Blehar, an Air Force veteran and former airline employee, died in May, but her trans identity has just been confirmed.
Sunrise Children's Services initally refused to sign a new contract with the state due to anti-discrimination language protecting same-sex couples.
Louisville will now ensure LGBTQ business owners are considered for city contracts.
The Department of Justice filed a brief supporting a Kentucky photographer who doesn't want to serve same-sex weddings.
No charges have been filed, but police are conducting a homicide investigation, and the man's family has hired a lawyer.
The bill, to be considered in the upcoming session, would not allow trans students to use facilities aligned with their gender identity.
A Louisville, Ky., police officer was allegedly told it was "inappropriate" to come out during a youth event and accused of leering at boys.