Disconnected Dreams and a $1.5 Billion Bill: Can a Management "Hard Reset" Finally Save KentuckyWired?

Published on 21 February 2026 at 07:51

By Michael R. Grigsby, Editor | Somerset-Pulaski Advocate


(C) 2026 Brett Sayles / Pexels, All Rights Reserved


FRANKFORT, KY (SPA)— For years, the KentuckyWired project has been described by critics as a "monument to overreach" and by supporters as a "necessity for the 21st century." Now, as the Commonwealth enters 2026, the ambitious 3,300-mile fiber-optic network is facing its most significant transformation yet.

With the recent passage of House Bill 314, sponsored by Rep. Matt Lockett (R-Nicholasville), Kentucky lawmakers are attempting to steer the embattled project away from a decade of mismanagement and toward a future of professionalized oversight. The bill, which cleared the House by an 80-13 vote on February 2, seeks to dissolve the Kentucky Communications Network Authority (KCNA) and hand the keys to the middle-mile network to the Commonwealth Office of Technology (COT).

A "Boondoggle" in the Making: Costs and Delays

The project’s origins date back to 2015, when it was envisioned as a state-owned backbone to provide high-speed internet to all 120 counties. However, the reality has been far grimmer than the vision. Originally projected to be a much more modest investment, a 2018 audit revealed the project’s lifetime costs had skyrocketed to an estimated $1.5 billion—a figure that has since become a rallying cry for fiscal conservatives. The high price tag stems from a complex public-private partnership (P3) with Macquarie Capital, which left the state on the hook for massive "availability payments" regardless of whether the network generated revenue.

Litigation and the Threat of "Going Dark"

Beyond the balance sheet, the project has been mired in legal warfare. In April 2025, a bitter dispute between the KCNA and its private operator, Accelecom (OpenFiber Kentucky), nearly led to a catastrophic service disruption. The state agency terminated the contract, alleging breaches, while Accelecom counter-sued, claiming the state had botched the network's management. For rural internet service providers (ISPs) like Kentucky Fi, the dispute was more than a legal technicality; it was an existential threat. "If the disconnection went ahead, 90% of my network would have gone dark," warned John Gill, owner of Kentucky Fi. This uncertainty fueled the urgency for HB 314, as lawmakers sought to stabilize the network’s operations.

(C) 2026 Alpha TradeZone / Pexels. All Rights Reserved.

An Optimistic Horizon: Integration and Expansion

Despite its checkered past, KentuckyWired's future is not without hope. The network is now being positioned as the foundation for the Broadband Equity, Access, and Deployment (BEAD) program, which is infusing Kentucky with over $1 billion in federal funding. By integrating KentuckyWired’s existing "middle-mile" infrastructure with new "last-mile" projects funded by BEAD, the state aims to finally fulfill the original promise of universal broadband. Proponents argue that with professionalized management under the COT, the state can:

 

* Restore ISP Confidence: Providing a stable, litigation-free environment for private providers to lease fiber.
* Modernize Infrastructure: Utilizing recent budget appropriations for essential equipment refreshes.
* Bridge the Digital Divide: Ensuring that the 3,300 miles of cable already in the ground finally serve the rural residents who have waited a decade for connection.

As the bill moves to the Senate, the residents of the Commonwealth are watching closely. The "information superhighway" may have been a bumpy ride so far, but with a change in the driver’s seat, Kentucky is betting that its biggest digital investment can still reach the finish line.


The Move to COT: Seeking Adult Supervision


Rep. Matt Lockett has been a vocal critic of the KCNA, describing it as an "independent, largely unchecked body." Under HB 314, the position of Executive Director of KentuckyWired is abolished, and the program moves under the direct oversight of the COT. "One theme kept coming up: there is a real, widespread concern about how the KCNA is currently overseeing this project," Lockett stated during committee hearings. The hope is that the COT, which handles the broader state government's IT infrastructure, can provide the technical expertise and transparency that the KCNA allegedly lacked. While some lawmakers expressed concern about removing the oversight of the Finance and Administration Cabinet, the overwhelming House majority suggests a mandate for radical change.



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(C) 2026 Somerset-Pulaski Advocate. All Rights Reserved

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