Governor Mike Kehoe delivered his State of the State address this week, outlining his administration’s priorities for the coming year and emphasizing economic growth, workforce development, public safety, and continued investment in core state services. Speaking before a joint session of the General Assembly, the Governor highlighted a conservative, growth-oriented agenda and unveiling his FY 2027 budget, marking one year since taking office as Missouri’s 58th governor. Kehoe emphasized restoring long-term fiscal sustainability as state revenues normalize following years of elevated spending fueled by one-time federal funds.

The governor’s budget reduces more than $600 million from the core general revenue budget to begin addressing a projected $2 billion structural imbalance, while continuing to fund mandatory obligations and preserving core support for K-12 education and higher education. Kehoe described the proposal as a return to pre-pandemic budgeting focused on core government functions and fiscal discipline.

Public safety remains the administration’s top priority, with $2.3 billion allocated for law enforcement, disaster response, and veterans’ homes, including staffing, equipment, and facility upgrades. Economic development funding totals $2.1 billion, supporting job creation, workforce training, childcare, major capital investment, and preparations for the 2026 FIFA World Cup. Education funding reaches $10 billion, maintaining the foundation formula while expanding childcare, career training, accountability measures, and school choice initiatives. Healthcare spending totals $25.2 billion, largely driven by Medicaid and focused on rural healthcare access, mental health services, and substance use treatment.

During his State of the State address, Governor Kehoe specifically called on the General Assembly to advance several priority policy areas. Those include placing the elimination of the state income tax before voters through proposed constitutional amendments (HJR 165 and SJR 83), updating Missouri’s Renewable Energy Standard (HB 2807 and SB 383), and enhancing the Missouri Works program to better incentivize capital investments exceeding $50 million (SB 1443).

The Governor also urged action on reforms to the juvenile justice system (HB 2498 and SB 888), comprehensive sentencing reform (HB 2637, HB 2880, SB 882, SB 1294, SB 894, with another proposal forthcoming), and allowing pregnant women facing abuse to finalize divorce proceedings (HB 1908).

Additional priorities highlighted in the speech include increasing regulations on industrial solar developments (SB 849), establishing public school open enrollment (HB 2604 and SB 971), implementing A–F public school report cards (HB 2539 and SB 1194), and transferring oversight of the Missouri State High School Activities Association to the state (HB 2278 and SB 863).

He concluded by positioning fiscal discipline, tax reform, and targeted investment as the foundation for Missouri’s next phase of growth.

House Hits the Ground Running with Early Committee Hearings

House members moved quickly into legislative business at the start of the 2026 session, holding committee hearings by the third day to begin reviewing newly filed legislation. More than 200 bills were referred to committees in the first week, with 23 committee meetings held, signaling House leadership’s intent to advance legislation efficiently while allowing members ample time for public input and debate.

By convening hearings so early, committees gained a head start on evaluating proposals, gathering stakeholder testimony, and identifying areas for refinement. Additional legislation will continue to be considered in the coming weeks as the House advances its policy priorities for the year.

Legislation Considered This Week

HB 1759 & HB 1766: These bills make changes to personal property assessments effective January 1, 2027, aimed at limiting valuation growth. HB 1759 reduces the assessment rate from 33.3% to 30% of true value, while HB 1766 prohibits increases in aggregate property valuation from being counted as new construction or improvements.

HB 2178: Revises property tax and appeals procedures for certain commercial and industrial properties. The bill shifts the burden of proof to assessors when valuations rely on computer models, requires physical inspections for increases over 15%, strengthens taxpayer protections during appeals, and allows prevailing taxpayers to recover costs and attorney fees.

HB 2302: Requires the Department of Corrections to assist certain inmates in preparing for employment upon release, including verifying and obtaining state-issued identification and other employment-related documents up to nine months in advance.

HB 2375: Updates Missouri’s workers’ compensation law, clarifying that an accident or occupational disease must be the prevailing factor in causing injuries or conditions for them to be compensable. The bill revises definitions, adjusts compensation calculations, grants judges clearer authority over disputed medical payments, allows employers to seek dismissal of certain claims within 180 days, and repeals a penalty related to doubled awards.

HJR 154: Proposes a constitutional amendment requiring work requirements for certain MO HealthNet participants. Individuals would need to comply for three consecutive months to apply and remain enrolled, with exemptions limited to those authorized by state law. The resolution also restricts the Department of Social Services from adopting additional federal exemptions or relying on managed care organizations for exemption determinations.

HB 1625: Revises drug trafficking statutes by lowering quantity thresholds for fentanyl and carfentanil offenses, increasing penalties at lower thresholds, and creating new felony classifications for extremely small amounts of carfentanil due to its potency.

HB 2069 & HB 2208: Create a framework for autonomous vehicles, allowing fully autonomous vehicles on public roads, treating the automated system as the legal driver, requiring safety, reporting, and insurance compliance, and allowing on-demand autonomous networks while prohibiting local bans or special taxes.

Phelps & Maries County Day at the Capitol

Phelps & Maries County Day at the Capitol will be held on Tuesday, February 3, 2026. The event is hosted by State Senator Justin Brown and State Representatives Tara Peters and Bennie Cook.

Residents, local leaders, students, and organizations are invited to the Capitol to tour the building, meet with elected officials, and engage directly in the legislative process. Those interested in attending are asked to RSVP to Representative Bennie Cook at bennie.cook@house.mo.gov or by calling 573-751-2264.