KY gov announces foster care, Medicaid reimbursement, other program cuts

Several social service programs in Kentucky are about to see cuts and reductions, Gov. Andy Beshear announced Thursday. 

Beshear, a Democrat, blamed the cuts on the two-year state budget passed by the Republican-controlled General Assembly this year. 

“I repeatedly warned the General Assembly about the painful impacts that would be felt from their budget cuts or failure to increase funding for services that cost more every year, or where there are more families that now qualify,” Beshear said during his weekly press conference. “Sadly, action was not taken to correct the most concerning areas. Now the state is forced to bear the outcome of these short-sighted decisions and the chronic defunding from the federal government.”  

The Lantern has reached out to spokespersons for the House and Senate Republicans seeking comment. 

Dr. Steven Stack, the secretary of the Cabinet for Health and Family Services for the Beshear Administration, said several sectors will be impacted. 

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“Anyone who is purchasing gasoline or groceries knows that costs have gone up,” Stack said. “Those same costs have certainly impacted the cost of providing medical care, the cost of providing foster care services, foster parent support, foster home support, the cost for providing meals through our nutrition programs. Those costs have gone up, but our funding has gone down, and in some areas gone down quite significantly.” 

He did not go into full details and dollar amounts, but announced these general cuts and reductions: 

• Most providers in the Medicaid program will see rate reductions starting in fiscal year 2027. Reductions will not be uniform, and more details will be released “in the very near future.” 
• There is not enough money to sustain the senior meal program. 
• Temporary Assistance for Needy Families (TANF) will see “additional reductions.”  Last October, the Beshear administration reduced cash payments that low income Kentuckians can get through the Kentucky Transitional Assistance Program (KTAP), which come from TANF. 
• Foster care providers will see some reductions in rate payments, though it’s unclear what that will look like. Stack said, “actions will have to be taken regarding the foster care network, regarding the foster homes and the rates that they receive for payments, as well as a number of special programs that are put in place to help support foster children to overcome the adversities they face and to help them have their best opportunity to thrive again.” 
• There is not enough funding to maintain the number of social workers the state has.  
• Behavioral Health services will be impacted but it’s unclear how. 

“None of these are things that we want to do,” Stack said. “And we really regret that the budget given to us by the General Assembly makes these actions necessary.” 

This story is developing and may be updated.