AN ACT relating to branch budget bills.

HB 543 amends Kentucky's budget code to require state branches (agencies) to specify both the amount of matching funds requested and the anticipated federal funds they expect to receive during the fiscal biennium in their budget recommendations. It explicitly prohibits using these matching funds for federal block grants (as defined by federal law) unless the grant application complies with existing state and federal requirements. The bill clarifies that matching funds cannot be applied to block grants without adherence to relevant laws and standards, including those under KRS 45.353. This change ensures budget requests for federal program matching align with federal regulations and state oversight.