KentuckyHB 9002026 Regular SessionHouseWALLET

AN ACT relating to government agencies, making an appropriation therefor, and declaring an emergency.

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Bill Overview

Analyzed Economic Effects

41 provisions identified: 40 benefits, 0 costs, 1 mixed.

More help for local water and sewer

The law puts $45 million each year into a program that helps troubled or cash‑strapped water and sewer systems statewide. It also funds local projects: $20 million in 2026-27 for Hart County’s wastewater pretreatment, $15 million in 2027-28 for LaGrange water and sewer, and $4 million each year for Trenton’s wastewater. Other upgrades include Pineville ($750,000 in 2026-27 and $550,000 in 2027-28), Mount Vernon ($500,000 in 2026-27 and $300,000 in 2027-28), new water lines to Thunder Mountain in Letcher County ($1,000,000 then $500,000), and $325,000 each year for Barbourville utilities. These projects improve service reliability, water quality, and billing accuracy for households.

Life Learning Center recovery program

The law provides $6 million each year to Community Based Services for the Life Learning Center. The program funds treatment, rehabilitation, reintegration, and job placement with a nonprofit in Community Mental Health Region 13 or 14.

Support for disability therapy centers

The law gives $4.5 million each year (2026–2028) to expand the Kids Center for Pediatric Therapies. It provides $750,000 in FY 2026–2027 and $1 million in FY 2027–2028 for Easterseals Redwood operations. It funds $500,000 each year (2026–2028) for Down Syndrome of Louisville. It adds $3 million in FY 2026–2027 for Cedar Lake Foundation to support care for people with I/DD.

More housing funds and loans

The law puts $5 million each year (2026–2028) into a revolving loan fund for residential infrastructure. It adds $2.5 million each year (2026–2028) to the Affordable Housing Trust Fund. It provides $6 million in FY 2026–2027 to finish 72 affordable units in Crestwood for adults with I/DD. It adds $2 million in FY 2026–2027 to build accessible housing for people with developmental disabilities.

Arts, history, and local venues funded

The law funds arts, history, and local venues statewide. It gives $3,200,000 in 2026-27 to the Louisville Orchestra for a statewide tour and $5,000,000 over two years to renovate the Milliken Memorial Community House. It also supports the Beaver Dam Amphitheater ($200,000 each year), Brooks Stadium in Paducah ($450,000 in 2027-28), and the Benham Schoolhouse Inn ($400,000 in 2027-28). Historic and cultural projects receive funds too: Spencer County renovations ($300,000), a 250th anniversary monument in Logan County ($100,000), and Isaac Shelby Cemetery entrance work ($100,000), plus Owensboro Symphony outreach ($100,000), a community center roof in Madisonville ($75,000), the “120: Cool KY Counties” project ($1,000,000), and planning for Fort Logan ($200,000).

Downtown Louisville and Frankfort funding

Louisville Metro receives $20 million in 2026-27 and $70 million in 2027-28 for downtown revitalization. The city’s Economic Development Department chooses among listed projects like the Belvedere, a Community Care Campus, a Convention Center corridor, LOUMED campus work, a vacant buildings fund, and a waterfront amphitheater. Frankfort also receives $11 million in 2027-28 to build a convention center.

Stronger local emergency and safety sites

The law builds and upgrades key safety facilities. Union County gets $2.5 million for an emergency operations center, and Daviess County gets $8.556 million for an emergency operations facility. Laurel County receives $400,000 across two years for a new fire station. The state also provides $925,000 to repair the Doe Valley dam and $2.1 million to replace the Buckhorn Lake State Park marina, which the Finance and Administration Cabinet must prioritize for public safety.

Water and sewer upgrades in many counties

The law funds many local drinking water and sewer projects for 2026-2027 and 2027-2028. Examples include $5.4 million for Kevil sewer work, $4 million for a Nicholasville water main, and $2 million each year for Allen County. Other named projects help Harlan, Daviess County, Cawood, Western Rockcastle, Green River Valley, and Livingston. Greenville must put up a 50% local match, and Garrard County funds cannot be used on roads. Most grants flow through the Kentucky Infrastructure Authority.

Grants for nonprofits and family services

Freedom House of Stanford receives $3,000,000 in 2026-27 and $6,000,000 in 2027-28 for treatment and recovery services. Canopy KY gets $375,000 each year for operations; other 2026-27 grants support the House of W.O.M.B. ($77,000), Paducah Cooperative Ministries ($150,000), the Melannaire Achievement Center ($77,000), Mentor Kids in Owensboro ($60,000), and the Empowerment Academy of Owensboro ($20,000). The Leadership Kentucky Foundation’s BRIGHT Program receives $450,000 in 2026-27 and must match it dollar-for-dollar, keep funds in a separate account, use earnings for programming, and not use the grant for administrative costs.

Medical school and research funding boost

The law gives Eastern Kentucky University $8,000,000 in 2026–2027 to start an osteopathic medicine program and sets a $42,000,000 escrow reserve to advance accreditation. It also puts $37,500,000 in 2026–2027 into the Endowed Research Fund. Five research consortia each get $1,500,000 per year for five years from that fund.

