Sine Die: 2026 General Assembly Comes to a Close

Click here to review all 2026 related education bills

April 17, 2026  

Greetings KRTA Family,

The 2026 General Assembly has officially concluded with the call of Sine Die, marking the end of this year’s legislative session.

While many state agencies and school districts did not receive all the funding they requested, this session was a positive one for the Teacher Retirement System. Lawmakers continue to show a strong commitment to paying down the pension liability.

The final state budget, HB 500 (FCCR 1), has passed and fully funds both the pension system and the medical trust fund—an important win for our retirees.

Health Insurance Update (KEHP)
There had been concerns about health insurance for those under age 65. However, we received encouraging news from Mary Elizabeth Bailey, Secretary of the Personnel Cabinet:

“Thanks to your advocacy and engagement, the legislature adopted the Governor’s original funding proposal for KEHP. This significantly improves the outlook for members in 2027 and 2028.”

While healthcare costs continue to rise nationwide, we are hopeful any increases will be minimal. Final details will likely come closer to fall open enrollment.

Legislative Overview
As expected, the Governor signed many bills, and several vetoes were overridden. Below is a summary of key legislation KRTA monitored:

Federal Legislation

• HR 7361 – “No Tax on Restored Benefits”
  No movement. The bill remains in committee with little support at this time.

State Legislation

• HB 183 – Retirement Income Tax Relief
  Proposed increasing the tax exclusion on retirement income starting in 2027.
  Status: Did not pass
• SB 51 – Property Tax Freeze for Seniors (65+)
  Would have allowed voters to decide on freezing home value increases for seniors.
  Status: Did not pass
• HB 642 – TRS Updates (“Housekeeping Bill”)
  Includes updates such as return-to-work provisions, pension waiver reinstatement for teaching positions, and new investment options.
  Status: Signed into law

Click here for an update on all education related bills.

We are grateful for your continued advocacy. Your calls, emails, and engagement truly make a difference.

We will continue to monitor developments and keep you informed every step of the way.

Thank you for all you’ve done—and continue to do—for Kentucky’s students and communities.

Sincerely,

Greg Roush, Executive Director