04/14/2026
Despite support from Governor Sarah Huckabee Sanders, all three Northwest Arkansas counties — Benton, Washington, and Madison — have rejected a proposed Northwest Arkansas Regional Industrial Development Authority (IDA) enabled by Act 576 of 2025.
In a December letter, Governor Sanders called the regional IDA “a forward-looking, fiscally responsible approach to economic development” and urged the counties to approve it.
However, the counties turned it down over serious concerns about the unelected board’s broad powers, including:
❌ Eminent domain
❌ Entering PILOT agreements (tax breaks) that could reduce local school and county revenues
❌ Overriding local planning and zoning without approval from elected officials
❌ Lack of accountability — no way to remove board members or dissolve the authority
Representation was also an issue, with Madison County receiving only one seat on the seven-member board compared to three each for Benton and Washington counties.
Sponsors of the original act, Sen. Tyler Dees and Rep. Howard Beaty, Jr., have filed HR1015, a bill aimed at fixing some problems in Act 576. It will be heard in the House Rules Committee Wednesday morning.
Critics say HR1015 does not address all the issues — especially unelected boards cutting tax deals without local consent — and argue the matter should be handled more carefully during next year’s regular legislative session instead of the current fiscal session.
