AGP Executive Report

Housing & Workforce: Kentucky lawmakers grilled business advocates on the state’s housing crunch, with the Kentucky Chamber saying the shortage is about 200,000 homes and warning it can stall economic development and job growth. Data Centers: Louisville is wrestling with how to regulate hyperscale data centers after a planned West Louisville project drew pushback from No Data Center 502 and a city moratorium. Public Safety Tech: Lexington police confirmed they searched Flock automated license plate reader data at ICE’s request dozens of times since December, raising questions about surveillance and federal involvement. Consumer & Health Policy: Kentucky’s AG announced a major settlement with Credit Acceptance, and a separate FDA update found two Kentucky food-and-cosmetics companies among the most inspected categories in August. Business & Growth: UK reported record degrees/certificates and enrollment, while Kentucky Career Center set a larger job fair in Paducah. Healthcare Funding: Kosair for Kids awarded $2.5 million to Med Center Health for its “Womb to World” infant and child safety program. Local Economy & Tourism: Back-to-back Louisville festivals are expected to boost spending for restaurants and shops. Education & Community: EKU set Fall 2026 commencement dates, and local groups continue holiday-assistance planning amid rising demand.

Predatory lending crackdown: Michigan AG Dana Nessel says 41 states reached a $694 million settlement with subprime auto lender Credit Acceptance Corp., including cash and debt relief for eligible borrowers and new rules aimed at curbing risky loan practices and dealer add-ons like GAP and vehicle service contracts. University governance: Gov. Andy Beshear appointed Lexington businessman Joseph Palumbo and retired judge Phillip Patton to fill University of Kentucky Board of Trustees vacancies, following earlier public concerns about UK leadership decisions. Data center fight in Louisville: A Louisville council committee is now wrestling with how to regulate a proposed hyperscale data center after protests from No Data Center 502 and a prior city moratorium. Spirits deal with Kentucky ties: Louisville-based Sazerac launched a voluntary takeover offer for Germany’s Berentzen at €5.55 per share, supported by Berentzen’s boards and expected to close in Q4. Local business/consumer services: Northern Kentucky mobile brake-repair startup The Auto Llama continues expanding its team and service area by bringing repairs to customers instead of requiring shop visits. Public health: The CDC reports a turtle-linked Salmonella outbreak has more than doubled to 20 cases across 12 states, with young children most affected.

Housing & Workforce: Kentucky lawmakers grilled business advocates on the state’s housing crunch, with the Kentucky Chamber of Commerce warning the shortage is about 200,000 homes and could slow economic development. Adult Education: Kentucky’s Lt. Gov. Jacqueline Coleman highlighted Literary Week efforts aimed at boosting GED access, registered apprenticeships, and workforce development after more than 24,000 adult learners were served over two years. Affordable Housing Expansion: Lexington Habitat for Humanity is expanding into Franklin County, renaming itself to Habitat for Humanity of Fayette and Franklin Counties as the county faces a major supply gap. Public Health: Muhlenberg County Water District 1 issued two boil-water advisories affecting multiple corridors until further notice. Business Growth & Jobs: Develon is adding three new Southeastern dealerships—Premier Equipment, Team Boone, and TraxPlus—expanding equipment sales, parts, and service across Kentucky and nearby states. Local Economy & Community: ARC Addiction Recovery Care named Darren Stapleton vice president of business development to strengthen community partnerships. Consumer Safety: Saratoga Potato Chips recalled certain J. HIGGS Loaded Bacon & Cheddar bags sold at Save A Lot stores in Kentucky and other states due to undeclared soy allergen. Real Estate Snapshot: Zillow reported Laurel County’s typical home value fell 4.4% year over year to $181,431 in August 2026.

