KentuckySB 1972026 Regular SessionSenateWALLET

AN ACT providing funding and establishing conditions for state government agencies and institutions, making an appropriation therefor, and declaring an emergency.

Sponsored By: Phillip Wheeler (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

104 provisions identified: 81 benefits, 10 costs, 13 mixed.

Incentive pay for qualified professional firefighters

Qualified professional firefighters receive $4,653 in incentive pay in 2026–2027 and $4,746 in 2027–2028. Firefighters must qualify under the Firefighters Foundation Program Fund. The funding also includes the required employer contribution, whose amount is not stated.

College scholarship funding with stricter grades

For 2026–2028, high school students need at least a 2.75 yearly grade point average for that year's KEES base award. Students below that mark do not qualify for that year's base award. The Kentucky Educational Excellence Scholarship program gets $93.6566 million in General Funds each fiscal year, plus specified Restricted Funds.

Child care eligibility and transition help

Child Care Assistance Program eligibility decisions exclude child care providers' income. The law funds that exclusion with $17.24 million in fiscal year 2026–2027 and $16.67 million in 2027–2028. Families losing eligibility receive support for a six-month transition. Transition funding is $1.44 million in General Funds in 2026–2027 and $1.395 million in 2027–2028. These provisions do not set each family's assistance amount.

Funding and faster licensing for kin caregivers

The law provides $6 million each year in 2026–2028 for relatives and close family friends caring for children. Revised rules must include provisional licensing, with five-day approvals for qualifying events and 120 days to meet non-safety requirements. Available federal foster care and Temporary Assistance for Needy Families funds are included as funding sources. Another $22 million each year supports foster care, kinship care, and specialized services for children with exceptional needs. Available Temporary Assistance for Needy Families funds and reserves must be used before that $22 million appropriation.

Health coverage funding for school employees

The law funds employer health insurance contributions for Kentucky school employees. It provides $1.0768215 billion in fiscal year 2026–2027 and $1.2778238 billion in 2027–2028. Another $98.3107 million carries forward from fiscal year 2025–2026 into 2026–2027. The funding also covers health reimbursement account contributions for employees who waive coverage. The provision does not set each employee's contribution amount.

Kin caregivers gain custody change options

Relatives and close family-like caregivers can request a custody change within 120 days of receiving temporary custody. They can also request one after a verified qualifying event. Events include caregiver death or incapacity, disability-related income loss, or specified early or unplanned retirement causing substantial income loss. Disaster or fire losses, divorce or legal separation, and major changes in the child's medical or behavioral needs also qualify. After preliminary approval, the Cabinet can seek court approval for state custody so the caregiver can pursue foster-parent approval.

Funding for students' college grants

Each fiscal year, the College Access Program gets $179.3448 million in General Funds and $1.1 million in Restricted Funds. It also gets $450,000 yearly from Minority Educator Recruitment and Retention Scholarship loan collections. The Kentucky Tuition Grant Program gets $45.975 million each fiscal year. These funds support grants for eligible students; the law does not set each student's award.

Teacher and early childhood education aid

The Teacher Scholarship Program gets $1.015 million in Restricted Funds each fiscal year. The Teacher Recruitment Student Loan Forgiveness Pilot gets $4.8 million yearly, including $2 million from lottery revenues. The Early Childhood Development Scholarship Program gets $2.4 million in fiscal year 2026–2027 and $2.325 million in 2027–2028. The funding supports program participants, but these provisions do not specify individual awards or loan forgiveness amounts.

Tuition award funding for Guard members

The Kentucky National Guard Tuition Award Program gets $7.3981 million each fiscal year. The money supports tuition awards for eligible recipients. The provision does not set each recipient's award amount.

Higher payments for child care providers

Child care providers serving Child Care Assistance Program families receive higher reimbursements. Rates are set at the 80th percentile of the Market Rate Survey. The law provides $26.88 million in 2026–2027 and $26.04 million in 2027–2028 for this increase. It does not set each provider's payment or change what families owe.

More funding for Kentucky development programs

The law provides $50 million each fiscal year for the GRANT Program during the 2026-2028 budget period. The Kentucky Product Development Initiative gets another $25 million each fiscal year. Unused Science and Technology Program money from 2025-2026 and 2026-2027 stays available within the Cabinet for Economic Development. Remaining product development money authorized in 2022 also carries forward instead of expiring. The Cabinet can retain up to $180,000 yearly to reimburse the Kentucky Association for Economic Development for technical support and evaluation.

