Kentucky leads the way in reigniting the American Dream for families
FRANKFORT, Ky. (Jan. 7, 2026) – Tonight, Gov. Andy Beshear delivered his seventh State of the Commonwealth and final Budget Address to Kentucky families, reporting that the “state of the commonwealth remains strong; but our people, our commonwealth and our country are facing serious new challenges, and it’s our job to meet this moment.”
The Governor began his address by sharing that, for the first time in his lifetime, a large portion of the American public is questioning one of the most important foundations of our country: the American Dream.
“The American Dream is as simple as it is powerful: If you work hard and play by the rules, you can get ahead and build a better life,” said Gov. Beshear. “As leaders, we have a responsibility to reignite and refuel the American Dream. For the sake of future generations, it must burn bright in the minds of our people.”
Gov. Beshear stated that the American Dream begins with a job – and that no administration has created more. In the last six years, the Beshear administration has more than doubled Kentucky’s previous investment record with over $45 billion in new investment, marking the first-, second-, third- and fifth-biggest years for economic development on record. Team Kentucky has also broken job-creation records, with 68,000 new jobs at the highest three-year average for new wages in our history.
In attendance were representatives from several milestone economic announcements this year, including team members from GE Appliances, representing the company’s $3 billion investment in new American manufacturing and the creation of 800 new Kentucky jobs; leaders from General Matter, which announced a $1.5 billion investment in Paducah; and Maureen Carpenter, president and CEO of Barren County Economic Authority, representing the $61.2 million project from Tate that will create 400 new jobs in Glasgow.
To ensure this success continues, the Governor’s proposed budget begins by reinvesting in job creation through $70 million for site development, $100 million for infrastructure to support large projects, and $25 million for a rural economic development fund to bring jobs to every part of the commonwealth.
A good job is where the American Dream starts, but a home is where it lives. In 2025, Kentucky scored as one of the best states in the nation for home affordability. The commonwealth was also recognized nationally for rebuilding efforts after natural disasters. In Western Kentucky, 254 homes are being built for tornado survivors, and the Governor announced the single largest affordable housing investment in Kentucky’s history with $223 million going toward 953 rental units. In Eastern Kentucky, progress is being made at eight high-ground communities with more than 500 new homes for flood survivors.
“While these efforts are amazing, they’re not enough. Sadly, owning that home seems out of reach for too many Americans,” said Gov. Beshear. “To preserve the American Dream of owning a home, Kentucky needs a big, bold investment now. It can’t wait. It can’t be incremental.”
To that end, Gov. Beshear is proposing a game-changing $150 million investment in Kentucky’s Affordable Housing Trust Fund. Combined with private funding, it will create $1 billion in new housing for Kentuckians across the state.
The Governor went on to recognize Team Kentucky’s ongoing efforts to expand health care. Across the commonwealth, Team Kentucky has helped open or break ground on several new hospitals, including Norton West Louisville – the first hospital in West Louisville in 150 years – and Pikeville Medical Center’s new children’s hospital and Appalachian Valley Autism Center, as well as facilities in Lexington, Owensboro and Paducah, and in Bullitt, Floyd and Mason counties.
The Governor also shared important milestones such as marking three straight years of declines in overdose deaths in Kentucky; expanding Medicaid to include dental, vision and hearing, which resulted in over 284,556 Kentuckians receiving support; doubling the number of mental health professionals in the state; and making safe, regulated medical cannabis available in Kentucky.
“Sadly, a lot of our progress is now at risk due to decisions at the federal level,” said Gov. Beshear. “That’s why my budget pushes back, investing in our people and our health care.”
To combat the impacts of President Trump’s “big, ugly bill,” as well as Congress’s decision not to extend tax credits for affordable health care, the Governor’s budget fully funds Medicaid; provides $100 million to lower the cost of coverage on the state’s health insurance exchange, kynect; expands the number of Michelle P. Waiver slots for families of children with special needs; includes $25 million for nursing student loan forgiveness; and creates a $125 million rural hospital fund.
Several health-care heroes were in attendance, including nurses from Galen College of Nursing and Dr. Jason Smith, the CEO of UofL Health Care who co-authored “Medicaid cuts threaten lives, jobs and Kentucky’s Future.” The Governor said his budget is a reflection that Kentucky believes in these heroes and that health care should be available for everyone.
Gov. Beshear also highlighted progress being made when it comes to the roads that lead the way to the American Dream. Since 2020, Team Kentucky has replaced or repaired 660 state and local bridges and completed or made progress on 20,000 miles of road improvements. The Governor recognized progress on major projects, including finishing the U.S. 460 Corridor in Pike County; completing the I-69 Ohio River Crossing approach; and beginning construction on the final stretch of the Mountain Parkway Expansion through the heart of Appalachia.
