The Kentucky Transportation Cabinet’s Department of Rural and Municipal Aid released the FY 2026 Local Assistance Road Program (LARP) list of city and county projects. 2026 HB 501, the KY State Transportation Biennial Budget, allocated $70.2 million in FY 2026-27 and $20 million in FY 2027-28 for the program. This is a substantial increase from the FY 2025 allocation of $23.9 million. 2026 HJR 76 provides the list of projects that were approved by the state legislature this past session.
The total amount requested for city projects was approximately $26.5 million for 523 city projects. In HJR 76, 242 requested city projects were awarded in 82 individual cities for a total amount awarded of over $14.1 million. The average project amount awarded for the approved city projects was nearly $58,400.
The LARP program was established under 2025 HB 546 to provide an additional option for local governments to secure state funding for road projects to help address their key transportation needs. The program focuses on the rehabilitation, resurfacing, and improvement of existing roads. It does not fund projects that expand capacity. The maximum state award is $500,000 per project, but local governments may choose to contribute additional funds.
Every LARP project requires a local funding match. The required amount is determined by a formula created by the Kentucky Cabinet for Economic Development, based on population and growth trends. The table below outlines the total number of requested city projects by local match percentage in FY 2026.
| Local Match Percentage (%) | Total City Projects | Average Project Amount Requested ($) |
| 10.0 | 59 | 30,542 |
| 12.5 | 56 | 30,308 |
| 15.0 | 145 | 48,000 |
| 17.5 | 86 | 46,704 |
| 20.0 | 177 | 67,717 |
The full list of FY 2026 LARP city projects awarded can be found here.