More funding for school meal programs

The law adds $100.1812 million in federal funding each year in 2026–2028 for school and community nutrition programs. The money supports meals and nutrition services. The provision does not set individual eligibility, meal prices, or a payment for each household.

Colleges get bonds for education buildings

The law provides $79.4 million in agency bonds in 2027–2028 to build a new Applied Science Building. It also provides $42 million in agency bonds in 2026–2027 for a Prison Education Program facility. That facility is at Bluegrass Community and Technical College. These construction funds do not establish student aid, admission rules, or tuition changes.

Funding career training for school students

Career and technical education receives $127.1159 million each year in 2026–2028. This includes $70.0634 million annually in supplemental funding for qualifying local and state-operated centers and programs. Their supplemental shares depend on enrollment and incentive criteria. Shelby County's school board also receives $2 million in 2026–2027 for its middle school career center program.

Funding new research and science buildings

The law provides $365 million in 2026–2027 to construct a research facility. Funding includes $50 million in restricted funds, $65 million in federal funds, and $250 million in agency bonds. A science, technology, engineering, and math building receives another $142 million in agency bond funding that year. These are construction funds, not student aid or stated changes to tuition.

Funding preschool and student learning programs

Each year in 2026–2028, the law provides $84.4811 million for Preschool, $48.889 million for Family Resource and Youth Services Centers, and $23.9163 million for Extended School Services. Annual reading funds include $12.2611 million for Read to Achieve, including $1.1245 million from lottery proceeds; $11 million for Read to Succeed; and $1.2 million for the Statewide Reading Research Center. It provides $10 million for Gifted and Talented; $5.019 million for the Mathematics Achievement Fund; $1 million for Math Nation; $3 million for Dataseam; $1.5 million for We Lead CS; and $1.9 million for AdvanceKentucky. Annual funds also include $1.85 million for Community Education; $1.6755 million for Jobs for America's Graduates; $500,000 for the Kentucky Alliance of Boys & Girls Clubs; $12.5 million for the Kentucky Educational Collaborative for State Agency Children; $1.391 million for Local School District Life Insurance; $2 million for Save the Children; and $700,000 for Teach for America. The Hearing and Speech Center and Heuser Hearing and Language Academy each receive $100,000 annually, while Visually Impaired Preschool Services receives $500,000; none of these allocations can pay state-level administrative costs.

Veterinary and optometry aid requires service

New veterinary support and optometry scholarship recipients must sign Kentucky service agreements starting with initial awards in fiscal year 2027–2028. They must practice their profession in Kentucky for at least one year for each year of support. Failure to complete service turns the full veterinary support or optometry scholarship into a repayable loan with interest. Recipients first awarded support before fiscal year 2027–2028 are exempt from the new requirement.

Faster foster approval for kin caregivers

Kentucky must provisionally approve relative and fictive kin foster caregivers within five days of placement. Fictive kin are caregivers with close ties to the child rather than family ties. Caregivers must meet all federal safety requirements immediately. They must finish non-safety requirements, including training and a home study, within 120 days. The process must qualify these homes for federal Title IV-E foster care maintenance payments.

Parents face support orders during state custody

The Cabinet must immediately start child support proceedings for children in juvenile court cases who enter state custody or Cabinet-placed care. It must enforce the support order throughout that custody or placement. Collected money must benefit the child. Support efforts cannot delay decisions about placement or a permanent home.

Student dual credit help with limits

Dual credit scholarships get $21.1495 million in General Funds and $6.2901 million in Restricted Funds each fiscal year. Dual credit tuition cannot exceed half the Kentucky Community and Technical College System's in-state tuition per credit hour. Eligible high school students can receive scholarships for two career and technical education courses per academic year. General education scholarships cover up to four courses across junior and senior years. Scholarships are subject to a total limit of 12 approved dual credit courses.

Work Ready scholarships fund completed courses

The Work Ready Kentucky Scholarship Program gets $12.0005 million each fiscal year. Awards are intended only for recipients who complete eligible courses. The provision does not set each student's scholarship amount.

Kentucky pays more to run SNAP

Kentucky funds its higher share of SNAP administrative costs, which rises from 50% to 75% under federal law. The law provides $43.5 million in 2026–2027 and $58 million in 2027–2028. This supports program operations but places more costs on the state. This provision does not change household SNAP benefits or eligibility.

