KentuckyHB 9002026 Regular SessionHouse

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

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Bill Overview

Analyzed Economic Effects

21 provisions identified: 18 benefits, 0 costs, 3 mixed.

Cleaner water and sewer upgrades

The law provides $45 million each year in FY2026-2028 to help troubled water and sewer systems statewide. It also funds local projects, including Hart County ($20 million for a pretreatment plant), Hazel Green ($3 million), Paducah ($3.225 million), Harlan ($1 million then $500,000), Cawood ($1.3 million each year), Daviess County ($1.546 million), South Lincoln ($600,000), and Western Rockcastle ($3 million). Owensboro Municipal Utilities receives $1 million each year for smart meters and other upgrades. These projects aim to improve water quality, reduce breaks and leaks, and stabilize local service.

Big boost for roads, rails, airports

The law invests in travel and freight across Kentucky. It funds $75 million in FY2026-2027 and $155 million in FY2027-2028 for construction‑ready highway projects in the state plan. It gives $11.4 million to general aviation airports, split equally, plus $17.3 million to Louisville’s airport and $5 million to move Bluegrass Airport’s control tower. Riverports get $15.1 million in FY2026-2027 and $14.5 million in FY2027-2028. It also launches a short line rail pilot with $7.5 million each year, requiring a 50% non‑state match and capping any project at $2 million, with a report due by September 1, 2026.

More funding for Kentucky K‑12

Schools get $14 million each year for K‑12 supplemental funding under state law. A school innovation pilot gets $2.5 million in FY2026-2027 and $5 million in FY2027-2028, with state funds matching local school board dollars. Building and renovation money goes to many districts, including $10 million for Lebanon Elementary; $2.5 million each year for Lincoln and Garrard; $500,000 each year for Todd County and Russellville; $1.5 million for Williamstown; and $2 million each year for a McCracken High CTE addition. Lincoln County cannot use its funds on athletic facilities. Student programs also get support, including $5 million for the FFA Training Center, $250,000 for KY First Robotics, and $60,000 for Mentor Kids Owensboro.

New investments in colleges and research

The Endowed Research Fund gets $37.5 million in FY2026-2027 to create five research consortiums. Each consortium receives $1.5 million per year for five years, and funds carry forward. Eastern Kentucky University gets $8 million to start an osteopathic medicine program and holds a $42 million escrow reserve to advance it. The law also provides $2.2 million in FY2027-2028 for the Glendale Training Center at Elizabethtown Community and Technical College.

Downtown Louisville and Frankfort boost

The law gives Louisville Metro $20 million in 2026‑2027 and $70 million in 2027‑2028 for downtown projects such as The Belvedere, the Convention Center corridor, LOUMED, vacant building revival, and a waterfront amphitheater. It also gives the City of Frankfort $11 million in 2027‑2028 to build a convention center. Louisville’s Economic Development Department decides how to allocate its funds among the named projects.

More funding for small businesses

The law funds business growth and research. It provides $50 million each year for the GRANT Program and $25 million each year for product development. It sets $40 million each year for mega‑development loans, which can include forgiveness with approval. It adds $2.5 million a year to the Kentucky Enterprise Fund, $3 million a year to Blue North, $2.5 million a year to the Kentucky BioInnovation Fund, and $1 million a year for LifeSciKY facility upkeep. It also provides $10 million a year to the Central Kentucky Business Park Authority, $5 million a year for agriculture economic development, $2.5 million a year for talent recruitment, $1.75 million a year for the Landing Entrepreneurship Center in Owensboro, and $5 million in 2027‑2028 for a new CDFI grant program.

More support for Kentucky veterans

Kentucky Valor receives $500,000 each year in FY2026-2028 to support services for veterans. This funding helps veterans access support in their communities.

Boone County river rescue station

Boone County receives $4.5 million in 2027‑2028 to build a river station for Boone County Water Rescue on the Ohio River. The new facility strengthens local emergency response and public safety.

Paducah and Grayson projects keep funds

The law keeps $2,000,000 from FY 2024–2025 available for the City of Paducah’s Build Ready project; it does not lapse and carries forward. It also redirects $10,000,000 from FY 2024–2025 to the Grayson County Fiscal Court to move the county airport and buy industrial land. Those funds also do not lapse and carry forward.