Kentucky Economic & Policy: Gov. Andy Beshear signed an order to relieve $250 million in medical debt for more than 130,000 Kentuckians, aiming to cut financial strain for families. Workforce & Business Growth: Joby Aviation completed the first autonomous cross-country flight across the U.S., a milestone that could reshape aviation and spur new tech investment. Regional Commerce: The Paducah Area Chamber’s D.C. Fly-In heads to Washington with nearly 90 delegates to push federal priorities tied to energy cleanup, infrastructure, education, and workforce. Local Community & Civic Life: The Covington Business Council created the “Katie Meyer Spirit of Covington Award” to honor the late advocate and downtown revitalization leader. Sports & Kentucky Business Spillover: Kentucky’s 31-21 upset of No. 9 Texas A&M at Kyle Field is driving fresh attention to the state’s sports economy, while Keeneland’s September Yearling Sale Book 3 posted strong results, including a $1.5M top lot. Public Safety & Community Impact: A Lexington account of gun violence at a community event underscores ongoing concerns about safety in the Bluegrass.

Banking & Fraud: A Dominican Republic man, Simei Acosta-Fabian, was arrested after allegedly trying to open accounts with fraudulent information at multiple western Kentucky banks, including a Citizen’s Deposit Bank in Carlisle County, then facing additional forgery charges in McCracken County. Federal Funding Push: The Paducah Area Chamber’s largest-ever D.C. Fly-In delegation—nearly 90 people—heads to Washington this week to press for priorities tied to the DOE Paducah cleanup, Barkley Regional Airport, infrastructure, workforce, and health care. Consumer Protection: Kentucky AG officials briefed lawmakers on the state’s Meta settlement, with a guaranteed $358.16 million expected and potential for more. Medical Cannabis Growth: Kentucky Cannabis Industry Alliance held its first expo in Lexington, highlighting 26,000 medical cannabis patients and the rapid rollout of dispensaries since the state’s executive order on qualifying conditions. Workforce & Privacy: Surveillance firm Flock Safety is offering a voluntary separation program to employees as cities drop contracts amid privacy and misuse concerns. Housing Snapshot: Zillow data shows Owsley County’s typical home value fell 6% year over year to $128,859 in August 2026.

Workforce & Education: Jefferson Community and Technical College wrapped Phase II of its $90M “Jefferson Rising” downtown overhaul, opening a 40,000-square-foot Center for Science and Discovery plus new green space and a parking structure—aimed at strengthening regional career pathways. Energy & Environment: East Kentucky Power Cooperative began building an 11-mile transmission line through Hart County’s old-growth forest, reigniting the fight over land impacts and power infrastructure. Business & Growth: Toyotetsu Mid America plans a $41M Owensboro expansion, targeting nearly 640 jobs. Local Economy: The Gaslight Festival’s final weekend in Jeffersontown is expected to draw tens of thousands and boost small businesses along Watterson Trail. Industry & Innovation: DOE is seeking input on recovering surplus critical minerals from the Paducah site for potential industrial and defense uses. Community Food Security: Dare to Care Food Bank’s Food Fight Day brought 330 volunteers from 28 companies to support local pantries amid continued demand.

Community & Philanthropy: A golf scramble in Kevil raised funds for the children of Stephanie Stacey, a domestic violence victim, with Independence Bank helping organize and local vendors donating prizes. Leadership & Workforce: KY VALOR & Vision will hold a free Owensboro gathering honoring state Rep. DJ Johnson and connecting veterans, workforce leaders, and local businesses. Nuclear & Industry: Global Laser Enrichment’s Paducah laser enrichment project secured an exclusive uranium offtake deal—Cameco will buy all enriched uranium produced. Higher Ed Finance: Asbury Theological Seminary will phase out federal loans, aiming to graduate more students debt-free. University Athletics Funding: Murray State regents approved two LLCs to create new revenue streams for the university and Racer Athletics, including plans for an entertainment district. Food Safety: Saratoga Potato Chips recalled J. HIGGS Loaded Bacon & Cheddar chips in several states due to an undeclared soy allergen. Local Economy & Real Estate: Tenants in Shelbyville formed a union against a property management firm over long-running maintenance and habitability complaints. Energy & Growth: Camco Chemical broke ground on a Northern Kentucky distribution expansion expected to add 150 jobs. Public Policy & Regulation: Kentucky joined a multistate push for tougher federal action against counterfeit GLP-1 drugs. Business & Culture: Dueling Grounds Distillery marked 10 years with a Bourbon Harvest Picnic celebrating local farmers and producers. Notable Loss: Arthur B. Hancock III, a Kentucky Derby-winning owner/breeder and Hall of Fame inductee, died at 83.

