AGP Executive Report

Transportation & Local Economy: The Cave-in-Rock ferry closure has entered its fourth month, with the Ohio River crossing between Hardin County, Illinois, and Crittenden County, Kentucky still shut after a funding dispute—hurting commuters, healthcare access, and businesses that relied on about 300 vehicles a day. State Government & Community: Gov. Andy Beshear ordered flags at Kentucky state buildings lowered to half-staff Oct. 6 for Army airman Pfc. Weber S. Underwood, whose death in 1942 was only accounted for in November 2025. Business Climate: Beshear also highlighted Kentucky’s 13th-place ranking in Area Development’s Top States for Doing Business, citing strengths in labor cost, permitting predictability, energy costs, and regulatory environment. Healthcare & Workforce: Owensboro Health is bringing Gateway Urgent Care and Mercy Urgent Care under its umbrella while keeping their brands and leadership, aiming to expand access in Western Kentucky and Southern Indiana. Public Safety & Health Tech: Lexington launched Cardiac Crusade to map AED locations across the city using the PulsePoint AED (NEAR) app, pairing CPR and fast defibrillator access to improve survival odds. Economic Development: Muhlenberg County is positioning a Graham-area explosives expansion as a “center of excellence,” with plans for TNT and IMX-104 facilities on a campus that already hosts energetics operations. Food & Consumer Watch: PepsiCo recalled 122,000 cases of Gatorade in 37 states due to undeclared artificial yellow dyes, with no illnesses reported.

Data centers & power supply: TeraWulf says it has expanded contracted capacity at its Muskie Data Campus in eastern Kentucky from 500 MW to 1 GW, moving the next 500 MW phase from 2030 to 2029 pending Kentucky Public Service Commission approval. Local infrastructure safety: Thalle Construction and the U.S. Army Corps of Engineers marked a safety milestone on the Kentucky Lock Addition Project, surpassing 3 million labor hours without a lost-time accident. Tech policy & youth safety: Apple and Google are lobbying states, including Kentucky, to block or limit private lawsuits tied to kids’ online safety and age-verification requirements. Healthcare business: Harrow closed its acquisition of TYRVAYA nasal spray rights from Viatris, paying $30 million upfront with up to $70 million more in sales-linked milestones. Public health & consumer: PepsiCo recalled about 122,000 cases of 28-ounce Gatorade in 37 states due to unlisted yellow food dyes on labels. State politics: A Kentucky Senate race watchdog report says GOP outside groups spent more than $620,000 to help Sen. Julie Raque Adams, including major support from GOPAC. Community & services: UK’s Salvation Army Clinic fundraiser season kicks off with a Miles for Medicine 5K on Oct. 24 to support the student-run free clinic.

Hemp policy shakeup: A federal move to close a loophole in the hemp THC market is putting Kentucky’s fast-growing “hemp-derived” THC businesses in a fight for survival, with the effective date pushed from Nov. 12 to Dec. 11 as lawmakers debate whether to regulate or ban the products. Public health: Trader Joe’s and Walmart expanded a frozen-berry recall tied to possible E. coli contamination, adding more lots of Great Value and Trader Joe’s organic blends sold in Kentucky and across many states. Small business support: The SBA is offering low-interest disaster loans for Kentucky counties hit by 2025 moisture damage (Carroll and Trimble), with applications due Nov. 12. Local growth in Louisville: Simmons College of Kentucky marked major progress on its Westover Campus redevelopment, including Phase I improvements and plans for a future STEAM hub, supported by donations and grants totaling about $7.6 million. Workforce and community: KCRF announced three cancer-care scholarships and a $20,000 grant, backing students and research focused on improving outcomes in cancer treatment.

