The Arkansas Better Chance (ABC) program is overdue for an overhaul to ensure money follows kids, not empty chairs. This shift could unlock hundreds of childcare spots for working families who have stuck on waiting lists for years. Demand for childcare is high, funding has been flat for years, and the state is trying to make sure existing resources are actually being used.

What Is the ABC Program?

The Arkansas Better Chance Program is Arkansas’ largest publicly funded early childhood education initiative primary. It currently funds about 23,800 childcare slots statewide at a cost of roughly $114 million per year.

Key facts:

• About 80% of ABC slots are operated by public school districts
• Most programs serve 3- and 4-year-olds, though recent changes allow service from infancy through age 5
• Funding is provided through a set daily rate per enrolled child
  

Despite its size, lawmakers were told on Monday that the program has not been meaningfully re-evaluated in at least a decade.

The Core Problem: Open Seats and Long Waitlists

State education officials said they’ve identified a persistent mismatch:

• Nearly 1,000 ABC seats are funded each year but sit empty
• At the same time, more than 2,000 families are on waiting lists
  

In many cases, providers fill classrooms at the start of the school year, then lose one or two children due to moves or family changes — and never refill those spots. The state has continued paying for those empty seats.

Beginning this year, that changes.

Paying for Enrollment, Not Empty Seats

The Department of Education is shifting to a pay-by-enrollment model, meaning:

• Providers must keep seats filled to receive full funding
• Chronic under-enrollment will result in slot reductions
• 28 programs have already been flagged for repeated underuse over the past three years

State officials emphasized this is not about attendance or illness. Children can miss days and remain enrolled. The issue is seats with no child assigned at all.

The goal is efficiency: redirecting unused capacity to communities with long waiting lists.

Pressure to Revisit Income Limits and Funding Levels

Several legislators raised concerns that current income limits are outdated, especially given inflation. Families who “barely miss” eligibility often can’t afford private care, even when ABC seats sit empty nearby.

Others flagged that reimbursement rates and daily funding amounts haven’t been updated in years, while costs for food, staffing, and facilities have risen sharply.

State leaders said these questions are now squarely on the table.

What Happens Next

By the end of the meeting, lawmakers agreed the ABC program needs a deeper, focused review. A legislative subcommittee will:

• Examine income thresholds and eligibility rules
• Review slot allocation and regional demand
• Evaluate whether funding levels and daily rates are still realistic
• Consider year-round programming options
  

Education officials also asked the Bureau of Legislative Research to help reconstruct the program’s history, including when income limits and slot caps were last adjusted.