Manufacturing Investment: Ford will build a new $1 billion paint shop at its Kentucky Truck Plant in Louisville, aiming to replace the current facility and boost efficiency and environmental performance. Agriculture & Margins: UK agricultural economists are sharing a free Southeast resource to help farmers manage tight profit margins as higher input costs—especially diesel—continue to squeeze grain and livestock producers. Healthcare Costs: With rising costs and insurers pulling back, employers are increasingly shifting workers to CHOICE arrangements that reimburse employees for premiums, a move that’s reshaping coverage decisions for small businesses. Local Economy & Retail: A new Canewood Commons retail center in Frankfort Pike’s area is underway, with Jersey Mike’s set as the anchor and additional tenants still in play. Public Finance: Kentucky’s August unemployment rate held at 4.7% (seasonally adjusted), while local governments and utilities continue to weigh tax and rate changes that could affect household budgets. Education & Faith Programs: McCracken County Schools approved LifeWise Academy for three more schools, expanding privately funded religious instruction during school hours. Business Wealth: One Kentuckian, Tamara Hughes Gustavson, landed on Forbes’ wealthiest list, underscoring the state’s presence among the ultra-rich.

ICE Leadership Shake-Up: The White House withdrew former Oklahoma trooper Lance Schroyer’s nomination to lead Immigration and Customs Enforcement, leaving acting director David Venturella in place. Frankfort Data Center Push: Frankfort is weighing a proposal from French firm DataONE for a $7.5 billion “AI factory” data center, with residents pressing for answers on water and local rules. Consumer Finance Crackdown: Kentucky and other states announced a $694 million multistate settlement with Credit Acceptance over alleged predatory auto lending, including cash and debt relief plus required consumer-protection changes. Health Insurance Accountability: Federal auditors asked UnitedHealthcare to repay $47 million over Medicare Advantage overpayments, while a separate audit targets Humana for $131 million. Local Economy & Growth: Logan County’s new full-time grant writer helped drive nearly $4 million in requests and more than $284,000 in awards so far. Cost of Living Watch: Gas prices are rising across Louisville, with big location-to-location swings reported by GasBuddy. Workforce & Housing: VA will award a record $1.17 billion in grants to help veterans at risk of homelessness, including Shelbyville’s Fire Mission Ministries. Business & Capital Markets: Churchill Downs priced a $500 million senior secured Term Loan B due 2033 to refinance debt and fund general purposes.

AI Policy in Washington: Kentucky Sen. Rand Paul helped block a fast-track Senate push by Sen. John Kennedy to require an “AI kill switch,” arguing lawmakers need a better understanding of the tech before imposing broad rules. Kentucky Politics & Governance: A separate House fight over impeaching Defense Secretary Pete Hegseth is being delayed as Speaker Mike Johnson sends lawmakers home early, drawing sharp criticism from Rep. Thomas Massie of Kentucky. State Economy & Jobs: Kentuckiana Works reports the local unemployment rate around 4.5% and says job growth has been modest—adding jobs this year after a slower 2025. Healthcare & Community: Gov. Beshear signed an order to relieve $250 million in medical debt for more than 130,000 Kentuckians. Local Business & Growth: Flottman Company in Northern Kentucky is expanding print capacity with a new Heidelberg press, targeting higher-precision commercial and regulated-sector printing. Food & Spirits: Sazerac is reportedly in talks to buy German schnapps maker Berentzen, while also relaunching Glenmore bourbon and rye in the U.S. Consumer & Public Safety: Kentucky’s first Unclaimed Property Week kicks off in Frankfort, with $1.2 billion held for residents.

