AGP Executive Report

Health Care Costs: CHI St. Vincent and Arkansas Blue Cross are officially out of network as of this week after months of talks failed, leaving “thousands” of patients facing potentially higher out-of-network bills at St. Vincent’s four Arkansas hospitals and about 80 clinics. Antitrust & Food Prices: The DOJ expanded a beef affordability antitrust probe to include major retailers, including Walmart, asking for details on pricing, margins, and strategies from 2020 to 2026. Food Safety: Walmart frozen berries are again under recall after FDA action tied to possible E. coli, including Great Value Organic Triple Berry Blend sold in 16 states (Arkansas included). Local Infrastructure: Springdale opened a new phase of the Northern Bypass and the airport connector road, aiming to ease congestion on U.S. 412 and I-49. Business & Growth: Microsoft is named the long-term offtaker for a Washington solar project, following its earlier Arkansas data-center power deal. Energy Costs: AAA reports diesel prices hit record levels, with Arkansas at $5.50 a gallon.

Google Data Center Fight: Entergy Arkansas and Google are back in federal court over who pays for power behind Google’s West Memphis data center, after a Democrat-Gazette report using Public Service Commission records said Google’s $526 million contribution to a solar-plus-storage project may not cover the full cost. Banking Consolidation: Simmons First National will close 26 Simmons Bank branches across six states, including six in Arkansas (Fort Smith, Hot Springs, Jonesboro, North Little Rock and Pine Bluff), affecting about 100 employees; closures are set for Dec. 4. Energy Costs: U.S. diesel prices hit a four-year high, with Arkansas reaching a record $5.407 a gallon—another pressure point for farmers and businesses heading into Labor Day. Agriculture: The Arkansas Cattlemen’s Association named White County farmer Chris Smith its Producer of the Year and honored leaders at its 68th convention in Fort Smith. Local Tech & Surveillance: Beebe won’t renew its Flock camera contract, citing shrinking network value as other Arkansas cities pull back. Lithium Ecosystem: The Venture Center launched the fourth Arkansas Lithium Technology Accelerator cohort, connecting companies with producers, researchers and investors across the state’s battery supply chain.

Grid Supply Crunch: Eaton says it will invest more than $242 million to expand its North Little Rock electrical enclosure manufacturing, aiming to double capacity for data center, utility and industrial demand as U.S. power equipment lead times stretch. Arkansas Economy: The state’s general revenue is running ahead of forecast, with August net available general revenues at $582.8 million and year-to-date collections topping estimates. Jobs Watch: Northwest Arkansas and central Arkansas led job growth in July, with metro jobless rates generally improving even as some areas saw year-over-year upticks. Data Center Fight: A federal judge denied Entergy Arkansas’ bid to block publication of Google-related West Memphis data center financial records, keeping the dispute over trade secrets and public access alive. Agriculture: Arkansas farmers are pushing harvest ahead of schedule thanks to hot, dry weather, even as diesel costs remain a major drag. Health & Courts: A settlement ends a long-running COVID-19 lawsuit involving Arkansas inmates and Wellpath, requiring ongoing vaccines, tests and antiviral supplies.

Data Center Fight in West Memphis: A federal judge denied Entergy Arkansas’ bid to stop Arkansas news outlets from publishing details of its Google/Altitude Capital data center deal, including a reported $526 million payment for a solar project that would feed the grid powering the roughly $1.6 billion campus. Energy Costs & Relief: SWEPCO expanded bill assistance for residential customers hit by extreme heat, pausing required deposits and waiving late fees through October while widening access to its Average Monthly Payment plan. Big Retail Expansion: Walmart is investing $1.3 billion in a next-generation fulfillment center in rural Georgia, a move that underscores how the Bentonville giant keeps pushing automation and faster delivery. Jobs & Manufacturing in North Little Rock: Eaton plans a $242 million manufacturing facility in North Little Rock, aiming to create about 1,200 jobs. Agriculture & Beef Prices: The Trump administration rolled out steps aimed at ranchers and consumers amid beef-import and pricing pressure, including a “Ranchers First Initiative” and changes tied to imported beef trimmings. Local Business/Community: A Fairfield Bay restaurant temporarily closed after raccoons caused severe damage, while the Baxter County Library launched a take-home volunteer kit for high schoolers to earn hours from home.

