• An allocation of approximately $70.2 million in FY 2026-27 and $20 million in FY 2027-28 within the State Supported Construction Program from the Road Fund for the Local Assistance Road Program (LARP) to assist cities and counties. This represents a significant increase from when the bill was first introduced. 
• An allocation of $25 million in both fiscal years within the State Supported Construction Program from the Road Fund to establish the County and City Bridge Improvement Program (CCBIP). These appropriations are also an increase in both fiscal years from the bill’s introduction. 
• A reporting requirement that the KY Department of Vehicle Regulation provide data regarding wait times, types of appointments, types of transactions, suggestions on reducing customer wait times for each regional driver licensing office, and an overall statewide assessment of the regional driver licensing offices. The report will be submitted to the Interim Joint Committee on Transportation.  

• The Kentucky Municipal Road Aid (MRA) program, the 7.7% local state share of state gas tax revenues for city roads, will be funded at $54.3 million in FY 2026-27 and $57.4 million in FY 2027-28.  This is a decline of approximately 22% ($11.9 million) from the $66.2 million in FY 2025-26 that was appropriated in the previous biennium transportation budget. In comparison, the Kentucky County Road Aid (CRA) Program also declined 22% from FY 2025-26 to FY 2026-27. The decline in MRA payments this biennium is a result of a drop in the local share of Road Fund dollars due to a decline in the state’s motor fuels tax. 

• The creation of a grant pool that is administered by the Department of Rural and Municipal Aid for cities and counties, which will provide an appropriation of $24 million in FY 2026-27. The grants require a dollar-for-dollar local match that must use dollars that are not from municipal aid funds. Authorized projects include city road improvements, construction of new routes, sidewalk construction or repair, multimodal transportation projects, and pavement resurfacing. The funds will be administered by the following conditions: 

• Each county is eligible to receive up to $100,000 for each fiscal year. Any county that contains a consolidated local government, urban county government, or a county government whose county seat is not a unified city are eligible to receive up to $200,000 each fiscal year.  

• Each city that serves as the county seat, excluding Lexington and Louisville, is eligible to receive up to $100,000 each fiscal year. If a county seat does not apply for the funds or expense its full allocation within a fiscal year, any remaining funds that were specifically allocated to the county seat can be made available to other incorporated cities within the county.

• Road Fund appropriations of $5 million in FY 2025-26, $16.1 million in FY 2026-27, and $15.7 million in FY 2027-28 to support the addition of three regional driver licensing offices located in Barren, Bullitt, and Oldham counties. 

• 26RS HB 502: The 2026-2028 Biennial Highway Construction Plan. 

• 26RS HJR 75: The last four years of the State’s Six-Year Road Plan or outer years. 

• 26RS HJR 76: The Local Assistance Road Program projects portion of the Six-Year Road Plan.

26RS HJR 76 outlines the list of proposed local government projects, the dollar amounts in FY 2027, and project descriptions under the Kentucky Local Assistance Road Program (LARP). In total, $70.2 million is proposed under the House Joint Resolution. This is an increase from 25RS HJR 46, which proposed approximately $23.9 million in FY 2026. Information regarding the program and prior allocations to cities can be found here.