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KYTC reports $69.9M processed from HJR76; MOAs sent and chip-seal options outlined

Kentucky General Assembly — Interim Budget Review Subcommittee on Transportation · July 1, 2026
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Summary

The Kentucky Transportation Cabinet told lawmakers it has processed roughly $69.9 million from House Joint Resolution 76 for Local Assistance Road projects, began issuing 183 memoranda of agreement on July 1, and clarified how chip-seal, grant-pool and county road-aid options interact for gravel-road work.

Bobby Joe Lewis, commissioner for Rural and Municipal Aid at the Kentucky Transportation Cabinet (KYTC), told the interim budget review subcommittee on transportation that the cabinet has processed applications and begun issuing memoranda of agreement (MOAs) tied to House Joint Resolution 76 allocations.

Lewis said the FY27 application cycle for the Local Assistance Road (LAR) program received 1,223 project submissions totaling approximately $121.3 million in project costs and $102.4 million requested after local matches. He said that, after removing duplications in HJR76 listings, KYTC processed about $69.8649 million for awards and that 183 MOAs were successfully sent beginning July 1.

The commissioner described administrative tools to support applicants, including a LAR evaluation app developed by KYTC GIS staff and an online forms library. He told members the cabinet will begin providing monthly reports on the program and encouraged applicants to use the dedicated email (kytc.larpky.gov) to avoid missed submissions.

Chip seal, grant pool and gravel roads: Lewis clarified program authority: House Bill 622 established a separate chip-seal program; the LAR application cycle also accepts chip-seal projects that will be evaluated under LAR criteria; and counties may use grant-pool funds (House Bill 501) for certain local road work. He emphasized that the programs are distinct and provided guidance on forms and application pathways.

Bridge program and funding status: Lewis reviewed the County City Bridge Improvement Program, noting the biennial authorization of $50 million. He said 106 bridge projects were awarded across multiple phases; some completed projects came in under estimate, allowing reauthorization of underruns and leaving a small balance remaining to allocate.

TAP and federal program capacity: Members raised concerns about long timelines for the federal Transportation Alternatives Program (TAP). Lewis pointed legislators to KYTC’s Local Public Agency (LPA) guidebook and said capacity constraints in small communities — not state resistance — are the main cause of federal delay, although KYTC staff can provide guidance.

What lawmakers asked and next steps: Members asked how many counties would use chip-seal for gravel roads, about reuse of reclaimed grinder material, and whether the General Assembly can help speed federally funded projects. Lewis said many local officials had expressed interest in chip seal and that reclaimed materials are an eligible part of some programs. The committee set its next meeting for August 5 and did not take formal votes on these items at this session.

The presentation provided implementation details and application contacts but did not change statutory authority; lawmakers requested follow-up monthly reports and more data on participation levels.