State of the State: 2025 vs 2026
Governor Andy Beshear -- comparing priorities year over year
From Celebration to Crisis Response: Governor Beshear's Shifting Tone
Governor Andy Beshear's 2025 State of the Commonwealth was largely a victory lap — celebrating $35 billion in private-sector investment, 59,800 new jobs, record exports, and booming tourism. The speech was aspirational, branding the state as a "New Kentucky Home" and urging bipartisan cooperation through appeals to compassion and faith. While the Governor mentioned priorities like educator pay raises, universal pre-K, and a talent attraction program, these were stated briefly without detailed budget proposals or dollar figures.
In 2026, the tone shifted dramatically. Framed around the idea that the American Dream itself is under threat, the address was far more policy-dense and explicitly responsive to federal actions under President Trump. Beshear proposed a detailed executive budget with specific line items: $150 million for Kentucky's Affordable Housing Trust Fund, $100 million to lower health insurance costs on kynect, $125 million for a rural hospital fund, $50 million for food banks, $75 million for utility bill assistance, and $159 million for mandatory educator raises. The economic development numbers were updated — $45 billion in investment and 68,000 jobs — but the emphasis moved from celebrating growth to protecting Kentuckians from emerging threats.
The 2026 speech introduced an entirely new dimension of direct pushback against federal policy. Beshear explicitly criticized the Trump administration's "big, ugly bill," the expiration of affordable health care tax credits, proposed Medicaid cuts, and attacks on SNAP benefits. This adversarial framing toward Washington was completely absent from the 2025 address, which focused inward on state-level progress and bipartisan goodwill. The Governor positioned his budget as a defensive shield for Kentucky families against federal austerity.
Several policy areas also matured significantly between the two years. Pre-K for All went from a brief mention to a centerpiece proposal backed by specific data points — $9,000 in annual parental earnings gains and up to 70,000 new workforce participants. Criminal justice reform evolved from highlighting KSP drug seizures to proposing a reentry campus in partnership with KCTCS and celebrating record-low recidivism. Housing affordability emerged as a major new theme, with the $150 million trust fund proposal projected to leverage $1 billion in new housing. The 2026 speech was unmistakably a final-term budget address designed to lock in a policy legacy, in contrast to the more ceremonial and inspirational 2025 speech.
New Priorities in 2026
- +A $150 million investment in Kentucky's Affordable Housing Trust Fund, projected to generate $1 billion in new housing statewide, representing a major new focus on housing affordability.
- +Direct pushback against federal policy, including explicit opposition to Trump's 'big, ugly bill,' Medicaid cuts, expiration of ACA tax credits, and SNAP reductions.
- +$100 million to lower health insurance costs on the kynect state exchange and $125 million for a rural hospital fund to counter federal health care funding losses.
- +$50 million for Kentucky food banks and $75 million for a utility bill assistance fund to help at-risk families cope with tariffs and federal benefit cuts.
- +A criminal justice reentry campus proposal developed in partnership with KCTCS President Ryan Quarles, along with expanded vocational programs in prisons.
- +$25 million for nursing student loan forgiveness to address health care workforce shortages.
- +Expansion of Michelle P. Waiver slots for families of children with special needs.
- +$70 million for site development, $100 million for large-project infrastructure, and $25 million for a rural economic development fund as specific budget proposals for continued job creation.
Dropped from 2025
- −The 'New Kentucky Home' branding and statewide talent attraction program, which was a key initiative mentioned in 2025, received no mention in 2026.
- −High-speed internet expansion, including the milestone of connecting 80,229 additional homes and the Berry/Spectrum recognition, was not referenced in 2026.
- −The detailed focus on childhood cancer research and the Kentucky Pediatric Cancer Research Trust Fund was absent from the 2026 address.
- −The extended faith-based appeal referencing the story of Mary and urging compassion in legislation, while echoed thematically, was replaced by more pointed political framing in 2026.
- −Recognition of tourism achievements and record-breaking export numbers, prominent in 2025, were not highlighted in 2026.
Shifted Emphasis
- ↔Economic development shifted from celebratory framing ($35 billion, 59,800 jobs) to updated but more forward-looking numbers ($45 billion, 68,000 jobs) paired with specific budget investments to sustain growth.
- ↔Universal pre-K evolved from a brief mention in 2025 to a headline proposal in 2026, backed by data showing $9,000 annual earnings increases for parents and up to 70,000 workforce gains.
- ↔Educator pay went from a general call for raises in 2025 to a specific $159 million proposal for mandatory raises with nearly 7% take-home pay increases plus $560 million for teacher retirements.
- ↔Health care expanded from celebrating Medicaid dental/vision/hearing expansion and new hospital openings to a defensive posture with $225 million in combined funding to protect coverage from federal cuts.
- ↔Public safety shifted from highlighting KSP drug seizures ($26 million in 2024) to emphasizing crime prevention, record-low recidivism rates, 474 online predator arrests, and the proposed reentry campus.