Child care funding for low-income families

The law funds Child Care Assistance Program services for families at or below 160% of the federal poverty level. The income limit uses federal poverty guidelines updated each year. Funding is $10.176 million in 2026–2027 and $9.858 million in 2027–2028. The Early Childhood Development Program also receives $8.4221 million and $7.7833 million in those years, respectively. These are program funds, not fixed payments to each family.

Child care matching funds for employees

The Employee Child Care Assistance Partnership receives $1 million each year in 2026–2028 for matching contributions. Program oversight costs cannot exceed 2%. Unspent General Fund matching money from 2025–2026 and 2026–2027 carries forward instead of expiring. The law does not state the match rate or each employee's award.

Exam fee help for low-income students

The law funds Advanced Placement and International Baccalaureate exam costs for Kentucky students who qualify for free or reduced-price meals. It provides $960,000 in fiscal year 2026–2027 and $930,000 in 2027–2028. The provision does not set a per-student amount or exam limit.

Funding liability insurance for Kentucky educators

Kentucky's educator employment liability insurance program receives $4.8 million in 2026–2027 and $4.65 million in 2027–2028. The money supports insurance for educators covered by the program. The provision does not set an individual premium reduction or payment.

Funding prepaid tuition payments and refunds

The Kentucky Affordable Prepaid Tuition Trust Fund receives $5.1 million in 2026–2027 and $5.6 million in 2027–2028. The stated purpose is to support projected tuition payments and refunds through fiscal year 2025–2026 for trust beneficiaries. The law does not state how much any beneficiary receives.

Pay support for Kentucky public employees

Sheriffs and other law enforcement officers serving Kentucky Circuit or District Courts receive $15 per hour of service. Deputies qualify for that enhanced rate only if paid at least $10 per hour. Eligible property valuation administrators receive the same salary increment as eligible state employees during the biennium. Existing salary placement and advancement rules continue. The law carries $67.7247 million in unspent 2023–2024 pay-raise funds into 2026–2027 for budgeted purposes, without guaranteeing individual raises.

Technology access for deaf and blind students

The Kentucky School for the Deaf and Kentucky School for the Blind are fully eligible for the Kentucky Education Technology System. They can participate alongside local school districts. Participation must account for their students' special needs. The provision does not promise a specific service or payment for each student.

Travel funding for blind and deaf students

Kentucky's Blind/Deaf Residential Travel Program receives $472,600 in 2026–2027 and $457,800 in 2027–2028. The funding supports travel connected to the residential program. The law does not set a payment for each participant.

Aid and training funds for firefighters

Each qualified volunteer fire department receives $15,300 in aid each fiscal year. The Firefighters Training Center Fund also receives $1 million in Restricted Funds each fiscal year. The money supports departments and training, not direct payments to individual firefighters or households.

Ballet and historic site projects get funds

Louisville Ballet receives $3 million in 2026–2027 instead of 2027–2028. The money supports touring infrastructure, facility improvements, and restoring live music at performances. Lincoln County Fiscal Court receives $200,000 in 2026–2027 for the Logan's Fort Master Plan. That planning purpose replaces the prior Fort Logan project description.

Bell County fire funds cover more uses

Bell County Fiscal Court receives $750,000 in 2026–2027 for firefighting vehicles and construction of a building. This replaces the earlier purpose of buying two new pumper fire trucks. The allocation now supports a broader mix of firefighting needs.

Funding for family recovery court services

The Volunteers of America Family Recovery Court receives $480,000 in 2026–2027 and $465,000 in 2027–2028. The money supports court operations. The provision does not change participant eligibility or provide household payments.

Funding shelters and services for victims

Each year in 2026–2028, Children's Advocacy Centers receive $10.5577 million for operating costs. Domestic violence shelters receive $13.9127 million, and rape crisis centers receive $7.7761 million annually. The law funds service providers, not direct payments to victims.

Hope Center receives two years of funding

The Hope Center gets $96,000 in fiscal year 2026-2027 and $93,000 in fiscal year 2027-2028. The provision does not name the services funded or set individual eligibility rules.

Kentucky can fund federal disaster matches

The Department of Military Affairs can request up to $25 million each fiscal year to match eligible federal disaster aid. A presidentially declared disaster or emergency is required. Money comes from the General Fund Surplus Account or Budget Reserve Trust Fund Account through the law's funding procedures. This authority supports disaster response rather than direct household payments.

