Ark. Code Ann. § 14-54-108: Federal assistance

(a) Any city or town in this state, acting pursuant to authority of the legislative body thereof, is authorized to apply for and accept assistance or gifts in the form of funds or otherwise from the federal government, or any department, agency, or authority of the federal government, and to utilize these funds for any public purpose in the discretion of the legislative body of the city or town, consistent with restrictions, if any, placed thereon by the federal government.

(b) Any city or town in this state may contract with the federal government or any federal department, agency, or authority for the purpose of accepting assistance or gifts in the form of funds, or otherwise, upon such terms and conditions as may be agreed upon, and may utilize these funds for any public purpose.