During the 2026 legislative session, the General Assembly approved unprecedented funding for county roads and bridges. The Kentucky Transportation Cabinet (KYTC) budget (HB 501) not only continued existing transportation programs but established new funding opportunities for local governments as well.
Through the Department of Rural and Municipal Aid, counties have access to several road and bridge funding programs for fiscal year 2027.
Commissioner Bobbi Jo Lewis highlighted these opportunities during this week’s County Judge/Executives and Magistrates and Commissioners Association Joint Conference. Presentation slides are available online.
New Grant Pool Program
The General Assembly created a new Grant Pool Program through HB 501 to support a variety of local transportation projects. Eligible projects include:
- Road improvements
- New road construction
- Resurfacing
- Sidewalks
- Multimodal transportation
Most counties may apply for grants of up to $100,000. Fayette County, Jefferson County, and counties whose county seat is not a unified city may apply for up to $200,000.
The program requires a dollar-for-dollar local match. County Road Aid funds may not be used to satisfy the match requirement.
Applications open July 1, 2026, and must be submitted using Form TC 20-47.
Local Assistance Road Program
The General Assembly appropriated $70 million for the Local Assistance Road Program in FY27 and $20 million in FY28. FY27 projects were based on applications received in fall 2025. The application period for FY28 projects opened June 1, 2026.
LARP provides funding for rehabilitation projects of no more than $500,000 on existing county roads. Counties are required to provide a local match ranging from 10% to 20%, based on population rankings.
Applicants must provide photographs every 300 feet (17 per mile). Applications must be submitted to KYTC by Oct. 1, 2026 using Form TC 20-46.
KYTC is required to submit a list of project requests to legislators by Nov. 1, 2026. Final funding decisions will be made during the 2027 legislative session.
Highway Contingency Fund
Often referred to as “discretionary” funding, the legislature appropriated $5 million in FY27 for roads with hazardous and/or emergency conditions, such as a road slide or sinkhole.
Counties may begin submitting applications on July 1, 2026, using Form TC 20-42. Applications are accepted on a rolling basis throughout the fiscal year.
County-City Bridge Improvement Program
The General Assembly continued funding for the County-City Bridge Improvement Program at $25 million for FY27.
The program helps fund the repair and replacement of county- and city-owned bridges.
Applications are accepted throughout the fiscal year in funding phases. The first FY27 application phase opens July 1, 2026, and closes Aug. 31, 2026. Counties must submit Form TC 20-44 along with the appropriate bridge inspection reports.
Need More Information?
- Link: KYTC forms library
- Link: KYTC interactive maps, including local roads for rural and municipal aid
- Link: Department of Rural and Municipal Aid June 17, 2026 presentation slides
For additional information about these and other road funding programs, contact the KYTC Department of Rural and Municipal Aid at RuralandMunicipalAid@ky.gov.
