August 7, 2026

Gov. Beshear vetoes state budget items, citing Medicaid shortfall and unfunded mandates

 (WKYT) – Kentucky Gov. Andy Beshear issued line-item vetoes Monday, April 13, for the state budget.

Beshear vetoed several items in House Bill 500, including parts he said would place limits on necessary financial resources for natural disaster response and Medicaid-related provisions.

In his veto message, Beshear said the state budget contained a shortfall of $2.8 billion for Medicaid over two years, and fails to acknowledge that some provisions in the bill would result in “less optimal reduction decisions.”

“This provision gives priority to a set of services only because they were contained in a state statute,” Beshear said. “Many Medicaid covered services are not set forth in state statute.”

The governor also vetoed several items that he said did not provide any financial appropriation for implementing statutes, creating unfunded mandates that agencies are not obligated to carry out.