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HB 14

AN ACT relating to the rural hospital operations and facilities revolving loan fund, making an appropriation therefor, and declaring an emergency.

2026 Regular Session Introduced by Chad Aull and 5 co-sponsors

Creates a Rural Hospital Operations and Facilities Revolving Loan Fund with state appropriation to finance improvements and operations for Kentucky rural hospitals.

to Appropriations & Revenue (H)
#appropriations #budgetandfinancialadministration #effectivedates #emergency #hospitalsandhealthfacilities
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Bill Summary · HB 14

Overview

HB 14 (2026 Regular Session, Kentucky) is an act relating to the rural hospital operations and facilities revolving loan fund. It includes an appropriation to support these efforts and declares an emergency. The bill progresses through the Appropriations & Revenue Committee process, indicating fiscal implications and potential rapid implementation.

Purpose and Intent

  • Create or modify a revolving loan fund dedicated to rural hospital operations and facilities.
  • Provide state-supported financing to rural Kentucky hospitals to improve or maintain operations and infrastructure.
  • Include an appropriation to support the fund and its activities.
  • Declare an emergency to facilitate faster availability and deployment of funds, subject to legislative and administrative processes.

Key Provisions and Changes

  • Establishment/Continuation of the Rural Hospital Operations and Facilities Revolving Loan Fund:
    • The fund is intended to provide low-interest or preferred terms loans to eligible rural hospitals.
    • Loans likely cover capital improvements, equipment, facility renovations, and operational needs to sustain or enhance hospital services in rural areas.
  • Appropriation:
    • An explicit state appropriation is provided to capitalize the revolving loan fund, enabling initial lending capacity and ongoing liquidity.
  • Eligibility and Use of Funds (typical scope for such funds; precise details would be in the bill text):
    • Eligible borrowers: rural hospitals or hospital districts within Kentucky.
    • Eligible uses may include capital improvements, facility upgrades, equipment purchases, and working capital for operations.
    • Potential prioritization criteria (e.g., improving emergency services, patient access, financial stability, or rural health outcomes) may be outlined.
  • Loan Terms and Administration:
    • Terms, interest rates, repayment periods, and eligibility criteria likely defined by the act or through the administering agency.
    • Oversight, reporting, and accountability provisions to ensure prudent use of funds and measure impact.
  • Emergency Declaration:
    • The bill includes a declaration of emergency, which typically allows immediate effectiveness and faster implementation, subject to governing process and potential sunset or renewal provisions.

Who Would Be Affected

  • Rural hospitals and hospital districts in Kentucky seeking financing for operations or facility improvements.
  • State government and the agency responsible for managing the revolving loan fund (likely the Kentucky Finance and Administration Cabinet, Kentucky Department of Insurance, or a related health finance entity, depending on existing statutory structure).
  • Patients in rural areas benefiting from improved hospital services, access to care, and potentially expanded emergency capacity and modernized facilities.

Procedural and Timeline Aspects

  • Introduction: January 6, 2026.
  • Assigned to Committee on Committees (H) and then to Appropriations & Revenue (H) for fiscal considerations, indicating a focus on budgetary impact.
  • Emergency designation: Included in the bill, suggesting expedited effective date upon enactment.
  • Next steps would typically include committee hearings, potential amendments, floor passage, and final passage by both chambers, followed by signature or veto by the governor.

Potential Impacts and Considerations

  • Positive impact on rural healthcare infrastructure and financial viability through access to capital.
  • Accelerated deployment due to emergency provisions, enabling faster addressing of urgent rural hospital needs.
  • Fiscal impact on state budget through appropriation and ongoing funding requirements; involves budgeting trade-offs and long-term debt/credit considerations for the revolving fund.
  • Monitoring and accountability requirements to ensure funds are used for approved purposes and to track outcomes such as service availability, patient access, and financial performance of recipient hospitals.

Note: This summary reflects the bill’s stated purpose and typical structure for revolving loan fund legislation. For precise eligibility criteria, loan terms, and reporting requirements, the bill’s full text and any fiscal notes or amendments should be consulted.

Compiled from official sources — confirm details with the bill’s official record.

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