As we move beyond the halfway point of the 2026 Legislative Session, the pace and intensity of our work continue to accelerate. Crossover is underway. Senate bills are being considered in the House, and House bills are advancing in the Senate. The next few weeks will shape the final outcome of this session.
As Senate Majority Floor Leader, my responsibility is to help manage legislation as it moves through the process and onto the Senate floor. That work requires coordination, preparation and a steady focus on the priorities of Kentucky families.
House Bill (HB 1)
This week, the Senate gave final approval to House Bill 1 and delivered it to the Governor for consideration.
During debate on the Senate floor, members addressed what the bill does, what it does not do and why the opportunity before Kentucky matters.
HB 1 formally opts Kentucky into the federal Education Opportunity Tax Credit program enacted by Congress in 2025. By opting in, Kentucky becomes a covered state and designates the Secretary of State as the registrar of eligible scholarship granting organizations, or SGOs.
Beginning in tax year 2027, individuals may receive a dollar-for-dollar federal tax credit of up to $1,700 for donations made to certified Kentucky SGOs. This is not a tax deduction. It is a credit. If a federal taxpayer owes $1,700 to Washington, they may instead direct that same amount to a Kentucky SGO to support Kentucky students. The credit is nonrefundable but may be carried forward for up to five years.
It is equally important to clarify what the bill does not do. HB 1 does not use state tax dollars. It does not reduce SEEK funding. It does not divert state education resources. It does not create a new state spending program. Participation does not reduce state revenues.
Over the past several years, this General Assembly has made historic investments in public education, including increases to SEEK funding, full-day kindergarten and transportation support. Yet we frequently hear that if only more funding were available, outcomes would dramatically improve. HB 1 does not take a dollar away from public education. Instead, it creates another tool for communities to support students.
During floor debate, members also addressed misinformation surrounding the bill. HB 1 applies only to nonprofit SGOs. No organization may retain more than 10 percent for administration. Eligibility is limited to families earning at or below 300 percent of area median income. Scholarships may be used for a broad range of qualified education expenses, including tutoring, summer learning programs, technology, special needs services and other supports that can directly benefit public school students.
In fact, superintendents from smaller districts discussed the creativity this opportunity could provide. For schools working to expand summer programs, purchase classroom technology or provide targeted tutoring, this represents another option to meet student needs.
A central point made on the Senate floor was simple: whether Kentucky opts in or not, federal taxpayers may still claim this credit. The question is whether those dollars stay here or flow to organizations in other states.
Members also urged that even those who oppose the bill could still choose to direct their $1,700 contribution to a Kentucky-based SGO aligned with their values, including organizations that support public school students. Participation in the program does not require agreement on every policy debate. It ensures Kentucky students are eligible to benefit.
As was stated during debate, this is about outcomes for kids. Politics aside, the opportunity before Kentucky is real. The measure now awaits the Governor’s action.
State budget update
The constitutional responsibility to enact a balanced two-year budget remains our top priority.
The House has now transmitted its proposed budget to the Senate. Our work intensifies from here. The Senate will carefully review the proposal, evaluate assumptions and make revisions where necessary.
We must approach this budget with structural discipline.
Recent years have seen strong revenue performance and surpluses. That does not mean we can rely on one-time transfers or accounting mechanisms to fund recurring obligations. Long-term stability requires recurring revenue to cover recurring expenses.
We have made historic progress in pension funding and debt reduction over the past several years. That progress did not happen by accident. It required sustained fiscal discipline.
As we move forward, our focus remains clear:
Maintain structural balance.
Protect the Budget Reserve Trust Fund.
Preserve pension stability.
Continue responsible tax relief when sustainable.
Budget negotiations are complex, and significant work remains ahead. Kentuckians deserve transparency and responsible stewardship of their tax dollars. That is the standard we will maintain.
Policy measures advancing
Several other measures received Senate approval this week.
SBl 101, which I co-sponsored, strengthens protections for teachers and school staff by requiring a minimum 12-month expulsion for students in grades six through twelve who intentionally assault school personnel, while preserving limited exceptions and requiring mandatory reporting of such incidents.
SB 124 provides school districts with the option to offer partial payouts of unused sick leave to teachers and other school employees while preserving the option to retain leave for retirement. The bill increases flexibility and may reduce reliance on substitute teachers.
Additional measures addressing unemployment insurance modernization, juvenile diversion reforms and school attendance interventions also advanced as part of our continued effort to strengthen accountability and improve systems statewide.
Looking ahead
The final weeks of session will require continued focus and collaboration. Crossover deadlines narrow our window for action, and budget deliberations will demand careful attention.
Kentucky has made meaningful progress in recent years. Our responsibility now is to preserve that stability while positioning the commonwealth for continued economic growth and opportunity.
Thank you for allowing me to serve as your Senate Majority Floor Leader. I look forward to keeping you updated as the 2026 Regular Session continues.
You may reach my office with comments or questions by calling 502-564-8100 or emailing Max.Wise@kylegislature.gov.
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Sen. Max Wise, R-Campbellsville, represents the 16th Senate District, including Adair, Allen, Metcalfe, Monroe, and Taylor Counties and eastern Warren County. Wise serves as Senate majority floor leader. He is a member of the Senate Committees on Education, and Economic Development, Tourism, and Labor. As part of Senate leadership, Wise also serves on the Legislative Research Commission, the Rules Committee, and the Committee on Committees.
(Dustin R. Isaacs – Senate Majority Floor Leader Max Wise)