New Report – Bloom Kentucky Examines the Economic Impact of Adverse Childhood Experiences in Kentucky and Offers Key Strategies for Prevention

Contact:
Kelsey Dimar
kdimar@kyyouth.org

LOUISVILLE, KY – Adversity experienced in childhood has an annual estimated cost of $295 million on Kentucky’s economy, according to The Economic Impact of Adverse Childhood Experiences in Kentucky report released today by Bloom Kentucky, an initiative powered by grantmaking partners from across the Commonwealth and backboned by Kentucky Youth Advocates. 

When early trauma is overlooked, the impacts show up across every sector – driving up costs in health care, straining the workforce, and increasing demand on public systems. By examining the relationship between Adverse Childhood Experiences (ACEs) and health outcomes, we can better understand the cost of adversity on our economy and workforce. 

“Where and how our families live, work, and grow contribute to their likelihood of experiencing adversity and trauma, as well as their ability to build resilience and heal. Bloom Kentucky set out to develop this report to examine the financial and systemic burden of ACEs and, subsequently, determine strategies that can prevent adversity,” said Barry Allen, president and CEO of The Gheens Foundation, leader of the Bloom Kentucky Coalition.

The report was developed to understand how adversity in childhood impacts Kentucky’s economy – including offering an annual estimated financial impact of that economic burden due to medical costs and lost potential in the workforce – and to identify strategies to build resilience and prevent the long term effects of adversity. 

Key takeaways highlighted in The Economic Impact of Adverse Childhood Experiences report: 

  • Adversity in childhood is common in Kentucky with 62% of adults between 2015-2020 reported to have at least one ACE in their childhood, and nearly one in five of Kentucky adults experiencing four or more ACEs.
  • The most commonly reported ACEs in Kentucky include parental divorce or separation, household substance use, and emotional abuse. 
  • Adversity experienced in childhood has an annual estimated cost of $295 million on Kentucky’s economy, including an estimated $2.7 million dollars in medical spending due to health and mental health challenges and $292 million dollars in the loss of potential to contribute in the workforce and in across lifetime earnings due to poor health, disability, or premature death.

“A thriving, prosperous Kentucky economy depends on a healthy Kentucky population. Yet, we know that exposure to adversity in childhood is linked to an increased risk for smoking, asthma, and depression – all with implications to shape lifelong health and mental health trajectories. But those outcomes are not fate,” said Allison Adams, president and CEO of the Foundation for a Healthy Kentucky. 

By taking strategic, evidence-based action, we can counterbalance the negative effects of adversity, reduce long-term costs, and create positive, nurturing conditions that surround families and create a Commonwealth where our children and families can flourish.

Key strategies and recommendations for preventing adversity and advancing resilience: 

  • Ensuring a strong start for children by expanding access to child care, increasing utilization of home-visiting programs, and using family impact statements to assess potential policy effects.
  • Strengthening economic supports for families by adopting tax initiatives like a state-level Child Tax Credit.
  • Connecting youth to caring adults and positive activities by investing in school-based mental health services and community-based youth mentorship programming.
  • Advancing social norms and teaching skills that protect against violence and adversity by connecting parents to services that teach healthy parenting strategies and normalize help-seeking behaviors.
  • Promoting timely interventions to lessen the harms of adversity by increasing access to health care and services, reducing the impact of parental incarceration, strengthening data capturing measures, and advancing policies that reduce long-term harms on kids and families.

“There’s an old axiom, ‘You can pay me now or you can pay me later.’ That is applicable to car maintenance and having your HVAC serviced regularly. It’s also applicable to the inflection point around ACEs for us as a Commonwealth,” said Dr. Terry Brooks, executive director of Kentucky Youth Advocates. “Because Kentucky bears one of the highest per-person lifetime economic burdens due to ACEs in the nation, we cannot afford to ignore the impact on individual outcomes, community well-being, and the state’s bottom line. The report outlines key strategies for our state policymakers to make a real difference in the outcomes of kids and families now and for generations to come—and there’s no better time than the 2026 state budget session to continue their commitment to protecting the futures of Kentucky’s kids.”

“Strong communities don’t happen by chance; they are built through intentional systems that understand that hardships in childhood happen and that how we respond plays a key role in how those kids grow up. Bloom Kentucky urges decisionmakers, community leaders, and caring adults to turn this data into action,” said Sara Hemingway, executive director of the Marilyn and William Young Charitable Foundation.

View The Economic Impact of Adverse Childhood Experiences in Kentucky report and executive summary at bloomky.org. In case you missed it, watch a recording of the webinar here.

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Kentucky Youth Advocates believes all children deserve to be safe, healthy, and secure. As THE independent voice for Kentucky’s children, we work to ensure policymakers create investments and policies that are good for children. Learn more at kyyouth.org.

Bloom Kentucky is powered by grantmaking partners across the state, and backboned by Kentucky Youth Advocates, united by a shared commitment to end Adverse Childhood Experiences (ACEs) and promote resilience through systemic change. We focus on forward-thinking policy solutions and strategic investments that address the root causes of adversity, strengthen protective factors, and build brighter futures for all Kentuckians. Learn more at bloomky.org.