Jefferson City

Governor Kehoe Signs Bold Tax Cuts and Pro-Business Legislation into Law

JULY 10, 2025

 — During a bill signing ceremony at the Missouri State Capitol, today Governor Mike Kehoe signed two major pieces of legislation—House Bills (HB) 567 and 594—delivering on his commitment to lower taxes and defend small businesses.

"Conservative leadership is about keeping more money in the hands of Missouri families, and less in government coffers," said Governor Kehoe. "Today, we are protecting the people who make Missouri work—families, job creators, and small business owners—by cutting taxes, rolling back overreach, and eliminating costly mandates."

HB 567, sponsored by Representative Sherri Gallick and Senator Mike Bernskoetter, modifies provisions relating to employee compensation.

  • Maintains the state's minimum wage law at $15 per hour, repealing the annual Consumer Price Index adjustment, and extends the wage requirement to public employers as well as private.
  • Repeals onerous paid sick leave mandates on Missouri small businesses, including:
    • Requirements dictating when and how paid leave must be provided.
    • Burdensome record keeping and compliance obligations.

HB 594, sponsored by Representative Chad Perkins and Senator Curtis Trent, introduces or modifies provisions relating to taxation.

  • Authorizes an income tax deduction for all capital gains reported for federal tax purposes by individuals in tax years beginning on or after Jan. 1, 2025.
    • This tax cut will be extended to corporations once Missouri’s income tax rate falls to 4.5 percent or lower.
  • Makes several modifications to the Senior Citizens Property Tax (PTC) "Circuit Breaker" Program.
    • Increases the PTC for eligible taxpayers from $1,000 to $1,550 for homeowners and from $750 to $1,055 for renters, effective Jan. 1, 2026, with annual CPI adjustments moving forward.
  • Exempts diapers, incontinence products, and feminine hygiene products from state and local sales and use taxes.

Governor Kehoe also signed six additional pro-growth bills aimed at securing a brighter future for Missouri, including:

  • HB 516, sponsored by Representative Mark Matthiesen and Senator Nick Schroer, modifies criteria of radioactive waste investigations and allows for increased appropriations to the the radioactive waste investigations fund.
  • HB 754, sponsored by Representative Philip Oehlerking and Senator Sandy Crawford, modifies standards for certain financial organizations.
  • SB 2, sponsored by Senator Sandy Crawford and Representative Peggy McGaugh, modifies provisions relating to financial statements of certain local governments.
  • SB 3, sponsored by Senator Sandy Crawford and Representative Dave Hinman, modifies or enacts provisions relating to Department of Revenue fee offices.
  • SB 98, sponsored by Senator Sandy Crawford and Representative Bill Owen, modifies various provisions relating to financial institutions.
  • SB 221, sponsored by Senator Nick Schroer and Representative Ben Keathley, modifies the standard of review for agency interpretation of statutes, rules, regulations, and subregulatory document.

For more information on the legislation and additional provisions signed into law, visit house.mo.gov and senate.mo.gov. Photos from the bill signing will be uploaded to Governor Kehoe's Flickr page. Additional bill signings will continue to take place over the next several days. For more information on the bill signings, view Governor Kehoe's schedule.

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Governor Kehoe Signs Legislation into Law Promoting Economic Development

JULY 10, 2025

 — Today, at bill signing ceremonies in St. Louis, Governor Mike Kehoe signed House Bills (HB) 199 and 1041 into law.

Governor Kehoe joined St. Louis local business and community leaders and elected officials at Union Station to sign HB 199, which allows a special entertainment district to be established in downtown St. Louis. The legislation, sponsored by Representative Bill Falkner and Senator David Gregory, also modifies over 30 additional provisions relating to political subdivisions.

  • Allows the St. Charles Conventions and Sports Facilities Authority to receive a state tax incremental financing (TIF) district without first having a local TIF.
  • Allows Benton, Camden, Miller, and Morgan counties, as well as the City of Lake Ozark, to establish entertainment districts.
  • Extends eligibility to the St. Louis Port Authority for the Waterways and Ports Trust Fund.
  • Clarifies that the Kansas City Mayor must appoint commissioners to the Kansas City Area Transportation Authority from candidate panels submitted by the Clay or Platte County Commissions when their respective seats on the board become vacant.
  • Enables the establishment of a Clay County Sports Complex Authority, with similar powers and processes to those of the Jackson County Sports Complex Authority.

"I’m proud to be born and raised in St. Louis and remain committed to revitalizing downtown," said Governor Kehoe. "This special entertainment district marks a new chapter for business and community leaders to promote tourism, public safety, and economic growth in St. Louis."

At Anheuser-Busch's St. Louis Brewery, Governor Kehoe joined Missouri brewers from across the state to sign Representative Dane Diehl's and Senator Kurtis Gregory's HB 1041, which modifies regulations for alcoholic beverages.

