​On October 21st, the Kentucky General Assembly’s state Housing Task Force held its last fact-finding meeting. This is the second year this task force has been organized, demonstrating the legislature’s priority interest in learning about the Commonwealth’s housing issues, roadblocks, and possible solutions.  The Legislative Interim, which occurs between state Legislative Sessions, emphasizes policy development, stakeholder input, and preparation. Interim activities are led by approximately 16 standing Interim Joint Committees, formed by merging House and Senate standing committees. These committees provide continuity on core policy areas, meeting monthly to review legislation implementation and draft bills. This past May, legislative leaders announced five joint task forces to tackle emerging issues, each co-chaired by one House and one Senate member, with bipartisan participation. These groups aim to deliver reports and bill drafts by early 2026, including Kentucky’s Housing Task Force.

​On October 15, Greater LEX business and community stakeholders testified before the Kentucky General Assembly’s Budget Review Subcommittee on Economic Development, Tourism, and Environmental Protection in Frankfort. With the upcoming 2026 Legislative Session’s primary focus on the state’s next biennial budget, mixed economic indicators and state revenues are building towards cautious budget discussions amongst state policymakers. However, with a FY 2025 end balance of $3.76 billion in the state’s Budget Reserve Trust Fund and with revenues expected to continue with modest growth, there remains a possibility for one-time appropriations legislation similar to House Bill 1 (H.B. 1) from the last budget cycle in 2024. In the last budget, H.B. 1 appropriated approximately $1 billion into one-time investments across the Commonwealth, including $10 million to Lexington’s Transformational Housing Partnership. 

​Commerce Lexington and the Building Industry Association (BIA) of Central Kentucky recently hosted a Housing Development Workshop for Lexington City Councilmembers and legislative aides. The workshop provided an opportunity to educate council members about the current housing landscape, community needs, challenges, and opportunities to provide more accessible and affordable housing in Lexington.
 
During the workshop, Councilmembers learned about the history of land use and housing development, recent home building and permitting trends, and factors impacting supply and affordability.  Councilmembers participated in site visits to active housing developments both for affordable housing and market-rate developments. The immersion tour helped local leaders better understand the realities of “a day in the life of a developer.”  From lengthy development plan certifications to costly regulatory requirements and other delays, local government process challenges add additional costs that impact housing affordability.

Commerce Lexington was recognized with two awards related to its ongoing Regional Competitiveness Plan, while the City was named an award winner for its Second Chance Academy Workforce Reentry Program.

The Trump Administration's trade policies continue to center on leveraging tariffs to secure bilateral trade agreements, with a 10% universal tariff on most imports and higher "reciprocal" tariffs set to resume on August 1st unless deals are finalized. Over the last couple of weeks of July, the Administration has completed significant trade deals, notably with the European Union, Japan, and the Philippines, building on earlier agreements with China, the United Kingdom, Vietnam, and Indonesia. These deals aim to reduce trade deficits, boost U.S. manufacturing, and address national security concerns, though they face legal challenges and economic scrutiny.

The Trump Administration has secured or announced framework agreements with several countries, though many details remain unclear or unsigned. These deals often involve reduced tariffs compared to initially higher rates, alongside commitments from trading partners for investments or increased purchases of U.S. goods.