Missouri Press Association
Serving Missouri Newspapers Since 1867
The following is a legislative update from Clarkston Nelson, LLC concerning the Missouri General Assembly’s 2026 legislative session. Use the information within to develop local coverage of issues important to your readers.
On an unseasonably warm day, the Second Regular Session of the 103rd General Assembly commenced on January 7th and will run through May 15th. Following a contentious end to the regular and special sessions of 2025, yesterday was mostly collegial and ceremonial.
Both the Speaker of the House Jon Patterson and the Senate President Pro Tem Cindy O’Laughlin gave short speeches that were light on policy details, focusing instead on broadly promoting working relationships, tax reform, and community issues such as public safety and education.
As of today, the House and Senate have filed over 2,000 bills between them. On Thursday, the House referred approximately 180 bills to committee and will be off to a quick start with hearings next week. The Senate, in turn, was not expected to refer bills to committee until later next week, but on Thursday it went ahead and referred approximately 200 bills to committee.
Next week, Governor Mike Kehoe will deliver his State of the State address on January 13th. The address is scheduled earlier than usual this year and a full two weeks prior to when the Governor presented last year’s address. Many believe the Governor is trying to get an early start on his legislative priorities, most specifically his goal of eliminating the state income tax and replacing it with a tax on services and other sales tax revenues. Both the Speaker of the House and the Senate President Pro Tem have confirmed their support of eliminating the income tax. That sentiment is not shared by the legislature’s Democrats, as demonstrated by Wednesday night’s announcement by the Senate Democrats that they will oppose any new service or sales taxes on Missourians, which they believe will disproportionally impact individuals with lower incomes.
The State of the State Address will be held at 3:00 PM on Tuesday, January 13th, in the House Chamber of the Missouri State Capitol. The speech will be live-streamed on Governor Kehoe's Facebook page, the State of Missouri's Facebook page, the House webpage and mo.gov/live.
The Missouri Highways and Transportation Commission met on January 7th in Jefferson City for a special meeting to hear a Financial Forecast Update from Brenda Morris, MoDOT Chief Financial Officer, and Doug Hood, Financial Services Director.
Morris said MoDOT (the Missouri Department of Transportation) develops spending plans to determine how much funding can be used in the five-year STIP (Statewide Transportation Improvement Program) process. The January 7th meeting covered Road and Bridge funding and disbursements, focusing on years one and two of STIP, 2027-2031.
There is expected to be a $687.5 million cash balance in the Road and Bridge Fund in 2032.
Actual revenues for FY2025 were $1.5 billion. That had increased to $1.6 billion at end of December 2025.
Motor fuel taxes ended Fiscal Year 2025 at 4 percent less than budgeted. Senate Bill 262, signed in 2021, increased the motor fuel tax over several years. Actual refunds have hit about .5 percent.
Later in the meeting, Morris said, when implemented, “We didn’t know how much would be refunded. It’s averaged out to about .5 percent. It varies based upon who applies for a refund.”
MoDOT Director Ed Hassinger said it was predicted that refunds might be as much as 20 percent annually, but that has not happened.
Motor vehicle sales taxes, another portion of funding, are expected to increase by three percent annually during the next five years.
Motor vehicle and drivers’ license fees have been volatile. The fees were $4.5 million less than expected in FY2025.
Bond issuances for Missouri highways in FY2025 were $1.201 billion ($654 million of that was for the I-70 highway project).
The financial forecast of total revenue in FY2025 was $4.107 billion. The actual revenue was $4.026 billion, excluding the one-time funding for the I-70 and I-44 highway projects.
Disbursements of the State Road Fund forecast: Average disbursements are expected at $3.8 billion per year from FY2027 to FY2031.
The State Road Fund balance is expected to decline from $1.655 billion in FY2026 to $687 million in FY2032.
Director Hassinger said MoDOT will have to lower expectations in the future as the skilled workforce will have less work to do with declining revenue streams and with higher costs due to inflation.
There are several general revenue assumptions in the forecast, Commissioner Erdman said. We know general revenue will be tight in the coming year in the State Legislature, he said.
