The Interim period continues pushing on as lawmakers prepare legislation for the 2026 Regular Session.
Next year, we will meet for 60 days to address issues facing the commonwealth and craft the state’s biennium budget. In the meantime we must focus on issues that can be solved next session and hear concerns from constituents, state agencies, and local governments to find where we must focus our funding.
Last week several committees met to discuss issues affecting our families, economy, and health care system. Here’s what happened in these committees:
Capital Project and Bond Oversight: Lawmakers heard from the Finance and Administration Cabinet regarding emergency repairs, major facility projects, and lease agreements. The Office of Financial Management provided details on infrastructure loans, economic development grants, and both new and pending bond issues related to housing and education. The committee also voted to approve multiple projects including funding for access to clean water and school construction funding in multiple counties.
Local Government: Members continued work on proposals aimed at shaping Kentucky’s housing market, infrastructure, and local governance. Several bills discussed during the 2025 session are expected to be reintroduced when we convene the 2026 Regular Session. SB 50 would create Residential Infrastructure Development Districts to finance housing projects. HB 7 would establish development zones with grant-based incentives. With a projected housing shortage nearing 300,000 units, the need is urgent. HB 371 aims to close loopholes in industrial landfill permitting. HB 806 would allow up to six backyard hens statewide.
State Government: Legislators first heard from the State Board of Elections about what voter list maintenance entails in Kentucky. Notably, 284,381 individuals were removed from Kentucky’s voter rolls from July 1, 2024, to June 30, 2025. Then, members received an update from the Kentucky Personnel Cabinet about the Kentucky Employees’ Health Plan, which administers health and flexible spending benefits for over 300,000 people in Kentucky. Last, members discussed House Bill 622, which passed during the 2025 Regular Session. Specifically, members discussed some line-item vetoed provisions in the measure that would have addressed timely payments of contractors or individuals under government contracts.
Health Services: Lawmakers discussed the state’s healthcare data systems, including the Kentucky Health Information Exchange, and how this data can be used by lawmakers to make targeted, informed decisions regarding healthcare policy. Members also received a presentation on public health data from officials from the University of Kentucky and discussed how this information can be used to improve health outcomes statewide. Finally, the committee reviewed the Unified Community Mental Health and Substance Abuse Prevention and Treatment Block Grant Application for Federal Fiscal Year 2026-2027.
Veterans, Military Affairs, and Public Protection: Legislators received an overview of water and wastewater systems, water infrastructure, and operator certification requirements from the Department for Environmental Protection and Kentucky Rural Water Association. Officials highlighted cases of aging equipment and treatment facilities as well as staffing challenges due to a rapidly retiring workforce and the sparse recruiting field for potential new operators. Members also heard from the Martin County Water and Sanitation Districts and Friends of the Tug Fork River regarding their longstanding struggles with water quality and aged infrastructure, pointing to the district’s low revenue compared to their maintenance costs as a contributing factor.
Families and Children: Members heard from the Department of Medicaid Services on the implementation of the Community Health for Improved Lives and Development (CHILD) waiver established in HB 6 (2024). Committee members and advocates voiced their belief that the Cabinet went against legislative intent when developing the waiver. The waiver was legislated to decrease the waitlist for the Michelle P. Waiver by developing a similar program for children and young adults under the age of 21. Finally, the Division of Regulated Child Care detailed their adverse action policies for licensed or certified childcare centers and homes that have violated safety standards.
Economic Development and Workforce Investment: Lawmakers heard from Kentucky’s Statewide Workforce and Talent Team, a group which includes the Kentucky Community and Technical College System, Cabinet for Economic Development, Kentucky Chamber of Commerce, and others working together to provide businesses with resources they need to find their next talented employee. Members also heard an update regarding our commonwealth’s recent economic growth, and continuing need for additional housing due to a gap in Kentucky’s housing supply. According to a survey conducted by the Chamber of Commerce, 66% of community leaders believe our housing market is holding back further economic growth.
Licensing, Occupation, and Administrative Regulations: Members discussed two pieces of legislation that were previously proposed during the 2025 Regular Session. The first measure would remove barriers to employment and occupational licensing for individuals with a criminal record, and the second measure would address the Kentucky Board of Examiners of Psychology and licensing of psychologists in the state. Members also received an update on the Engineer and Land Surveyor Board. Then, members reviewed two proposed administrative regulations from the Department of Alcoholic Beverage Control. Lastly, members discussed the potential creation of a division within the ABC to regulate non-alcoholic intoxicating substances.
Tourism, Small Business, and Information Technology: Legislators heard testimony from the Kentucky Division of Forestry and the Department of Fish and Wildlife on the process and the benefits of prescribed and controlled fires. Intentional fires set can help protect the ecosystem and reduce the risk of catastrophic wildfires. These prescribed burns also safeguard Kentucky’s bourbon and forest industries while fostering contractor activity and creating jobs in rural communities.
Medicaid Oversight and Advisory Board: Members received an overview of proposed federal changes to the Medicaid program including policy adjustments to eligibility, provider payments, and new work and community engagement requirements. Testimony also covered the provisions of the Rural Health Transformation Fund, and how this appropriation could best be used in supporting the long-term sustainability of vulnerable rural hospitals through strategic policies and more efficient use of existing resources. Finally, members discussed potential implications for Kentucky as a Medicaid expansion state, such as a reduced federal match for emergency Medicaid benefits, and how this may affect the state’s ability to maintain coverage and provider access.
As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via email at Samara.Heavrin@kylegislature.gov and keep track through the Kentucky legislature’s website at legislature.ky.gov.
Rep. Samara Heavrin, R-Leitchfield
