KTAP provides financial and medical assistance to needy dependent children in Kentucky and the parents or relatives with whom the children live. The program was established through a federal block grant.
From 1995 to 2022, eligibility requirements and cash pay-outs remained flat. With caseloads appearing to decline and surplus dollars accumulating, officials opted to loosen eligibility rules and double the amount of cash payments.
But, as DCBS head Lisa Dennis told lawmakers, growth far outpaced their projections.
"We were thinking the program would begin to level out, but the program continued growing and by the end of Fiscal Year 2025 we had seen a 51% increase in utilization of the program," she explained.
Now officials are making deep cuts for recipients, reducing cash payments by 35% and transportation supports by 50%. The move comes as the number of children needing foster care has risen, along with the cost of their care.
Lawmakers questioned why the initial decision was made to increase the payments and whether the current reductions will drive the number of households needing assistance even higher.
"I'm just really concerned that we are going to send a whole lot of families (into) crisis for the remaining months of this calendar year," Rep. Sarah Stalker said.
DCBS says $32 million would be needed to replenish the cash payments and transportation support programs into 2026.