LEGISLATURE ADVANCES TRANSFORMATIONAL INVESTMENT IN KENTUCKY’S FUTURE THROUGH HB 900

FRANKFORT, KY (April 1, 2026) — Senate Budget Chair Chris McDaniel, R-Ryland Heights, presented the Free Conference Committee Report on House Bill 900 in the Senate on Wednesday, a comprehensive measure appropriating funds from Kentucky’s Budget Reserve Trust Fund to strengthen infrastructure, drive economic development and support communities across the commonwealth. The measure was given final passage in the House and Senate.

Building on prior responsible use of one-time funds, including significant past investments in infrastructure and approximately $450 million directed to the road fund in recent years (2024’s HB 1), HB 900 represents the next phase of Kentucky’s long-term fiscally disciplined strategy to make transformational investments without creating recurring obligations.

McDaniel and fellow lawmakers say putting these dollars to immediate use will create a churning effect throughout the bluegrass, ultimately generating lasting economic activity far beyond the initial investment.

“It’s amazing to hear naysayers of the budgeting philosophy and policy priorities of the Kentucky General Assembly constantly spell doom and gloom, only to be met with greater total revenues and stronger reserves,” McDaniel said. “We were told numerous times that income tax reduction would blow a hole in our state budget, yet since 2017 we’ve managed to reduce the income tax by half while simultaneously making record investments in education and pensions and creating a robust budget reserve trust fund that has created opportunity for game-changing statewide and regional investments not just once, but now twice.”

ECONOMIC DEVELOPMENT AND SITE READINESS

HB 900 makes targeted investments to enhance Kentucky’s competitiveness and attract job-creating projects:

  • $40 million in each fiscal year 2026–2028 to support mega-development economic projects and site readiness

  • $25 million in each fiscal year 2026–2028 for the Kentucky Product Development Initiative

  • $50 million in each fiscal year 2026–2028 for the Government Resources Accelerating Needed Transformation Program

  • $3 million in each fiscal year 2026–2028 to support innovation through Blue North

  • $10 million in each fiscal year 2026–2028 for the Central Kentucky Business Park regional collaboration

  • $5 million in each fiscal year to the Agriculture budget unit to support economic development initiatives within the agriculture industry

  • $2.5 million in each fiscal year 2026–2028 for the Kentucky Enterprise Fund

  • $1 million in each fiscal year 2026–2028 for space economy development initiatives

These investments position Kentucky to compete for large-scale economic opportunities while strengthening regional economies across the state.

ADDITIONAL EDUCATION SUPPORTS

In addition to the $7+ billion allocated over the biennium toward education in the state.

  • $9.1 million in fiscal year 2027-2028 to the Warren County Board of Education to support the IMPACT Center for Leadership and Innovation

  • $1.5 million in fiscal year 2027-2028 through the Council on Postsecondary Education to the Lexington Fayette Urban County Government to fund scholarships through the Ed Brown Society

  • $250,000 in fiscal year 2026-27 to support a rural workforce study conducted in collaboration with the Kentucky Community and Technical College System, the Education and Labor Cabinet and other strategic partners to identify and develop strategies addressing the commonwealth’s long-term rural workforce needs

  • Numerous line items are dedicated to local schools for facilities and various projects

WATER AND WASTEWATER INFRASTRUCTURE

HB 900 prioritizes critical water and wastewater infrastructure needs, particularly in rural communities, including $45 million in each fiscal year 2026–2028 for the Kentucky Water and Wastewater Assistance Program. Numerous other cities in counties receive support for water line extensions, sewer upgrades and system modernization projects through funding allocated through the Kentucky Infrastructure Authority (KIA).

TRANSPORTATION AND LOGISTICS

HB 900 builds on previous infrastructure investments and strengthens Kentucky’s transportation network, boosting the commonwealth's role as a hub for industry and travel:

  • $75 million in fiscal year 2026–2027 and $155 million in fiscal year 2027–2028 to the biennial road plan for construction-ready road projects

  • $7.5 million in each fiscal year 2026–2028 for the Short Line Infrastructure Preservation Pilot Project, supporting the modernization of Kentucky’s rail system

  • $15.1 million in fiscal year 2026–2027 and $14.5 million in fiscal year 2027–2028 for riverport improvements

  • $10 million in fiscal year 2026–2027 for commercial airport incentives, including airline revenue guarantees

  • $11.4 million in fiscal year 2026–2027 for general aviation airport grants

  • $5 million in fiscal year 2026–2027 for the Bluegrass Airport control tower relocation

  • $17.3 million in fiscal year 2026–2027 for airfield capacity improvements in Louisville

These investments enhance connectivity, support logistics and position Kentucky as a national leader in transportation infrastructure.

