Abstract Purpose of Review The Arctic has experienced the most rapid change in climate of anywhere on Earth, and these changes are certain to drive changes in the carbon budget of the Arctic as vegetation changes, soils warm, fires become more frequent, and wetlands evolve as permafrost thaws. In this study, we review the extensive evidence for Arctic climate change and effects on the carbon cycle. In addition, we re-evaluate some of the observational evidence for changing Arctic carbon budgets. Recent Findings Observations suggest a more active CO2 cycle in high northern latitude ecosystems. Evidence points to increased uptake by boreal forests and Arctic ecosystems, as well as increasing respiration, especially in autumn. However, there is currently no strong evidence of increased CH4 emissions. Summary Long-term observations using both bottom-up (e.g., flux) and top-down (atmospheric abundance) approaches are essential for understanding changing carbon cycle budgets. Consideration of atmospheric transport is critical for interpretation of top-down observations of atmospheric carbon.