Capitol Report 5/9/2025

Missouri News Network: Statehouse News for MPA Members

This report is written by Missouri School of Journalism students for publication by MPA member newspapers in print and online.

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Missouri News Network coverage this week included coverage of education and landlord bills and efforts to revive a state law restricting enforcement of federal gun laws.

If you have thoughts or questions, contact Fred Anklam at anklamf@missouri.edu.

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THURSDAY

Can states help the national child care crisis?

By Alysa Horton, Anna Cecil, Chloe Gough, Sydney Topf, Aidan Pittman and Natanya Friedheim, Missouri News Network

On Monday, Janna Rodriguez will close the home day care she runs three hours early to hold a rally. She's invited elected officials across Long Island to learn about the struggles she and other child care providers face.

Rodriguez is one of more than 1,400 people who signed a pledge to close their child care center or call out of work for the fourth annual "Day Without Child Care."

"This is an act of protest," said Dominique Countee of Community Change Action, the group organizing the event. "The goal is to really hold back our economic power and to let the world know that there won't be business as usual without child care."

Rodriguez's company, The Innovative Daycare Corp., serves 16 children. All rely on state subsidies to pay tuition. Even with that help, paying $9,000 per month to her staff of six, three employees and three interns, is a stretch.

"I'm currently at a deficit," Rodriguez said. "Because I don't have children of my own, I'm able to sacrifice my personal salary to be able to ensure that my staff are compensated and have paid time off."

As social services funding questions loom in Congress, state lawmakers are getting creative about how to address a market failure. Market forces have long fueled a child care crisis, driving up prices for parents while keeping wages low for workers.

Families in the U.S. need to make more than $180,000 annually to reasonably afford infant care, according to an analysis released this year by the National Women's Law Center. The high cost of care doesn't translate to living wages for child care workers.

Child care centers are expensive to run. Adult-to-child ratios must remain low. The federal government recommends that one adult care for no more than three children, but states make their own rules.

Centers operate on thin margins to cover high overhead and competitive salaries. Child care centers that raise prices risk losing customers.

This year, states have pledged money, tax credits and relaxed regulations to alleviate the crisis.

Tax credits for businesses

Lawmakers in Missouri and Indiana want to give tax credits to businesses that pay for their employees' child care expenses.

For the third consecutive year, Missouri Rep. Brenda Shields, R-Buchanan, proposed a package of three tax credits.

One proposal, similar to another already passed in Indiana this year, applies to businesses that fund or offer child care for their employees' children. Last year, Florida put $5 million behind a similar business-centered tax credit program. The approach hasn't always yielded results.

"It's often not enough incentive for a business to offer it," said Karen Schulman, senior director of state child care policies at the National Women's Law Center.

Missouri lawmakers are considering a credit worth 75% of any donation made to a child care center. The donor cannot personally benefit from the contribution; for example, a parent cannot make a donation and expect lower tuition.

Another allows child care providers to claim a tax credit worth up to 30% of expenses related to construction projects. The credit also grants tax relief equal to the qualifying child care provider's employer withholding tax.

"The aim is to raise salaries for those that work in the child care industry," Shields said.

The median hourly wage for preschool teachers was $17.85 in 2024, according to the most recent available data from the Bureau of Labor Statistics. The median wage for child care workers, including nannies and home daycare workers, was $15.41, according to the bureau.

Missouri Senate Republicans blocked the bill's progress Wednesday, though it still has a chance to work its way through the legislature.

Deregulating child care

Over half of Indiana parents missed work or class at least once in a three-month period because they could not find child care, per a 2024 Indiana Chamber of Commerce study. Those absences cost employers in the state an estimated $3.05 billion annually.

State lawmakers passed a measure allowing multisite child care centers like YMCAs and the United Way to operate multiple locations under one license.

The most important Senate amendment, according to bill sponsor Rep. Dave Heine of Indiana, was language allowing in-home child care centers licensed before July 1 to continue operating "notwithstanding the building, fire safety, or equipment laws and regulations."

"We have 43 child care facilities providing child care to approximately 800 children that could be at risk of closing down if we did not add this language," Heine said in a House meeting.

A CNBC study ranked Indiana almost at the bottom for quality of life, with the worst access to child care in the country.

Child care deserts like Indiana deter potential workers from coming to the state, said Vanessa Green Sinders, president and CEO of the Indiana Chamber.

"We are such a great state to do business in," Sinders said. "But that enthusiasm and that economic development is going to take more workforce."

