Gov. Andy Beshear announced Wednesday that his administration will use $255 million in unexpected state revenue to reverse a 4% Medicaid reimbursement cut scheduled to take effect Aug. 1, according to an announcement from the Governor's Office.

The funding comes from Kentucky's seventh consecutive budget surplus, which totaled $320 million more than budgeted and exceeded revenue estimates by $476 million. The governor also is redirecting $4 million to the state's Senior Meal program and fully funding all authorized Michelle P. Waiver slots, which provide support for Kentuckians with intellectual and developmental disabilities who require intensive care.

"These dollars weren't expected by anyone, including the General Assembly, but now we can provide relief for those who rely on Medicaid while still investing in our state," Beshear said at a Wednesday press conference.

The move comes less than a week after hundreds of Kentuckians with disabilities and their advocates gathered in Frankfort to protest the cuts. The waivers are designed to allow Kentuckians who require long-term intensive care to remain at home or in their communities. Kentucky's Medicaid program currently has a waiting list of approximately 19,000 individuals for waiver services.

Beshear blamed the Republican-controlled General Assembly for underfunding Medicaid in the two-year budget passed in April. House Speaker David Osborne countered that lawmakers approved more Medicaid funding than the governor originally requested and urged the administration to stop "crying wolf" regarding threats to vulnerable populations.

The governor also is allocating $18 million to Kentucky's road fund, another point of contention with the General Assembly. Democratic legislators praised the decision, but cautioned that the fix is temporary and called on the Republican supermajority to fully fund Medicaid in the second year of the budget when the legislature convenes in January 2027.