Kentucky sets aside money for roads and transportation services

Kentucky sets aside money for the Transportation Cabinet's operations and building projects. The budget covers highways, aviation, public transportation, driver services, and other Transportation Cabinet work. For 2026–27, funding includes $1,782,521,000 from the Road Fund, $1,333,474,000 in federal money, $262,257,800 in restricted accounts, $40,606,800 from the General Fund, and $1,200,000 in investment income. For 2027–28, funding includes $1,852,343,600 from the Road Fund, $1,337,716,100 in federal money, $390,487,700 in restricted accounts, $42,123,200 from the General Fund, and $1,200,000 in investment income. State-supported highway construction has $648,691,500 in 2026–27 and $685,178,900 in 2027–28. Federally supported construction has $1,175,748,300 and $1,242,678,700, respectively. Road maintenance has $459,012,900 in 2026–27 and $474,012,900 in 2027–28. Those amounts include $23,605,400 and $38,605,400, respectively, for increased maintenance and snow and ice removal support together with snow and ice removal funding as stated in the budget. The budget years run from July 1, 2026, through June 30, 2027, and July 1, 2027, through June 30, 2028.

Kentucky sets aside money for local road and bridge work, including grants that require local matching money. The road and bridge funding supports Kentucky cities and counties. The separate grant pool is for projects on city or county roads. The Local Assistance Road Program has $70,189,400 in 2026–27 and $20,000,000 in 2027–28 from the Road Fund. The County and City Bridge Improvement Program has $25,000,000 from the Road Fund each year. County road aid has $129,001,300 from the Road Fund in 2026–27. In 2027–28, it has $136,303,000 from the Road Fund and $13,000,000 from the General Fund. City road aid has $54,279,200 from the Road Fund in 2026–27. In 2027–28, it has $57,351,500 from the Road Fund and $13,000,000 from the General Fund. The Rural Secondary Program has $156,493,400 from the Road Fund in 2026–27 and $165,351,200 in 2027–28. Its flexible road funding and 80/20 bridge replacement programs continue within that program's budget for rural roads and bridges during the two-year budget period under the listed funding rules. The $24 million grant pool is funded for fiscal year 2026–27; the road and bridge programs have funding in both budget years.

Kentucky funds three additional regional driver offices and a library vision testing program. The offices are in Barren, Bullitt, and Oldham counties. Library vision tests serve people renewing driver's licenses. The offices have $5,035,600 for 2025–26, $16,079,700 for 2026–27, and $15,663,900 for 2027–28 from the Road Fund. The library testing program has $125,000 from the Road Fund for 2027–28. Each participating library must sign an agreement with the Transportation Cabinet. Participating libraries provide tests at no charge to the public. The Transportation Cabinet pays the program's costs, including training and equipment. The Department of Vehicle Regulation must report actual regional office wait times for appointments and walk-ins, transaction counts, and recommendations to improve service. Office funding covers fiscal years 2025–26 through 2027–28. Library testing funding applies to 2027–28. The wait-time report is due September 1, 2027.

Transportation Cabinet employees cannot work remotely unless the secretary grants an exemption. The remote work rule covers Transportation Cabinet employees. Exam reimbursement covers workers whose duties require a commercial driver's license. The secretary must report all remote work exemptions to the Legislative Research Commission every quarter. Workers whose jobs require a valid commercial driver's license can receive the reimbursement agreed to in their contract for required physical exams. Workers may choose their medical provider but must submit itemized receipts and required forms under the Transportation Cabinet's reimbursement rules. Quarterly reporting of remote work exemptions begins August 1, 2026.

The Transportation Cabinet may combine highway design and construction contracts, and Kentucky authorizes financing for two major bridge projects. Combined design and construction contracts are allowed for any project in the two-year highway construction plan. The Cabinet cannot restrict recycled asphalt in mixtures that meet its performance standards. The Cabinet must report annually on projects using combined design and construction contracts, including their status and actual and expected costs. The specified General Fund allocation for I-69 Ohio River Crossing project 2-1088.52 depends on selection for a federal transportation grant or loan program. Permission to issue $150 million in bonds for the I-69 Ohio River Crossing and $150 million for the Brent Spence Bridge Project continues. The law approves the I-69 Ohio River Crossing financial plan and agreement between the states. It authorizes the Kentucky Public Transportation Infrastructure Authority to develop the project and issue financing as needed for completion, operation, and maintenance. Reports on combined design and construction contracts are due November 1 of each fiscal year. A report on recycled asphalt use is due on or before November 1, 2027.