As in most states, the Indiana General Assembly has not allotted enough money in the state budget to give residents universal, affordable child care. Instead, individual bills address small parts of the larger problem.

Last month, Idaho Republican Gov. Brad Little signed a bill loosening the child-to-staff ratio. The original bill removed child-to-staff ratio requirements entirely.

The Kansas legislature consolidated 20 state child care programs under a newly created Office of Early Childhood. The new law also lowers staff training requirements and lets parents opt out of vaccine requirements for their children.

Anyone who provides care for up to four children, including two infants, for less than 35 hours does not need a license. This was met with concerns that children could be placed in unregulated environments.

Kansas Action for Children, a nonprofit, pulled its support of the bill because of amendments loosening vaccine requirements for children and allowing future administrations to further deregulate the system.

Kansas Alliance of Boys & Girls Clubs remains in support of the new law.

"Ideally, it will result in more child care slots," Joyce Glasscock, executive director at Kansas Alliance of Boys & Girls Clubs, said in an email.

Grants for child care providers

Some states want to give funds directly to child care providers. In Massachusetts, licensed child care centers can use state grants for overhead and staff.

The Commonwealth Cares for Children grants became permanent in the state's 2025 fiscal year budget. Last year, lawmakers allocated $475 million for these grants.

The funding also is tied to a need-based formula for families, which means that some private child care centers will not qualify for as much money, depending on the populations they serve.

The grants have provided stability to more than 7,000 child care providers across Massachusetts since their inception in July 2021; 93% of licensed providers receive monthly stipends from the state, according to Mass.gov.

The grants were initially meant to be stabilization funds through the American Rescue Plan Act to help support providers, but as the federal funds expired in September 2023, Massachusetts found a way to continue funding the program.

Arizona Democratic Gov. Katie Hobbs is continuing her push for extended access to child care programs with her proposed budget. Her Bright Futures AZ plan creates a partnership to divide child care costs among the state, families and businesses.

The proposal would offer $3 million from the state general fund, reducing the cost of early child care by up to two-thirds for families, plus a grant program for ages 5 through 12 who need care during summer and after school.

"It's certainly a starting point," Hobbs said in an April 15 interview with ABC15. "We're projecting into the future what we need to build now to meet those needs."

Despite her history of uphill battles against Republicans, Hobbs will have to rely on the Republican majority in both the state House and Senate to pass the upcoming budget with her child care plans intact.

"It is all hands on deck to get this over the finish line in the budget conversation," Hobbs told ABC15.

South Dakota Republican Gov. Larry Rhoden vetoed a bill that would have raised the income threshold for workers in the industry to qualify for state assistance covering the cost of care for their own children. The legislature failed to override the veto.

"The state's role in promoting our child care workforce should be supporting economic development and encouraging private sector solutions — not broadening government safety nets into permanent workforce subsidies," Rhoden said in a statement.

Many states offer money to help low-income parents pay for daycare. Montana's Best Beginnings scholarship covers tuition costs for eligible families.

A bill that recently passed the House with bipartisan support would expand eligibility to child care workers who meet minimum hour requirements at licensed or registered providers, or who earn less than twice the state's median income. Estimates suggest up to 400 children of currently ineligible workers would gain coverage if the bill passes, according to reporting by the Daily Inter Lake.

Ohio's House approved $213 million for child care in its budget, $200 million of which the Ohio Capital Journal reports would go toward child care vouchers, while Texas's House passed $100 million in spending towards child care scholarships in their budget. Both now await passage in their state Senates.

"We're thrilled that Texas leaders are taking this historic step to empower parents with more child care options," David Feigen of the nonprofit Texans Care for Children said in a news release. "More parents will be able to go to work, and more children will be in safe, high-quality child care during the critical early years of brain development."

Alysa Horton of Arizona State University, Anna Cecil of Franklin College in Indiana, Chloe Gough of the University of Kansas, Sydney Topf of Boston University in Massachusetts, and Aidan Pittman and Natanya Friedheim of the University of Missouri contributed to this story.

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WEDNESDAY

Sweeping education bill clears Senate, heads to House for approval

By Molly Gibbs, Missouri News Network 

JEFFERSON CITY — Multiple education initiatives were passed with bipartisan support by the Missouri Senate on Wednesday in an omnibus bill that now heads to the House for approval.

Sen. Brad Hudson, R-Cape Fair, is the sponsor of Senate Bill 160, which also combines some bills related to elementary, secondary and higher education.