Parks, trails, and arts projects

The law invests in local parks and culture. Bowling Green gets $8 million each year for Riverfront Park. Elizabethtown gets $1 million each year to build a Nature Center. Breckinridge County gets $3 million for an outdoor amphitheater at Rough River Lake. Natural Bridge State Park gets $3 million in 2027‑2028 to dredge Hoedown Island Lake, and Breaks Interstate Park gets $4 million to build an RV site. The City of Stanton gets $500,000 for park upgrades; Erlanger gets $500,000 each year for the Eons Adventure Park; and Crofton gets $250,000 each year for Veterans Park and city facilities. Owensboro gets $100,000 for the Botanical Garden event center and $100,000 for the Symphony’s education outreach. Lincoln County gets $200,000 for the Fort Logan master and construction plan. These grants improve local recreation, tourism, and community spaces.

New local ER and fire station

Garrard County receives $5 million in FY2027-2028 to build a free‑standing emergency room with Ephraim McDowell Regional Medical Center. Laurel County receives $250,000 in FY2026-2027 and $150,000 in FY2027-2028 to build a new fire station. These projects improve local emergency response and access to care.

Safer dams and cleaner waterways

The law funds water safety and recreation projects. Meade County gets $925,000 in FY2027-2028 to repair and shore up the Doe Valley dam. Graves County gets $210,000 in FY2026-2027 for river cleanup. Buckhorn Lake State Park gets $1 million in FY2026-2027 and $1.1 million in FY2027-2028 to replace the marina, with a focus on public safety.

Funding for student CPR training

The law provides $250,000 each year in FY 2026–2027 and FY 2027–2028 to the Department for Public Health. The money supports CPR training for students. Schools and partners can use it to teach life‑saving CPR skills.

Health research and recovery services

The state funds health research and recovery services. The Pediatric Cancer Research Trust Fund gets $2 million each year. The Department for Public Health gets $1 million in 2026‑2027 and $500,000 in 2027‑2028 for a Parkinson’s disease registry. The Board of EMS gets $25,000 each year to support the cardiac arrest registry. Daviess County receives $500,000 in 2027‑2028 for the Green River Community Food warehouse. Volunteers of America receives $3 million in 2026‑2027 and $6 million in 2027‑2028 to support Freedom House in Stanford.

More funding for affordable homes

The law provides $5,000,000 each year in FY 2026–2027 and FY 2027–2028 to the Residential Infrastructure Revolving Loan Fund. The fund offers loans to support infrastructure for housing projects. The law also provides $2,500,000 each year in the same period to the Affordable Housing Trust Fund. That money supports programs that help low‑income renters find or keep housing.

Workforce recruitment and rural study

Warren County receives $1.5 million in FY2026-2027 and $3.5 million in FY2027-2028 for a workforce talent recruitment pilot. The state also funds a $250,000 rural workforce study with KCTCS and the Education and Labor Cabinet. These actions aim to draw workers and shape long‑term job strategies.

Incentives to add flights at airports

The law gives $10 million in 2026‑2027 to attract more flights. Cincinnati/Northern Kentucky Airport receives $6 million and Louisville Muhammad Ali International receives $4 million. The money supports airline incentives and revenue guarantees to add nonstop service.

Local site and business park grants

The state funds local sites and infrastructure for jobs. Lincoln County gets $1 million in 2026‑2027 and $3.5 million in 2027‑2028 for water, sewer, and other non‑road projects. Rockcastle County’s Industrial Authority gets $2.9 million in 2026‑2027 and $2.13 million in 2027‑2028 for land and site work. The City of Auburn gets $928,000 in 2026‑2027 and $772,000 in 2027‑2028 for business park site work. Bell County gets $600,000 in 2026‑2027 for community and economic development. Community Ventures receives $5 million each in 2027‑2028 for community development in Bourbon County and Fulton County.

Law takes effect immediately

The law declares an emergency. It takes effect as soon as it is signed or otherwise becomes law, so funding can start right away.

Recovery and jobs program must partner

The law keeps $6,000,000 each year for the Life Learning Center. To receive it, the program must partner with a nonprofit in Community Mental Health Region 13 or 14. The partner helps provide recovery and job placement services.

Budget Reserve funds, not General Fund

The law states these appropriations come from the Budget Reserve Trust Fund Account. Agencies must not count them as General Fund when certifying income‑tax reduction conditions. This is an accounting rule that changes reporting, not direct household payments.

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