KentuckyHB 5012026 Regular SessionHouse

AN ACT relating to appropriations providing financing and conditions for the operations, maintenance, support, and functioning of the Transportation Cabinet of the Commonwealth of Kentucky.

Sponsored By: Jason Petrie (Republican)

Became Law

AppropriationsBudget And Financial AdministrationCapital ConstructionGovernorHighways, Streets, And BridgesState AgenciesTransportation

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Bill Overview

Analyzed Economic Effects

19 provisions identified: 14 benefits, 1 costs, 4 mixed.

Long-serving county executives get expense allowance

Eligible county judges/executive receive a $3,000 yearly expense allowance. They must have served in that role before November 2022. Officials first elected in November 2022 or later do not qualify. Officials serving in counties with consolidated local governments also do not qualify.

Funding for Kentucky highway construction

The law funds state highway projects and state matches with $416.6121 million in 2026–27 and $503.2889 million in 2027–28. Federal construction gets about $1.176 billion and $1.243 billion in those years, respectively. Each year, highway planning gets $835,500 from the Road Fund and $6.2195 million in federal funds. These funds support highway projects and planning through June 30, 2028.

More licensing offices and free vision tests

The law funds three additional driver licensing offices in Barren, Bullitt, and Oldham Counties. Support totals $5.0356 million in 2025–26, $16.0797 million in 2026–27, and $15.6639 million in 2027–28. Participating public libraries can provide driver’s license renewal vision tests at no cost to the public. Libraries must sign an agreement with the Transportation Cabinet. The program gets $125,000 in 2027–28 for training, equipment, and related costs.

Funding for city roads and local bridges

Municipal Road Aid gets $54.2792 million from the Road Fund in 2026–27 and $57.3515 million in 2027–28. It also gets $13 million from the General Fund in 2027–28, with aid distributed under state law. The Local Assistance Road Program gets $70.1894 million and $20 million in those years, respectively, for county and city roads. County and city bridge improvements get $25 million from the Road Fund each year. These programs are funded through June 30, 2028.

Funding for county and rural roads

County Road Aid gets $129.0013 million from the Road Fund in 2026–27 and $136.303 million in 2027–28. It also gets $13 million from the General Fund in 2027–28. Rural Secondary roads get $156.4934 million and $165.3512 million in those years, respectively. Both programs follow their state-law distribution rules through June 30, 2028. The Cabinet must continue the Flex Funds and 80/20 Bridge Replacement programs within Rural Secondary.

Funding for road upkeep and snow removal

Highway maintenance gets $459.0129 million in 2026–27 and $474.0129 million in 2027–28. Those totals include $23.6054 million and $38.6054 million, respectively, for added maintenance and snow and ice removal. Road Maintenance Parks also get $1.5 million from the Road Fund each year. The funding runs through June 30, 2028.

Brent Spence financing includes debt payments

The law reauthorizes $150 million in GARVEE bond funds for the Brent Spence Bridge Project. Annual debt payments use $15.4264 million in federal funds and $3.856 million from the Road Fund. Those payments are funded in both 2026–27 and 2027–28.

River crossing financing includes debt payments

The law reauthorizes $150 million in GARVEE bond funds for the I-69 Ohio River Crossing. Debt payments use $7.7132 million in federal funds and $1.9283 million from the Road Fund in 2026–27. In 2027–28, payments use $15.4264 million in federal funds and $3.8566 million from the Road Fund. The project's General Fund appropriation requires selection for funding through any Federal Transportation Grant Program or Loan Program. This replaces the narrower condition requiring selection through a federal Multimodal Project Discretionary Grant.

Cabinet drivers get medical exam reimbursement

Cabinet employees can get required physical exam costs reimbursed when their jobs require a valid commercial driver’s license. Reimbursement covers the contractually agreed cost; the law does not state a dollar amount. Employees can choose their medical provider. They must submit itemized receipts and other required forms under Cabinet reimbursement procedures.

Maintenance contracts support probation and parole jobs

The law provides $1 million yearly in 2026–27 and 2027–28 for highway maintenance contracts employing people on probation or parole. Contractors must be a 501(c)(3) nonprofit or another entity employing that group. Crews perform work such as litter cleanup, graffiti removal, and vegetation control. Workers are selected with input from the Kentucky Department of Corrections. The law does not guarantee a job or set a wage.

Cabinets can accept highway litter donations

The Transportation Cabinet and Energy and Environment Cabinet can seek and accept help for Adopt-a-Highway or other statewide litter programs. Contributions can include money, property, labor, and other support. They are restricted funds for a public purpose and exempt from the cited state executive-branch ethics restrictions. Contributions must support the litter programs.

Highway emergency funding with designated set-asides

The Highway Construction Contingency Account gets $11.89 million in each year, 2026–27 and 2027–28. The Secretary's project spending is limited to emergencies or work that fixes hazardous conditions. The account also contains amounts set aside for named purposes, including $5 million yearly for the Kentucky Pride Fund. These appropriations run through June 30, 2028.