Eaton Expansion: Eaton says it will invest $242 million in a new 1 million-square-foot North Little Rock plant to expand Fibrebond’s customized modular electrical enclosure output, aiming to double U.S. capacity and create about 1,200 jobs, with hands-on training and career growth. State Revenue Watch: Arkansas general revenue for July-August came in about $1.34 billion, up 3.9% year over year and 2.4% above forecast, led by stronger sales/use tax, utilities, and real estate rental gains. Energy & Data Center Fight: Entergy Arkansas lost in federal court as a judge denied its bid to stop the Arkansas Democrat-Gazette and Arkansas Times from publishing details tied to the West Memphis data center agreement, citing First Amendment concerns. Agriculture Markets: Arkansas cattle prices slid after a federal move temporarily expanding imported lean beef quotas, adding downward pressure amid drought and cost headwinds. Consumer/Local Fraud: BBB Scam Tracker data shows Newport tied for 40th in Arkansas for July with one scam report, while Little Rock and Fort Smith lead the state totals. CFPB Overhaul Proposal: Rep. French Hill of Arkansas is backing a House bill to reshape CFPB structure, rulemaking, supervision, and enforcement, including changes to funding and added cost-benefit requirements. Medicaid Work Requirement: Arkansas began a soft rollout of a welfare-to-work requirement for some ARHOME Medicaid enrollees, with full implementation set for Jan. 1, 2027.

Data Center Fight: Entergy Arkansas asked a federal judge to stop the Arkansas Democrat-Gazette and Arkansas Times from publishing details of a West Memphis data center agreement, arguing documents were mistakenly released as trade secrets; the judge signaled “significant pause” for First Amendment concerns and is expected to rule Wednesday. Power Infrastructure: Entergy says it has finished a new substation at the Port of Little Rock to support expanding manufacturers, including Trex, Amazon and others, after the port’s 2021 growth push. Military Spending: Pine Bluff Arsenal is set to receive nearly $33 million for smoke grenade and facility upgrades, with additional Army funding tied to production modernization. Tech + Education: UALR reports fall 2026 undergraduate enrollment up 3.5% (about 200 more students), while graduate enrollment fell 2.9%, driven largely by fewer international graduate students. Local Finance: First Community Bank promoted Stephen Longinotti to senior vice president and mortgage loan originator in Searcy. Community + Hunger: Harvest Regional Food Bank kicked off Hunger Action Month with its annual luncheon in Texarkana, honoring volunteers and urging more support. Workforce + Energy Costs: SWEPCO expanded temporary bill-assistance measures for residential customers amid extreme heat, including pausing required deposits and waiving late fees through October. Lithium Deal: LG Energy Solution signed a supply agreement with Smackover Lithium for 8,000 tons of battery-grade lithium carbonate annually starting in 2029.

Data Center Fight: Entergy Arkansas asked a federal judge to block the Arkansas Democrat-Gazette and Arkansas Times from publishing details of its Google-linked data center deal, saying confidential documents were disclosed in error; the dispute centers on a PSC-approved special rate contract tied to a West Memphis project and a Cypress Solar build. CFPB Overhaul: House Republicans rolled out a CFPB reform package led by Arkansas Rep. French Hill that would shift the bureau to congressional appropriations and narrow its authority over “abusive” practices, with a small-dollar lending safe harbor. Healthcare Network Shakeup: CHI St. Vincent/CommonSpirit opted out of Arkansas Blue Cross and Blue Shield networks effective Sept. 1, pushing many patients to out-of-network reimbursement. Energy & Industry: EV registrations jumped in Crawford and Sebastian counties, and the Pentagon will hold a 35% stake in a Venezuela oil venture under the White House’s deal. Local Business & Community: Dollar General donated more than 1.2 million pounds of food in Arkansas via Feeding America; NWACC reported fall enrollment topping 12,000. Cyber & Housing: HUD tightened cyber reporting expectations as ransomware risks rise for public housing authorities.

Lithium Supply Deals: Smackover Lithium (Standard Lithium and Equinor JV) signed its second long-term offtake agreement for its South West Arkansas project with LG Energy Solution, committing 8,000 tons of battery-grade lithium carbonate annually for 10 years starting with production targeted for 2029; the deals now cover about 90% of targeted offtake volume and aim to support North American EV and energy storage demand. Utility & Data Center Power: Google will pay Entergy Arkansas $526 million for the Cypress Solar project (600 MW solar plus 350 MW battery) to supply its West Memphis data center, with another $190 million for transmission upgrades. Banking Leadership: WestStar Bank CEO David Osborn was nominated to serve as treasurer of the American Bankers Association, with the slate set for election at the ABA annual meeting in October. Economic Development Leadership: Mountain Home Chamber CEO Dani Pugsley was elected to the Arkansas Economic Developers & Chamber Executives board for 2027. Food Insecurity: Harvest Regional Food Bank will kick off National Hunger Action Month with its Hunger Action Luncheon in Texarkana, featuring Rep. Carol Dalby and honoring its 2026 Hunger Hero. Local Business Expansion: 7 Brew’s modular build approach is pushing toward a faster opening timeline, with an Arkansas-based operator expanding via pre-inspected modular construction.

