Kentucky House Approves Two-Year Budget Plan

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The Kentucky House has approved its version of a two-year state budget plan, which now heads to the Senate for consideration. The bill details how the commonwealth will spend taxpayer dollars through 2028, covering areas like public schools, state employee benefits, and other government operations.

Why it matters

The biennial budget is a critical piece of legislation that sets funding priorities and allocates resources for Kentucky's government agencies and public services. The House's approval of its version of the budget plan is an important step in the process of finalizing the state's spending blueprint for the next two fiscal years.

The details

The House-approved budget bill outlines spending across various areas of state government, including public education, employee benefits, and other government operations. An earlier proposal to cap the state's contribution to employee health insurance at 5% was removed from the final version of the spending plan.

• The Kentucky House approved the two-year budget plan on Thursday, February 26, 2026.
• The budget bill will now move to the Kentucky Senate for consideration.

What’s next

The Kentucky Senate will now review and potentially amend the budget plan before sending it back to the House for final approval. The legislature must pass a balanced budget before the start of the next fiscal year on July 1, 2026.