Past local project funds preserved

The law keeps $2 million for the City of Paducah’s Build Ready Grant from FY 2024–2025 from lapsing. It also keeps $10 million for Grayson County’s airport relocation and land purchase from FY 2024–2025 from lapsing. Both amounts carry forward until used.

Investments in riverports and freight

Public riverports receive $15.1 million in 2026-2027 and $14.5 million in 2027-2028 for improvements. The law also provides $4 million in 2026-2027 to the Paducah-McCracken County Riverport Authority for the Riverport West project. These funds support freight movement and local commerce.

More funding for Kentucky airports

The law invests in airports statewide. Bluegrass Airport gets $5 million in 2026-2027 to move its air traffic control tower, and the funds do not lapse. Eligible general aviation airports split $11.4 million in equal shares in 2026-2027. Louisville’s airport gets $17.3 million to match federal grants and expand airfield capacity. Wayne County receives $200,000 each year to design and build a county road to its airport.

Big funds for business growth

The law funds major statewide business tools. It provides $50,000,000 each year for the GRANT Program and $25,000,000 each year for the Product Development Initiative. It sets $40,000,000 each year for mega‑development projects (usually $10,000,000+), with loans the Cabinet can forgive if the Secretary approves. It adds $2,500,000 each year for KEDFA to back tech startups and $2,500,000 each year for the Kentucky Enterprise Fund. It also gives $5,000,000 in 2027–2028 to Kentucky‑based nonprofit CDFIs for loans that support commercial real estate, community facilities, and housing.

Local hubs and sites for jobs

The law funds local entrepreneurship hubs and sites. Examples include $1,750,000 each year for the Owensboro Landing Entrepreneurship Center and $3,000,000 each year to Blue North for innovation hubs. Rockcastle County gets $2,900,000 in 2026–2027 and $2,130,000 in 2027–2028 for land and site development. Jackson County Fairgrounds get $1,000,000 each year, and Camp Landing gets $500,000 in 2026–2027 and $3,500,000 in 2027–2028 for upgrades. The state also buys $10,000,000 of debt tied to Hopkinsville industrial land, with a 10‑year, 0% interest repayment to the Commonwealth. Other county projects support new hubs, offices, and economic initiatives.

Emergency care and CPR training

The law provides $5 million in FY 2027–2028 to build a free‑standing ER in Garrard County with Ephraim McDowell Regional Medical Center. It gives $25,000 each year (2026–2028) to run the cardiac arrest registry. It gives $250,000 each year (2026–2028) to support student CPR training.

Food bank and Alzheimer’s support

The law gives $2.5 million each year (2026–2028) to Dare to Care Food Bank to build a new warehouse. It also gives $1.25 million each year (2026–2028) to the Alzheimer’s Association chapter for research and services in Kentucky.

Funding for childcare and youth services

The law gives $1.25 million each year (2026–2028) to the Family Nurturing Center. It funds $550,000 each year (2026–2028) for a childcare effort in the Lincoln Trail Area Development District. It gives $250,000 each year (2026–2028) to the Cliff Hagan Boys and Girls Club in Ohio County. It provides $1.2 million in FY 2026–2027 and $1.3 million in FY 2027–2028 to Uspiritus to reopen and run care facilities. It adds $1.5 million in FY 2027–2028 to build an indoor arena for equine therapy at the Appalachian Children’s Home.

Pediatric cancer research funding

The law gives $2 million each year (2026–2028) to the Pediatric Cancer Research Trust Fund. The money supports research that can help Kentucky children with cancer.

Grants for farms and job sites

The law gives $5 million each year (2026–2028) to the Agriculture budget unit for farm and ag business growth. It also gives Hopkins County $1 million each year (2026–2028) to prepare an industrial site to attract jobs.

City parks and recreation upgrades

Crofton receives $250,000 in each year of 2026-28 for upgrades at Veterans Park and other city facilities. Erlanger receives $500,000 in each year of 2026-28 for the Eons Adventure Park initiative. These projects improve local recreation and community spaces.

Flood control and river cleanup grants

The law provides $1,800,000 in 2026-27 and $2,800,000 in 2027-28 to Middlesboro for flood mitigation and community development. It also provides $210,000 in 2026-27 for a river cleanup in Graves County. These projects reduce flood risk and improve local safety.

Funding for veteran services

The law gives $500,000 in each year of 2026–2028 to Kentucky Valor through the Department of Veterans Affairs. The funds support services for veterans.

Louisville arts and zoo upgrades

The law funds cultural sites in Louisville. The Louisville Zoo gets $1,000,000 in 2026–2027 and $4,000,000 in 2027–2028. The J.B. Speed Art Museum gets $1,500,000 each year. The Kentucky Center for the Arts gets $5,000,000 each year. These upgrades improve facilities and programs for families and visitors.

More flights and airport upgrades

The law provides $10 million in 2026-27 for airline incentives: $6 million to CVG and $4 million to SDF to compete for new nonstop routes. It also gives the Owensboro-Daviess County Regional Airport $1 million in each year of 2026-28 for capital improvements. These funds expand travel options and support local jobs.

