How HB 370 Would Disproportionately Hurt Low-Income and Retired Residents of Eastern Kentucky

 How HB 370 Would Disproportionately Hurt Low-Income and Retired Residents of Eastern Kentucky

Eastern Kentucky is significantly poorer than most of the state and the nation, which means that any added costs on basic transportation will take a much bigger bite out of household budgets — especially for low-income households and retirees living on fixed incomes.

1. Higher Poverty and Lower Incomes Than the Rest of Kentucky

• In Eastern Kentucky’s 5th Congressional District, the poverty rate is about 24.3 %, significantly higher than the state average of 15.6 % and the national average of 10.6 %. �

• Many Appalachian counties have poverty rates above 30 %, among the highest in Kentucky. �

• Median household incomes in parts of Eastern Kentucky remain far below state and national levels; some counties historically have had median incomes in the $19,000–$25,000 range — less than half the U.S. median. �

The Lexington Times

cber.uky.edu

Weku

This concentration of poverty means that a substantial share of residents simply cannot afford recurring increases in transportation costs without sacrificing essentials like food, medicine, heating, and housing.

2. Older and Retired Populations Live on Fixed Incomes

Many retirees in Eastern Kentucky live on fixed incomes — Social Security, pensions, or limited savings — which do not rise quickly with inflation.

• Even statewide, poverty among Kentucky seniors (65 +) has increased in recent years, from 12 % to 13 %. �

• In a region with lower wages and limited retirement savings, this means many older residents spend a high proportion of their income on basic expenses. When transportation costs go up, there’s no flexible budget to absorb it.

The Lexington Times

Because fuel costs and vehicle fees are not tied to income, these price increases act like a flat tax — taking a larger share of income from people who have the least.

3. Transportation Costs Already Consume a Larger Share of Income

Rural households, especially in Eastern Kentucky, travel longer distances for:

Work and commuting

Grocery stores and pharmacies

Medical care and specialist appointments

There is little to no public transportation available, leaving residents dependent on personal vehicles. Any increase in fuel taxes or vehicle fees disproportionately raises costs for these families and individuals who must drive for basic needs.

4. Low-Income Families Have Fewer Alternatives

Because so many Eastern Kentucky families live below or near the poverty line, they:

Cannot afford newer, more fuel-efficient vehicles

Tend to keep older cars that require more maintenance

Are more likely to skip medical care or necessary travel when costs rise

Higher fees for registration, titles, and licensing — on top of fuel tax hikes — compound these burdens, pushing already strapped families closer to economic hardship.

Bottom Line

HB 370 doesn’t just raise transportation funding — it shifts the cost of daily survival onto the poorest and most vulnerable people in Eastern Kentucky, including:

Low-income workers who must drive long distances

Seniors on fixed incomes with limited financial flexibility

Families already struggling to afford food, utilities, and healthcare

In a region where poverty is significantly higher than the state average and incomes are far lower, raising transportation costs will not fix infrastructure — it will deepen economic distress