AGP Executive Report

Bankruptcy Watch: Republic National Distributing (RNDC) filed for Chapter 11 and says it will lay off 550 workers across the state, after earlier market shutdowns and job-preserving sales. AI & Payments: The Linux Foundation launched the x402 Foundation to govern an open standard for AI agents to pay for web services directly using HTTP 402 and stablecoin transfers—before federal rules catch up. Local Housing Permitting: Cities are turning to AI to speed housing approvals by catching incomplete applications, supported by a new federal Innovation Fund and HUD grants. Data Centers & Kentucky Power Costs: Kentucky’s pushback on data-center tax incentives and rate impacts continues as lawmakers and regulators weigh how much the projects raise bills and who benefits. Meta Settlement Fallout: Meta agreed to an $18B settlement with major platform changes and youth usage limits tied to state lawsuits that included Kentucky. Community Business: Central Bank and the Crafts bought a $10M country ham pledge for Kentucky Farm Bureau’s breakfast, with proceeds supporting local charities. Sports Business: UK announced Kroger Field concession price cuts and new food options for 2026, part of its partnership with Compass Group. Energy Co-op Governance: A&N Electric Cooperative held its annual meeting, reelected board members, and highlighted capital credits and youth programs.

Manufacturing & Jobs: Freeman Automation will invest $1 million to move and expand into a new 4,000-square-foot facility in Graves County, creating 20 Kentucky jobs and targeting completion in 2027. Food & Beverage Growth: MegaFit Meals plans a $9.25 million expansion in Calvert City, adding a 40,000-square-foot manufacturing site and 40 new jobs. Energy Costs Oversight: The Kentucky Public Service Commission opened an affordability-focused case to trace why residential electricity prices rose nearly 22% from 2020 to 2025, with attention on coal reliance and the potential bill impact of data centers. Data Center Tax Incentives: Gov. Andy Beshear renewed calls to roll back Kentucky’s data center tax breaks, arguing the state could lose more than $2 billion in sales tax revenue if major projects proceed. Gambling Regulation Clash: Kentucky AG Russell Coleman sued prediction-market firm Kalshi, saying its sports contracts function as unlicensed wagering under state law. Public Health: The FDA upgraded a Whole Foods guacamole recall to its highest risk level amid a Salmonella investigation, while a lettuce-linked cyclosporiasis outbreak continues to expand. Trade & Local Industry: U.S. Commerce Secretary Howard Lutnick toured Corning in Harrodsburg as Beshear warned Kentucky businesses are caught in the Canada trade-war crossfire. Civic & Community Impact: The American Legion’s national convention is expected to bring up to $20 million to Louisville through Sept. 3.

Affordable Housing Hurdle: Georgetown City Council paused a decision on a $300,000 contribution toward a $17 million, 60-unit workforce housing project, citing more time needed before a Sept. 11 state tax-credit deadline. Education Access: Berea College will become the first in the nation to offer a fully funded four-year degree (tuition, housing, food and fees, no loans) starting Fall 2027. Meta Youth-Safety Fight: Kentucky is part of a multistate settlement targeting Meta’s Facebook/Instagram teen addiction design, with new rules including daily time limits and pauses after set intervals. Defense Nuclear Push: The U.S. Army awarded $2.2 billion to five vendors to build and operate nuclear microreactors at five bases, including Fort Campbell in Kentucky. Workforce & Research Funding: The Bill Gatton Foundation selected six UK-led “Grand Challenges” projects, spanning AI, agriculture, water/climate, forestry, ag finance, and extension/workforce development. Public Safety Tech: ICE approved a $16.7 million contract for 6,000 electric shock gloves, sourced from Kentucky-based Compliant Technologies. Health Human Story: A Bardstown woman spent 11 years on dialysis after her first donated kidney failed, finally receiving a second transplant after years of searching.

