2026 State of the State Address

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.

State of the State Address, Committee Hearings Begin

The 2026 Missouri legislative session is now off and running with committee activity in both chambers being extremely hectic in week two. A steady flow of House and Senate bills continue to be filed reflecting priorities on public safety, education, health care, and tax policy. Leadership in both chambers have outlined procedural timelines, setting the stage for a more active committee and floor schedule in the weeks ahead. 

On Thursday by noon, both legislative chambers ended their week and began an extended break as the General Assembly will not be in session on Monday January 19th in observance of Martin Luther King Jr day. The House and Senate are scheduled to convene at 4 pm on Tuesday, January 20th. 

State of the State Address

Missouri Governor Mike Kehoe provided his annual State of the State Address Tuesday afternoon which outlines Missouri’s fiscal outlook, policy priorities, and legislative goals for the year ahead. He framed his speech around building “A Foundation for Growth”, aiming to strengthen the state’s economy and competitive position while maintaining fiscal discipline  

He outlined his budget blueprint, emphasizing spending discipline and addressing projected future deficits. He proposed cutting more than $600 million from the state’s general revenue core operating budget to offset a growing budget imbalance while protecting key services like Medicaid, childcare subsidies, disaster relief, and education funding.  

The headline item from the address was Governor Kehoe’s plan to phase out Missouri’s individual income tax, a dramatic shift in state tax policy. Under the proposed policy, the income tax would be phased out over a period of five years, with safeguards to prevent abrupt revenue shortfalls or economic downturn triggers. He called on the legislature to put this on the ballot for Missouri voters to decide in an upcoming election, rather than having lawmakers enact it directly. 

To compensate for lost revenue from cutting the income tax, the plan would expand the sales tax base to include certain services, particularly digital services and subscriptions which are currently not taxed and emphasized he would not support taxing sectors like agriculture, health care, or real estate.  

Governor Kehoe also emphasized agriculture as foundational to Missouri’s economy, with support for farmers facing challenges like weather and input costs. He pointed to rural investment efforts including expanded healthcare options and telehealth in rural areas and agricultural education programs like Missouri FFA initiatives. 

The Governor concluded by reaffirming his commitment to long-term priorities in public safety enhancements, economic development across sectors, and strengthening educational outcomes statewide.

You can view the Governor’s full State of the State Address here.

Executive Orders

During the Governors State of the State Address, the Governor also used the occasion to sign four executive orders aimed at government efficiency and accountability, including a new statewide school accountability system and initiatives to modernize state operations and embrace technology:

• Executive Order 26-01, creating a statewide school accountability A-F grade card
• Executive Order 26-02, demonstrating his administration's commitment to safety and effectively use AI in state government operations
• Executive Order 26-03, reinforcing his administration's commitment to government efficiency, creating the Missouri Government Responsibility, Efficiency, Accountability, and Transformation initiative (Missouri GREAT)
• Executive Order 26-04, establishing the Advanced Nuclear Energy Task Force to promote nuclear energy deployment in Missouri

Budget Update

The House Budget and Senate Appropriations Committees wasted no time kicking off hearings after Governor Mike Kehoe announced his FY27 budget proposal during his State of the State Address. Missouri's Budget Director, Dan Haug, provided both committees with an overview of the Governor's $54.5 billion proposed budget, which includes nearly $16.2 billion of General Revenue (GR) funded programs and services even though the state is only projecting to collect $15.6 billion in FY27.  

The Governor's budget summary proposes cutting approximately $600 million worth of programs funded in the current fiscal year, which ends June 30, due to stagnant revenue collection. Despite this shortage, the Governor is proposing some new spending decisions which will either increase existing General Revenue commitments or replace expiring federal funds with GR, including: 

• $10 million to boost the MOScholars program which provides vouchers for students to attend private or parochial school to $60 million in FY27
• $71.7 million to help shore up the Missouri Consolidated Health Care Plan, the health benefit plan for retired state employees
• $7.5 million for public schools that accept nonresident transfer students if lawmakers allow open enrollment between participating school districts
• $30 million to support recovery and response efforts in federally designated disaster areas 
• $2 million to purchase Missouri-grown rice to support area food banks and emergency shelters
• $31.2 million for increased utilization costs at the Department of Mental Health
• $41.4 million for the Medicaid Home and Community Based Services Program to address a reduction in federal Medicaid matching rates

