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Kentucky Association of Counties


County Champion


House releases transportation budget

By Kayla Carter Smith, Policy Analyst
The much-anticipated budget bill was introduced in the House on Tuesday.

HB 265, sponsored by Rep. Jason Petrie, provides funding for the Transportation Cabinet for the FY 2025-26 biennium. Counties rely on funding from this budget for the maintenance of county roads and bridges.  

County Road Aid: The bill includes $146.9 million in FY 2025 and $157.3 million in FY 2026 for county road aid based on the revenue sharing formula. Proposed county road aid spending in FY 2025 is a 6.6 percent increase over the FY 2024 budget, or an increase of $9.1 million.  

The proposed budget also includes funding opportunities for counties through two new programs: 

  • $20 million in each fiscal year for the County Priority Projects Program to assist with county and city roads. The Transportation Cabinet will be required to submit a list of qualified projects that were ranked as a priority 8, 9, or 10 by Nov. 1 of each year to the legislature.  
  • $25 million in each fiscal year to establish the County and City Bridge Improvement Program.  

This is only the first step in the process for the transportation budget. Once it moves out of committee and is passed in the House it will go to the Senate for any changes they may have.  


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