Meta Settlement: Kentucky is set to receive about $358 million from a proposed multistate deal with Meta over claims Facebook and Instagram were designed to be addictive and harmful to kids. The agreement would impose a default two-hour daily limit for teens, add “productive pauses,” restrict overnight access, and require other safety changes—while also using conditional payments to push other platforms toward similar rules. Kentucky Policy: Gov. Andy Beshear urged lawmakers to roll back data center tax incentives, arguing the state shouldn’t subsidize “wealthiest” companies for decades-long breaks. Defense Energy: The U.S. Army plans to deploy nuclear microreactors at five bases, including Fort Campbell in Kentucky, awarding up to $2.2 billion to selected firms. Local Economy & Jobs: Barren County Economic Authority broke ground on speculative industrial Building No. 3 at South Cooper Industrial Park, targeting faster “speed-to-market” space for manufacturers and logistics. Health Care Expansion: UofL Health’s Brown Cancer Center opened a new rural cancer facility in Hillview, backed by a state grant aimed at expanding access across Kentucky. Food Safety: Whole Foods recalled multiple jalapeño-linked dips sold in 13 states, including Kentucky, due to potential Salmonella contamination.

Meta Child-Safety Settlement: Meta agreed to pay up to $17.1B to 47 states (including Kentucky) and overhaul Instagram/Facebook for teens, including a default two-hour daily limit, nighttime blocks, reduced notifications during school hours, and limits on addictive features like infinite scrolling and public like counts. Local Policing & Surveillance: A Kentucky officer was arrested for allegedly using Flock Safety camera data to track an ex-girlfriend more than 2,000 times, adding to scrutiny of police use of license-plate readers. Transportation Projects: KYTC says about 18 roundabouts are coming to Western Kentucky state roads over the next 5–6 years, starting with U.S. 68 work near I-24. Energy & Defense: The U.S. Army awarded up to $2.2B for nuclear microreactors at five bases, including Fort Campbell (BWXT). Kentucky Business Watch: Hop Shops (Valor Oil) is rolling out AI-assisted self-checkouts across its Kentucky/Ohio locations to cut checkout wait times. Education & Governance: Walton-Verona ISD plans to keep property tax rates unchanged, while Kentucky’s KHSAA commissioner Julian Tackett and associate commissioner Butch Cope announced retirements.

Meta Settlement Hits Kentucky: Kentucky will receive $358 million as part of a landmark multistate deal with Meta over alleged harms from Facebook and Instagram to children and teens. The agreement—worth up to about $16.68B nationally—ends a federal trial after just one week and requires new teen protections like daily time limits, nighttime blocks, stronger age checks, and tighter parental controls; Florida is not joining the deal. Local Tech & Privacy: Covington postponed a vote on $6M for cruiser-mounted license plate readers and other tech to allow more public discussion, noting the proposal differs from Flock Safety. Police Surveillance Scrutiny: A Shively, Ky., officer was arrested after authorities said he used Flock cameras to track an ex-girlfriend more than 2,000 times, fueling renewed debate over misuse of license plate reader systems. Energy & Defense: The U.S. Army selected BWXT Advanced Technologies for nuclear microreactors at Fort Campbell, Kentucky, as part of the $2.2B “Janus” program to add resilient power at five bases. Business & Community: Paducah police charged a local business owner with theft after customers reported paying about $45,300 for cabinets and flooring that were never delivered. Infrastructure Disruption: An I-65 underpass closure in downtown Louisville for bridge repairs is causing major traffic backups near major hospitals, with the detour also gridlocked at times.

Data Center Power Deal: The Kentucky Public Service Commission approved an electricity service contract for TeraWulf’s 482-megawatt hyperscale data center at the former Century Aluminum site in Hancock County, setting “fair, just and reasonable” rates and requiring protections for ratepayers. Ag Oversight: Kentucky’s agriculture commissioner says his office is investigating data centers and farmland impacts, especially uncertainty over company ownership and the use of prime land, while stressing the state isn’t anti-data-center. Local Taxes: A LaRue County explainer breaks down how property taxes work and how assessments are determined—timely as local boards set annual rates. School Tax Fight: The LaRue County Board of Education must still set a 2026 property tax rate by Sept. 16 even as a lawsuit challenges the 2025 rate. Public Finance Audit: Kentucky Auditor Allison Ball found LaRue County detention commissary purchases weren’t handled with required bidding procedures. Meta Trial Watch: Bloomberg reports Meta and multiple states, including Kentucky, have discussed a possible mid-trial settlement in the youth social media harm case. Rural Health Pressure: U.S. Rep. Andy Barr questions claims that Medicaid reforms could put 35 Kentucky rural hospitals at risk of closure. Tourism Leadership: Liberty Tourism’s Heather Cundiff was elected vice chair of Southern Kentucky Vacations.

