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KHEAA proposes 250% income cap for Work Ready Kentucky to stretch scholarship dollars
Summary
KHEAA told the Senate Education Committee it plans to ask the legislature to cap Work Ready Kentucky eligibility at 250% of Kentucky median income (about $148,400 in 2023–24), a change KHEAA says would have freed funds and extended the application window; Representative McCool has agreed to sponsor the bill.
The Kentucky Higher Education Assistance Authority briefed the Senate Education Committee on a planned legislative change to the Work Ready Kentucky scholarship, proposing an income cap to preserve scholarship dollars and extend access for middle-income students.
Jo Carol Ellis, executive director of the Kentucky Higher Education Assistance Authority (KHEAA), said the agency proposes capping eligibility at 250% of Kentucky’s median income. "Our proposal is to set that limit at 250% of Kentucky median income," Ellis said, noting that if that cap had been in place for the 2023–24 school year the threshold would have been about $148,400 and students above that cutoff received $2,220,000 that year. Ellis said KHEAA is a last-dollar scholarship program, meaning awards cover remaining tuition and fees after federal and state grants are applied.
The proposal, Ellis said, is intended to steer scarce state lottery-funded scholarship dollars toward middle-income families who typically do not qualify for need-based grants such as Pell. KHEAA said Representative McCool has agreed to sponsor the bill and that this briefing was informational to give committee members early notice.
Committee members pressed KHEAA staff on funding sources and program scale. KHEAA said Work Ready is funded from Kentucky Lottery proceeds like other statewide aid programs (including KEYS, CAP, and KTG) and that the agency dispersed roughly $13 million for the Work Ready scholarship across the last two academic years. KHEAA staff said the 250% figure was selected after reviewing recipient income distributions and utilization; they acknowledged the cutoff could be adjusted after further discussion.
Several legislators urged caution and suggested alternatives. Senator Thomas, citing a private-sector cost-of-living estimate, said a $148,000 cap ``seems kinda low'' and suggested considering higher thresholds (he mentioned $175,000 to $200,000) or increasing overall funding for scholarships. Other members raised that education pathways differ from other high-demand sectors because many teaching careers require a bachelor’s degree and discussed dual-credit and apprenticeship programs that allow students to earn associate degrees before graduating high school.
KHEAA staff also noted KEYS awards (a separate program) have not been increased since their creation and warned that cutting awards by GPA would be a blunt instrument that produces little savings while undermining program messaging.
This was an information-only briefing; no committee action was taken. KHEAA said it will return for more detailed consideration if Representative McCool files the bill in the short session.
