Cuts coming to Kentucky Medicaid program, social services and more
Gov.
Beshear on Thursday cited funding reductions in the next two-year state budget for the cabinet as the reason for the cuts, adding that he “repeatedly warned” the
The final version of the state budget falls
“Sadly, action was not taken to correct the most concerning areas,” Beshear said. “Now, the state is forced to bear the outcome of these short-sighted decisions and the chronic defunding from the federal government. Cuts are going to have to be made across multiple services, including those in Team Kentucky’s departments of community-based services, behavioral health, developmental and intellectual disabilities and Medicaid services.”
During the 2026 legislative session, lawmakers’ main priority was passing the next two-year state budget. While
“Anyone who is purchasing gasoline or groceries knows that costs have gone up,” Stack said. “Those same costs have certainly impacted the cost of providing medical care, the cost of providing foster care services, foster parent support, foster home support (and) the cost of providing meals through our nutrition programs. Those costs have gone up, but our funding has gone down, and in some areas, gone down quite significantly.”
Beshear and Stack didn’t touch on specific cuts, but outlined general steps the cabinet is planning to take. Stack said for Medicaid, most providers in the state program will have rate reductions.
While reductions can’t be uniformly applied, Stack said there will be announcements soon on provider payment reductions that begin in the next fiscal year.
Other reductions will take place in the
“Actions will have to be taken regarding the foster care network, regarding the foster homes and the rates that they receive for payments, as well as a number of special programs that are put in place to help support foster children to overcome the adversities they face and to help them have their best opportunity to thrive,” Stack said.
House Speaker
He added that the legislature gave Beshear and his administration flexibility to use existing state funding to protect priority services for vulnerable Kentuckians.
“We also directed the administration to prioritize state spending and seek savings by addressing outdated and ineffective programs, as well as services already provided by other agencies or the private sector,” Osborne said. “Instead of doing so, he makes abundantly clear what he and his administration choose to prioritize.
“After all, he consistently finds the funding needed to expand state government when he wants to — including a Pre-K for All initiative that failed to receive support because he failed to produce an actual plan.”
The program provides cash, medical and transportation funds to low-income families for a lifetime maximum of five years and receives allotted federal funds from Temporary Assistance for Needy Families.
Another program that Stack said experienced a budget reduction was the senior meals program.
In
The senior feeding program helps provide meals at sites across
But that money had been tapped out at the time, and the state had to use
“The General Assembly declined to maintain that funding level and did not provide that additional
A
In the previous biennial budget, he said, lawmakers allocated
The spokesperson added that lawmakers have raised serious concerns about the program’s past management and communication, which include “the administration’s decision to continue operating at expanded levels using temporary funding, the lack of clear and timely communication with providers and the failure to prioritize seniors with the greatest nutritional need from the outset.”
“Ultimately, the success of the program will come down to execution and responsible management of available resources,” the spokesperson said. “We expect the administration to take these concerns seriously, prioritize seniors who depend on these services the most and use the flexibility within its budget to prevent further shortcomings.”
©2026 Lexington Herald-Leader. Visit kentucky.com. Distributed by Tribune Content Agency, LLC.


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