Prediction Markets: The CFTC and Kentucky regulators are locked in a legal fight over whether Kentucky’s efforts to tax and limit sports-focused event contracts have hurt the federal agency’s ability to compete for prediction market bids. Social Media & Kids: Instagram head Adam Mosseri testified in Meta’s trial brought by states including Kentucky, defending the company’s teen safety features after prosecutors highlighted low use of “Take a Break.” Rural Water Investment: USDA Rural Development awarded Harrison County Water Association $2.437 million to replace an asbestos cement main, extend service lines, and create a loop to eliminate stagnant water. Local Business Climate: Valvoline says its Lexington site will remain the corporate HQ while Valvoline Global Operations moves its Americas hub to Cincinnati, keeping 400 Lexington jobs. Entrepreneur Support: Develop Danville and the Danville-Boyle County Chamber partner with Awesome Inc. to launch a five-week Entrepreneur Blueprint program starting Sept. 18. Community Services: Kentucky Legal Aid held an expungement clinic in Allen County to help people clear records and improve access to jobs and housing. Solar Policy: Lexington-Fayette is weighing a zoning amendment that would allow up to 1% of county land for large-scale solar only if projects are agrivoltaic.

Northern Kentucky Economic Development: BE NKY Growth Partnership promoted Kimberly Rossetti to chief economic development officer, tasking her with executing regional strategy and leading the Build + Elevate 2032 campaign. Affordable Housing: Georgetown and Scott County officials heard a proposal from Woda Cooper for a 60-unit workforce housing project, seeking about $1.3 million in loan support and fee reductions to improve Kentucky Housing Corporation tax credit odds. AI in Education: A new national poll finds broad, bipartisan concern about AI tools in K-12 schools, with most voters backing stronger federal safeguards. Data Center Governance: Oldham County again debated data center regulations after a prior denial and public pushback, while Northern Kentucky communities continue weighing transparency and local control. Public Safety Tech Privacy: Frankfort and Franklin County use Flock license-plate cameras, prompting renewed questions from residents about costs and privacy tradeoffs. Kentucky Courts: The Kentucky Supreme Court ruled on subrogation and attorney-fee deductions in workers’ compensation-related litigation. Business & Jobs: Valvoline plans to move its global headquarters from Lexington to downtown Cincinnati in 2027, keeping its Lexington workforce and adding about 120 jobs in Ohio. Local Economy Watch: McCracken County approved property tax rates tied to public services while hearing concerns about the Paducah American Energy Hub data center project.

School Food & Local Agriculture: USDA and HHS rolled out “Harvest to Hallways,” aiming to boost local food procurement for schools and fund school kitchen upgrades, including up to $70M for cafeteria infrastructure and $25M in Farm to School grants. Healthcare, Food Insecurity: Dare to Care’s Prescription Pantry program says it’s improving outcomes in Kentuckiana, with emergency room visits down 5% and food insecurity down 7% among screened patients. Data Centers & Power Planning: Kentucky energy leaders discussed how the state can grow data-center demand while protecting ratepayers, emphasizing dependable generation as the key reliability tool. Trade War Fallout (Canada-U.S.): Canada’s PM Mark Carney warned tariffs could deepen economic damage, while Kentucky cattle producers and ag groups raised alarms about U.S. moves that could lower beef prices and disrupt markets. Local Governance & Privacy: Independence decided to remove Flock license plate readers after residents raised privacy concerns, despite claims the cameras help solve crimes. Teacher Shortages & Costs: Kentucky educators say they’re stretched thin by rising stress and shortages, with pay and affordability pressures worsening staffing gaps. Business Closures: Louisville-based Please and Thank You shut its Indianapolis cafe after Chapter 11 filings, citing labor costs and accounting issues. Public Safety: Kentucky’s lakes saw three drownings over the weekend, including two at Lake Cumberland and one in Lexington.

