Kentucky Military Facilities to Receive $147 Million in Federal Construction Funding

KEY POINTS

• Kentucky military facilities are set to receive $147 million in construction funding for modernization and improvements.

• The funding is part of the $19.7 billion allocated for military construction under the bill that ended the longest U.S. government shutdown in history.

• Kentucky project locations include Fort Campbell, Fort Knox, the Blue Grass Army Depot, and the Kentucky National Guard.

Military facilities across Kentucky are set to receive $147 million in federal funding for construction and modernization projects, according to an announcement from U.S. Senator Mitch McConnell’s office.

Multi-Billion Dollar Global Military Construction Funding

The funding is part of the Fiscal Year 2026 Military Construction, Veterans Affairs, and Related Agencies Appropriations Conference Report, which was included in the bill that ended the longest US government shutdown in history on November 13, 2025.

The bill allocates $19.7 billion for military construction projects across the U.S. and globally, in support of nearly 300modernization and improvement initiatives.

Key US and global investments include:

• $7 billion for warfighter readiness projects, such as training ranges and airfield upgrades.

• $2 billion for infrastructure supporting emerging technologies, including next-generation hangars.

• $1.5 billion for the Navy’s Shipyard Infrastructure Optimization Program, a U.S. Navy initiative to modernize and upgrade its four public shipyards in Norfolk, Pearl Harbor, Puget Sound, and Portsmouth.

• $1.9 billion for military family housing, barracks, and quality-of-life facilities like hospitals, schools, and child development centers.

Kentucky Infrastructure Projects 

The $147 million allocated to Kentucky will fund improvements at Fort Campbell, Fort Knox, the Blue Grass Army Depot, and the Kentucky National Guard. Some of the funding goes to the planning and design stage.

Blue Grass Army Depot

The Blue Grass Army Depot in Madison County will receive $27 million for the planning and design of a military container production facility. This project aims to bolster domestic manufacturing of 20-foot metal shipping containers, which are critical for Department of Defense logistics.

Currently, most of these containers are produced overseas. The new facility will reduce reliance on foreign suppliers while supporting local economic growth.

Fort Campbell, Kentucky, will get a new $45 million air traffic control tower. Image: US Army

Fort Campbell

Fort Campbell will receive over $56 million for two projects:

• $45 million for building a new air traffic control tower at Campbell Army Airfield. The current tower, built in 1975, is outdated and unable to fully support the high-tempo operations of the 101st Airborne Division and the 160th Special Operations Aviation Regiment. The new tower will enhance safety and operational efficiency.

• $11 million for the planning and design of a modernized hangar to address a shortage of space for CH-47 Chinook heavy-lift helicopters. This facility will improve readiness and operational effectiveness for the 101st Airborne Division.

Fort Knox

Fort Knox will receive $62.5 million for these projects:

• $50 million to demolish outdated aircraft hangars at Godman Army Airfield, which are no longer suitable for current and future operations.

• $8 million for a two-way bypass road connecting North Knox Street and Bullion Boulevard, improving the movement of military equipment and vehicles.

• $4.5 million for the planning and design of two modern dining facilities to replace six aging structures from the 1960s. The institutional facilities will better support training missions and large-scale troop deployments.

Kentucky National Guard

The Kentucky National Guard will receive $1.5 million for the planning and design of a new Readiness Center and Vehicle Maintenance Shop in Somerset. The facility will replace outdated infrastructure, consolidate operations, and provide modern support for the Guard’s needs in southeastern Kentucky.

Stay Connected

These investments aim to modernize critical military infrastructure, enhance operational capabilities, and support local communities throughout Kentucky.

Stay connected to ConstructConnect for updates and further details on these projects as they progress.