Enacted Budget – Fiscal Year 2026
On June 30, Missouri Governor Mike Kehoe completed signing the 20 bills that comprise the state’s fiscal 2026 budget. The budget calls for $51.82 billion in total spending after recommended vetoes, a 1.3 percent increase from fiscal 2025. Fiscal 2026 general revenue spending is estimated at $15.74 billion (a 4.4 percent increase), federal funds $24.55 billion (a 1.4 percent increase), and other funds $11.54 billion (a 3.0 percent decrease). When signing the appropriations bills, the governor issued 208 line-item vetoes, totaling nearly $300 million in general revenue, and 32 expenditure restrictions, totaling $211 million in general revenue. Net general fund revenue collections are projected at $13.56 billion, a 1.6 percent increase over the revised forecast for fiscal 2025.
In signing the budget, the governor said that while he exercised veto authority to rein in unsustainable spending, he is proud to support smart policies for advancing the shared vision of a safer, stronger, and more prosperous Missouri. In the area of public safety, the budget includes new funding to assist local communities who prioritize public safety with equipment and training needs; investments for fentanyl testing in wastewater systems at schools; and support for the Missouri sheriff’s retirement system. Concerning economic development, the budget includes funding for rural road improvements; grant funding opportunities to help make more childcare slots available for Missouri families; and new funding to address needs of career and technical centers across the state. To help bolster agriculture, the budget includes bonding for Missouri State Fair facilities; ongoing funding for Missouri FFA; and increased funding to support inspection and production capacity in the meat and poultry industry. Finally, to strengthen education the budget supports the state’s full reimbursement of transportation costs to school districts; provides new general revenue funding to bolster the Empowerment Scholarship Account program; and includes funding to ensure all teachers are paid at least the mandatory minimum. Looking ahead, the governor noted he took fiscally conservative steps now in an effort to help ease the burden of broader budget cuts required to balance the budget in fiscal 2027 and beyond.