Understanding Kentucky’s Local Assistance Road Project (LARP)

The Kentucky General Assembly created a new funding opportunity for local infrastructure during the 2025 Regular Session.

House Bill 546 establishes the Local Assistance Road Program (LARP) to provide an additional option for cities to secure state funding for road projects. LARP is administered by the Department of Rural and Municipal Aid within the Kentucky Transportation Cabinet (KYTC), and the program is designed to help local governments address key transportation needs.

Key Features of the LARP Program

• ​Project Scope: LARP is focused on the rehabilitation, resurfacing, and improvement of existing roads. It does not fund projects that expand capacity.
• Funding Cap: The maximum state contribution per project is $500,000. Local governments may choose to contribute additional funds to complete a project.
• Scoring Criteria: Applications will be evaluated using a standardized scoring system based on:  
  • Safety
  • Congestion relief
  • Asset management
  • Cost effectiveness
• Required Documentation: Projects must include detailed location information, including mile point markers, to improve transparency and accuracy in the application and review process.

LARP Application and Funding Timeline

Under HB 546, the process for securing funding through LARP includes several key steps:

Application Window:

Cities and counties can submit LARP applications between June 1 and October 1, 2025.

Project Review:

After the submission period closes, the Department of Rural and Municipal Aid will evaluate applications using a scoring system based on safety, congestion, asset management, and cost effectiveness.

Legislative Review:

By November 1, the department will provide a ranked list of recommended projects to the legislature.

Legislative Session (2026):

During the 2026 Regular Session, legislators will review and ultimately itemize the funded projects through the state’s biennial transportation budget.

This timeline ensures that projects are submitted well in advance and that legislators have time to consider and approve funding for specific city and county priorities.

Local Match Requirement

Every LARP project requires a local funding match. The required amount is determined by a formula created by the Kentucky Cabinet for Economic Development, based on county population and growth trends.

This table outlines the required LARP percentage match by city. LARP City Match Table_1748619231499.docx

How Much Funding is Available?

The LARP program is supported with $20 million in annual funding for Fiscal Years 2025 and 2026. To qualify, projects must be scored as high priority—earning a rating of 8, 9, or 10—and must be itemized and approved by the General Assembly. The scoring system considers factors such as:

• Safety improvements
• Cost effectiveness
• Traffic volume
• Road preservation impact

Each project may receive up to $500,000 in state funds, and cities and counties may submit multiple applications. In the 2025 cycle, only projects scoring a 10 received awards. That year, 22 city projects received a total of approximately $2 million in funding.

Key Application Details

Planning to apply for the next round of LARP funding? Here’s what you need to know:

And when filling out the application, be sure to:

• Provide the full project length and mile points (check KYTC Local Maps).
• Limit each project to $500,000, but you can submit more than one.
• Include photos every 300 feet of the road (about 17 per mile).

The Kentucky League of Cities recently hosted a webinar with Commissioner Bobbi Jo Lewis to help city officials understand the new program and prepare strong applications. The session included an overview of HB 546, guidance on the new requirements, and a demonstration on how to locate mile point markers now required for submissions. A recording of the webinar is available here.