The 2026 state legislative session is underway and lawmakers have been busy in Frankfort filing more than 350 bills in the first week. Among the bills that remain to be seen is the budget bill that will detail legislative proposals for the state’s next two year operating budget. Originating in the House, this bill will see several rounds of revisions over the next two months before final passage by April 15th. 

Governor Beshear kicked off the budget discussions for 2026 when he announced his proposed budget during the State of the Commonwealth address, followed by a Democratic-backed bill detailing his proposal in House Bill 304. 

As we await a legislative budget proposal in the House in the coming weeks, we are considering factors that might influence what is included in the proposal – including federal changes and recommendations from interim committees and taskforces. 

  • The Make America Healthy Again (MAHA) Kentucky Taskforce detailed recommendations related to nutrition that could have budgetary implications, including changes to the Supplemental Nutrition Assistance Program (SNAP), and initiatives like Farm to School and Food is Medicine programs. 
  • The Medicaid Oversight Advisory Board (MOAB) provided a number of recommendations, most of which are responding to anticipated gaps in the state Medicaid budget largely due to changes included in the federal HR 1 – finding ways to address these gaps could look a number of different ways:
    • Kentucky could choose to allocate additional state dollars to cover the anticipated cuts and ensure the Medicaid program is fully funded in its current form, as proposed in the Governor’s budget.
    • Alternatively, gaps could be addressed by finding ways to reduce overall spending on the Medicaid program through strategies like tightening eligibility and work requirements, and implementing more strict oversight and auditing of the program, as detailed in the MOAB recommendations.
  • The Housing Taskforce also provided recommendations with budget implications, including investing state dollars in initiatives that directly support housing construction and tax incentives for projects that prioritize more housing units becoming available. 
  • Federally, recent federal child care regulation changes have opened the door for states to consider alternative payment models in child care settings, with the potential for state subsidy programs to reimburse based on attendance rather than enrollment, a move which could save state dollars but have negative impact on child care centers.

As we continue to monitor action in Frankfort and await a legislative budget proposal, Kentucky Youth Advocates is also advocating for a number of budget investments that are good for kids. Check out the Blueprint for Kentucky’s Children priority agenda to learn more about our state policy and budget asks – and stay tuned as we dig into the state budget process.