One provision of the bill allows Missouri State University to award doctor of philosophy degrees in areas other than engineering, and undergraduate degrees in veterinary technology. If Kehoe signs the bill, it will override current state law that gave the University of Missouri a monopoly on those degrees and others.

Danny's Law, named for former MU student Danny Santulli, is also a part of the omnibus bill. Santulli was involved in a hazing incident in October 2021 at Phi Gamma Delta fraternity that left him unable to walk, talk or see.

The bill makes hazing a criminal offense given that the person knowingly, actively and not under duress participated in an act that endangered a student or member of an organization at a higher-education institution.

It also provides an exception for people present at the time of a hazing incident who call 911, provide relevant information and remain at the scene until help arrives. Those who can prove they provided first aid to the victim before assistance arrived are also immune from prosecution.

The bill also creates the "Missouri Creating a Respectful and Open World for Natural Hair Act," also known as the CROWN Act. The provision applies to elementary and secondary education institutions that receive state financial aid or who have students that receive state financial aid. It stops these institutions from discriminating against people based on hair texture or style if it is commonly associated with a particular race or origin.

Sen. Barbara Washington, D-Kansas City, said she appreciated Hudson's willingness to put this act into the bill. She said the bill ensures students "are not treated unfairly or discriminated against simply by the hair that grows out of their head."

Another section in the bill aims to protect student organizations at public higher education institutions. Under the act, those institutions are prohibited from taking action against a student group because of the group's beliefs or actions of its leaders. They are also unable to deny belief-based groups any benefits available to other student groups.

Supporters say this part of the act protects political, ideological and religious student groups. No part of the provision applies to groups that disrupt the educational environment or interfere with other students' rights.

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House passes bill that allows income tax reduction for capital gains

By Kat Ramkumar and Jake Marszewski, Missouri News Network

JEFFERSON CITY — Missouri will be the first state to grant a 100% capitol gains deduction if a bill passed by the Missouri House on Wednesday is signed by Gov. Mike Kehoe.

Sponsored by Reps. Chad Perkins, R-Bowling Green, and George Hruza, R-St. Louis, House Bill 594 and House Bill 508 would allow Missourians to deduct 100% of all capital gains income reported on federal taxes from their state income taxes. It would also exempt diapers and feminine hygiene products from sales tax, and increase a "circuit breaker" property tax credit amount for senior citizens and disabled individuals.

The bill passed by a 102-41 vote in the House after passing in the Senate last month.

Capital gains are profits earned from the sale of assets held for over a year. They can include things like stocks, bonds and cryptocurrencies, as well as valuable personal property.

Opponents of the bill have said the tax cuts would mostly affect wealthy Missourians. According to the IRS, Missouri reported $13.3 million in capital gains in 2022. Missourians who made $1 million or more a year made up 54% of that income.

The phrase "we don't have a revenue problem, we have a spending problem," was echoed by proponents of both bills pushing for capital gains deductions, who argued that the tax relief would be sustainable if Missouri spent less money each year.

The fiscal note for this bill estimates it would reduce state revenue by $430 million in the first year and around $350 million annually after.

However Rep. Darin Chappell, R-Rogersville, said he believes that Missouri has a duty to return people's money back to their pockets.

"Capital gains promotes economic development which promotes further business creation which promotes job creation which promotes stability," Chappell said. "We simply cut the weights, which accounts for 1.72% of the overall budget itself."

Rep. John Simmons, R-Washington, also said he believes that eliminating state income tax will attract economic growth in Missouri.

"We want the trust of the individual to keep more of their own money. To lift themselves up by doing things more efficiently as a government," Simmons said. "By lowering (capital gains), you're attracting investment in the state."

The bill's other tax cuts would short general revenue another roughly $72 million in the next year.

Rep. Emily Weber, D-Kansas City, supports the circuit breaker, but said she feels it was an afterthought.

"No one is asking me for this tax cut," Weber said. "To inextricably link this to an enormous tax cut that would have huge implications for health care, hospital operations, medicaid, schools; that is not the right path."

Rep. Kemp Strickler, D-St. Louis, questioned the bills' effect on the state budget amid federal funding cuts.

"I am concerned that this tax bill is filed at the same time as when our federal Medicaid and federal education funds are very much at risk," Strickler said. "We know that there's a good chance that tariffs are going to be increasing the price of our goods."