Every year the amount MoDOT spends is more than the amount brought in. But Hassinger noted the Road Fund balance has many commitments and signed projects against the $1.5 billion in the Fund. Routinely in the summer, we’re paying $1 million per day, he said.
The meeting ended after 75 minutes of presentations and discussion.
The Missouri Highways and Transportation Commission and the Missouri Department of Transportation held their monthly meeting on January 8th in Jefferson City. Presenting his legislative report, Commissioner Dustin Boatwright said the Commission and MoDOT are seeking passage by the General Assembly and the Governor of a supplemental budget request of $642.7 million in the next few months.
Other legislation of interest before the General Assembly, which began its 2026 session on January 7th, are bills dealing with ignition interlocks that deal with drivers under the influence of alcohol and bills dealing with the use of car seats for children. In Washington, DC., the Commission is hopeful that federal transportation funding legislation will be approved soon.
Boatwright said traffic fatalities in Missouri are down for the third year in a row, with three to five percent fewer in 2025.
During MoDOT Director Ed Hassinger’s monthly report, he said on December 9th, a ribbon-cutting ceremony was conducted on the first five miles completed of the I-64 project near the Warrenton to Wentzville I-70 project. Updating the rural routes program, Hassinger thanked Governors and Legislators for their support. 2,100 lane miles of rural routes have been improved throughout the state since this was started in 2023. A total of 5,700 lane miles of rural routes are in Missouri, he said.
Becky Allmeroth, MoDOT Chief Safety and Operations Officer, discussed a winter operations overview and December storm response. The presentation was a high-level overview of planning for the 2025-2026 winter operations season, along with response to an early December storm. Included in the report is the overall cost, an overview of planning for the season and for each specific storm, and some key takeaways/opportunities from the first storms of the season.
Allmeroth said MoDOT needs about 3,400 snowplow operators; it now has 2,655 snowplow operators. With permanent work zones around the state, including the I-70 project, a workshop was held October 21st with the Missouri State Highway Patrol and other law enforcement officers to prepare for winter.
A winter storm on December 1st that hit Missouri was discussed. She described the forecasting and the adjustments that were needed because more snow bursts occurred during the storm than predicted. She said 3.8 inches of snow fell at Lambert Airport in St. Louis, while only an inch had been predicted.
Within 24 hours, roads in Missouri were cleared, she said. 700,000 miles were driven by snow removal operators during that December 1st storm. Because it was the first storm of the season, MoDOT needs to advise travelers and encourage motorists to stay home if possible, she said. Safety is a shared responsibility between MoDOT and the traveling public. The public expected a lot under difficult circumstances, Commissioner Francis Slay said. The public doesn’t understand the complexity of the problem, he noted.
It was reported that six members of the Missouri Senate had sent a letter to the Commission, concerning MoDOT’s snow removal on December 1st.
Commission Chairman Warren Erdman said there is confusion about the pre-treatment of roadways. Timing is everything. For storms with less than ½ inch of snow, pre-treatment works. It often doesn’t hold as well in high-volume traffic areas such as the St. Louis area. Pre-storm treatment did happen a day or two before the December 1st storm.
What did we learn from this, Allmeroth asked? This was the first storm of the season, and the weather forecast accuracy was not good.
Director Hassinger said it’s important and it’s obvious that MoDOT has a hugely dedicated team, along with its partnership with the Missouri State Highway Patrol. “We do have a less experienced group of operators than we’ve had in the past.” He wants people to realize that during the winter in Missouri, when the state usually experiences about six snowstorms during about 20 days each year, “We’re putting in $50 to $70 million and 3,000 employees to do these six snowstorms. When the information is good and the forecast is right, we usually have great success; we make the right decisions at the right time. During the storm, our team is out there in full dress until we get it done. Once the storm quits, our major roads are in normal conditions within six hours.”
Sarah Kleinschmit, MoDOT State Design Engineer, presented the monthly transportation improvements bids report. For the December 12th bid opening, 94 bids were received on 24 bid calls. All bids to the lowest responsive bidders were unanimously approved by the Commission members. $70.1 million in bids were awarded at the meeting, which was $6.3 million under budget. $1.149 billion in bids have been awarded in the current FY 2026, at a savings of nine percent under budget, Kleinschmit said.
