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Senate approves $7 billion Transportation budget, directs $70 million for county paving

Kentucky Senate · April 1, 2026
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Summary

The Kentucky Senate on April 1 approved House Bills 501 and 502, advancing a $7 billion Transportation Cabinet operating budget and a $4.6 billion road construction plan that together direct $190 million to cities and counties, $70 million for county road paving and a $24 million matching grant pool for local projects.

The Kentucky Senate passed a two‑year transportation package on April 1 that leaders said funds major road projects, county paving and local match grants. Senator from Marion, explaining House Bill 501, said the cabinet’s operating budget would authorize about $7 billion over the biennium and include $190 million earmarked for cities and counties.

Senator from Marion told the chamber, “In this plan…there’s for cities and county investments, there’s $190 million in the biennium. In 2027, cities and counties will have $119 million in new funds available for paving, for bridges, and improvement projects.” He described a $24 million grant pool intended to be divided so counties and county seats could each receive up to $100,000 and said the grants would require local matching funds.

The package also included a $70 million allocation labeled LARP funding for blacktopping county roads that rank in the poorest condition categories. “This 70 million will blacktop and pave every county road in the state that rated an eight, nine, or 10,” Senator from Marion said on the floor.

House Bill 502, the construction and road plan, was described as largely funded and not “over‑programmed.” Senator from Marion said HB 502 authorizes roughly $4.6 billion in new construction and bridge rehabilitation, includes $1.1 billion in anticipated federal revenue and adds $230 million in general funds to support construction‑ready projects. He also noted continuing allocations for large projects including the Brent Spence Bridge and the Mountain Parkway.

The Senate adopted both measures after debate and roll calls. HB 501 passed as amended with unanimous recorded support (38 yeas, 0 nays); HB 502 passed as amended (37 yeas, 0 nays). The chamber also adopted House Joint Resolutions 75 and 76, which outline the road plan out‑years and reiterate the LARP funding, each by unanimous votes.

Lawmakers highlighted additional, smaller provisions in the package: authorization for three new regional driver’s license offices, new state police driver‑testing sites, suspension of some spending limits for design‑build projects, a requirement for the Transportation Cabinet to report on excess and surplus property, and a $125,000 pilot to place vision‑testing kiosks in county libraries to support online license renewal. “You could go to your free public library and get your free vision test and get on their computers and renew your license online,” Senator from Marion said.

What happens next: With Senate passage, the bills move to the next steps required for enactment and any returned conference or signing procedures. Implementation details — including grant application timelines and departmental reporting required by the bills — were described on the floor and will be overseen by the Transportation Cabinet under the statutes and appropriations enacted.