Beshear says Kentucky remains strong amid national challenges in State of the Commonwealth address

FOX23 News at 9 p.m.

FRANKFORT, Ky., (KBSI) — Gov. Andy Beshear said Kentucky’s economy and communities remain strong despite national challenges as he delivered his seventh State of the Commonwealth address and final budget proposal Wednesday night.

Beshear told lawmakers and residents that while the state is performing well, Kentuckians face new economic and social pressures that require decisive action. He said state leaders have a responsibility to “reignite and refuel the American Dream” by investing in jobs, housing, health care, infrastructure and education.

The governor highlighted record economic development under his administration, citing more than $45 billion in new private investment over the past six years and the creation of 68,000 jobs. He pointed to major projects across the state, including investments by GE Appliances, General Matter in Paducah and a Tate manufacturing project in Glasgow.

Beshear’s proposed budget includes funding aimed at sustaining growth, including $70 million for site development, $100 million for infrastructure to support large projects and $25 million for rural economic development.

Housing affordability was another focus of the address. Beshear said Kentucky has become one of the most affordable states for homeownership and announced a proposed $150 million investment in the Kentucky Affordable Housing Trust Fund, which he said could leverage $1 billion in new housing statewide when combined with private funding.

The governor also emphasized health care expansion, noting new hospital projects across the commonwealth, three consecutive years of declining overdose deaths, expanded Medicaid benefits and the rollout of regulated medical cannabis. His budget proposal includes full funding for Medicaid, $100 million to reduce insurance costs through kynect, and support for rural hospitals and nursing education.

Beshear warned that recent federal actions could threaten health care access and social services, saying his budget is designed to protect Kentuckians from those impacts.

Infrastructure improvements were also highlighted, with Beshear citing repairs or replacements of more than 660 bridges and progress on 20,000 miles of road projects since 2020, including completion of key corridors and ongoing work on the Mountain Parkway expansion.

Public safety, education and early childhood programs rounded out the address. Beshear proposed funding educator raises, increased retirement contributions for teachers and expanded early childhood education, calling universal pre-kindergarten “the single most effective investment” for Kentucky’s future.

In closing, Beshear urged unity and cooperation, saying the state’s response to current challenges will shape how future generations view today’s leaders.

“We’ve worked together because our people deserve a government that unites instead of divides,” Beshear said.