Arkansas Veterans Department outlines plan for a new Northwest Arkansas home and explains operating model

The Arkansas Department of Veterans Affairs told the Senate Children and Youth Committee that it is pursuing a federally funded replacement for the Fayetteville veterans home and outlined how the department operates its long‑term care facilities.

Secretary Kendall Penn said the department currently operates two veterans homes (North Little Rock and Fayetteville), two veteran cemeteries and a veteran services division. He told the committee the department has set aside $15,000,000 in state funds to serve as the state match for a Veterans Affairs grant and expects to be high on the VA’s grant list next year for an estimated $35,000,000 award to build a new facility in Northwest Arkansas. Penn said the Walton Family Foundation has donated 60 acres on the Rogers–Bentonville boundary for the project and the department is negotiating with Alice Walton’s design staff for architecture and engineering work.

Penn described operational funding for existing homes: they are designed to run largely without state general revenue and depend on federal and other reimbursements. He provided illustrative daily figures: the cost to care for a veteran is roughly $400 per day; VA reimbursement for a 70% disabled veteran can be about $460 per day (producing a modest operating margin), while Medicaid reimbursement of about $341 per day can create an operating loss. Penn said the Fayetteville home had become financially unsustainable and the department has capped new admissions until a replacement facility opens. He said rules for homes, cemeteries and the veteran child welfare service program are being drafted for promulgation and anticipated to go before the legislature in November.

Committee members asked about outreach, website availability and supports for veterans who do not meet high VA-disability thresholds. Secretary Penn said the department took its website down in March for updates and is negotiating a contract to restore it; staff will notify county veteran service officers. Multiple members encouraged regional facility tours for the committee and requested additional budget-and-turnback data so legislators can better assess funding needs for veteran services.