KY Lawmakers Warn of State Budget Hit because of Federal Cuts

KY lawmakers warn of state budget hit because of federal cuts

Republican leaders in the Kentucky legislature this week warned of challenges to crafting a state budget next year, particularly with potential funding cuts and extra costs shifted to state governments for health care and food assistance.

State and Federal Tax Cuts of the Last Decade Are Giving an Enormous Windfall to the Wealthiest Kentuckians  - Kentucky Center for Economic Policy

The Kentucky General Assembly will create a new two-year budget in 2026 in the face of declining state revenues and substantial new costs passed down from Congress. Large recent state income tax cuts and a slowing national economy are already causing a $305 million budget shortfall this year. And HR 1, the federal megabill passed this summer, shifts major costs for Medicaid and SNAP food assistance to states. This challenging context threatens m…