Joe Gibbs Racing will shut down its ARCA Menards Series program after the 2026 season and channel resources to improve its four-car NASCAR O’Reilly Auto Parts Series operation. The decision ends nearly a decade of ARCA competition for the organization. The team has developed several prominent NASCAR drivers and continued winning championships.
JGR executive vice president of O’Reilly Series and Development Steve DeSouza confirmed the decision during a September 30 interview. DeSouza acknowledged that the organization needs considerable improvements in its second-tier national series program, where only two of its four full-time drivers qualified for the 2026 Chase.
The team plans to make its final ARCA appearance at Phoenix Raceway on October 17, ending the No. 18 Toyota’s involvement in the series.
DeSouza said the closure is a “really difficult decision” and explained that the team’s management evaluated its operations while preparing for 2027. The assessment prompted the organization to concentrate its available resources on its O’Reilly Series teams.
“It’s pretty obvious we’ve been struggling there a little bit,” DeSouza said.
The team’s ARCA operation claimed eight national-series wins in 2026, with Gio Ruggiero and Max Reaves each winning four races. Their combined performances also secured the owners’ championship by eight points over Pinnacle Racing Group.
Meanwhile, JGR’s O’Reilly operation managed three wins through the first 27 races. William Sawalich won the race at Rockingham Speedway, Taylor Gray succeeded at Kansas, and Brandon Jones secured victory at Chicagoland.
Jones and Gray secured Chase berths, while Sawalich and Brent Crews suffered costly lapses during the regular-season finale at Daytona International Speedway. Both drivers entered the event just one point above the elimination line, but crashes destroyed their championship opportunities.
The outcome showed the gap between JGR’s individual victories and its capability to deliver consistent results across all four cars.
The organization will retain its existing O’Reilly driver lineup for 2027, with Sawalich continuing in the No. 18, Crews driving the No. 19, Jones occupying the No. 20, and Gray returning to the No. 54.
JGR has not detailed how it will distribute the ARCA program’s personnel, equipment, or budget. However, the decision lets management focus more resources on technical development, race preparation, and organizational performance.
What Joe Gibbs Racing’s ARCA Closure Means for Its Young Drivers
JGR’s departure creates uncertainty around one of NASCAR’s established driver-development pathways.
The organization returned to ARCA competition in 2017 with Riley Herbst and subsequently developed numerous drivers through its No. 18 program. Ty Gibbs won the 2021 national championship, while Sammy Smith claimed the ARCA East title that same year. Sawalich continued that success with consecutive East championships in 2023 and 2024.
However, the closure’s consequences go beyond the decision’s immediate side effects, as sixteen-year-old Max Reaves now has an uncertain future. The North Carolina native joined JGR’s development program in February 2024 and has accumulated seven national-series victories.
DeSouza confirmed that Reaves’ development agreement remains on pause following the organization’s decision. He also explained that JGR intends to help the driver and his family explore other opportunities as interested parties begin making inquiries.
For now, neither Reaves nor another organization has confirmed his 2027 racing arrangements.
Other than that, it would also raise questions about how JGR will develop its next generation of drivers without operating its own ARCA team.
One option is to partner with existing ARCA organizations. Toyota already maintains a relationship with Nitro Motorsports, which acquired Venturini Motorsports and continued its manufacturer’s development program.
Given Nitro’s existing Toyota relationship, it’s a relevant organization to watch if JGR considers future development opportunities.
JGR also needs to figure out what to do with its ARCA equipment. DeSouza acknowledged that management has yet to finalize those plans.
The end of JGR’s stint in the division also changes Toyota’s presence in ARCA. The manufacturer bagged its 11th championship in 2026, with Joe Gibb’s team contributing big time to its victories.