Kentucky funds emergency forest fire response

The law sets aside at least $2.5 million in General Fund money each fiscal year for emergency forest fire suppression. Unspent set-aside money returns to the Budget Reserve Trust Fund at fiscal year-end. Costs above $2.5 million can be paid from the General Fund Surplus Account or Budget Reserve Trust Fund Account. Extra funding is capped at $4.8383 million in 2025-2026 and $4 million each fiscal year during 2026-2028.

Kentucky funds oversight of metal recyclers

The Motor Vehicle Commission gets $1.25 million in fiscal year 2026-2027 for licensing, oversight, and management of secondary metal recyclers. The funding also supports enforcement of related penalties and violations. This provision funds oversight rather than creating new household duties.

Kentucky funds tobacco manufacturer compliance enforcement

The Department of Revenue gets $250,000 from Tobacco Settlement payments received each fiscal year. The money funds enforcement against noncompliant manufacturers that do not participate in the settlement. This funding does not create a new household duty or direct payment.

Kentucky parks get equipment and upgrades

In fiscal year 2026-2027, Knox County gets $400,000 for sensory playground equipment and $200,000 for park infrastructure and related equipment. Lee County gets $400,000 for park improvements, and Jackson County gets $100,000 for park upgrades that same year. In fiscal year 2027-2028, Greenbo Lake State Resort Park gets $200,000 for expansion and land purchases. Leeco Park also gets $1.5 million in fiscal year 2027-2028. These funds support parks rather than direct household payments.

Legislative conference gets dedicated security funding

The Legislative Research Commission gets $300,000 in fiscal year 2026-2027 for security at the 2026 Southern Legislative Conference. The funding serves the conference and does not create a direct household benefit or duty.

Lincoln and Spencer fund historic renovations

Lincoln County Fiscal Court gets $200,000 in fiscal year 2026-2027 for historic property renovations. Spencer County Fiscal Court gets $100,000 in 2026-2027 and $200,000 in 2027-2028 from the Budget Reserve Trust Fund. Spencer County's historic-site work is carried out with the Felix Grundy Stidger Historic Preservation Foundation.

Local fire and ambulance services get upgrades

In fiscal year 2026-2027, East Knox County Fire Department gets $510,000 to purchase a substation and make needed improvements. Equipment and infrastructure grants that year provide Artemus Volunteer Fire Department $38,000, Bailey Switch Volunteer Fire Department $72,000, and Richland Fire Department $100,000. In fiscal year 2027-2028, Trigg County Fiscal Court gets $600,000 to build an ambulance service building. The City of Grayson gets $400,000 that year to purchase a fire truck.

Local governments get project and equipment funds

Beattyville gets $200,000 in fiscal year 2026-2027 for sewer equipment. Wolfe County Fiscal Court gets $300,000 that year for road department equipment. Adair County Fiscal Court gets $400,000 in fiscal year 2027-2028 for local projects that are not named. These appropriations go to local governments, not households, and do not specify changes to customer rates.

Operating support for Family Scholar House

Family Scholar House gets $960,000 for operations in fiscal year 2026–2027 and $930,000 in 2027–2028. The provision does not identify funded services, individual eligibility, or direct household payments.

Service contractors gain religious freedom protections

Department for Community Based Services contracts cannot interfere with a contractor's religious freedom. When sincerely held religious beliefs prevent a service, the contract must allow a substitute contractor to provide it. The substitute must be licensed or approved by the Cabinet.

Child care readiness and community funding

The law establishes a pilot that rewards participating child-care providers for performance related to kindergarten readiness. It provides $500,000 in fiscal year 2026–2027 and $1.5 million in 2027–2028. It also provides sufficient funding for the existing Certified Child Care Community Designation Program, without specifying an amount. These provisions do not set provider incentive amounts or promise lower child-care costs for families.

Funding cancer screening and injury research

Cancer research and screening receives $6.1659 million in 2026–2027 and $5.7455 million in 2027–2028, split equally between Kentucky and Louisville universities. Spinal cord and head injury research receives $1.92 million and $1.86 million in those years, shared by both universities. The University of Kentucky's Ovarian Cancer Screening Outreach Program receives $960,000 and $930,000, respectively. Louisville's Brown Cancer Center also receives $2.75 million in 2026–2027 for cancer research. These funds do not establish individual screening eligibility, insurance coverage, or household payments.

