Kentucky ‘DOGE,’ housing developments & more. 12 bills that could change government in KY
Kentucky’s General Assembly is considering several bills that would change how government works in the commonwealth.
From an effort inspired by the Elon Musk-led Department of Government Efficiency and limiting the governor’s powers, to changing what tools are available to local governments and modifying Medicaid, the 2025 legislative session could usher in a new era for the public sector in Frankfort and all across the state.
A bill’s filing does not guarantee passage, however. Some ideas circulate in Frankfort for years before crossing the finish line, while some pass into law just days after being proposed. Many more never get close.
In general, the stated reason for many of the bills filed by Republican lawmakers — the GOP controls four-fifths of the House and Senate and an even share of the bills passed each year are sponsored by GOP members — is to either limit government or make it more efficient.
The next couple weeks, up until when the veto break begins on March 15, are when a majority of bill movement happens. If a bill is to withstand a veto from Beshear, it would need to be passed by then. In recent years, the vast majority bills have been passed by that date.
Here are 12 bills about government to watch as this year’s legislative session continues to unfold.
“Housing development districts” to juice supply
It’s not a guarantee of passage, but the designation of House Bill 7 — a number given to bills deemed a “priority” by the House — gives a housing bill proposed by Rep. Josh Bray, R-Mt. Vernon, pretty good odds.
The bill would allow local governments to set up what’s called a “housing development district.” Local governments could set up an incentive agreement with a developer and even exempt all developments within the district from traditional planning & zoning processes.
The bill is an attempt to address the state’s housing shortage. Eligible projects must have at least 25 housing units and can include multifamily apartment-style housing.
Kentucky’s own “DOGE”
Tech billionaire and conservative donor Elon Musk has caused a stir with his Department of Government Efficiency actions in the early weeks of the second Trump presidency.
Republicans in Kentucky are looking to replicate those efforts. However, because they must start in the Legislative Branch, the timeline for their work is much more deliberate.
Sen. Lindsey Tichenor, R-Smithfield, has filed Senate Bill 257 to create a Kentucky Office of Government Efficiency under the state auditor’s purview in order to “streamline operations, eliminate waste, and ensure taxpayer dollars are used effectively.” The office would make recommendations for next year’s legislative session, which is when the next two-year state budget will be crafted.
House Concurrent Resolution 50 from Rep. T.J. Roberts, R-Burlington, has a similar goal, though the process would be led by a 10-member task force comprised of lawmakers.
Aimed at the governor
Since Beshear first took office in late 2019, the Republican supermajority has taken to sponsoring bills that would weaken or dilute the governor’s powers.
One of the most consistently-pushed pieces of legislation, however, is due to the actions of former Republican governor Matt Bevin.
Senate Bill 126 from Sen. Chris McDaniel, R-Ryland Heights, would prohibit governors from granting pardons starting at 30 days before a gubernatorial election and ending at the inauguration. McDaniel has framed the bill as something of a response to the litany of controversial pardons by Bevin at the end of his term.
One priority bill, House Bill 2 from Roberts, would allow Kentuckians to sue Beshear if his administration continues to collect a tax on gold and silver. The General Assembly passed an exemption on the tax last year but didn’t override Beshear’s veto because they argued that it was invalid.
House Bill 317, also from Roberts, would require that the governor get approval from the state treasurer to use tax dollars to travel out of the country. Beshear recently spent funds on a trip to the World Economic Forum, one of the world’s foremost gatherings for political and business leaders.
House Joint Resolution 64 would greatly limit Beshear’s ability to pursue litigation. The resolution, filed by House Speaker David Osborne, R-Prospect, explicitly bars the governor or lieutenant governor from entering litigation outside of “only those interests particular” to their offices.
It explicitly bars them from challenging federal action in court.
“Only the Attorney General may bring or participate in litigation on behalf of the Commonwealth in federal court regarding federal executive action, or regarding relief from such actions,” the resolution states.
Two weeks ago, Beshear joined a lawsuit led by several Democratic-leaning states against the Trump administration over its attempted federal funding freeze that affected several programs in Kentucky.
Local tax centralization
House Bill 253 from Rep. Jared Bauman, R-Louisville, proposes creating a single online portal for the collection of occupational taxes, which comprise a major source of revenue for Kentucky cities and counties.
In Lexington, occupational taxes — also known as payroll or withholding taxes — make up about 55% of the Lexington-Fayette Urban County Government’s General Fund revenue.
Though the bill sparked much discussion in Frankfort at the start of session, it has not received any readings on the House floor in recent weeks.
A new state film office
Senate Bill 1 almost always gains final passage through the state legislature.
This year that bill, from Sen. Phillip Wheeler, R-Pikeville, would create a new Kentucky Film Office attached to the Cabinet for Economic Development.
The office would be tasked with marketing Kentucky as a place to filming movies and television, doling out incentives and coordinating state efforts to make Kentucky a hub for the industry.
Bevin was a strong opponent of the incentives, which are already funded through the cabinet, but the legislature moved forward in funding those tax credits.
The existing incentive program, which the legislature beefed up despite calls from Bevin to ax it, offers up to $75 million in tax breaks to film projects per year. According to records with the Cabinet for Economic Development, about $68 million in incentives were requested in 2024.
State workers returning to office?
McDaniel’s Senate Bill 79 would require much of the state’s 33,000-strong workforce to return to in-person work at offices in Frankfort.
The impetus of the bill is to improve state services, according to McDaniel and allies like Sen. Lindsey Tichenor, R-Smithfield.
On the Senate floor, Tichenor shared the story of a constituent who applied to the state for “kinship care,” a program that helps people who are caring for abused or neglected children. The woman couldn’t get the state to respond to her, Tichenor said. Her application was ignored while the relevant state employee was “on extended leave,” the senator said.
Personnel Secretary Mary Elizabeth Bailey opposes the bill.
“We believe the current hybrid plan we have is the right mix now. It is similar to what is used by the majority of private businesses in the U.S.,” Bailey wrote in a Feb. 18 letter to state senators.
Mulling Medicaid
Changes could be coming to Kentucky’s Medicaid program.
House Bill 695 from Rep. Adam Bowling, R-Middlesboro, would, among other things, limit the governor from making any change to the Medicaid program through the Department for Medicaid Services without authorization from the General Assembly.
That prohibition is relevant because it relates to one of Beshear’s biggest moves in office: expanding Medicaid coverage to vision, dental and hearing services. Republicans in the legislature have expressed frustration at Beshear’s extension of the benefits in the past.
House Bill 9, also from Bowling, would establish the Medicaid Oversight and Advisory Board to “review, analyze, study, evaluate, provide legislative oversight, and make recommendations” about the state’s Medicaid program. Eight of the 10 members of the board would be appointed by Republican leadership and two would be appointed by Democratic legislative leadership.