Northern Kentucky Expansion: ADM is investing $16 million to expand its Boone County, Ky., “Colours from Nature” natural color manufacturing, adding 14,000 sq. ft. and boosting liquid and dry-blended capacity, with work targeted for early 2027. Local Courts & Infrastructure: A Boone County naturalist’s fight against a major sewer project—over how the district uses eminent domain—could reach the Kentucky Supreme Court, raising stakes for future property-taking disputes. Road Funding Pressure: Kentucky Transportation Cabinet summer road project listings fell sharply, with the state advertising far fewer bids than last year, citing cash-flow forecasting and prioritizing ongoing obligations. Data Center Backlash: Neighbors in Carroll County, Ky., are demanding more transparency from proposed hyperscale data center developers, questioning job and tax claims and pressing on energy and water impacts. Public Safety & Policy: DHS plans to spend up to $20M to equip ICE officers with electric-shock gloves, drawing civil-rights concerns and scrutiny over oversight and potential misuse. Cost of Living Lens: A SmartAsset living-wage analysis puts Illinois at $101,587 for singles and $244,109 for a family of four to “live comfortably,” underscoring affordability pressure across the region. Community & Food Insecurity: Paducah’s Empty Bowls Project returned for its 17th year, raising funds for the Community Kitchen amid Kentucky hunger data showing many households cutting meals. Student Mobility: UK students can get up to ten $10 Uber rides per semester through the Wildcab Vouchers program, valid late nights in Fayette County.

Kentucky Policy & Retail: Kentucky Senate President Robert Stivers and Kentucky Retail Federation’s Steve McClain discussed what data centers could mean for jobs and local ratepayers, plus retail pressure around back-to-school costs and the push for a “Credit Card Protection Act.” Medical Cannabis: Lexington’s first medical cannabis cultivator/processor, Holler Cannabis Company, is preparing to package its first harvest, aiming to expand access to Kentucky-grown products. Banking for Faith Communities: Wesleyan Investment Foundation launched Kingsworth Bank to serve churches and ministries with long-term financing and investment-linked accounts. Local Government Finance: Barren County officials questioned the jailer over a reported $402,000 revenue discrepancy, setting up a special meeting to reconcile accounting records. Energy Prices: GasBuddy data showed Warren County’s lowest regular gas at $3.24 (week ending Aug. 15), with multiple Kentucky counties also reporting premium/diesel price snapshots. Consumer Safety: Fromm recalled wet dog food over potential metal contamination, and Oma’s Pride also issued a recall tied to illness reports. Workforce & Fraud Watch: BBB Scam Tracker updates highlighted ongoing scam losses nationwide, including Kentucky city-level counts for July.

Trade & Tariffs: A U.S.-Canada trade fight is spilling into Kentucky politics, with Democrats in Kentucky’s Sixth District warning Trump’s 50% tariffs on Canadian imports will raise costs for Central Kentuckians as Canada’s reciprocal tariffs kick in Sept. 8. Healthcare Policy: Humana named Kentucky-based physician Shantanu Nundy as chief medical officer, tasking him with clinical leadership and AI strategy. Housing & Cost of Living: Lexington renters are reporting shifts in the 2026 market, with Zillow data cited on average rents and affordability pressure pushing some households to look outside the city. Local Business & Community: Louisville’s Highlands Festival returned to Baxter Avenue after a seven-year break, spotlighting local vendors and nonprofits, including a Kentucky Humane Society fundraiser. Public Health & Consumer Safety: Two dog food recalls hit the market this month—one tied to Salmonella and another to possible metal contamination—both reaching retailers including Kentucky. Senior Services: Owensboro-Daviess County’s Senior Community Center is nearing completion, with an October opening expected after decades in its current location. Energy & Infrastructure: Williamstown is updating its zebra mussel control efforts and discussing water-rate impacts as the mussel problem continues.

