| FRANKFORT, Ky. (Feb. 27, 2026) — Major bills on Medicaid reform, educational tax credits and the state’s new budget plan dominated much of the action in the Kentucky General Assembly this week as lawmakers debated some of the biggest spending and policy decisions of the session so far.
Legislators have continued to ramp up the pace each week since convening in January, and the intensity reached a new peak on Friday when lawmakers were simultaneously advancing House Bill 2 off the House floor and giving final passage to House Bill 1 in the Senate.
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Both bills arrive in the wake of the One Big Beautiful Bill Act that the U.S. Congress passed last year.
HB 2 seeks to align Kentucky’s Medicaid program with the new federal law, and among many provisions, would implement community engagement requirements for certain able-bodied adults.
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Other sections of the wide-ranging bill would address cost-sharing, eligibility reviews, non-emergency transportation services, accountability for managed care organizations and delivery of dental services. HB 2 also aims to enhance transparency by creating a performance dashboard and requiring regular program audits.
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The legislation won support from the House Appropriations and Revenue Committee on Tuesday and cleared the House on a 77-21 vote Friday after supporters fended off a half-dozen amendments that were called on the chamber floor.
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Proponents say the measure would streamline operations, improve outcomes, combat fraud and ensure that the program prioritizes those Kentuckians who most need services.But during more than an hour of impassioned debate, critics charged that HB 2 would reduce access to health care and create steep, bureaucratic barriers for struggling Kentuckians.
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The bill now heads to the Senate, which held an hour-long debate on the floor Friday over HB 1. That legislation would clear the way for Kentucky to participate in the new federal educational tax credit program established in the One Big Beautiful Bill.The program allows taxpayers to contribute up to $1,700 to scholarship organizations that assist K-12 students in public and private schools. Families can use the funds for a wide range of education-related expenses, and taxpayers would receive a matching federal tax credit for contributions.
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Advocates for the bill say it will boost support for low-income students and students with special needs, but opponents have raised concerns that it will exacerbate disparities in education.
HB 1 advanced out of the House Appropriations and Revenue Committee and off the House floor on Tuesday. The Senate voted 33-5 on Friday to send the bill to the governor’s desk.
Perhaps the most watched bill of the week was House Bill 500, which represents the House version of the executive branch budget. It includes more than $151 billion in proposed appropriations for the 2026-28 biennium, including operating and capital costs.
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Lawmakers sparred for more than two hours on the House floor Thursday before passing the bill 81-18 along with another measure that proposes a two-year spending plan for the judicial branch.
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HB 500 seeks an overall reduction in spending but exempts areas like veterans affairs, the state funding formula for schools known as SEEK, Medicaid benefits, behavioral health, juvenile justice, corrections, and other key areas.
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Backers said HB 500 would prioritize needs over wants and limit the growth in state spending to around 2% each year. Detractors said the plan should include more funds for education, housing and Medicaid, among other areas.
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The bill now heads to the Senate where it is sure to undergo changes.
The general assembly has now convened for 36 days of this year’s 60-day session, and more than 1,000 bills have been filed in the chambers so far.But lawmakers are facing deadlines next week for introducing new legislation: Monday is the last day to file bills in the Senate, and Wednesday is the last day in the House.
Meanwhile, dozens of other bills are continuing to build momentum. Here’s a look at some of the other measures that were moving forward this week:
Impaired Boating – In the event of a serious boating accident, House Bill 168, known as Keegan’s Law, would require law enforcement officers to seek a search warrant for blood testing of the boat operator if that person refuses to submit to the test. It also calls on telecommunicators to report boating accidents to Kentucky State Police. The measure cleared the House on Monday.
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Involuntary Commitments – House Bill 249 would expand the list of felony sex crimes for which a judge may involuntarily commit a mentally incompetent offender to treatment. The House voted in favor of the legislation Monday.Artificial Intelligence – House Bill 455 would forbid the use of artificial intelligence in providing direct mental health therapies. AI could not be used to make independent therapeutic decisions, to directly interact with clients or to generate treatment plans without the review and approval of a licensed professional. The House passed the bill Monday.