Additionally, the General Assembly must address shortfalls in the current fiscal year due to cost overruns or under-appropriation through the FY26 Supplemental Budget Request. In total, Governor Kehoe's FY26 Supplemental includes nearly $3.2 billion in requests, including $572.6 million in GR Spending. Notably, $1.1 billion of requests alone are for the state's Medicaid program, MO HealthNet, to prepare for the implementation of HR1, known as the "One Big Beautiful Bill", which will require significant technology and staffing upgrades to verify eligibility more frequently and administer new work requirements for Medicaid participants.

Additionally, for the first time ever, the Governor is asking for nearly $80 million through the Supplemental to continue funding Medicaid Expansion for eligible adults, which was approved by Missouri voters in 2020.  

Other funding requests for the current fiscal year include:

• $518 million from the state road fund, which comes from motor fuel taxes and fees on vehicle sales, to fully fund MODOT for the remainder of the fiscal year 
• An additional $86 million GR for tornado and disaster relief efforts in the St. Louis area
• $7.1 million for offender and incarcerated individual healthcare support due to cost increases
• $27.8 million GR for overtime pay at Department of Mental Health psychiatric facilities 
• $118 million, including $9.3 million GR for the Medicaid Home and Community Based Services program's current needs
• $12.1 million, including $3 million GR, to increase Family Support Division staffing in anticipation of implementing HR1 and the administration of work requirements and eligibility verification
• $27.7 million GR for hospital safety net programs due to an over-appropriation of anticipated funds from the tobacco settlement agreement 

The General Assembly must send the approved Supplemental to Governor Kehoe by March 15 due to a federal requirement to accept nearly $73.7 million in federal funds for security around Kansas City during the FIFA World Cup

Committee Activity

Act Against Abusive Website Access Litigation 

The House Committee on General Laws convened Wednesday evening to receive public testimony on six bills regarding abusive litigation practices. HBs 1674, 1694, 1755, 1780, 2056 and 2312, sponsored by Representatives Brian Seitz (R-Branson), Mazzie Christiansen (R-Bethany), Carolyn Caton (R-Blue Springs), John Voss (R-Cape Girardeau), Jeff Vernetti (R-Camdenton) and Mike Costlow (R-Dardenne Prairie), respectively, creates the “Act Against Abusive Website Access Litigation” which seeks to prevent abusive litigation practices from those filing lawsuits claiming a website is in violation of the Americans with Disabilities Act and seeks to recover damages. Supporting testimony was presented by MSW Interactive Design who informed the committee of her 2,858 clients across the state 48 have been involved in this sort of litigation with one having closed permanently due to the litigation costs. Additionally, while ADA compliance is the goal of all parties, website redesign and compliance can be costly. Additional supporting testimony was provided by small business owners, Greater Kansas City Chamber of Commerce, Missouri Chamber of Commerce and Industry, Missouri Association of Sheltered Workshop Managers, American Tour and Reform Association, Missouri Civil Justice Reform Coalition, National Federation of Independent Business, Associated Industries of Missouri, ArmorVine and the Missouri Insurance Coalition. No opposing testimony was presented to the committee.   

Elections

The House Elections committee met Tuesday morning to discuss HB 1871, sponsored by Representative Peggy McGaugh (R-Carrollton). The bill seeks to reorganize and update Missouri’s election statutes by repealing and rewriting multiple sections that govern various aspects of election administration, procedures, and rules, and replaces them with twenty-two new statutory sections. Specifically, the bill seeks to reinstates the Presidential Primary to be held on the first Tuesday in March of the presidential years and clarifies that candidates for President are not precluded from running for other public offices; allows for election notification to be delivered to the registered voter by email; advances the filing dates for offices in political subdivisions and special districts by a week; addresses paid tax reporting requirements for candidates in St Louis City; sets which days public elections must be held; re-enacts voter registration eligibility and registration processes; includes absentee ballot procedures; changes to voter identification; and creates a new presidential preference primary framework. During bill presentation, the sponsor indicated the bill was filed on behalf of the county clerks. Although no one testified in opposition to the bill the addition of two additional weeks of early voting and changing the distance of electioneering to fifty feet were the most discussed issues of the bill. Individuals representing the St Charles Board of Elections, Missouri Voter Protection Coalition, Responsive Government Action, The League of Women Voters along with a couple of citizen advocates testified in support of the bill.  