Funding care and support for children

The law funds children's care programs in 2026–2027 and 2027–2028; amounts below follow that order. Early Childhood Adoption and Foster Care Supports receives $1.7731 million and $1.6386 million. Dually licensed pediatric facilities providing children's emergency shelter services receive supplemental payments of $528,000 and $511,500. Maryhurst's five Specialized Programs receive $1.35 million each year for higher reimbursements. Youth Villages Intercept receives $6.3786 million state and $6.3964 million federal funding, then $7.7923 million state and $8.9977 million federal funding.

Funding for school mental health staff

The law provides $7.4125 million each fiscal year to reimburse districts for full-time-equivalent school mental health provider positions. The Kentucky Center for School Safety sets funding criteria with advice from the State School Security Marshal's office. Criteria must consider districts' use of Medicaid money to supplement state support and provide balanced statewide funding. Criteria can also support a trauma-informed approach in schools. The money goes to districts, not directly to families.

Funding reimbursements for personal care homes

Personal care homes receive $12 million each year in 2026–2028 to support reimbursements. The provision does not state payment rates or which residents qualify. It does not establish direct household payments.

Funding support for foster youth

Fostering Success receives $480,000 in 2026–2027 and $465,000 in 2027–2028. In 2026–2027, two independent living programs receive reimbursements for therapy provided to youth in state custody. Kentucky United Methodist Children's Homes receives $102,100, and Sunrise Children's Services receives $2,200. These funds support programs rather than direct payments to youth or families.

Funding supports local health department workers

Local health departments receive $3.96 million each fiscal year of the 2026–2028 biennium for workforce and operating costs. The provision does not promise a specific new service, eligibility change, or direct household payment.

Independent living help for foster youth

The law funds independent living supports for young people aging out of foster care. It provides $1.92 million in fiscal year 2026–2027 and $1.86 million in 2027–2028. The provision does not specify individual payments or the form of support.

Christian County schools get bus garage

Christian County's school board receives $2.2 million in 2027–2028 to build a new bus garage. The project supports school transportation operations. The provision does not provide direct household payments.

Disaster reimbursements help replace Robinson Elementary

FEMA reimbursements for eligible disaster spending go to Kentucky's Budget Reserve Trust Fund and stay with the state. The first $26.7 million goes through the School Facilities Construction Commission to Perry County's school board. This money supports replacement of Robinson Elementary School. The State Budget Director must verify FEMA eligibility before the money is released.

Estill students get school relocation support

The Kentucky Division of Emergency Management is authorized to condemn the current Estill County Middle School. It can request up to $10 million in 2026–2027 to relocate affected students and build temporary instructional shelters. The request follows the act's funding procedures. This authority is limited to that fiscal year and supports schooling, not household payments.

Kentucky State gets transition funding

Kentucky State University receives $3 million in 2026–2027 to support its move to a residential polytechnic institution. This funds the university's transition. The provision does not give students direct payments or change student eligibility.

School family centers gain funding protections

The Cabinet for Health and Family Services can use no more than 2% of transferred family and youth center funds for administration. This limit applies to Family Resource and Youth Services Centers. Certified school employees who become center directors or coordinators keep their school-district certified status.

Schools get funding for safety measures

The Center for School Safety receives $15 million each fiscal year. The money supports uses listed in school safety laws at public and private school sites, including recreational and athletic areas. The Center can keep no more than $2 million each year for operating and administrative costs.

Schools get officer salary and equipment help

Each fiscal year during 2026-2028, schools get salary assistance funded by $11.5 million in General Fund money and $11.5 million in Restricted Funds. Local school districts and nonpublic schools can receive up to $20,000 per full-time certified school resource officer. Excess Restricted Funds from the Department of Criminal Justice Training transfer to support this purpose. Christian County Board of Education also gets $504,000 in 2026-2027 for school-based law enforcement vehicles and equipment. The money goes to schools, not families.

Economic development programs keep funding and authority

The Economic Development Cabinet is authorized to carry out the Science and Technology Program under the listed laws. Unused money from a specified 2022 General Fund appropriation remains available instead of expiring. Projects seeking Kentucky Product Development Initiative funding must meet that program's legal requirements. The law also carries forward $1.1 million in earlier GRANT Program administrative funding.

Film Office gets funding and room taxes

The Kentucky Film Office receives $500,000 each year in 2026–2028 for staff and operating costs. In 2027–2028, it also receives 2.5% of transient room tax receipts, capped at $500,000. The provision directs existing tax revenue to the office; it does not state a room-tax rate increase.

