Since Grant Ready Kentucky championed its creation in 2023, Kentucky's Government Resources Accelerating Needed Transformation (GRANT) Program has helped local organizations bridge one of the most common barriers to federal funding: meeting cash match and cost-sharing requirements. This week, House Bill 647 was signed into law to extend the program through December 31, 2028. House Bill 900 appropriated $100 million through 2028 to support the program.
The Program’s Impacts on Kentucky
Since it was launched, the GRANT Program has helped numerous Kentucky communities unlock larger state and federal funding opportunities. The impact numbers speak for themselves:
- 387 approved projects across 101 counties (and counting)
- Over $1 billion in total project value
- 7x realized return on investment per state $1 invested
These investments help communities move critical projects forward, from infrastructure and public services to long-term community development. To see how the GRANT Program has made a tangible impact across the Commonwealth, visit our Impact Stories webpage here.
Updates for 2026–2028: House Bill 647 [Program Changes] & House Bill 900 [Funding Reauthorization]
House Bill 647 included several changes to shape the next phase of the GRANT Program. Here's what they look like:
- Extended Program Timeline. The most significant change is that HB 647 extends the program's sunset date from December 31, 2026, to December 31, 2028, giving Kentucky communities two additional years to leverage state matching funds for federal grant opportunities
- Updated Eligible Federal Agencies. The bill adds two new agencies as eligible federal grant funders: The U.S. Department of Justice and the U.S. Department of Defense. At the same time, the U.S. Department of the Army would be removed as a separately listed agency. (Note: The Department of the Army falls under the Department of Defense, so Army-related grants will still be covered under the broader DOD umbrella)
- Longer Extension for Fund Obligations. Under HB 647, the obligation of funds for an approved project will still be capped at 12 months, but the Kentucky Cabinet for Economic Development may, at its discretion, extend the obligation of funds by an additional 12 months for projects that are still awaiting federal grant decisions. This means an approved project could have funds obligated for up to 24 months total (up from 18 months under current rules) to accommodate the possibility of delayed federal decisions.
- New Application Timing Requirement. House Bill 647 added a new requirement: GRANT match applications must be submitted no more than 90 days after the federal grant application. This is a new deadline that applicants should be aware of and plan for, as previous iterations of the program allowed a 12-month retroactive application window.
- Increased Local Match Requirements. Starting July 1, 2026, HB 647 outlines increased local match requirements based on county population rankings, organized by quintiles. Here's how the former and new rates compare:
While the new local match rates are higher, they remain modest, and the GRANT Program's state matching funds would continue to significantly reduce the overall financial burden on local applicants pursuing federal grants. The tiered structure also continues to ensure that the smallest and most rural communities face the lowest match requirements.
What This Means for Eligible Organizations and Agencies
With the passage of HB 647 and the $100 million appropriation in HB 900, the GRANT Program will continue to be a valuable resource for Kentucky communities through 2028. Here are a few things to keep in mind:
- Plan ahead for the 90-day window. Organizations will now need to submit their GRANT match application within 90 days of their federal grant application. This should be built into the organization’s grant planning timeline
- Budget for updated match rates. If an organization is planning a project after July 1, 2026, they should use the proposed match rates in their budgeting. The increases are still manageable, especially for smaller and rural communities
- Explore new federal opportunities. After hearing from multiple agencies that they would benefit from using GRANT Program match funds for the COPS OFFICE, Grant Ready Kentucky advocated for new agencies to be added as eligible federal grant funders. With the Department of Justice and Department of Defense added as eligible funders, there may be new federal grant programs that organizations can pursue with GRANT Program support
- Take advantage of the longer obligation timeline. The extended 12-month extension (up from six months) gives projects more breathing room while waiting on federal decisions
Stay Informed
Stay informed by visiting https://newkentuckyhome.ky.gov/grant.
Grant Ready Kentucky's Grant Experts offer free 1-on-1 sessions with eligible nonprofits and Kentucky agencies to help you navigate the application process. Book a free session here.