AR SB625

Expands qualifying expenses for Education Freedom Accounts to include co-curricular courses in fine arts, music, or STEM offered by public schools, and caps transportation and extracurricular activity costs at 25% of annual account funds each

Removes previous enrollment caps and eligibility restrictions, making all Arkansas residents eligible for public elementary or secondary school enrollment starting with the 2025-2026 school year

Establishes application period from February 1 through June 1 for upcoming school years, with priority categories for insufficient funding including students with disabilities, homeless students, foster children, and children of military/law enforcement families

Reduces vendor administrative fee withholding from 5% to 2% of allocated funds and requires the Department of Education to develop flexible payment systems including electronic transfers, debit cards, and direct payments to providers

Adds account closure triggers for student expulsion or fraudulent conduct, allows parent appeals to the State Board of Education, and authorizes the division to pursue collection of misused funds through all legal means