The 2026 General Assembly has now concluded, marking the end of a busy legislative session in Frankfort. During this year’s 60-day legislative session, lawmakers filed a total of 1,291 bills and, as of April 15, 171 have become law. Lawmakers will not return for a regular session until January 5, 2027, but work will continue throughout the year as the interim period begins in June. During that time, House and Senate members will review how recently enacted legislation is being implemented across state government and study new issues to prepare for the 2027 session.
Among those measures passed into law is HB 500, a $32.4 billion, two-year budget that reflects the simple but significant idea most families already live by: spend responsibly, set priorities, and live within your means. State government should do the same and has a responsibility to focus on core needs and look constantly for ways to operate more efficiently.
HB 500 prioritizes the basics: public education, public safety, veterans’ services, and maintaining higher education facilities.
However, the bill also pushes state government agencies and programs to tighten operations and eliminate waste. That includes reducing or ending outdated programs, scaling back expansions made during the pandemic, and cutting duplicate or unnecessary spending. To further incentivize these efforts, the budget reduces spending across many cabinets and programs and includes a 4% base reduction in executive branch spending in the first fiscal year and an additional 3% cut in the second fiscal year. The budget proposal gives agencies flexibility in determining individual program funding to identify the best areas to make reductions. Agencies are being encouraged to find efficiencies within their own budgets and focus dollars where they have the most impact.
That effort is especially important given what oversight reports have shown. The state auditor has identified more than a billion dollars in questioned costs, waste, and mismanagement across state government in recent years, including areas like Medicaid, transportation, and state travel. Those findings underscore the need for ongoing scrutiny and stronger accountability, and they position Kentucky as one of the first in the nation to actively pursue stronger government accountability – not because we face shortfalls but rather because it is the right thing to do.
At the same time, funding for K-12 education, Medicaid, corrections, juvenile justice, and veterans’ programs remains intact and, in many cases, received a modest increase. The goal is not to weaken essential services, but to make sure they are supported in a more sustainable way. In fact, we increased funding for K-12 education, as well as other areas that required it. We also provided for a 2% raise across state government and fully funded the Kentucky Employee Health Benefit plan’s increased costs, as well as continuing our efforts to shore up public pensions.
Even with these protections, the budget also highlights the significant scale of ongoing spending. Medicaid alone accounts for roughly $6 billion in spending over the biennium, underscoring the importance of long-term reforms aimed at improving both outcomes and efficiency. Across state government, healthcare obligations and program costs continue to rise, requiring constant evaluation of how services are delivered and funded.
The bottom line is straightforward: taxpayer dollars should be treated with care. Just like Kentucky families, state government has to make choices, set priorities, and avoid waste. We have to make sure every dollar is spent as wisely as possible.
In addition to HB 500, lawmakers approved nearly a billion dollars in funding for the judicial branch (HB 504) and $182 million in allocations for the legislative branch budget (HB 503). The legislature also passed a $7 billion operating budget for the Transportation Cabinet (HB 501); a $4.6 billion road construction and maintenance plan (HB 502); and $70 million in funding for local road projects (HJR 76).
As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via email at Amy.Neighbors@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.
(HD21 – News from the Office of Rep. Neighbors)