Harlan County gets Backroads initiative funding

Harlan County Fiscal Court gets $500,000 each fiscal year during the 2026-2028 budget period for Backroads of Appalachia. The funding supports the local initiative rather than direct household payments.

Interest-free development financing for Christian County

Christian County Fiscal Court gets $17 million in fiscal year 2026-2027 to purchase Planters Bank debt. That debt is secured by Hopkinsville Industrial Foundation land in or around Commerce Park II. The Cabinet for Economic Development arranges repayment to the state over 10 years, with no interest. This supports a local development project, not direct household payments.

Louisville transportation tunnel gets study funding

The Kentucky State Fair Board gets $5 million in fiscal year 2026-2027 to study the Louisville Transportation Tunnel. The money funds a feasibility study, not tunnel construction.

More funding for Exposition Center redevelopment

The law reauthorizes Phase II of the Kentucky Exposition Center Redevelopment Plan. It adds $27 million in 2026–2027 for the project. The money funds redevelopment rather than direct household payments.

Perry airport runway funding starts earlier

Perry County Fiscal Court receives $2.5 million in each fiscal year of 2026–2028 for the Wendell H. Ford Airport runway expansion. This replaces a $5 million allocation scheduled entirely for 2027–2028. The total stays the same, but half becomes available a year earlier.

State agencies get aircraft and upkeep funds

The law provides $15 million for aviation purchases by state agencies and institutions during the 2026-2028 budget period. Funding in fiscal year 2026-2027 includes $5 million in Restricted Funds and $10 million in agency bonds. A separate Asset Preservation Pool gets $25 million in bond funds for the biennium. The provisions do not name specific upkeep projects or provide household payments.

Kentucky riverports get improvement funding

Kentucky public riverports get $15.1 million in fiscal year 2026-2027 and $14.5 million in fiscal year 2027-2028. The money funds improvements to the public port system that supports goods movement. Uses must be authorized by KRS 65.520 and eligible under KRS 174.210(3). No local matching funds are required.

State energy planning gets dedicated funding

The Energy Planning and Inventory Commission gets $15 million in 2026–2027 from funds authorized by a 2024 state law. This money supports the commission's work. The provision does not provide household energy aid or change energy rates.

State funding helps nuclear project developers

For 2026–2028, up to $75 million from the General Fund Surplus or Budget Reserve Trust Fund supports three nuclear projects. The site readiness pilot covers federal Early Site Permit, Construction Permit, or Combined Operating License costs. Support cannot exceed one-third of actual costs or $25 million per project. The State Budget Director must approve payments in writing beforehand. The law also funds the existing nuclear energy project assistance program, without stating a separate amount.

State adds money for housing infrastructure

The Residential Housing Infrastructure Fund gets $5 million in 2026–2027 and another $5 million in 2027–2028. This supports the state's housing infrastructure program. The provision does not set household eligibility rules or provide direct payments to families.

Blind and deaf learners get program funding

The Kentucky School for the Blind receives $8.2891 million each fiscal year. The Kentucky School for the Deaf receives $11.2918 million each fiscal year. Heuser Hearing Institute receives $1.92 million in 2026–2027 and $1.86 million in 2027–2028. Its funding supports programs addressing education and achievement gaps for deaf and hard-of-hearing adults. The money funds schools and programs, not direct payments to families.

College aviation programs get training funds

Eastern Kentucky University gets $6.5 million in 2026–2027 and $1.5 million in 2027–2028 for air traffic control training. The money supports starting and operating the program. Madisonville Community College gets $6 million in agency bond funding in 2026–2027 to buy aviation equipment. These provisions do not set student tuition, financial aid, or enrollment rules.

Colleges gain debt and property flexibility

Universities can refinance debt issued through nonprofits or local governments when university rent or use payments substantially cover debt payments. Refinancing cannot increase the principal or university rental payments, and state appropriations used for repayment remain subject to interception. Postsecondary boards can sell real estate or major equipment, dividing proceeds proportionately among the original funding sources. The Kentucky Community and Technical College System can sell surplus property or major equipment and keep the proceeds. These changes do not promise lower tuition.

Early childhood programs get operating and building funds

The Early Childhood Advisory Council receives $1.0638 million in 2026–2027 and $983,200 in 2027–2028. Pikeville Medical Center's $4 million Childcare Academy construction funding moves from 2027–2028 to 2026–2027. These provisions fund council operations and construction. They do not set child care prices or change family eligibility.