Kentucky Politics & Energy: Lexington lawmakers and residents are pushing back on data centers as Gov. Andy Beshear signs an executive order aimed at preventing Kentuckians from absorbing extra energy costs, while communities weigh whether to opt in to allow hyperscale development. Bourbon Industry: Kentucky Castle parent TKC Distilling fired CEO Wes Henderson after a sealed lawsuit alleges invasion of privacy and voyeurism; Kyle Henderson is set to take over as CEO while the company investigates. Higher Education & Sports Business: Kentucky basketball fans packed a Lexington event as the U.S. Senate advanced the Protect College Sports Act, which would raise NIL payment caps and limit transfers—changes that could reshape recruiting economics. Public Finance: Kentucky reported $17.2B in state taxes collected in 2024, with sales and gross receipts taxes up 2.8% to $8.6B. Health & Regulation: A federal ban threat targeting the hemp THC market is putting Kentucky-linked producers on edge as Congress delays an effective date and debates a replacement regulatory path. Local Business & Community: Market House Theater in Paducah hosted its 13th annual Kids Creative Arts Street Fair, spotlighting arts education as a workforce and community-building tool.

Hemp Policy Shock: A looming federal ban on hemp-derived THC products is threatening a $28B Kentucky-linked industry, with operators warning a proposed 0.4-milligram cap could “toast” businesses that employ hundreds and sell across multiple states. Corporate Leadership Fallout: Kentucky Castle and True Story Whiskey parent TKC Distilling fired CEO Wes Henderson after family members alleged in a sealed lawsuit that hidden cameras recorded intimate acts at his home; Kyle Henderson is set to take over while the company launches an independent investigation. Public Safety & Community: A Bowling Green church held a visitation for Kentucky State Police Trooper Hayden Phillips ahead of his funeral, underscoring the economic and civic ripple effects of line-of-duty deaths. Statehouse & Tax Revenue: Kentucky reported a 2.8% rise in 2024 sales and gross receipts tax collections, reaching $8.6B of $17.2B total state tax revenue. Local Business Recognition: The Bowling Green Area Chamber honored 29 businesses at its Targeted Business Awards, citing $178M in investment and 740 new jobs. Disaster Funding: Gov. Andy Beshear announced $21.9M in FEMA reimbursements for dozens of Kentucky communities and utilities.

Local Tax & Finance: Campbellsburg City Council approved real estate and personal property tax rate cuts and discussed a Kentucky League of Cities-administered $500,000 bond to refinance a city hall remodeling loan, aiming to save about $40,000 in interest while funding parking and a new maintenance building. Energy Costs for Farmers: Kentucky Agriculture Commissioner Jonathan Shell urged Gov. Andy Beshear to temporarily allow use of untaxed diesel on public roads for the fall harvest, arguing it would ease transportation costs; the governor’s office said it’s reviewing the request. Power Planning: Big Rivers Electric told state regulators it expects to keep its coal and gas plants operating beyond 2050, focusing on reliability upgrades rather than retirement and replacement. Data Center Backlash: A Frankfort “listening session” drew more than 60 speakers opposing hyperscale data centers, citing farmland loss, ratepayer protections, transparency, and tax-break concerns. Legal & Business Risk: A federal judge let a 3M-related RICO case over alleged coal-dust/black lung claims proceed in Eastern Kentucky. Retail Expansion: Publix opened a new Owensboro store and highlighted a nearly $200,000 donation partnership with Tri-State Food Bank. Courts & Land Use: The U.S. Supreme Court will weigh whether federal religious liberty protections can override local zoning in a Northern Kentucky prayer shrine dispute.

