FRANKFORT, Ky. (April 1, 2026)—Kentucky lawmakers have finalized a comprehensive transportation package, consisting of multiple legislative measures, that combines a fully funded road plan with a strategic operating budget, delivering billions of dollars in infrastructure investment while prioritizing accountability, efficiency and real progress on projects across the commonwealth.
The plan includes a $4.6 billion biennial road plan alongside a $7 billion transportation operating budget, ensuring that projects can move forward without delays or overpromising state resources. Together, the measures reflect a disciplined approach focused on delivering projects ready for construction and improving infrastructure across communities statewide.
“This road plan is about being honest with taxpayers and making sure every dollar delivers results, especially during a time when our road revenues are not going as far as they used to,” said Senate Transportation Committee Chair Jimmy Higdon. “We are prioritizing projects that can move forward now and making meaningful investments in communities across the commonwealth.”
This year’s road plan will be the final crafted under the careful guidance of Higdon, who will retire from the legislature at the conclusion of the calendar year.
“This responsible road plan is one crafted in no small part because of the great work of our friend Jimmy Higdon,” said Senate President Robert Stivers. “We simply would not have the quality of product we have were it not for the work of Jimmy and the incredible legislative staff who support the effort. When Kentuckians are on roadways, highways and bridges, and they see the moving of earth and construction that are improving infrastructure and safety, Sen. Higdon is one of the most notable people we can thank for that. On behalf of the entire Senate, I want to commend him on another sound road plan and thank him for his tireless efforts on behalf of all of Kentucky.”
A key component of the plan is a $230 million investment from the budget reserve trust fund, which helps stabilize the highway construction program and accelerate shovel-ready projects. By aligning funding with project readiness, lawmakers are reducing delays related to right-of-way, utilities and external approvals while improving overall project delivery timelines.
Delivering a fully funded road plan
The biennial road plan is fully funded with no overprogramming of state dollars, ensuring that projects included in the plan can be completed within the budget cycle. The road plan proposed by the governor overprogrammed the budget by more than 400 percent, which Higdon and lawmakers called unacceptable and unmanageable. An overprogrammed road plan means more projects are listed than there is existing revenue to support. The legislature's final road plan aims to ensure that projects that receive funding support and are ready to move forward do so as intended.
Kentucky continues to use about $1.1 billion in federal transportation funding, matched with state dollars to maximize investment while staying fiscally responsible.
The plan also continues funding for major infrastructure priorities, including the Interstate 69 Ohio River Crossing in Henderson, the Brent Spence Bridge in northern Kentucky and the Mountain Parkway expansion—each supported by significant general fund investments.
Investing in local communities
The legislation makes substantial investments in local roads, bridges and infrastructure, including:
$190 million for county and city road projects over the biennium.
$25 million annually for local bridge improvements.
Expanded funding ($70 million in fiscal year 2027) for resurfacing through the Local Assistance Road Program (LARP), ensuring all high-priority routes rated 8, 9 and 10 (on a scale of 1-10 designating severity of need) are addressed. Additional funds are set aside to be determined for specific projects next legislative session for fiscal year 2028.
$2 million to support county projects that have associated costs of less than $15,000
Additional funding distributed directly to counties and cities to support local transportation needs
These targeted investments will help improve road conditions, enhance safety and support economic development in both rural and urban areas.
Strengthening project delivery and accountability
The plan includes several policy reforms designed to modernize and streamline transportation project delivery, such as:
Expanding the use of design-build contracting to accelerate construction timelines
Increasing transparency through reporting on excess and surplus property
Providing flexibility for CDL testing to allow employees to choose their medical provider and
Implementing workforce policies to ensure accountability and operational efficiency.
These changes are aimed at reducing delays, improving oversight and ensuring taxpayer dollars are used effectively.
Improving access to driver services
Lawmakers also included measures to improve access to driver services across the state by:
Funds three new regional driver licensing offices in Bullitt, Oldham and Barren counties,
New offices will not have driver testing but will offer all other licensing services.
Adds staffing support for existing licensing offices and
Provides $125,000 to support a new partnership with public libraries, championed by Higdon, to provide free vision testing for license renewals, expanding access to required services—especially in rural communities
"I can’t thank my House colleagues, including Rep. Ken Upchurch and so many others, enough for their collaboration to make sure we do right by the Kentuckians who rely on stable and safe roadway, highway and bridge infrastructure," Higdon added. "It's been such an honor to serve in this capacity, and I'll always be grateful to my friends in the legislature and my constituents for entrusting me to do so.”
Focused on results
By combining strategic funding with policy improvements, lawmakers have crafted a plan that emphasizes results—moving projects forward now rather than years down the road.
“This plan reflects years of work to build a system that delivers,” Higdon said. “It’s focused, it’s responsible and it puts Kentucky in a strong position for the future.”
Transportation funding legislation now moves forward in the final stages of the legislative process before heading to the governor’s desk.
Respective bill and resolution numbers related to the road plan are as follows:
House Bill (HB) 501 - KYTC Operating Budget
HB 502 - Road Plan (Biennium)
HJR 75 - Road Plan (Out Years)
HJR 76 - LARP Projects