Humana Leadership: Kentucky-based Humana named Shantanu Nundy its new chief medical officer, tasking him with clinical leadership and shaping products, platforms, and AI strategy. Health Policy & Costs: A Trump-backed push to let states cover weight-loss drugs through Medicaid is being rejected by several states, including Kentucky and New Jersey, where state law bars coverage—raising questions about who pays and where savings show up. Tech, Kids, and Courts: Prince Harry and Meghan Markle renewed criticism of Meta, backing a bipartisan coalition of state attorneys general (including Kentucky) suing over child-safety and privacy design choices. AI Data Centers vs. Local Power Bills: Trump urged communities to host AI data centers, calling them “bigger than oil,” while states and local leaders push back over electricity costs and land impacts. Kentucky Local Government: Berea City Council renewed a waste contract and kept property tax rates; Williamstown discussed selling a surplussed maintenance building and approved a road aid contract. Fraud Watch: BBB Scam Tracker data shows Kentucky cities including Louisville and Lexington leading scam reports, while national FTC figures peg 2024 fraud losses at $12.5B.

Data Centers & Power Costs: TeraWulf says it’s committing to Gov. Beshear’s data-center requirements in a filing with the Kentucky Public Service Commission for a planned Hancock County hyperscale site. Child Safety Lawsuit: Kentucky is one of four lead states in a landmark federal trial accusing Meta of designing Facebook and Instagram to hook kids and mishandle children’s data; the case could reshape platform rules nationwide. Bourbon Expansion: Sazerac will restart and expand the shuttered Garrard County Distilling facility in Lancaster after acquiring it for $20 million, adding capacity and jobs as Kentucky spirits demand grows. Local Business & Jobs: Air Hydro Power and Lebanon Power broke ground on a $13 million motor repair facility at the Kentucky Transpark, targeting dozens of skilled jobs in Warren County. Workforce Pipeline: Lloyd Memorial High School and regional partners will pilot a supply chain pre-apprenticeship program for five seniors, with paid work-based learning and early career coaching. Senior Care: Lexington’s Home Instead expands access to veteran-funded in-home care through Kentucky’s HCB Waiver, while recruiting more caregivers. Public Safety: Kentucky’s Drive Sober or Get Pulled Over campaign runs through Labor Day, with impaired-driving enforcement and reminders for a safe ride home. Back-to-School Pressure: Local retailers report more families turning to second-hand shopping as school supply and childcare costs rise.

Local Tax Policy: Henry County Fiscal Court voted to cut its property tax rate by just under 1%, moving to a compensating rate of .10 per $100 of assessed real property value. Education Funding: The Henry County Board of Education is moving the other direction, recommending a 2.65% property tax increase to .736 cents per $100, with a Sept. 9 vote expected. Public Safety & Immigration Enforcement: A federal contract tied to a Nashville location could support ICE’s 287(g) program via a new Public Safety Coordination Center, drawing community pushback. Kentucky Cannabis: Lexington’s first medical marijuana cultivation facility opened in Fayette County, bringing Kentucky to 39 operating medical cannabis businesses, with Beshear calling the program a success. Distilling & Jobs: Louisville-based Sazerac bought Garrard County Distilling Co. in Lancaster for $20 million after bankruptcy, adding a fourth Kentucky distillery and capacity. Data Centers: A data center developer says it will commit to Gov. Beshear’s requirements in filings with the Kentucky Public Service Commission, as the state weighs protections and impacts. Food Safety: Publix frozen berry recalls expanded after the FDA upgraded the risk level to its highest category over possible E. coli contamination. Agriculture & Trade: Trump paused tariffs on imported ground beef for 90 days, a move criticized by some Republicans and cattle ranchers. Rural Health: Kentucky lawmakers heard testimony on rural hospital closures, physician shortages, and financial vulnerability in rural health care.