- ↔Natural disaster recovery evolved from recognizing Western and Eastern Kentucky rebuilding leaders to reporting specific milestones — 254 homes for tornado survivors, 500+ new homes at eight high-ground communities, and $223 million for 953 affordable rental units.
- ↔The Mountain Parkway went from securing funding to accelerate completion in 2025 to the Governor declaring every portion is now complete or under construction in 2026.
- ↔The bipartisan cooperation message shifted from general goodwill appeals in 2025 to more pointed framing in 2026, invoking past legislative successes on medical cannabis and sports betting as leverage to pass pre-K for All.
Policy Topics Addressed
Affordability
Governor Beshear framed affordability through the American Dream lens, proposing a $150 million investment in the Affordable Housing Trust Fund (leveraging $1 billion with private funding), $100 million to lower health insurance exchange costs threatened by federal subsidy cuts, $50 million for food banks, and a $75 million fund for at-risk utility bill assistance. He noted Kentucky scored as one of the best states for home affordability and warned of tariff impacts on working families.
Agriculture
Governor Beshear proposed $25 million for a rural economic development fund and noted that the state's economic development efforts include bringing jobs to every part of the commonwealth. He highlighted concerns about tariffs and federal uncertainty affecting Kentucky families, including agricultural producers.
Economy & Jobs
Governor Beshear reported more than doubling Kentucky's previous investment record with over $45 billion in new investment and 68,000 new jobs, marking the first, second, third, and fifth-biggest years for economic development on record. His budget includes $70 million for site development, $100 million for infrastructure to support large projects, and $25 million for a rural economic development fund.
Education
Governor Beshear proposed $159 million for mandatory educator raises (nearly 7% increase in take-home pay), increased per-pupil education funding, and added $560 million to teachers' retirements. His signature education proposal was Pre-K for All, which he said would increase kindergarten readiness, boost parents' earnings by nearly $9,000 per year, and grow the workforce by up to 70,000. He described himself as 'unapologetically a 100% pro-public education Governor.'
Environment & Energy
Governor Beshear proposed a $75 million fund to help at-risk Kentuckians pay utility bills, reflecting concern about energy affordability amid rising costs from tariffs and national uncertainty.
Healthcare
Governor Beshear reported three straight years of declining overdose deaths, expanded Medicaid dental/vision/hearing coverage for 284,556 Kentuckians, and doubled mental health professionals. He warned about federal Medicaid cuts, proposing $100 million to lower exchange costs on kynect, a $125 million rural hospital fund, and $25 million for nursing student loan forgiveness. He also highlighted new hospital construction including the first hospital in West Louisville in 150 years.
Housing
Governor Beshear highlighted Kentucky's recognition as one of the best states for home affordability. He noted 254 homes being built for tornado survivors in Western Kentucky and announced the single largest affordable housing investment in Kentucky history with $223 million going toward 953 rental units. He proposed a game-changing $150 million investment in Kentucky's Affordable Housing Trust Fund, which combined with private funding would create $1 billion in new housing.
Infrastructure
Governor Beshear highlighted replacing or repairing 660 state and local bridges and completing or making progress on 20,000 miles of road improvements since 2020. He noted completing the U.S. 460 Corridor in Pike County, the I-69 Ohio River Crossing approach, and beginning construction on the final stretch of the Mountain Parkway Expansion, stating he is the first governor where every portion of four-laning the Mountain Parkway is complete or under construction.
Public Safety
Governor Beshear highlighted boosting Kentucky State Police to 1,896 members and local law enforcement to over 8,000, along with over 474 online predator arrests since 2019. He noted record-low recidivism rates and announced partnerships with KCTCS President Ryan Quarles for a reentry campus. He also proposed $80 million for the Memphis Safe Task Force partnership and continued focus on public safety as integral to the American Dream.
Social Services
Governor Beshear proposed a game-changing $150 million investment in Kentucky's Affordable Housing Trust Fund, projected to create $1 billion in new housing combined with private funding. He highlighted expanding Medicaid dental, vision, and hearing coverage reaching 284,556 Kentuckians, three straight years of declining overdose deaths, and proposed Pre-K for All as his top legislative priority, projecting it would boost parents' earnings by $9,000 per year. He also proposed $50 million for food banks and $75 million for utility bill assistance.
Tax & Budget
Governor Beshear's budget proposal included $70 million for site development, $100 million for infrastructure, $25 million for rural economic development, $150 million for the Affordable Housing Trust Fund, $100 million for health exchange subsidies, $159 million for mandatory educator raises, $50 million for food banks, and $75 million for utility assistance. He emphasized pushing back against federal cuts while maintaining fiscal discipline and investing in Pre-K for All.
Technology
Governor Beshear's address (delivered as a press release) did not extensively address technology policy but mentioned ongoing economic development and infrastructure investments that include technology components.
Veterans & Military
Governor Beshear highlighted Kentucky State Police growth to 1,896 team members and local law enforcement exceeding 8,000 officers. He emphasized second chances through new vocational programs in prisons and partnerships with KCTCS President Ryan Quarles for a reentry campus. He honored first responders including the Okolona Fire Department for their response to the UPS plane crash.