Tax Incentives for Steel: Iowa lawmakers approved a bill that could unlock about $1.4 billion in tax incentives for a proposed $15 billion Mesabi Metallics steel mill in southeast Iowa, after a special session and votes in both chambers. Kentucky Diesel Relief Push: Kentucky Agriculture Commissioner Jonathan Shell asked Gov. Andy Beshear to temporarily suspend restrictions on using untaxed diesel on public roads to ease costs for the 2026 fall harvest. Ferry Shutdown Fallout: Southern Illinois and Kentucky leaders renewed calls to keep negotiating to reopen the Cave-In-Rock ferry, still closed three months after funding talks stalled. Local Business & Jobs: Publix opened its first Owensboro store, highlighting customer service and community giving; Independence Bank promoted Travis Huff to market president in Hopkins County. Consumer/Competition: The FTC settled with Southern Glazer’s over claims it discriminated against smaller alcohol retailers, using a monitor for six years. Workforce & Recovery: Barren County launched a TVA-funded program to help people in recovery build job skills and career pathways. Public Safety & Community: Louisville outlined a plan to manage truck routes and address low-clearance “can opener” bridge issues.

Energy Costs & Policy: Kentucky’s agriculture commissioner Jonathan Shell urged Gov. Andy Beshear to declare an energy emergency and temporarily allow untaxed, red-dyed diesel on public roads for the 2026 fall harvest, arguing it would cut transportation costs for farmers and consumers. Fuel Price Pressure Nationwide: Across the U.S., states are moving to curb high gasoline and diesel prices, including suspending fuel taxes or easing rules tied to red-dyed diesel. Flood Insurance Gap: A new look at the 2022 Kentucky floods finds only 2.1% of properties in the hardest-hit areas had federal flood insurance—far below the national average—highlighting a major coverage shortfall as premiums rise. Public Safety & Health: Lexington and partners announced a HEARTSafe push to map more than 1,000 AEDs across Lexington and Fayette County so devices show up to 911 dispatchers via PulsePoint. Maternal Health Funding: Healthy Moms, Healthy Babies America awarded $10 million in grants for maternal health initiatives in Kentucky over five years. Local Business & Jobs: Bomag Americas hired service-industry veteran David Madden as vice president of service & solutions, aiming to improve parts, training, and uptime.

Food & Health: Sierra Nevada Cheese Company recalled Graziers raw-milk cheeses after a multistate E. coli O26 outbreak tied to 13 illnesses, including cases in Kentucky, prompting a nationwide precautionary pull of Monterey Jack, Jalapeño Jack, Medium Cheddar and Sharp Cheddar. Public Policy: At a Frankfort listening session, Kentuckians pressed lawmakers to regulate or pause hyperscale data centers, citing electricity and water use, farmland and environmental impacts, and concerns about tax incentives and ratepayer protections. Economy & Growth: Kentucky State Data Center projections show south-central Kentucky continuing to grow through 2050, with Logan County rising modestly while nearby counties diverge—Warren County surges, while some others decline. Local Business: Bowling Green-area employers and workers were recognized at the Chamber’s Targeted Business Awards, highlighting $178 million in capital investment and 740 new jobs tied to 29 honored businesses. Legal/Consumer Costs: Kentucky’s AG Raoul joined a coalition seeking court approval of a $400 million settlement with Sandoz over alleged generic-drug price-fixing and reduced competition. Community Needs: Feeding America’s latest data shows food insecurity rising in Kentucky’s Heartland, with Logan County at 18.8% and 25.9% of children affected.

Data Centers & Power Planning: Kentucky’s data-center boom is colliding with politics and infrastructure reality, with lawmakers and utilities arguing the state must set rules early to protect ratepayers as proposals test the grid. Local Governance: Frankfort is moving ahead on DataOne’s proposed $7 billion data center, while other communities weigh moratoriums and ordinances to manage growth. Energy & Investment: Korea’s U.S. energy push—Alaska LNG plus nuclear—keeps shifting in public messaging, with Seoul disputing how far Washington’s announcement goes. Bourbon Expansion: Jackson Purchase Bourbon is expanding beyond Kentucky into seven new states, signaling continued growth for Western Kentucky distilling brands. Healthcare Costs: Michigan AG Dana Nessel urges consumers to file for compensation tied to multistate settlements over inflated generic drug prices. Elections & Business Climate: Kentucky Democrats are eyeing a Senate flip, but funding and turnout remain the big question as the midterm map tightens. Public Safety Tech: Flock camera vandalism has triggered arrests in Lawrenceburg, highlighting the business and policing stakes of surveillance systems.

