Read the full stored bill text
UNOFFICIAL COPY 26 RS BR 1910
Page 1 of 8
XXXX 2/27/2026 11:24 AM Jacketed
AN ACT relating to teacher scholarships, making an appropriation therefor, and 1
declaring an emergency. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 164.769 is amended to read as follows: 4
(1) It is the intent of the General Assembly to establish a teacher scholarship program 5
to assist highly qualified individuals to become certified Kentucky teachers and 6
render teaching service in Kentucky schools. 7
(2) As used in this section [For purposes of th is section, the terms listed below shall 8
have the following meanings]: 9
(a) "Critical shortage area" means an understaffing of teachers in particular 10
subject matters at the secondary level, in grade levels, or in geographic 11
locations at the elementary and s econdary level, as determined by the 12
commissioner of education in consultation with the authority. The 13
commissioner and the authority may use any source considered reliable, 14
including but not limited to local education agencies, to identify the critical 15
shortage areas; 16
(b) "Dual credit" has the same meaning as in KRS 158.007; 17
(c) "Eligible program of study" means an undergraduate or graduate program of 18
study which is preparatory to teacher certification; 19
(d) "Participating institution" means an institution of higher education located in 20
Kentucky which offers an eligible program of study and has in force an 21
agreement with the authority providing for administration of this program; 22
(e) "Qualified teaching service" means teaching the major portion of each school 23
day for at least seventy (70) days each semester in a public school of the 24
Commonwealth or a private school certified pursuant to KRS 156.160(2), 25
except that an individual having a disability as defined by Title II of the 26
Americans with Disabilities Act, 42 U.S.C. sec. 12131 et seq., or serious and 27
UNOFFICIAL COPY 26 RS BR 1910
Page 2 of 8
XXXX 2/27/2026 11:24 AM Jacketed
extended illness, whose disabi lity or illness, certified by a licensed physician, 1
prevents that individual from teaching a major portion of each school day, 2
shall be deemed to perform qualified teaching service by teaching the 3
maximum time permitted by the attending physician; 4
(f) "Semester" means a period of about eighteen (18) weeks, which usually 5
makes up one -half (1/2) of a school year or one -half (1/2) of a participating 6
institution's academic year; and 7
(g) "Summer term" means an academic period consisting of one (1) or more 8
sessions of instruction between a spring and a fall semester. 9
(3) The authority may, to the extent of appropriations and other funds available to it 10
pursuant to subsection (9) of this section, award teacher scholarships to persons 11
eligible under subsection (4) o f this section, who initially demonstrate financial 12
need in accordance with standards and criteria established by the authority or 13
received teacher scholarships pursuant to this section prior to July 1, 1996. Each 14
teacher scholarship shall be evidenced by a promissory note that requires repayment 15
or cancellation pursuant to subsection (6) of this section. 16
(4) Kentucky residents who are United States citizens and enrolled or accepted for 17
enrollment in an eligible program of study at a participating instituti on shall be 18
eligible to apply for and be awarded teacher scholarships. Teacher scholarships 19
shall first be awarded to highly qualified eligible students who meet standards and 20
requirements established by the Education Professional Standards Board pursuant 21
to KRS 161.028 for admission to a teacher education program at a participating 22
institution in pursuit of initial teacher certification. If funds are not depleted after 23
awarding teacher scholarships to students who meet the preceding criteria, then 24
awards shall be made to any otherwise eligible students. 25
(5) The authority shall establish, by administrative regulation, the maximum amount of 26
scholarship to be awarded for each semester and summer term under this section. 27
UNOFFICIAL COPY 26 RS BR 1910
Page 3 of 8
XXXX 2/27/2026 11:24 AM Jacketed
The amount of each scholarship to be awa rded shall not exceed the applicant's total 1
cost of education minus other financial assistance received or expected to be 2
received by the applicant during the academic period. 3
(6) (a) The authority shall disburse teacher scholarships to eligible students w ho 4
agree to render qualified teaching service as certified teachers, and are 5
unconditionally admitted and enrolled in an eligible program of study. 6
(b) A teacher scholarship shall not be awarded or a promissory note cancellation 7
shall not be granted to any person who is in default on any obligation to the 8
authority under any program administered by the authority pursuant to KRS 9