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School Employee Sick Leave – Under Senate Bill 124, school districts would have the option to let employees voluntarily cash in sick days. Employees would need to maintain a minimum of 15 sick days, but could cash in additional days at 30% of their current pay rate. The bill would also allow teachers to use sick days for religious holidays that do not appear on the school calendar. The Senate gave the bill a green light on Monday.
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Dolly Parton’s Imagination Library – Senate Joint Resolution 54 calls on the Kentucky Department of Libraries and Archives and the state Cabinet for Health and Family Services to cooperate in exploring ways to increase enrollment in Dolly Parton’s Imagination Library. The measure cleared the Senate Families and Children Committee on Tuesday.
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Child Protection – House Bill 246 would require animal control officers to complete training to help recognize signs of child abuse and neglect. The House Local Government passed the bill Tuesday.
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Firearms Conversation Devices – House Bill 299 would align Kentucky gun laws with federal law related to machine gun conversion devices. Federal law already bans possession of such devices, but supporters say the bill is needed to help law enforcement enforce the ban locally.
Ultimately, possession of a conversation device would be a class C felony in Kentucky if the bill becomes law. The legislation received support from the House Veterans, Military Affairs and Public Protection Committee on Tuesday.
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Logan’s Law – House Bill 422 would clarify the insanity defense in state criminal law and eliminate the eligibility of some violent offenders for early release. The bill was filed after Ronald Exantus, the man who killed 6-year-old Logan Tipton in 2015, was released early from prison last year. The House approved the measure Tuesday.
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Student Violence – Senate Bill 101 would mandate that local boards of education expel students for a minimum of 12 months when they become aware of an incident in which a student in grades 6–12 intentionally harmed a teacher or other school employee on school grounds or at a school function. The Senate voted for the measure Tuesday.
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FAIR Teams – Senate Bill 162 would eliminate the requirement to use Family Accountability, Intervention and Response teams – known as FAIR teams – in the diversion process for juvenile offenders in Kentucky. The bill won support in the Senate on Tuesday.
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Status Offenders – Senate Bill 170 would create a four-year pilot program in up to 10 school districts to help address barriers to school attendance and improve accountability among parents of habitually truant students. SB 170 cleared the Senate Tuesday.
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Physician Residencies – Senate Bill 137 would eliminate a duplicative residency requirement for international doctors to practice in the state. The Senate Health Services Committee passed the bill Wednesday.
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Deer Populations – House Bill 142 seeks to help farmers more easily file and renew claims for crop and property damage caused by deer while also addressing overpopulation concerns across the state. The House Agriculture Committee advanced the bill Wednesday.
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School Board Candidates – House Bill 469 would require candidates for local school board seats to undergo background checks. The House Primary and Secondary Education Committee voted for the bill Wednesday.
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Sunscreen in Schools – House Bill 586 clarifies that sunscreen is not a medication and ensures that students can apply sunscreen at school without a written order from a health care provider. The legislation cleared the House Primary and Secondary Education Committee on Wednesday.
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Residential Storm Shelters – Senate Bill 11 would create a residential safe room rebate fund that helps homeowners pay for building emergency storm shelters. The goal is to eventually provide matching grants to help cover the cost. The Senate Appropriations and Revenue Committee passed the bill Wednesday.
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Nuclear Energy – Senate Bill 57 would create the Nuclear Reactors Site Readiness Pilot Program to help energy providers obtain licenses and permits related to constructing nuclear power projects. The program would provide grant funding for up to three projects with up to $25 million in grants available for each one. The legislation received support from the Senate Appropriations and Revenue Committee on Wednesday.
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Juvenile Justice – Senate Bill 125 would establish a comprehensive framework for identifying and treating high-acuity youth in Kentucky’s juvenile justice system and create a dedicated mental health residential treatment facility for them. The Senate Appropriations and Revenue Committee gave the bill a green light Wednesday.
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Kindergarten Readiness – Senate Bill 191 calls on the University of Kentucky to establish a pilot program that gauges the effectiveness of using financial incentives to encourage kindergarten readiness. SB 191 cleared the Senate Appropriations and Revenue Committee on Wednesday.