AI Policy: Sen. John Kennedy’s “kill switch” bill for advanced AI models failed after Sen. Rand Paul of Kentucky blocked unanimous consent, arguing lawmakers need more facts before dictating rules for the whole economy. Public Health & Vaccines: HHS Secretary Robert F. Kennedy Jr. is set to keynote a Children’s Health Defense conference, returning to the group he previously led as U.S. measles cases keep rising. Energy & Costs: The House passed the Ratepayer Protection Act to stop data-center electricity costs from landing on consumers, a move aimed at easing affordability pressure tied to the AI-driven data center boom. Kentucky Business & Jobs: Medvantx opened a new Louisville pharmacy warehouse with robotics and expanded cold storage, backed by a ribbon-cutting with Gov. Andy Beshear. Local Government & Taxes: Marshall County Fiscal Court approved lower property tax rates using a compensating rate, while Hopkins County Cooperative Extension District set its 2026 tax rates and discussed illegal dumping. Legal & Kentucky Politics: Kentucky’s Court of Appeals ordered former Gov. Matt Bevin’s immediate release from jail while his contempt sentence appeal proceeds. Consumer Watch: Diesel prices stayed volatile, with Taylor County’s lowest reported diesel at $5.09 in the week ending Sept. 5. Workforce: A rapid response event helped displaced O’Charley’s employees after the chain’s closures in Hopkinsville and beyond.

Medical Debt Relief: Gov. Andy Beshear signed an executive order creating the Team Kentucky Medical Debt Relief Program, directing $2.5 million to Undue Medical Debt to erase about $250 million in medical debt for roughly 130,000 Kentuckians, with first letters expected next week. Manufacturing Investment: Ford reaffirmed its commitment to Kentucky’s economy with a $1 billion paint shop investment at the Kentucky Truck Plant in Louisville, aiming for groundbreaking before the end of 2026. Banking Tech Upgrade: Eclipse Bank selected Lumin Digital to modernize its digital banking platform, targeting a more customized, consistent mobile and online experience for retail and commercial customers. Housing & Community Infrastructure: Whitesburg plans a replacement municipal swimming pool on higher ground after flood damage and grant delays, with a splash pad expected to move forward soon. Homebuilding Industry Recognition: Brian Miller, executive vice president of the Building Industry Association of Northern Kentucky, received a national career achievement award from NAHB’s executive officers council. Small Business Spotlight: Barkers Construction won a 2026 Small Business Philanthropy Award from the Olive Hill Chamber of Commerce. Local Business Deal: Barnes & Noble is acquiring Joseph-Beth Booksellers, keeping the Lexington and Cincinnati stores’ staff and community programming in place. Education & Safety: Rocky River High School closed for a day to address a mercury spill cleanup, with reopening tied to state public health air-readings guidance.

Medical Debt Relief: Gov. Andy Beshear signed an executive order creating the Team Kentucky Medical Debt Relief Program, targeting $250 million in medical debt for more than 130,000 Kentuckians, with $2.5 million directed to Undue Medical Debt to erase balances without an application. Higher Ed Governance: UK Faculty Senate reviewed a proposed policy to carry out House Bill 490, which allows public university faculty removals for financial reasons, setting up a working group and a formal process for trustees/regents. Bourbon Economy: The Kentucky Bourbon Festival drew thousands to Bardstown for its 35th year, boosting local bars, restaurants and shops as visitors chased bottles and celebrated the state’s signature spirit. Local Development & Zoning: Meade County Fiscal Court adopted two zoning map amendments, including rezoning about 70 acres from agriculture to residential and shifting a Vine Grove parcel to higher-density residential. Transportation & Safety: Officials discussed safety concerns after multiple crashes at a newly installed Exit 16 roundabout, urging drivers to slow down and follow yield rules. Retail Books: Barnes & Noble announced it will buy Joseph-Beth’s Lexington and Cincinnati stores, keeping their local identities as the chain expands in the face of ongoing retail disruption. Education Construction: Pike County schools reported progress on the Millard Area Technical Center, with brickwork, roof completion and systems installation moving the project toward a 2027-28 opening.