164.740 to 164.785 until financial obligations to the authority are satisfied, 10
except that ineligibility for this reason may be wai ved by the authority for 11
cause. 12
(c) Recipients shall render one (1) semester of qualified teaching service for each 13
semester or summer term of scholarship received, except that recipients who 14
teach in a critical shortage area designated by the authority or teach dual 15
credit coursework in a certified Kentucky high school shall render one (1) 16
semester of qualified teaching service as repayment for two (2) semesters or 17
summer terms of scholarships received. Upon completion of each semester of 18
qualified teacher service, the authority shall cancel the appropriate number of 19
promissory notes. 20
(d) If the recipient of a teacher scholarship fails to complete an eligible program 21
of study at a participating institution or fails to render qualified teaching 22
service in an y semester following certification or recertification, unless the 23
failure is temporarily waived for cause by the authority, the recipient shall 24
immediately become liable to the authority for repayment of the sum of all 25
outstanding promissory notes and accr ued interest. Persons liable for 26
repayment of scholarships under this paragraph shall be liable for interest 27
UNOFFICIAL COPY 26 RS BR 1910
Page 4 of 8
XXXX 2/27/2026 11:24 AM Jacketed
accruing from the dates on which the teacher scholarships were disbursed. 1
(e) Recipients who have outstanding loans or scholarships under KRS 156.6 11, 2
156.613, 164.768, or 164.770 respectively, and who render qualified teaching 3
service, shall have their notes canceled in accordance with subsection (6)(c) of 4
this section. 5
(f) The authority shall establish, by administrative regulation, the terms and 6
conditions for the award, cancellation, and repayment of teacher scholarships 7
including[,] but not limited to [,] the selection criteria, eligibility for renewal 8
awards, amount of scholarship payments, deferments, the rate of repayment, 9
and the interest rate thereon. 10
(g) Notwithstanding any other statute to the contrary, the maximum interest rate 11
applicable to repayment of a promissory note under this section shall be eight 12
percent (8%) per annum, except that if a judgment is rendered to recover 13
payment, the judgment shall bear interest at the rate of five percent (5%) 14
greater than the rate actually charged on the promissory note. 15
(7) A repayment obligation imposed by this section shall not be voidable by reason of 16
the age of the recipient at the time of receiving the teacher scholarship. 17
(8) Failure to meet repayment obligations imposed by this section shall be cause for the 18
revocation of a person's teaching certificate, subject to the procedures set forth in 19
KRS 161.120. 20
(9) All moneys repaid to the authority under this section shall be added to the 21
appropriations made for purposes of this section, and the funds and unobligated 22
appropriations shall not lapse. 23
(10) The authority may execute appropriate contracts and promissory notes for 24
administering this section. 25
(11) Notwithstanding any other statute to the contrary, if available funds are insufficient 26
for all requested scholarships for eligible applicants during any fiscal year, the 27
UNOFFICIAL COPY 26 RS BR 1910
Page 5 of 8
XXXX 2/27/2026 11:24 AM Jacketed
authority shall give priority consideration to eligible applicants who previo usly 1
received teacher scholarships and, until June 30, 2018, to loan forgiveness for 2
teachers who have outstanding loan balance eligibility for Best in Class loans issued 3
prior to June 30, 2008. If funds are insufficient to make all requested renewal 4
scholarships to eligible applicants, the authority shall reduce all scholarship awards 5
to the extent necessary to provide scholarships to all qualified renewal applicants. 6
If, after awarding all eligible renewal applicants, funds are not depleted, initial 7
applications shall be ranked according to regulatory selection criteria, which may 8
include application date, and awards shall be made to highly qualified applicants 9
until funds are depleted. 10
(12) The authority shall submit a report on the number of teacher scho larships provided 11
in each fiscal year, the program of study in which recipients are enrolled, recipient 12
retention rates, total number of applications, and scholarship recruitment strategies 13
to the Legislative Research Commission for referral to the Interim Joint 14
Committee on Education by December 1 of each year. 15
(13) (a) For the 2026 -2027 and 2027 -2028 academic years, a pilot program is 16
established to provide scholarships to students who are pursuing a teaching 17
career in a math- or science-related discipline. Unless otherwise provided in 18
this subsection, the math and science scholarship pilot program shall be 19
