KentuckyHB 6472026 Regular SessionHouse

AN ACT relating to economic relief for local communities of the Commonwealth and declaring an emergency.

Sponsored By: Shawn McPherson (Republican)

Signed by Governor

Area Development DistrictsCitiesCountiesEconomic DevelopmentEffective Dates, EmergencyLocal GovernmentPropertyPublic Buildings And GroundsPublic HealthPublic UtilitiesSewer SystemsState AgenciesSunset LegislationTelecommunicationsTransportationWater SupplyWaterways And DamsWorkforce

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Who can apply for state matches

The law lets Kentucky counties, cities, public‑service groups (police, fire, EMS, rescue, waterfront), water and wastewater utilities, and 501(c)(3) nonprofits apply for state matching funds. It also expands which federal grant sources qualify, adding agencies like the U.S. Departments of Justice and Defense, the Appalachian Regional Commission, the Delta Regional Authority, and the National Science Foundation. More local and nonprofit projects can now seek a state match when they apply for these federal grants.

County match rates and regional pooling

Beginning July 1, 2026, each county must pay a local match equal to a share of the state match: rank ≥ 193 pays 2%; ranks 145–192 pay 4%; 97–144 pay 6%; 49–96 pay 8%; ranks below 49 pay 10%. The cabinet sets each county’s rank by adding its population‑density rank and its 10‑year population‑change rank, determined by May 1, 2024 and every two years after. For regional projects, the cabinet can pool state allocations, and counties may pool their local shares, but each county still owes its required match.

GRANT application deadlines and compliance rules

Applicants must file a GRANT Program application within 90 days of submitting their federal grant. The cabinet reviews applications monthly, gives a preliminary evaluation within 14 days of the month’s first day, and makes a final decision by the last day of that month. Awarded funds must be obligated within 12 months, with one possible 12‑month extension. If a recipient misuses funds or fails matching or reporting rules, they must repay the full award.

Scoring, public reports, and end date

The cabinet scores projects by return on investment and community impact, including jobs, economic impact, costs, community support, feasibility, and ability to run the federal grant. Monthly public reports begin June 1, 2024 and list each application, amounts, scores, and decisions; annual reports run each November 1 through 2028. The program sunsets December 31, 2028 unless extended.

Sponsors & Cosponsors

Sponsor

Shawn McPherson
Republican • House

Cosponsors

Jason Petrie
Republican • House

Roll Call Votes

All Roll Calls

Yes: 135 • No: 0

Senate vote • 3/31/2026

3rd reading, passed

Yes: 38 • No: 0

House vote • 3/12/2026