January 7, 2026
State News

Volunteer Fire Departments Face Budget Crunch as State Shuts Down Federal Surplus Program

Volunteer Fire Departments Face Budget Crunch as State Shuts Down Federal Surplus Program

BATESVILLE, Ark. – The impending closure of Arkansas’ Federal Surplus Property Program is hitting close to home for the state’s 974 volunteer fire departments, including the dozen or so in Independence County that serve rural communities from Bethesda to Cord.

The program, administered by the Arkansas Division of Emergency Management under the Department of Public Safety, has for decades distributed surplus federal equipment—ranging from fire trucks and protective gear to hand tools and generators—to eligible government entities at low or no cost. It operated on a self-sustaining model, reselling items to fund operations.

But recent federal regulatory changes have drastically reduced the availability of large surplus items, rendering the program financially unviable. Department of Public Safety Secretary Mike Hagar explained that about three years ago, the federal government altered rules, limiting what could be redistributed. “With fewer large surplus items available for resale, the department said it can no longer sustain operations,” Hagar stated.

The closure, set for the end of 2025, leaves volunteer departments—97% of Arkansas’ 1,003 total fire services—scrambling for alternatives amid already tight budgets funded largely by local millage taxes and state Act 833 grants. Everyday items like medical supplies and small generators made the biggest difference in keeping costs down.

Independence County is home to volunteer departments such as the Bethesda Area Volunteer Fire Department, Charlotte Fire Department and Southside Volunteer Fire Department, which cover expansive rural areas with limited tax bases. These stations often depend on external aid for equipment upgrades, especially as wildfire risks rise in the Ozarks and structure fires strain aging gear.

State fire officials estimate the program has equipped hundreds of Arkansas departments over the years, preventing millions in out-of-pocket expenses. With its end, local leaders may turn to federal Assistance to Firefighters Grants or private fundraising, but experts warn delays could impact response times in underserved areas.

As Independence County firefighters continue mutual aid calls across the region, the loss underscores the fragility of rural emergency services. “We’re grateful for what we’ve received, but this change forces us to rethink every dollar,” said a spokesperson for the Arkansas Fire Chiefs’ Association, highlighting the need for legislative advocacy to explore workarounds.

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