Anti-Trafficking Efforts

The House Committee on Children and Families convened Tuesday morning to receive public testimony on HB 1946, sponsored by Representative Jeff Myers (R-Warrenton) and HB 2273, sponsored by Representative Ed Lewis (R-Moberly). The bills are similar and include several provisions seeking to modify sex crimes, increasing the age of offenses, reactivating the statewide task force, provides protections for victims, updates terms, and provides additional resources to prosecuting attorneys. Supporting testimony was presented by the Missouri Network Against Child Abuse who stated reactivating the statewide task force is critical to continue to combat trafficking and exploitation of children and adults. Additional supporting testimony was provided by ReHope Kansas City, Emergency Nurses Association, Office of the Attorney General, Central Missouri Stop Human Trafficking Coalition, Kids Win Missouri, Recycling Grace Women’s Centers and private citizens. Informational testimony was presented by the Coalition Against Afghan Exploitation who provided demographic information on trafficking to the committee. No opposing testimony was presented to the committee. 

Fiscal Oversight for Administrative Rules

The Senate Committee on Government Efficiency met Monday afternoon to discuss SB 877 and SB 891, sponsored by Senators Travis Fitzwater (R-Holts Summit) and Mary Elizabeth Coleman (R-Arnold). For any proposed administrative rule submitted by a state agency that will result in the expenditure of public funds or a reduction in state revenues greater than $250,000, the bill provides that such proposed rule shall not become effective until approved by the General Assembly through passage of a concurrent resolution. During committee discussion, the sponsor indicated there will be a committee substitute to combine both bills into one legislative vehicle. FGA Action, the Pacific Legal Foundation, and Americans for Prosperity testified in support of the bill. No opposing testimony was presented. The committee reconvened Wednesday afternoon in executive session to consider passage of SB 877 and SB 891. During committee discussion, a committee substitute was adopted to combine both bills into one legislative vehicle. Once modified, the committee passed the bill by a 5-1 vote. 

MO Safeguarding Personal Expression Act

The Senate Education Committee convened Tuesday morning to discuss SB 909, sponsored by Senator Brad Hudson (R-Cape Fair). The bill renames the existing “Missouri Student Religious Liberties Act” to the “Missouri Safeguarding Personal Expression at K-12 Schools (SPEAKS) Act” and seeks to expand the scope of protections in school settings to cover not only religious expression but also political and ideological expression by students. Americans for Prosperity supported the bill. PROMO Missouri, MO NAACP, a private citizen, and the Missouri NEA opposed the bill. 

Upcoming Hearings

House-Elections
1/20/26 11:00 AM
Committee Hearing, HR 5

Executive Session:
HB1871 McGaugh - Modifies provisions relating to elections

Senate-Judiciary and Civil and Criminal Jurisprudence
1/21/26 8:00 AM
Committee Hearing, SCR 1

 SB893 Carter - Creates and modifies provisions regarding sexual offenses          

 SB1067 Henderson - Establishes the Uniform Public Expression Protection Act, which provides procedures for dismissal of causes of action based on public expression in public proceedings or on matters of public concern      

House-General Laws
1/21/26 4:00 PM
Committee Hearing, HR 7

HB2682 Chappell - 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

Executive Session:
HB1674 Seitz - Establishes the "Act Against Abusive Website Access Litigation"

HB1694 Christensen Establishes the "Act Against Abusive Website Access Litigation"

HB1755 Caton - Establishes the "Act Against Abusive Website Access Litigation"

HB1780 Voss -Establishes the "Act Against Abusive Website Access Litigation"

HB2056 Vernetti - Establishes the "Act Against Abusive and Predatory Website Access Litigation"

HB2312 Costlow -Establishes the "Act Against Abusive Website Access Litigation"

Senate-Education
1/22/26 9:00 AM
Committee Hearing, SCR 2

SB863 Bean - Requires the Governor to appoint a board of directors to oversee any statewide activities association that facilitates interscholastic activities for secondary school students