FRANKFORT, Ky. (WMDJ) — Gov. Andy Beshear announced Wednesday that Kentucky will use unexpected state revenues to prevent planned Medicaid cuts, provide additional funding for the Michelle P. Waiver program and increase support for senior meals.

In a news release on Wednesday, the governor said the funding is being made possible by an unbudgeted $476 million budget surplus and more than $350 million in unexpected corporate income tax payments received by the state.

According to Beshear, $255 million will be used to close a funding gap in Medicaid and prevent a planned 4% reduction in Medicaid provider reimbursement rates. The administration also plans to fully fund existing Michelle P. Waiver slots that were underfunded in the state budget and add $4 million to Kentucky's senior meals program for Fiscal Year 2027.

The Michelle P. Waiver is a Kentucky Medicaid program that helps children and adults with intellectual and developmental disabilities receive care and support services in their homes and communities.

Beshear said more than $400 million in the unexpected revenue will also be deposited into the state's Budget Reserve Trust Fund, commonly known as the rainy day fund.

The governor said the additional funding became available after stronger-than-expected state revenues at the close of the fiscal year.