WORKFORCE EDUCATION AND INNOVATION

HB 900 invests in education, workforce development and research to support long-term economic growth:

  • $37.5 million in fiscal year 2026–2027 for university research collaboration through the Endowed Research Fund championed by Senate President Robert Stivers, R-Manchester

  • $14 million in each fiscal year 2026–2028 for community and technical education supplemental funding

  • $2.5 million in fiscal year 2026–2027 and $5 million in fiscal year 2027–2028 for schools of innovation championed by Senate Education Chair Steve West, R-Paris.

  • $8 million in fiscal year 2026–2027 for start-up costs and $42 million escrow support for an osteopathic medicine program at Eastern Kentucky University

  • $7.7 million in each fiscal year 2026–2028 for information technology upgrades at Western Kentucky University

HOUSING AND COMMUNITY DEVELOPMENT

HB 900 addresses housing supply and community infrastructure needs:

  • $5 million in each fiscal year 2026–2028 for the Residential Infrastructure Revolving Loan Fund and $2.5 million in each fiscal year 2026–2028 for the Affordable Housing Trust Fund as a result of advocacy by Senate Majority Caucus Chair Robby Mills, R-Henderson and co-chair of the legislative Housing Task Force

  • $5 million in fiscal year 2027–2028 for Community Development Financial Institutions

  • Over $1.6 millin in fiscal year 2027-2028 to the Connect Community Village to support the continued development of veteran housing

REGIONAL AND COMMUNITY INVESTMENTS

The legislation includes significant investments in communities across Kentucky:

  • $20 million in fiscal year 2026–2027 and $70 million in fiscal year 2027–2028 for downtown Louisville revitalization

  • $11 million in fiscal year 2027–2028 for the Frankfort Convention Center

  • $8 million in each fiscal year 2026–2028 for Bowling Green riverfront development

  • $10 million in each fiscal year 2026–2028 for regional business park development in Central Kentucky

  • $4 million in fiscal year 2026-27 to the KIA to support the U.S. Highway 150 corridor project to promote long-term economic growth in Lincoln, Rockcastle and Garrard Counties.

HEALTH AND RESEARCH

  • $2.5 million in each fiscal year 2026–2028 for the Kentucky BioInnovation Fund

  • $6 million in each fiscal year to the Life Learning Center to support an integrated pathway to treatment, rehabilitation and community reintegration in partnership  with a nonprofit

  • $1 million in fiscal year 2026-27 and $500,000 in fiscal year 2027-2028 to the Department for Public Health to provide funding for a Kentucky Parkinson’s Disease research registry

  • $1 million in fiscal year 2026-27 to the Attorney General’s Office to support procurement of a vendor to utilize data analytics to provide fraud and waste prevention and detection services, where information shall be utilized by the Office of Medicaid Fraud and Abuse Control for the investigation of potential fraud

  • $500,000 in each fiscal year for Down Syndrome of Louisville to support operations

  • $250,000 each fiscal year to  support the implementation of cardiopulmonary resuscitation training to students

  • Specific line-items for certain local health departments

In addition to these major investments, HB 900 includes funding for more than 100 individual projects across Kentucky, supporting local infrastructure, public safety, tourism and community development initiatives. Lawmakers say these investments will further churn dollars through local economies, amplifying the impact of this one-time funding.

A FOUNDATION BUILT ON FISCAL DISCIPLINE

Sen. Chris McDaniel emphasized that these investments are only possible because of years of responsible budgeting and conservative fiscal management.

“This level of transformational investment is only possible because of the discipline and commitment demonstrated by the supermajorities in the Kentucky General Assembly. By making responsible decisions year after year, we have put Kentucky in a position to make strategic one-time investments that will strengthen our infrastructure, grow our economy and benefit communities across the commonwealth for generations.”