03/20/2026
Kentucky Senate Unanimously Passes $31 Billion State Budget, Advances $810 Million in One-Time Spending
FRANKFORT, Ky. — The Kentucky Senate unanimously approved its version of a two-year, $31 billion state budget Wednesday, marking a significant step forward in the legislative process as lawmakers prepare for the next biennium.
The spending plan differs from the version previously passed by the Kentucky House of Representatives, with senators allocating less funding for public schools while directing substantially more resources toward Medicaid. The proposal also includes reductions to several state agency budgets.
In addition to the main budget bill, senators approved funding measures for both the legislative and judicial branches of government.
A key component of the package is a separate measure that would authorize $810 million in one-time spending from the state’s Budget Reserve Trust Fund—commonly referred to as the “rainy day” fund. The fund currently holds billions of dollars, built up from recent revenue surpluses.
The Senate advanced four budget-related bills with bipartisan support:
✔ House Bill 500 – Executive branch budget
✔ House Bill 503 – Judicial branch budget
✔ House Bill 504 – Legislative branch budget
✔ House Bill 900 – One-time spending from reserve funds
All four measures received unanimous approval earlier in the day from the Senate Appropriations and Revenue Committee before clearing the full Senate later that afternoon.
The budget now heads to conference negotiations, where House and Senate leaders will work to resolve differences between their respective versions before a final plan is sent to the governor for consideration.