Manufacturing Jobs: Gov. Andy Beshear highlighted Speed Kentucky’s $1.47 million UTV manufacturing and distribution facility in Owsley County, expected to create 60 full-time jobs and support final assembly and distribution of multiple Speed UTV models. Data Center Politics: Frankfort voted 5-2 to approve DataOne’s proposed $7 billion data center, though the project still faces additional steps tied to stipulations in a community enhancement agreement. Local Growth & Infrastructure: Sycamore residents can apply to split costs for city-backed tree plantings, with 30 trees available and a one-tree-per-resident limit recommended through Oct. 8. Weather & Business Planning: Kentucky Mesonet expanded with its 87th site near Owensboro, adding more real-time local weather data for the region. Energy Costs Watch: GasBuddy price reports showed pockets of lower fuel costs across Kentucky in the week ending Sept. 19, including midgrade at $4.69 in Estill County and diesel as low as $5.89 in Whitley County. Education Rankings: U.S. News & World Report’s 2027 college rankings put UK, UofL and NKU at the top nationally among Kentucky schools, with nursing cited as a standout UK program.

State Consumer Protection: Kentucky officials are warning residents about health insurance enrollment scams during fall sign-ups, urging people to “Pause, Check, Protect” and use official sites like HealthCare.gov and Medicare.gov. Music & Tourism Economy: Gov. Andy Beshear created a Governor’s Office of Music and launched kymusic.ky.gov to connect artists, venues, and music businesses—aimed at boosting the state’s entertainment economy. Local Business & Travel: Lake Barkley Tourism is gearing up for its first “Beast Fest” Nov. 13-14 in Eddyville, betting on a cryptid-themed event to drive more year-round visitors. Healthcare Politics: A new AP-KFF poll finds rural MAHA supporters largely say Trump health policies haven’t improved their communities, highlighting a disconnect between federal messaging and local impact. Banking Deal: Peoples Bancorp and Capital Bancorp announced an all-stock merger valued at about $728.1 million, expanding a multi-state banking footprint. Housing Policy: Reporting on the federal shift away from “Housing First” toward “Treatment First” and shorter transitional housing raises concerns for Kentucky-area homelessness providers. Education Costs: Diesel price spikes are squeezing Letcher County school finances, while the district also awaits FEMA flood reimbursements. Energy Planning: Letcher Fiscal Court voted to study small nuclear power plants as a potential economic development tool for future data centers. Elections: Kentucky voters have until Oct. 5 to register for the Nov. 3 election.

Public Safety & Community: Gov. Andy Beshear ordered flags at all Kentucky state buildings lowered Sunday (Oct. 4) from sunrise to sunset to honor Kentucky State Police Trooper Hayden Phillips, killed Sept. 28 during a traffic stop near Bowling Green; services are set for noon at WKU’s E.A. Diddle Arena, with interment in Glasgow. Agribusiness & Land Values: Farm Credit Mid-America’s farmland value study finds Kentucky land values up 10.9% over the past year, while Indiana is the only state in its territory to decline (down 1.9% annually), underscoring how local demand and land quality drive prices. Transportation & Economic Development: U.S. Rep. Hal Rogers announced an $85 million INFRA grant for Somerset’s Northern Bypass, bringing total federal support to $167 million and clearing the way for the next phase of the 8-mile project. Local Education: Warren County Public Schools named Dr. Pauletha Butts principal of Summit View Elementary, citing more than 18 years of leadership experience. Business & Policy: The U.S. Chamber of Commerce’s Free Enterprise Express Opportunity Tour stopped at Forcht Bank in Lexington to hear local business concerns, including affordability. Film & Tourism: A new serial-killer thriller, “The Spiral Down,” began filming in Louisville and Bedford, adding to Kentucky’s growing screen-production footprint.