Funding expands Kentucky university learning programs

Kentucky State University gets $2 million in fiscal year 2026–2027 to expand its online offerings. Northern Kentucky University's Votruba Young Scholars Academy gets $1.8 million in 2026–2027 and $3.6 million in 2027–2028. These provisions do not specify new courses, student counts, or changes to family costs.

New purchasing rules for student assessments

The Kentucky Department of Education must hold a new competition for college entrance assessment contracts. It cannot use General Funds for contracts that fail applicable state and federal requirements. Only vendors with compliant assessment products can receive the contract for the 2026–2027 school year. This changes state purchasing, not household payments.

Retraining grants for large manufacturing employers

The Bluegrass State Skills Corporation receives $2.4 million in 2026–2027 and $2.325 million in 2027–2028 for manufacturer retraining grants. Eligible manufacturers must have industry code 336111, 336112, 336120, or 336211. They must employ at least 10,000 full-time workers at one facility or multiple facilities in the same county. Grants must retrain that manufacturer's workforce; they are not direct worker payments.

Schools get principal training and testing funds

The law creates a Principal Leadership Development Practicum overseen by the Kentucky Department of Education. It provides a one-time allocation of $1 million in each fiscal year to develop and mentor new principals. School districts also receive $2.57 million in 2026–2027 for added costs of the new testing and accountability system.

Student entrepreneurship school gets program funding

The Governor's School for Entrepreneurs receives $960,000 in 2026–2027 and $930,000 in 2027–2028. The money supports the education program. This provision does not set student eligibility or provide direct payments to students.

Students get a new scholarship pilot

The law provides $675,500 each fiscal year to develop and run the Innovative Scholarship pilot. The Kentucky Higher Education Assistance Authority and Council on Postsecondary Education oversee the project. This provision does not set student award amounts, eligibility rules, or award dates.

Workforce training grants keep unused money

Bluegrass State Skills Corporation can carry forward unused General Fund training grant balances from 2025–2026 and 2026–2027. Available money equals those unused balances plus new 2026–2028 allocations, minus payments already made. Restricted Funds can cover required payments that exceed the training grant balance. The law does not state the amount carried forward.

Funding supports entrepreneurs and business exports

The Kentucky Office of Entrepreneurship gets interest earnings and loan repayments from the High-Tech Construction/Investment Pool, alongside other funding. Unused General Fund money for the Kentucky Economic Development Finance Authority's previously authorized forgivable loan carries forward instead of expiring. Neither amount is specified. The trade and export program gets $135,000 in federal funds in 2026–2027 and $100,000 in 2027–2028 to expand. These provisions do not state individual business awards or loan eligibility terms.

Funding for development tax financing pilot

The law funds the Pilot Tax Increment Financing Program established in 2025. It includes enough money within existing appropriations to carry out the program. It does not give a separate dollar amount or name funded projects. This provision does not create a household tax break.

Four student aid programs lose funding

The law provides no General Fund money for Work Study, Coal County Pharmacy Scholarships, or Osteopathic Medicine Scholarships. Coal County College Completion Scholarships also receive no General Fund money. Resources shift toward the College Access Program and Kentucky Tuition Grant Program instead. This does not end the four programs or establish whether other funding supports them.

Students face limits on pandemic tuition claims

Public colleges and their affiliated corporations, officers, employees, and agents gain immunity from specified tuition-related lawsuits. The protection covers academic terms that included March, April, and May 2020. It applies to losses from COVID-19 response actions intended to protect public health and safety. Those actions must also have followed applicable federal, state, or local guidance. Covered claims include damages, requests for court declarations, and other court-ordered relief.

Transportation employees face remote work limits

Beginning July 1, 2027, Kentucky Transportation Cabinet employees cannot telecommute unless the Cabinet Secretary specifically exempts them. Beginning August 1, 2026, the Cabinet must report exemptions quarterly to the Legislative Research Commission. The provision does not change employee pay.

Jackson County fairgrounds improvement funding ends

The law removes Jackson County Fiscal Court's funding for fairgrounds improvements and upgrades. The removed allocation was $1 million in each fiscal year of 2026–2028. This ends that project allocation, not household benefits or taxes.

Knox County water tank funding ends

The law removes $1.25 million in 2026–2027 for the Knox County Utility Commission to replace a water tank. The planned replacement tank held 200,000 gallons. This removes project funding but does not set household water rates or require residents to pay.