“It’s been talked about for decades, and now I’m the first governor that can say every portion of four-laning the Mountain Parkway is now complete or under construction,” said Gov. Beshear.
The American Dream is rooted in hope, but the Governor acknowledged that it can be extinguished through fear, which is why public safety remains a priority for his administration. Through increasing pay, training resources and more, Team Kentucky has boosted the Kentucky State Police (KSP) up to 1,896 team members and has helped increase local law enforcement to over 8,000. The Governor also recognized progress in protecting children with over 474 online predator arrests since 2019.
“Making our communities safer is about more than just arresting criminals. It’s about preventing crime all together,” the Governor said as he recognized the importance of Kentucky securing another record low recidivism rate.
To ensure that progress continues, the Governor is building upon efforts to provide second chances and real job opportunities. Following the announcement of more than a dozen new vocational programs in Kentucky prisons and partnerships with businesses to create more second chance opportunities, the Beshear administration has teamed up with Kentucky Community and Technical College System President Ryan Quarles to seek funding for a nonpartisan, game-changing project: a reentry campus that will make Kentuckians safer and the commonwealth a national model.
After another year of challenges and losses due to tornadoes, floods and the UPS plane crash, the Governor took a moment to remember those lost, recognize the families suffering, and give thanks to the brave first responders and National Guard members who have helped save lives.
“Each response reminds me that strength is not bravado or bullying but a resolve built on love, kindness and a commitment to our fellow human beings,” said Gov. Beshear. “Tonight, let’s recognize and remember all the families that have suffered loss and give a big thank you to all our first responders.”
In attendance were members of the Okolona Fire Department in Louisville who led the response to the UPS plane crash that took the lives of 15 people.
The Governor then reminded Kentuckians that, while part of the American Dream is about adults doing well, the core of the American Dream is about empowering our children to do better.
“Our priority – always – must be the future, and our future is molded in our public schools,” said the Governor. “I am unapologetically a 100% pro-public education Governor.”
Once again, the Governor’s budget does what’s right by proposing $159 million for mandatory educator raises and a proposal to increase take-home pay by nearly 7%. His budget also increases education funding per pupil and adds $560 million to Kentucky’s teachers’ retirements.
Gov. Beshear then said the single most effective way for Kentucky to succeed with this next budget is by funding Pre-K for All.
Pre-K for All will increase kindergarten readiness, boost parents’ earnings by nearly $9,000 per year for at least six years, and grow Kentucky’s workforce by up to 70,000.
“To members of the General Assembly: We were able to work together on medical cannabis, to make sports betting legal, to protect horse racing and gaming and our horse industry. Surely we can come together for 4-year-olds,” said Gov. Beshear. “Pre-K for All is the right thing to do. Let’s get it done.”
The Governor then spoke about the challenges Kentuckians face due to tariffs, national uncertainty and the Trump administration’s attack on the Supplemental Nutrition Assistance Program, or SNAP, and noted that without action, families will suffer. Gov. Beshear’s proposal steps up to help those in need by providing $50 million to help Kentucky food banks do more and creating a $75 million fund to help at-risk Kentuckians pay their utility bills.
In closing, Gov. Beshear recognized that we are living in chaotic times: “In such times, I hope and pray that God grants us the wisdom to see beyond the anger of today’s politics and to the possibility and promise that tomorrow holds.”
The Governor then shared the story of Jimmy and Jessica Alexander, Taylor Hall and Adam Arnold; Good Samaritans who helped save the life of KSP Trooper Jude Remilien, who was in attendance. He stated these Kentuckians exemplify the goodness we see in our people during times of need.
“We always come together in times of need and it’s what makes me so proud to be a Kentuckian,” said the Governor. “In Kentucky, we’ve turned down the temperature. We’ve worked together, because our people deserve a government that unites instead of divides; works for the good of all of us, instead of creating an ‘us’ versus a ‘them.’”
The Governor reminded Kentuckians that it is our job – our duty – to not leave a broken country to our children. He called on everyone across the commonwealth to favor unity over division and inclusion over discrimination as we navigate this moment we’ve been entrusted with.
“This moment in our history, how we conduct our business today, will determine how future Kentuckians view us,” said Gov. Beshear. “So, let’s stay focused and deliver a 2026 filled with prosperity and promise.”
The Governor was joined by First Lady Britainy Beshear, former Gov. Steve Beshear and former First Lady Jane Beshear.
For the complete text of the Governor’s address, click here. The speech can be viewed on the Governor’s YouTube channel and Facebook page.
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