Kentucky lawmakers strip insurance hike, restore school funding in revised budget bill

Kentucky educators say changes to the budget bill walk back cuts that threatened to push teachers and classified employees out of the profession
Published: Feb. 25, 2026 at 9:01 PM CST

FRANKFORT, Ky. (WXIX) - Kentucky lawmakers revised House Bill 500 Wednesday, stripping provisions that would have frozen school funding, cut transportation dollars and raised health insurance costs for public school employees.

The bill, which centers on Kentucky’s state budget, drew concern from educators when it was first introduced. Boone County Education Association President Kelly Read said the original version would have frozen SEEK funding, reduced school transportation funds and raised health insurance costs for school employees by $500 a month.

“There was no way that any educator was going to survive HB 500 in its inception,” Read said.

Amendments reverse key cuts

The bill left committee Wednesday with amendments that increase SEEK funding, fund 90 percent of transportation costs and remove the cap on insurance.

Read said the original bill posed a threat to teacher retention, particularly for newer educators and classified staff.

“It was something that was going to drive teachers out of the profession, especially newer teachers, and it had the potential to drive almost every one of our classified employees out of the profession,” Read said.

What comes next

Read said the association views the amendments as a win but is not ready to declare victory.

“It’s too early to say yay, I’m not in the habit personally and I don’t think the association is in the habit of saying this is great until the last day of the session,” Read said.

The association said it will continue lobbying lawmakers as the bill moves forward.

“We’re working with legislators every day to make sure this is something that works for our Kentucky Educators, but ultimately something that works for our Kentucky Students,” Read said.

House Bill 500 will next go to a house floor vote before moving to the Senate. The Kentucky Education Association said it plans to push for mandatory teacher raises and all-day kindergarten.

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