Arkansas The Issue Beginning January 1, 2027, Section 71119 of the One Big Beautiful Bill Act introduces a new national requirement tying Medicaid eligibility not only to income but also to verified participation in at least 80 hours per month of work or qualifying community engagement activities. The number of Arkansas adults enrolled in Medicaid increased from 71,446,354 in 2020 to 94,349,705 in 2023, then decreased to 77,748,161 in 2025. In 2024, connectivity was lowest among the five states at 90.89%, leaving about 90,298 households unconnected. Arkansas also has the highest rural population share (38.62%) and a poverty rate of 21.80%, underscoring the compounded effects of rurality and economic hardship on digital access.
Why It Matters
Transportation Cost as a Percentage of Income Commuter Rail 20% Heavy Rail 10.2% Light Rail 9.7%
$11.00/hr
State minimum wage.
$880/mo $10,560/yr
Expected earnings for individuals working 80 hours per month.
67.4%
Income level of individuals working 80 hours per month relative to the Federal Poverty Level.
33%
Amount by which individuals working 80 hours per month remain below the poverty threshold.
$64,840
State median household income. Below the U.S. median household income of $83,730.
3.4%
State unemployment rate. Lower than the national average of 4%.
Bus 7%
In Arkansas, transportation costs alone account for 115% of total income. This means that even a single month of car expenses outpaced the total earnings from 80 hours of work.
Policy Recommendations • Offset transportation costs exceeding earnings (115% of income) by providing Medicaid transportation stipends or mileage reimbursement for workers earning $880/month under the 80-hour requirement. • Expand rural transit and demand-response services in a state where 38.6% of residents live in rural areas, reducing reliance on car ownership, costing nearly $12,000 per year. • Allow phone- and SMS-based reporting options to address digital barriers affecting 9.1% of households and more than 90,000 unconnected households statewide.
CONGRESSIONAL BLACK CAUCUS FOUNDATION CENTER FOR POLICY ANALYSIS AND RESEARCH
Driving Disconnection With the 80-Hour Medicaid Work Requirement