax considerations

Supporters say these tools could help communities improve infrastructure, encourage housing and business development, and bring vacant or deteriorating properties back into use. Opponents raise questions about public financial risk, accountability, and the effects on funding for schools and local services.

The tax provisions deserve attention. Issue 3 would exempt property within a district from existing taxation while allowing the district to levy its own taxes, assessments, or other charges. It should therefore not be read as a blanket guarantee that taxes could never increase.

Approval would not automatically create a district or approve a particular development. Those details would depend on subsequent legislation and implementation. Readers can explore the resources below before making their decision.

For the campaign’s case in favor of Issue 3 and additional campaign materials, visit www.yeson3.vote.