Transportation funding for nonpublic school families

Nonpublic school transportation gets $4.8 million in 2026–27 and $4.65 million in 2027–28. The money supports transportation services for students attending nonpublic schools through June 30, 2028. The law does not set a payment amount for individual families.

Funding for riverports and truck parking

The Riverport Financial Assistance Trust Fund gets $500,000 in each year, 2026–27 and 2027–28. The law also provides $5 million in federal funds in 2026–27 to increase highway truck parking capacity. These funds support riverport assistance and parking for truck drivers and freight operators, not household payments.

Highway builders get more project options

The Cabinet can use design-build contracting, which combines design and construction, for any project in the Biennial Highway Construction Plan. It must report project status and costs annually, by November 1. The Cabinet cannot restrict recycled asphalt mixtures that meet established performance standards. It must report recycled asphalt use by November 1, 2027. The law states a goal of at least 30% recycled asphalt in mixtures by 2030, not a binding requirement.

Highway funds carry forward with priorities

Specified unspent General Fund and Road Fund money carries forward for highway construction, maintenance, and research. Federal and restricted money also carries forward for those programs and equipment services. Those balances are limited by ending cash, unissued highway and GARVEE bonds including interest, and grant balances. Any extra federal money assigned to a project must go to that project. Other extra federal money goes first to the 2026–28 construction program; leftovers can support preconstruction projects.

Cabinet employees face remote work limits

Transportation Cabinet employees cannot telecommute unless the Secretary specifically grants them an exemption. Beginning August 1, 2026, the Cabinet must report exemptions to the Legislative Research Commission every three months.

Local road grants require matching money

A $24 million pool in 2026–27 funds city or county road improvements, new routes, sidewalks, multimodal projects, and resurfacing. Applications must identify the project and estimated cost; grants generally cap county and eligible county-seat city awards at $100,000 each. Counties with consolidated local government, urban-county government, or a county seat that is not a unified city can receive $200,000. Lexington and Louisville are excluded from county-seat city awards; unused city allocations can go to other incorporated cities in that county. Every grant requires a dollar-for-dollar local match, excluding the specified county and municipal road aid funds.

Rail grants require outside matching money

Railroad safety and service improvements get $1.6 million in each year, 2026–27 and 2027–28. Each project must obtain nonstate money covering at least 20% of its total cost. Up to $350,000 of each year's appropriation can establish and run the Kentucky Rail Office within the Transportation Cabinet. That office funding comes from the existing rail appropriation, not an additional award.

Sponsors & Cosponsors

Sponsor

  • Jason Petrie

    Republican • House

Cosponsors

  • Adam Bowling

    Republican • House

  • Josh Bray

    Republican • House

  • Ken Upchurch

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 321 • No: 43

House vote • 4/14/2026

passed

Yes: 81 • No: 17

Senate vote • 4/14/2026

passed

Yes: 32 • No: 6

House vote • 4/1/2026

passed

Yes: 80 • No: 11

Senate vote • 4/1/2026

3rd reading, passed

Yes: 38 • No: 0

House vote • 3/10/2026

3rd reading, passed

Yes: 90 • No: 9

Actions Timeline

  1. delivered to Secretary of State (Acts Ch. 167)

    4/14/2026
  2. enrolled, signed by President of the Senate

    4/14/2026House
  3. enrolled, signed by Speaker of the House

    4/14/2026House
  4. received in House

    4/14/2026House
  5. passed 32-6

    4/14/2026Senate
  6. vetoes overridden

    4/14/2026Senate
  7. posted for consideration of Governor's line vetoes

    4/14/2026
  8. to Rules (S)

    4/14/2026Senate
  9. received in Senate

    4/14/2026Senate
  10. passed 81-17

    4/14/2026House
  11. vetoes overridden

    4/14/2026House
  12. posted for consideration of Governor's line vetoes

    4/14/2026
  13. taken from Rules

    4/14/2026House
  14. received in House

    4/14/2026House
  15. to Rules (H)

    4/14/2026House
  16. line items vetoed

    4/13/2026
  17. delivered to Governor

    4/1/2026
  18. enrolled, signed by President of the Senate

    4/1/2026House
  19. enrolled, signed by Speaker of the House

    4/1/2026House
  20. passed 80-11

    4/1/2026House
  21. House concurred in Committee Substitute (1)

    4/1/2026House
  22. posted for passage for concurrence in Senate Committee Substitute (1)

    4/1/2026Senate
  23. to Rules (H)

    4/1/2026House
  24. received in House

    4/1/2026House
  25. 3rd reading, passed 38-0 with Committee Substitute (1)

    4/1/2026Senate

Bill Text

  • Current

    4/14/2026

  • Introduced

    1/21/2026

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