After a constitutionally required three-week recess, the Kentucky General Assembly reconvened to continue the people’s business.
The first and most critical order of business was passing House Bill 1, which will lower Kentucky’s income tax from 4 percent to 3.5 percent in January 2026. This reduction is part of a carefully structured process established by House Bill 8 in the 2022 legislative session.
Every Republican agrees that eliminating the income tax is the ultimate goal. However, we are committed to a responsible, step-by-step approach that includes safeguards to protect taxpayers, ensure fiscal stability, and maintain essential government services.
Kentucky’s disciplined approach has earned praise from Moody’s and other leading economic rating agencies for being a well-structured, fiscally sound path to eventually reaching a 0 percent income tax. Unlike the aggressive tax cuts that led to fiscal instability in states like Kansas and West Virginia, our plan ensures long-term success without jeopardizing the state’s financial health.
Our measured approach ensures tax reductions occur while critical government services are not put at risk. Since implementing these policies, Kentucky taxpayers have saved an estimated $1.8 billion through 2024. With this latest cut, taxpayers will save an additional $718 million annually.
I was proud to cast my vote to lower individual income taxes and advance Kentucky’s path to greater economic freedom and prosperity.
This week, two bills I am sponsoring passed out of committee. Senate Bill (SB) 14 and SB 57:
- SB 14 prevents pharmaceutical manufacturers from denying or restricting 340B drug pricing for Kentucky hospitals and pharmacies if they offer the same pricing in other states. This ensures Kentucky receives equal treatment under the federal 340B program, which helps safety net providers reduce drug costs and reinvest savings into patient care. The bill also empowers the Attorney General to investigate violations, reinforcing state efforts to protect healthcare providers and ensure affordable medications for low-income communities.
- SB 57 targets excessive speeding while funding key healthcare initiatives. It defines “super speeders” as drivers exceeding the speed limit by 25 mph on any highway. Offenders face a $200 fine, with revenues allocated to trauma care (40%), rural hospital preservation (20 percent), EMS education (30 percent), and school AEDs (10 percent). Unpaid fines result in license suspension. These measures aim to improve road safety and support critical healthcare services statewide.
Furthermore, I filed SB 85, which would improve transparency and accountability in state government by strengthening the Auditor of Public Accounts and Commonwealth Ombudsman roles.
It ensures confidentiality protections, expands ombudsman oversight, and requires state agencies to provide necessary access for audits and investigations. The bill also enhances child protection efforts by allowing the ombudsman to receive reports of suspected abuse.
These reforms help ensure greater government accountability and public trust across Kentucky.
As always, it’s a privilege to serve you in Frankfort. If you have questions or ideas, feel free to contact my office at (502) 564-8100 or email me at Stephen.Meredith@kylegislature.gov.
We’ll be back next week to continue our work for the 2025 Regular Session.
Sen. Steve Meredith, R-Leitchfield