administered by the authority in the same manner as the teacher 20
scholarship program under this section. 21
(b) For purposes of the pilot program, as funds are available, each school 22
district shall annually and equally receive up to twenty -five thousand 23
dollars ($25,000) for distribution to one (1) or more eligible students, as 24
described in subsection (4) of this section, who live in or graduated from the 25
district. An eligible student may be awarded a scholarship of up to twenty -26
five thousand dollars ($25,000) in each academic year of the pilot program. 27
UNOFFICIAL COPY 26 RS BR 1910
Page 6 of 8
XXXX 2/27/2026 11:24 AM Jacketed
If the pilot program is extended beyond the 2027 -2028 academic year by the 1
General Assembly, an eligible st udent may be awarded up to a total of one 2
hundred thousand dollars ($100,000) over four (4) academic years. 3
(c) To participate in the pilot program, a student shall be enrolled in a math - or 4
science-related eligible program of study that is approved for th e pilot 5
program by the authority, maintain at least a minimum three and two-tenths 6
(3.2) grade point average on a four (4) point scale, and complete the Free 7
Application for Federal Student Aid to determine the level of need and 8
eligibility for state and federal financial aid programs. A scholarship shall: 9
1. Not exceed the eligible student's cost of: 10
a. Tuition and mandatory fees, less any state or federal grants 11
received; and 12
b. Assessment in accordance with subparagraph 2.b. of this 13
paragraph; and 14
2. Only be used for: 15
a. Tuition and mandatory fees; and 16
b. Registration for an appropriate assessment selected by the 17
Education Professional Standards Board under KRS 161.030. 18
(d) For each school district containing a high school, the superintendent shall 19
establish a four (4) member selection committee composed of the following 20
individuals: 21
1. The superintendent, who shall serve as the chair; 22
2. One (1) math teacher; 23
3. One (1) science teacher; and 24
4. One (1) lay member who is a resident of the district. 25
(e) A selection committee established under paragraph (d) of this subsection 26
shall evaluate student applications for the math and science scholarship 27
UNOFFICIAL COPY 26 RS BR 1910
Page 7 of 8
XXXX 2/27/2026 11:24 AM Jacketed
pilot program based on selection crit eria established by the authority, 1
pursuant to subsection (6)(f) of this section and any additional evaluation 2
requirements established by the selection committee. The authority shall 3
establish, by administrative regulation, the process for a selection committee 4
to: 5
1. Solicit, accept, and review scholarship applications; and 6
2. Submit a selected scholarship recipient to the authority for the 7
upcoming academic year. 8
(f) Notwithstanding subsection (6)(c) of this section, eligible students awarded 9
a scholarship under this subsection shall: 10
1. After the completion of a math - or science-related eligible program of 11
study, render qualified teaching service in a math or science subject 12
area, as determined by the authority, as repayment for the total 13
scholarship amo unt received through the pilot program. For total 14
awards of: 15
a. Up to ten thousand dollars ($10,000), the eligible student shall 16
render one (1) year of qualified teaching service; 17
b. Ten thousand one dollars ($10,001) to twenty -five thousand 18
dollars ($25,000), the eligible student shall render two (2) years 19
of qualified teaching service; or 20
c. Twenty-five thousand one dollars ($25,001) to one hundred 21
thousand dollars ($100,000), the eligible student shall render a 22
minimum of four (4) years of qualified teac hing service or more, 23
as determined by the authority; and 24
2. Only render qualified teaching service in the district from which the 25
scholarship was awarded to satisfy the repayment requirements of this 26
paragraph. If an eligible student fails to meet the rep ayment 27
UNOFFICIAL COPY 26 RS BR 1910
Page 8 of 8
XXXX 2/27/2026 11:24 AM Jacketed
requirements in subparagraph 1. of this paragraph or complete an 1
eligible program of study, the eligible student shall be subject to 2
subsections (6) and (8) of this section. 3
Section 2. There is hereby appropriated General Fund moneys in the amount of 4
$4,175,000 in each fiscal year of the 2026 -2028 fiscal biennium to the Kentucky Higher 5
Education Assistance Authority for the scholarship pilot program established in 6
subsection (13) of Section 1 of this Act. 7
Section 3. Whereas the scholarship pilot program established in this Act begins 8
with the 2026-2027 academic year, and immediate planning and preparation are required 9
for timely implementation of the program, an emergency is declared to exist, and this Act 10
takes effect upon its passage and approval by the Governor or upon its otherwise 11
becoming a law. 12