Less funding for Kentucky community projects

For fiscal year 2027–2028, Williamsburg-Whitley County Airport runway funding falls from $7 million to $6.4 million. Ashland's Paramount Theater repair and renovation funding falls from $4 million to $3 million. The law removes $9.2 million for Oak Grove water expansion previously directed through the Christian County Chamber of Commerce. It also removes $75,000 for a Madisonville community center roof. Hoedown Island Lake dredging at Natural Bridge State Park receives $1.5 million, down from $3 million.

Extra lottery money faces spending limits

Lottery receipts above $370 million in 2025–2026 go into a restricted trust and agency account. The threshold is $365 million in each fiscal year of 2026–2028. The extra money cannot be spent or appropriated without express General Assembly approval. Specified unclaimed prize money is excluded from the calculation.

Knox County industrial land funding ends

The law removes $320,000 in 2026–2027 for the Knox County Industrial Development Authority to acquire land. This ends the specified land-purchase allocation. It does not directly change household taxes or benefits.

Less funding for early childhood council

The law takes back $6.5 million previously set aside for the Early Childhood Advisory Council. This tobacco settlement money moves from the Early Childhood Development Fund back to the Tobacco Settlement Agreement Fund. Less money remains available for the council's work. The provision does not specify changes to family payments, eligibility, or services.

County infrastructure funds shift timing and uses

Lincoln County replaces Boyle County as recipient of $4 million in 2026–2027 for the US 150 water project. That project expands water capacity and resilience in Lincoln, Rockcastle, and Garrard Counties. Garrard County gets $1.5 million in 2026–2027 for water, sewer, or infrastructure, with roads now allowed. Lincoln County gets $900,000, down from $1 million, in 2026–2027 and $3.5 million in 2027–2028; roads are now allowed. Wolfe County Sanitation District's $3 million for Hazel Green wastewater Phases I and II moves from 2027–2028 to 2026–2027.

Local parks and entertainment projects get funds

Camp Landing Entertainment District receives $500,000 in 2026–2027 and $3.5 million in 2027–2028 for improvements. The later funding requires collaboration with Boyd County Fiscal Court and includes $300,000 for the Archery Program. Barbourville receives $325,000 each fiscal year of 2026–2028 for park infrastructure and equipment. That allocation replaces funding previously directed to the Barbourville Utility Commission for utility improvements.

Shelby health funding grows but moves later

Shelby County receives $5.5 million in 2027–2028 for public health initiatives. Uses include emergency medical services, healthcare access, and public health infrastructure. The law removes the earlier $2 million allocation in 2026–2027 for a healthcare facility. It does not set individual benefit amounts or eligibility rules.

School mental health prioritized over programs

The law prioritizes funding for school-based mental health providers. It provides no General Fund money for listed professional development, school improvement, academic, writing, and teacher programs. This shifts support toward mental health services while withholding state General Fund support from those programs. The provision does not state how much funding moves.

School budget flexibility with funding safeguards

Districts can use Extended School Services and Safe Schools funds for general operating costs in each year of the biennium. They must still meet the programs' legal duties and serve their intended students. Districts must report each program's diverted amount to the Kentucky Department of Education and the Interim Joint Committee on Education. Local boards can reduce the covered allocations to individual schools. The covered allocation must remain at least $100 per pupil in average daily attendance each fiscal year.

State officials face new pay controls

The Kentucky Board of Education alone decides which department employees are outside the classified staff system. It sets those employees' pay to match the competitive market. Additional economic development executive officers covered by the law cannot earn more than Kentucky's Governor. The law does not set a specific pay increase or state savings amount.

Owensboro business center gets earlier, smaller funding

The Greater Owensboro Economic Development Authority receives $2.256 million from the Budget Reserve Trust Fund in 2026–2027. The money supports the Landing Entrepreneurship Center. This replaces $1.75 million in each fiscal year of 2026–2028. The new schedule provides more in the first year but less overall: $2.256 million instead of $3.5 million.

Sponsors & Cosponsors

Sponsor

Phillip Wheeler
Republican • Senate

Cosponsors

Robby Mills
Republican • Senate
Robin L. Webb
Republican • Senate
Shelley Funke Frommeyer
Republican • Senate
Scott Madon
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 153 • No: 8

Senate vote • 4/15/2026

passed

Yes: 35 • No: 1

House vote • 4/15/2026

3rd reading, passed

Yes: 82 • No: 7

Senate vote • 3/6/2026