Lithium Deal: Smackover Lithium (Standard Lithium and Equinor) signed a second binding offtake with LG Energy Solution for about 8,000 metric tonnes a year of battery-quality lithium carbonate from its South West Arkansas project, worth an estimated $1.5 billion over 10 years starting with commercial production targeted for 2029. Public Safety Tech: Jonesboro is keeping its Flock camera and automated license plate surveillance network running, citing a roughly $192,500 annual investment and a local crime “footprint” argument, even as other Arkansas cities pause or end similar systems. Tourism & Local Culture: Hot Springs’ Tiny Town USA keeps drawing visitors with miniature “scraps-made” scenes and celebrity cameos, while Jonesboro’s third Red Wolf Renaissance Fair returns in October to support endangered red wolf conservation. Health & Business Ops: UAMS counseling at UA Little Rock is expanding movement-focused substance-use prevention programming with a $27,200 state grant. Food Safety: FDA recalled 4,540 pounds of salsa and pico de gallo sold in Arkansas, Oklahoma and Texas due to potential salmonella contamination tied to jalapenos. Retail & Jobs: Walmart agreed to pay $50 million and tighten pharmacy controlled-substance oversight in a federal opioid dispensing settlement. Local Closures: Little Rock’s Bark Bar & Grille announced it’s permanently closing.

Rural Health Funding: Gov. Sarah Huckabee Sanders announced $149.3 million in first-round Rural Health Transformation Program grants, with Arkansas expecting about $1 billion over five years to expand telehealth, specialty access, and rural clinical networks. Utility Rates: Entergy Arkansas’ electric rate case could sharply raise bills for small businesses, with intervenors arguing the planning process is too broken to predict “right amounts” even as demand pressures mount. Bank Expansion: CS Bank of Eureka Springs is expanding further into Missouri, closing on property in Hollister and eyeing a Branson-area move as it grows real-estate lending. Startup Capital & Deals: Onward FX is returning to Little Rock Oct. 25-26 with at least 28 investors and a focus on industrial, energy, aerospace and defense/dual-use, aiming to move more founders from meetings into diligence. Economic Development: Walnut Ridge demolished two downtown buildings to make way for Provalus, a tech and business services firm, with plans for 200-250 jobs and an estimated $13.4 million annual impact. Food Insecurity Efforts: A Jonesboro art studio partnered with the Food Bank of Northeast Arkansas to sell handmade bowls to help fund meals for people facing hunger. Gas Prices Watch: GasBuddy reports the cheapest E85 in Cleburne County at $2.83/gallon for the week ending Aug. 22, while Arkansas averages $2.71.

Air Service Expansion: Allegiant is adding nine new routes from Orlando Sanford International this September, including Little Rock, Ark., with eight of the new corridors running twice weekly and the Little Rock service joining Albany, Atlantic City, Columbia (Mo.), Huntsville (Ala.), Key West, Omaha and Toledo. Public Safety: Texarkana police say a man fired a shot through Whiskey River Bar and Grill’s glass doors after being removed from the business; no injuries were reported and the suspect was taken into custody. Fuel Prices: GasBuddy reports the cheapest E85 in Washington County was $2.62 at one station, while premium and midgrade prices across Arkansas varied week to week, reflecting ongoing oil-market volatility. Health Care Spending Watch: Medicaid billing data show sharp local swings in Arkansas communities, including big jumps in dental services (Charleston), surgery (Clarksville), anesthesia (West Memphis) and alcohol/drug treatment (North Little Rock). Weather Impact: A heat dome is pushing temperatures above 100 degrees across parts of the South and central U.S., with storm and flooding risk shifting toward the Northeast and Great Lakes. Food Safety: The CDC says the Cyclospora outbreak tied to recalled iceberg lettuce has expanded to more states, bringing the confirmed total to 11,458 illnesses.

School Voucher Spending: Arkansas is set to spend up to $379 million on school vouchers for the coming school year, including $309 million for students already in the program and $70 million for incoming students, with critics arguing the LEARNS accountability model focuses too narrowly on finances and minimal compliance. Medicaid Billing Spike: Arkadelphia Medicaid providers billed $56,783 in 2024 under Temporary National Codes (Non-Medicare), a sharp jump from $5,130 in 2023, highlighting shifting local use of public health dollars. Opioid Settlement: Walmart will pay $50 million to settle the U.S. government’s opioid lawsuit alleging unlawful dispensing, with the company not admitting liability and DOJ seeking tighter pharmacy oversight. Local Business Closure: Little Rock’s Bark Bar and Grille announced it’s closing permanently, ending a dog-friendly community spot that opened in 2017. Water Restrictions: Northwest Arkansas water providers extended a lawn irrigation moratorium through Sept. 7, allowing hand-watering and other non-lawn uses. Fraud Watch: BBB Scam Tracker data put Gassville among Arkansas cities tied for 14th in July scam reports, with employment scams driving the biggest losses.