Kentucky Business & Economy: Real Estate & Housing: Flagship Communities REIT is expanding in Kentucky with a $2.0M deal to buy a 125-lot manufactured housing community in Frankfort, aiming to lift occupancy and add amenities. Healthcare Costs: AG Alan Wilson is urging consumers to file claims tied to multistate settlements over alleged generic drug price-fixing. Business Growth & Industry: Louisville is hosting the 2026 Global Polymer Summit Expo, a three-day gathering built around polymer and rubber innovation and industry networking. Local Public Services: Scott County Schools says its summer feeding program distributed 323,000+ meals, with federal reimbursements helping the district’s nutrition budget. Workforce & Community: A Kentucky nonprofit, Pets4Life Louisville, is expanding low-cost veterinary access with a minor medical clinic to address ongoing pet-care affordability gaps. Food Safety: Federal health officials warn consumers not to eat recalled Sierra Nevada Graziers raw milk cheeses after an E. coli outbreak sickened 13 people, including cases reported in Kentucky. Tech & Policy: Scott County extended a data center moratorium through March 13, 2027, as residents push for tighter rules. Consumer & Finance: Kentucky’s Unclaimed Property Week continues, reminding residents to check the state treasury database for dormant assets. Sports Business: The Charlotte Hornets waived former Kentucky guard Rob Dillingham after acquiring him from the Bulls in a recent trade.

State Economic Development & Talent: Gov. Andy Beshear opened the Governor’s Office of Music at Bourbon & Beyond, aiming to support Kentucky artists, venues, festivals and music businesses and launching a statewide Kentucky Music Industry Directory. Local Government & Resilience: The Kentucky League of Cities named Mayfield City Government of the Year, citing the city’s rebuilding after the 2021 EF4 tornado that destroyed municipal buildings and much of downtown. Immigration Policy & Workforce Impact: A proposed federal rule on international students would cap post-graduation stays at four years and cut the grace period to 30 days, raising concerns about Kentucky graduates starting businesses and careers here. Consumer Safety: Sierra Nevada Cheese Company recalled raw-milk cheeses after an E. coli outbreak sickened 13 people across nine states, including Kentucky. Fraud & Consumer Protection: Attorney General Tim Griffin kicked off his Fraud and Consumer Protection Summit with 800+ registrants, focusing on scams, benefit fraud, cryptocurrency fraud and AI deepfakes. Transportation & Public Safety: Covington launched a study on e-bike and e-scooter safety near schools, weighing “walk your wheels” style rules. Energy Prices: GasBuddy reported Clinton County’s lowest regular price at $4.09/gal for the week ending Sept. 19, with Kentucky’s statewide average at $4.11.

SBA Funding Boost: The U.S. Small Business Administration awarded more than $8M in FAST Partnership Program grants to 50 organizations nationwide, including support for tech startups to tap SBIR/STTR-style non-dilutive funding. Education & Workforce: Ford is funding six Ford Future Builders Labs at Kentucky high schools (Jefferson, Hardin and Elizabethtown), modeled after MIT’s FAB Lab, aiming to train up to 7,000 students in skills like coding, robotics and 3D printing. Public Safety Grants: FEMA announced nearly $900,000 for the Lawrenceburg Fire Department as part of $72M in Region 4 fire and first-responder grants. Local Business & Jobs: GE Appliances (Haier) will invest $1B in Louisville’s Appliance Park, including bringing dryer manufacturing back from Mexico, with production expected to ramp in late 2027. Finance Watch: Churchill Downs Incorporated closed an amended credit facility and a new $500M Term Loan B due 2033 to refinance debt and fund general purposes. Data Center Politics: Carroll County residents and officials are filing ethics complaints tied to hyperscale data center votes and potential conflicts involving utility-linked income. Food Access: The Berry Center and Feed Louisville are partnering to bring locally produced beef to families facing food insecurity while supporting Kentucky cattle farmers.