Kenneth J. Bousquet, 65, a former staff counsel of the Senate Appropriations Committee, died Wednesday at his home in Sun City, Ariz.

He and his wife, the former Margaret Sherrin, had moved there from Arlington in July after he retired as a consultant to the General Atomic Corp. in Washington.

Mr. Bousquet had joined General Atomic in 1972, when he left Capitol Hill after 20 years as a staff member of the Senate Appropriations Committee and chief counsel of its Public Works Subcommittee.

Born in Detroit, he attended the University of Detroit and New York and George Washington universities. He joined the Corps of Engineers as a civilian in 1934, and came to the offices here four years later. Mr. Bousquet remained with the corps until 1952.

He was currently serving his second term as national commissioner of the permanent International Association of Navigation Congresses. He also was vice president of the National Environmental Development Association, which he helped organize in 1972.

He was a member of St. Paul's Episcopal Church in Fall Church.

In addition to his wife, he is survived by two sons, Kenneth Joseph Jr. and John Frederick, both of California.

The family suggests that expressions of sympathy may be in the form of contributions to St. Paul's Church or to St. Stephen's Episcopal Day School for Boys in Alexandria.