Healthcare Finance: Arisa Health, a Springdale nonprofit behavioral healthcare system, has named Brian Lutz as its new chief financial officer after Keith Faught left the role. Small Business Funding: The Arkansas Small Business and Technology Development Center at Arkansas State University will host three free “Funding Your Business” sessions in September across Newport, Batesville and Jonesboro, covering SBA loans, microloans, grants and common funding hurdles. Rural Health Grants: Southwest Arkansas Regional Medical Center is among recipients of more than $1 million from the Arkansas Rural Health Transformation Program, including funding for an emergency generator, telemedicine expansion and behavioral health support. Retail & Construction: Walmart is reportedly testing 3D-printed walls for new store builds, with work already underway in parts of Arkansas and other states. Food Safety: Whole Foods recalled Mild Guacamole Dip nationwide after the FDA classified it as highest-risk (Class I) over possible salmonella contamination, including sales in Arkansas. Local Economy & Community: First National Bank of Fort Smith donated $63,500 to support a new early learning center and a financial literacy initiative for young children and families. Agriculture: Arkansas soybean harvest is underway with record acreage and a forecasted 57 bushels per acre yield. Sports Business: NCAA rules now allow jersey patch deals, and Tyson Foods is listed as an Arkansas sponsor. Consumer Watch: BBB Scam Tracker shows Lead Hill tied for 40th in Arkansas for July scam reports, with one report and $44.67 in losses.

Opioid settlement: Walmart will pay $50 million to settle the U.S. Justice Department’s opioid lawsuit, far below the billions sought, with the retailer not admitting liability and agreeing to tighter pharmacist oversight and a hotline for suspected illegal dispensing. Local government & workforce: Bull Shoals appointed Robert Gruss to a vacant council seat and moved to expand volunteer capacity by building a volunteer database to support city projects. Hospitality & development: Hotel Vin Rogers, an Autograph Collection boutique hotel with 125 rooms and 10,000+ square feet of meeting space, is set to open in September near I-49 and the Rogers Convention Center. Education oversight: A Hot Springs microschool, Nova Roots Academy, abruptly shut down weeks before classes after parents say it was marketed as flexible, hands-on learning with limited state oversight. Food insecurity: A new “Hunger in Arkansas” survey finds thousands still lack enough to eat, including people receiving some assistance but still coming up short. Public health: Arkansas officials warned about potential health risks after 4.25 million gallons of raw sewage spilled into the Arkansas River from a Colorado wastewater accident. Business climate: Candidates for governor in Kansas faced questions on property taxes and data centers, underscoring how tax policy and workforce needs drive economic growth debates.

Rural Health Funding: Gov. Sarah Huckabee Sanders announced Arkansas will receive $149.3 million in first-round Rural Health Transformation Program grants, including $19.1 million for Mercy Fort Smith to expand telehealth and critical-access hospital support. Health Policy: A new study warns millions in Medicaid expansion states could lose coverage under upcoming federal work rules starting Jan. 1, 2027, with millions at risk of not meeting required hours. Education & Growth: The Little Rock School Board adopted new attendance zones to support the opening of West Little Rock High School and approved a process for parents to seek school-of-choice options. Food Safety: The FDA upgraded a Taylor Farms de Mexico cyclospora recall to Class I, the highest risk level, tied to a multi-state outbreak that has led to hospitalizations and deaths. Healthcare Markets: A federal appeals court ruled Arkansas can enforce its dispensing-fee rule on pharmacy benefit managers. Retail & Jobs: Walmart hit a 100-store milestone for its EV fast-charging network, expanding access at Supercenters across 20 states. Local Business: BetSaracen reported July mobile sports wagers fell 10.6% month over month as national operators reshaped Arkansas’s market.

Rural Health Funding: Gov. Sarah Huckabee Sanders announced Arkansas’ first-round Rural Health Transformation Program awards totaling $149.3 million, with $93.6 million for PACT and $55.7 million for THRIVE, part of a plan expected to reach about $1 billion over five years to expand specialty access, telehealth, emergency response and remote patient monitoring. Food Safety: The FDA and CDC say the cyclospora outbreak tied to recalled iceberg lettuce has spread to 20 states and now totals 11,458 cases with 495 hospitalizations, with new confirmations in Georgia, Tennessee and Texas. Long-Term Care Oversight: Arkansas Department of Human Services inspectors, with sheriff’s deputies, visited a Hot Springs facility, Lakeside Residential Care, after DHS sought an injunction alleging it was operating without a license. Local Business & Community: In Searcy, churches and Potluck Food Rescue are pushing for a food rescue hub to cut waste and reduce food insecurity, while Beebe approved its first special improvement district for the Windwood Meadows subdivision. Public Safety: Little Rock police arrested a suspect in a capital murder case tied to a fatal stabbing, and state reports listed five deadly crashes across Arkansas.