Brenda Morris, MoDOT Chief Financial Officer, presented financial forecast updates and estimates of the various components of state revenue, including the state motor fuel tax, motor vehicle sales taxes, motor vehicle and drivers’ licensing fees, and federal funds from the federal motor fuel tax, and other sources as provided by Congress and the Missouri Legislature.
This is the first step in the process to anticipate MoDOT’s funding for roads and bridges for the next five years, she said. Additional revenue and debt over the past couple of years have come from the Improve I-70 Program, the Forward 44 Program, General Assembly-designated and funded projects, and Amendment 3 bond proceeds.
Motor fuel taxes were $6.4 million less than projected in FY2025. Senate Bill 262, signed in 2021, is to raise motor fuel taxes 12 cents per gallon over five years. The last two years have seen .5 percent of motor fuel taxes refunded to motorists. Motor vehicle sales taxes were 2.1 percent more than projected. Motor vehicle and drivers’ license fees have been volatile, and a one percent increase annually is projected.
The financial forecast for FY2026 includes $4.026 billion revenue, $3.876 billion disbursements, and the ending cash balance for the State Road Fund as $1.655 billion.
The financial forecast for revenue, 2027-2031, shows 36 percent from federal, 20 percent from the motor fuel tax, 13 percent from motor vehicle sales, and 8 percent from motor vehicle and drivers’ licenses. Other revenue is from bond proceeds and interest. The financial forecast for disbursements shows 42 percent for construction projects and 25 percent for the operating budget. The Improve I-70 Program, Forward 44, and General Assembly projects are 16 percent. Other State agencies, 10 percent, and debt service, 7 percent.
The final report for the meeting was presented by Llans Taylor, MoDOT Transportation Planning Director, who discussed the development of the next Statewide Transportation Improvement Program. The STIP is MoDOT’s proposed list of transportation projects for the next five years. This STIP document is developed through collaboration with MoDOT’s planning partners and is an essential part of communication with customers. The STIP tells how the transportation dollars are being invested for the next five years.
Taylor said transportation planning includes data collection and stewardship, establishing goals, measuring performance, providing education and support, engaging stakeholders and partners, program development, and ensuring regulatory compliance. The current STIP 2026-2030 works in concert with high-priority needs. Missouri’s STIP is a nationally recognized process. MoDOT planning partners are throughout the state.
The long-range transportation plan establishes goals and a 25-year vision of transportation in Missouri. Goals include taking care of the transportation system and services of today; keeping all travelers safe, no matter the mode of transportation; investing in projects that spur economic growth and create jobs; giving Missourians better transportation choices; and improving reliability and reducing congestion on Missouri’s transportation system. MoDOT has started the process of updating the long-range transportation plan with a publishing goal of 2026.
There are $11.4 billion identified of high priority unfunded needs in the state: $5.7 billion in regional needs and $5.7 billion in statewide and major bridge needs. Taylor said those needs should be worked into the STIP development process. Asset management, taking care of the transportation system of today, is most important.
What’s next in the process: Taylor said district planning staff will work with planning partners to prioritize projects, staff statewide will develop the project scopes, budgets, and timelines, and the target is May for the draft completion and presentation of STIP.
Hassinger said this is the kick-off of the five-year plan presented to the Commission.
Much work will be done in the next several months until the plan is presented in May. He noted that State Legislators have an opportunity to work with this STIP process, but they haven’t in the past, although some are beginning to show interest in the process.
Senate-Government Efficiency
1/12/26 2:00 PM
Committee Hearing, SCR 2
SB877 Fitzwater - Requires General Assembly and gubernatorial approval of proposed administrative rules with a fiscal note over $250,000
SB891 Coleman - Requires the General Assembly to approve proposed administrative rules with a fiscal note over $250,000
Senate-Education
1/13/26 8:00 AM
Committee Hearing, Senate Lounge
SB909 Hudson - Renames the "Missouri Student Religious Liberties Act" the "Missouri Safeguarding Personal Expression at K-12 Schools (SPEAKS) Act" and creates provisions safeguarding students' political and ideological expression at public schools
House-Elections
1/13/26 8:00 AM
Committee Hearing, HR 5
HB1871 McGaugh - Modifies provisions relating to elections