Ford Investment & Manufacturing: Ford reaffirmed its commitment to Kentucky with a $1 billion investment tied to a new paint shop at the Kentucky Truck Plant, signaling continued auto manufacturing momentum for the state. Healthcare Tech & Deals: Waystar, a Louisville-based healthcare payments software provider, is exploring options including a potential sale, with Evercore reportedly advising as the company’s market value has slid. Food Prices & Retail: A new report says Aldi is the cheapest grocery option in Kentucky, a sign of how consumers are chasing lower prices amid inflation. Public Health: Kentucky’s measles count more than doubled since mid-August to 46 cases, with four hospitalizations and no recorded vaccinations among patients, concentrated in western counties. Energy Policy: The EPA is abandoning Biden-era CO2 capture rules for coal plants, a move that could reshape electricity costs and Kentucky’s energy landscape. Safety & Transportation: Fruehauf earned an IIHS Toughguard award for trailer rear underride protection, a potential boost for commercial vehicle safety standards. Politics & Governance: Mitch McConnell returned to the Senate floor after a three-month absence, casting his first vote since June and renewing questions about his health and availability. Elections: The U.S. Supreme Court rejected Trump mail ballot restrictions, keeping states on existing mail voting processes heading into the midterms. Real Estate Finance: Flagship Communities REIT announced its September cash distribution for unitholders, reflecting ongoing activity in affordable housing investment.

U.S. Senate Return: Kentucky Sen. Mitch McConnell, 84, returned to the Senate Monday after a June fall and months of recovery, saying he’s “not quite back to 100%” but plans to keep up physical therapy and show up for tough votes—starting with his first floor vote since the hospitalization and with the farm bill back on his radar. Legislative Sprint: As the Senate reconvenes after recess, leaders are pushing ahead on a crypto framework bill (the Clarity Act) and a bipartisan college sports overhaul (Protect College Sports Act), both facing uncertain support. Energy Costs: Diesel prices hit record highs nationally, adding pressure to transportation-heavy businesses and feeding inflation concerns; locally, GasBuddy reports show regular gas prices easing in parts of Kentucky, including a low of $3.45 in Laurel County for the week ending Sept. 5. Retail & Jobs: Harps Food Stores announced CEO/Chairman Kim Eskew will step down in early 2027, with J. Max Van Hoose taking over. Local Business & Community: McClatchy’s Lexington Herald-Leader cut 13 jobs, while the Salvation Army’s Angel Tree registration opens Sept. 28 in Franklin and Anderson counties.

Trade & Bourbon: Canada’s retaliatory tariffs (15%-50%) are hitting U.S. bourbon as trade talks collapsed in August, leaving Kentucky’s marquee spirits caught in the U.S.-Canada fight. Politics & Consumer Economics: Trump’s plan for $5,000 checks if Republicans win midterms is drawing pushback from lawmakers and economists over inflation and federal spending rules. Local Economy & Tourism: Louder Than Life returns to Louisville with nearly 200 acts and an expected $24M economic boost—plus new entry rules for RFID wristbands. Agriculture Costs: Kentucky farmers say diesel prices are crushing harvest budgets, with AAA data showing Kentucky diesel around $5.70 a gallon and much higher than a year ago. Cattle Industry Pressure: Agriculture Commissioner Jonathan Shell warns cattle producers face a “perfect storm” of shrinking herds, farmland loss, and tariff barriers even as beef demand stays high. Education Funding: Northern Kentucky districts are raising local tax revenue as SEEK state funding shifts, affecting property-tax bills. Business Update: Louisville’s Please & Thank You coffee chain is back with new ownership after a Chapter 11 filing, promising lower prices and fewer fees. Infrastructure: New closures on the Brent Spence corridor are reshaping commutes into Covington during the bridge project.