Rep. Raychel Proudie, D-Ferguson, believes the bill doesn't address bigger issues she sees in her district.

"I've heard a lot about people who are buying two or three houses," Proudie said. "I'm not hearing enough about the women who have to wrap a towel around their baby's backside to keep them clean and dry."

In addition to the tax cuts, the bills also bring investment to law enforcement and first responder groups, advance broadband internet expansion efforts and remove sales tax on broadband equipment.

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TUESDAY

Senate Republicans renew effort to avoid federal gun laws

By Scout Hudson and Kat Ramkumar, Missouri News Network

JEFFERSON CITY — Senate Republicans renewed pushing a bill Tuesday that would bar local law enforcement agencies in the state from enforcing federal firearm policies.

House Bill 1175, the Second Amendment Preservation Act, passed the House in late March.

Sponsored by Sen. Rick Brattin, R-Harrisonville, the bill would penalize state authorities for enforcing federal gun laws. Any state or local law enforcement agency found to be enforcing federal gun politics would be subject to pay $50,000 for every employee hired by the agency.

In February 2022, the Department of Justice filed a lawsuit alleging the 2021 law obstructed the federal government from solving crimes.

The law later was ruled unconstitutional by a federal judge. The U.S. Supreme Court declined to hear an appeal of that ruling, signaling that the federal decision stood.

The law was found to violate the U.S. Constitution's supremacy clause, which places federal laws above state laws.

The law's proponents claimed gun regulation is out of the federal government's scope of authority.

Brattin said earlier this session that this iteration of the bill is a "reshuffling" of the original bill's language to be in accordance with the federal court's ruling.

Support for the bill has been mixed among conservatives. The National Rifle Association declined to back the bill, and law enforcement officers across the states raised concerns about the limits the bill placed on their ability to counter violent crime and drug trafficking.

When the 2021 law was enacted, the Kansas City Police Department began to limit federal access to their investigative resources.

The Columbia Police Department withdrew from a national database cataloging weapons recovered from crime scenes.

Law enforcement officers have said they are worried about a new category of lawsuits that this bill will create.

Lewis County Sheriff David Parrish testified in committee that, "This type of legislation will create major obstacles for our officers and deputies throughout the state."

In 2021, O'Fallon Police Chief Philip Dupois resigned over the law, explaining in a statement that it would prohibit officers from seizing weapons in emergency situations.

On Tuesday, Democratic senators proposed several amendments to the bill that would incorporate various aspects of gun regulation.

Brattin temporarily tabled the bill after about three hours of debate, but it was brought up again, and Democrats continued to speak on the floor in opposition into the evening.

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MONDAY

Landlord bill heads to state Senate for final approval

By Jackson Cooper, Missouri News Network

JEFFERSON CITY — The Missouri House voted Monday to limit local governments from penalizing landlords who deny tenants receiving federal housing assistance.

House Bill 595 also prohibits local governments from enacting laws that restrict landlords from using income-qualifying methods or from limiting the maximum security deposit that may be required of tenants.

Senate approval of the compromise version of the bill, sponsored by Rep. Chris Brown, R-Kansas City, will send it to Gov. Mike Kehoe for his signature.

The bill was prompted by a 2024 Kansas City ordinance forbidding discrimination by landlords against low-income renters. Though a federal judge struck the ordinance down in February, the General Assembly has moved forward with the legislation.

The conference committee substitute approved Monday resolved differences between Senate and House versions of the bill. Notably, the final version approved by the House on Monday removes the terms of a Senate amendment that would have exempted Kansas City from the bill.

The substitute also contains a provision that permits cities and counties to enact laws protecting low-income veterans in the renters' market.

While proponents of the bill say that it is necessary to protect the rights of landlords, opponents say that doing so further disenfranchises renters reliant on Section 8 and other federal housing assistance programs.

At a Senate committee hearing on the bill in March, some testimony suggested that the legislation reinforced practices that have led to increased homelessness in Kansas City.

"We are seeing homelessness increase in these areas where people are struggling to access housing, because they are being denied based on having a voucher," said Misha Smith, testifying on behalf of Empower Missouri.

Smith cited a Department of Housing and Urban Development study that found renters with housing vouchers had their applications denied by landlords at a rate of 2-to-1.

Another concern raised in hearings was that the bill would prevent the holistic evaluation of prospective tenants.

There was little floor discussion of the compromise on Monday. The conference committee substitute version of HB 595 passed the House by a roll call vote 103-37, largely along party lines.