Regional emergency radio system upgrade

The law provides $5,000,000 in 2026-27 to Logan County to buy and upgrade a regional radio system for Logan, Todd, and Christian Counties. The upgrade strengthens emergency and public safety communications across the region.

County development and infrastructure support

Bell County receives $600,000 in 2026-2027 for community and economic development. Rockcastle County receives $600,000 in 2026-2027 and $3 million in 2027-2028 for community projects, emergency management, and infrastructure upgrades. These funds back local growth and services.

Funding for local health centers

The law provides $1 million in 2026-2027 to support a wellness center in Harlan County. Shelby County receives $2 million in 2026-2027 and $5.5 million in 2027-2028 for a healthcare facility. These investments aim to improve access to local care.

More water and infrastructure in Lincoln County

Lincoln County gets $600,000 in 2026-2027 to expand water service in the Fishing Creek area. The county also gets $1 million in 2026-2027 and $3.5 million in 2027-2028 for water, sewer, and related infrastructure that supports jobs. The law bars using these funds for roads.

Stronger local food aid facilities

Daviess County gets $500,000 in 2027-2028 for the Green River Community Food warehouse. Pulaski County gets $550,000 in 2027-2028 to upgrade a building used with a local food pantry. These grants improve food storage, distribution, and service space.

Upgrades to local power and meters

Owensboro Municipal Utilities receives $1 million in 2026-2027 for utility upgrades, including smart meters to improve service and billing accuracy. The City of Falmouth gets $1 million in 2026-2027 and $2.5 million in 2027-2028 to design and build a transmission line. These projects support local power reliability.

Upgrades to parks and community spaces

The law funds local parks and community spaces in several counties and cities. Examples include $100,000 for the Western Kentucky Botanical Garden Event Center and $500,000 for Stanton city park needs. Bourbon and Edmonson counties also receive park funds. Lewis County gets $1 million for park upgrades but must provide a 10% match.

Medicaid fraud analytics and oversight

The law gives the Attorney General $1 million in FY 2026–2027 to hire a vendor for data analytics to detect fraud and waste. Results are used by the Office of Medicaid Fraud and Abuse Control and shared with state oversight offices.

School innovation and STEM support

The law provides $14,000,000 each year for supplemental school funding under KRS 157.069. It funds a School of Innovation pilot: $2,500,000 in 2026–2027 for Covington and $5,000,000 in 2027–2028 for two more schools, with a dollar‑for‑dollar local match and funds that do not lapse. It adds $250,000 in 2026–2027 for KY First Robotics school programs. It gives $5,000,000 in 2027–2028 to upgrade the Kentucky FFA Leadership Training Center.

Upgrades to local school buildings

The law funds school building work in several districts. It pays $2,000,000 each year for a CTE addition at McCracken County High School. It sends recurring money to Garrard County ($500,000 a year and another $2,500,000 a year) and Lincoln County ($2,500,000 a year, not for athletics). Russellville gets $500,000 a year and Williamstown gets $1,500,000 in 2026–2027 for renovations. Rockcastle County schools get $500,000 in 2026–2027 for facility and equipment needs.

Workforce and talent programs funded

The law funds $5,000,000 each year for Kentuckiana Works to expand training and job placement. It gives Goodwill Kentucky $1,500,000 each year to open a second Fayette County site for job services. It provides $2,500,000 each year to the Talent Recruitment Grant Program Fund. It adds $250,000 in 2026–2027 for a rural workforce study with colleges and labor officials.

Airport and site access upgrades

The law gives Barkley Regional Airport $1,000,000 in each year of 2026–2028 for capital projects. It also gives Louisville Metro $1,750,000 in 2026–2027 to improve site access. Travelers, commuters, and nearby businesses benefit from better access and infrastructure.

Local business sites and county development

The law funds site development at the Auburn Business Park with $928,000 in 2026-27 and $772,000 in 2027-28. It also provides $5,000,000 in 2027-28 for community development in Bourbon County and $5,000,000 in 2027-28 for Fulton County, both through Community Ventures Corporation.

Grants to repair short line railroads

The law creates a Short Line Infrastructure Preservation Pilot. It provides $7.5 million each year to help Class II and Class III railroads with capital projects. Each project must have at least a 50% non‑state match, and no project can get more than $2 million. Funds carry from 2026-2027 into 2027-2028, and a report is due by September 1, 2026.

Budget records use reserve fund

The law requires these appropriations to be recorded as paid from the Budget Reserve Trust Fund, not the General Fund, for certain state certifications. This is an internal budgeting rule and does not change taxes or services.

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Sponsors & Cosponsors

Sponsor

Jason Petrie
Republican • House

Cosponsors

Adam Bowling
Republican • House
Josh Bray
Republican • House
Steven Rudy
Republican • House

Roll Call Votes

All Roll Calls

Yes: 256 • No: 14

Senate vote • 4/1/2026

passed

Yes: 36 • No: 1

House vote • 4/1/2026