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Environmental Regulations – Under Senate Bill 178, new state environmental regulations cannot be more stringent than federal laws or regulations regarding the same topic. In absence of a federal law or regulation, new state environmental regulations must be technologically achievable and based upon the best available science and the weight of scientific evidence. The Senate Natural Resources and Energy Committee passed the measure Wednesday.
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Prison Education Programs – House Bill 5 would establish the Kentucky Community and Technical College System Prison Education Program, seeking to reduce recidivism and support workforce development. KCTCS would partner with the state Department of Corrections to build and operate a vocational training campus at Northpoint Training Center. The legislation received a nod from the House Judiciary Committee on Wednesday.
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Diabetes – House Bill 141 calls on the Kentucky Department of Education to provide informational materials on Type 1 diabetes to school districts for distribution to parents and students. The House voted in favor of the bill Wednesday.
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Organ Donors – House Bill 510 aims to protect patients during the organ donation process by requiring additional verification steps before organ procurement can begin. It would also clarify that donor consent must be properly documented and that a patient must be formally declared dead before organs are donated. The bill cleared the House on Wednesday.
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Stalking – House Bill 521 seeks to modernize state stalking laws especially regarding stalking behaviors that occur through electronic communications and social media platforms. The legislation won support in the House on Wednesday.
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Alternative Sentencing – Senate Bill 122 aims to keep families intact when a parent is convicted of a felony. It would require Kentucky courts to consider alternative sentences for certain nonviolent felony convictions when the defendant is a primary caretaker of a dependent child. The Senate voted for the measure Wednesday.
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Child Marriage – Senate Bill 156 would close a loophole in state law to ensure that 18 is the legal age for marriage in Kentucky. Right now, state law still allows 17-year-olds to get married if they have approval from the judicial system. The Senate Committee on Veterans, Military Affairs and Public Protection moved the bill forward on Thursday.
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Data Centers – House Bill 593 seeks to protect utility ratepayers from subsidizing the energy costs for new data centers. It calls on tech companies, when opening a data center, to either generate their own energy, enter into a power purchase agreement or purchase power on the national market. The legislation cleared the House Committee on Economic Development and Workforce Investment on Thursday.
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Wrongful Conviction Compensation – Senate Bill 131 would allow wrongfully convicted felons in Kentucky to sue for monetary damages based on how long they were wrongfully imprisoned. The Senate Judiciary Committee voted for the bill Thursday.
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Medicaid Delivery Study – Senate Concurrent Resolution 9 calls for a study of accountable care models used for Medicaid programs in other states. The study would also look at opportunities to implement such a model in Kentucky through a pilot program. The effort seeks to control costs and improve health outcomes. The House Health Services Committee approved the resolution on Thursday.
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Food is Medicine Initiatives – Senate Joint Resolution 23 would declare Kentucky as a “Food is Medicine” state and direct state agencies to advance Food is Medicine initiatives. The resolution on Thursday cleared the House Health Services Committee.
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State Dog Breed – Senate Bill 37 would designate the Treeing Walker Coonhound as the official state dog of Kentucky. The Senate Agriculture Committee passed the bill Tuesday, and the measure cleared the Senate floor on Friday.
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Recovery Residences – Senate Bill 33 seeks to enhance local communication and transparency around residential recovery centers. Operators who want to open a center would have to notify city government within 30 days of applying and provide a second notice if the center is certified. Operators would also be required to notify the city if any fines are imposed on the facility. The bill also would allow cities to maintain a registry of residential recovery centers. SB 33 advanced off the Senate floor on Friday.
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Lawmakers are scheduled to reconvene on Monday for day 37 of the session.
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Kentuckians are encouraged to check the general assembly’s calendarfor updates. Kentuckians can also track the action through the Legislative Record webpage, which allows users to read bills and follow their progression through the chambers.
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Citizens can also share their views on issues with lawmakers by calling the general assembly’s toll-free message line at 1-800-372-7181.
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