LEXINGTON, Ky. — State funding for public universities across Kentucky has been largely restored under the final version of the state budget, easing concerns about significant financial cuts to higher education institutions.
Earlier proposals included reductions of 1.9% in general funding for the 2026–27 fiscal year and 3.7% in 2027–28. However, revisions to House Bill 500 — following veto adjustments by Andy Beshear and approval from lawmakers — reversed most of those planned cuts.
The decision ensures that public colleges, including the University of Kentucky and the University of Louisville, will maintain current levels of state support over the next two years.
University leaders had previously warned that the proposed reductions would lead to multi-million-dollar budget shortfalls. The University of Kentucky had projected losses of $6 million in the first year and $11 million in the following year, while the University of Louisville anticipated cuts of $2.6 million and $5 million respectively.
Officials say restoring funding is critical, as state contributions remain a key component of university budgets alongside tuition, fees, and federal funding.
In a statement, University of Kentucky President Eli Capilouto expressed appreciation to lawmakers for reversing the cuts, noting that the outcome helps protect the institution’s long-term goals and stability.
Despite the positive development, some funding for capital projects — including a planned research facility at the University of Kentucky — was reduced under the final budget.
Overall, the revised legislation provides financial stability for Kentucky’s higher education system, preventing disruptions that could have impacted academic programs, staffing, and student services.