  • Reduces the malt liquor tax from $1.86 per barrel to $0.62 per barrel for all malt liquors produced at American Breweries.
  • Expands current law to allow wine, beer, malt liquor, and spirits to be donated by manufacturers, wholesalers, retailers, and unlicensed persons to charitable or religious organizations and educational institutions for auction or raffle.
  • Expands current law to allow cash rebate coupons for wine and liquor sales.
  • Increases revenues deposited into the Missouri Wine and Grape Fund from $0.12/gallon of wine sold to $0.21/gallon, allowing the Missouri Wine and Grape Board to use the additional revenue to support the University of Missouri’s Grape and Wine Institute.
  • Allows entities licensed to sell liquor by the drink for consumption on their licensed premises to be open 24 hours a day and serve alcohol from 6 a.m. to 5 a.m. the following day during the 2026 FIFA World Cup.

"We are proud to sign this legislation today, rightly branded as the American Beer Act, to help support and strengthen Missouri breweries, farmers, suppliers, and retailers who brew and sell American beer," said Governor Kehoe. "Our state has a long history of being home to some of the best brewers in the nation, and by taking this action today to support breweries at a state level, Missouri is setting an example of supporting companies that are investing in American manufacturing, jobs, and communities."

For more information on the legislation and additional provisions signed into law, visit house.mo.gov and senate.mo.gov. Photos from the bill signing will be uploaded to Governor Kehoe's Flickr page. Additional bill signings will continue to take place over the next several days. For more information on the bill signings, view Governor Kehoe's schedule.

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Governor Kehoe Signs Education and Workforce Development Bills into Law

JULY 9, 2025

 — Today, during a bill signing ceremony at the Missouri State Capitol, Governor Mike Kehoe signed eight bills into law: House Bills (HB) 296 and 419, and Senate Bills (SB) 49, 63, 68, 150, and 160, and Senate Concurrent Resolution (SCR) 3.

"From implementing distraction-free classrooms to expanding school safety efforts, the legislation signed into law this afternoon impacts both K-12 students and Missourians pursuing higher and career technical education," said Governor Kehoe. "We are proud to join the General Assembly in supporting these wins for Missouri schools, students, and teachers."

HB 296, sponsored by Representative Jim Kalberloh and Senator Rusty Black, modifies provisions relating to school personnel.

  • Expands substitute teaching eligibility for retired teachers.
  • Requires background checks to be conducted on all personnel employed by charter schools, consistent with public school requirements.
  • Raises the age for driver's license renewal exams for school bus-endorsed drivers from 70 to 75 and adjusts the renewal requirements from annual to biennial.

HB 419, sponsored by Representative Don Mayhew and Senator Sandy Crawford, modifies several provisions relating to education.

  • Requires the Missouri State High School Activities Association to waive the minimum practice requirement for all students who are active-duty military, including active-duty Army National Guard and Army Reserve.
  • Establishes a separate custodial account with the State Treasurer to deposit the moneys from the University of Missouri's Seminary Fund to support agricultural programs at the University and general operations at Missouri University of Science and Technology.
  • Expands healthcare workforce recruitment by giving the Department of Health and Senior Services flexibility to approve more medical training programs for loan repayment

SB 49, sponsored by Senator Rusty Black and Representative Brad Banderman, authorizes school districts and charter schools to employ or accept chaplains as volunteers.

SB 63, sponsored by Senator Ben Brown and Representative Dirk Deaton, allows homeschool students to participate in school activities within their respective district, requires an intent to homeschool declaration, and exempts Family Paced Education from background clearance check requirements.

SB 68, sponsored by Senator Mike Henderson and Representative Bill Allen, creates, repeals, and modifies provisions relating to elementary and secondary education.

  • Directs all school districts and charter schools to implement a written policy, starting in the 2025-26 school year, banning the use or display of students’ electronic personal communication devices throughout the day – including during class, meals, breaks, and study hall.
  • Improves school safety measures including:
    • Requires cardiopulmonary resuscitation training.
    • Requires school districts and charter schools to adopt a comprehensive emergency operations plan covering school safety, emergency response, prevention, and recovery.
    • Directs districts to designate a primary and secondary school safety coordinator and defines the job duties, trainings, and expectations for this position.
    • Requires local educational agencies report all school safety incidents and credible threats to DESE. DESE will maintain a regularly updated database of these incidents and threats and share this data with DPS.
  • Expands the Teacher Recruitment and Retention Scholarship to cover educational costs related to teacher preparation.

SB 150, sponsored by Senator Jill Carter and Representative Ann Kelley, creates, repeals, and modifies provisions relating to workforce development initiatives.

  • Creates a temporary license that allows childcare providers currently licensed and in good standing to expand their current operations while the additional licensure requirements are being completed.
  • Raises the Access Missouri financial assistance award for students attending public two- and four-year institutions.
  • Expands the eligible use of the A+ Scholarship program to include career-technical education certificates offered outside traditional higher education settings, effective for the 2026-2027 school year.

SB 160, sponsored by Senator Brad Hudson and Representative Darin Chappell, establishes provisions relating to educational institutions.

  • Establishes the Missouri Creating a Respectful and Open World for Natural Hair (CROWN) Act to prevent discrimination based on a person’s hair texture or protective hairstyle if commonly associated with a particular race or origin in elementary and secondary educational institutions.
  • Prohibits higher education institutions from taking adverse action against a student group due to the group’s beliefs or of its leaders.
  • Establishes Danny’s Law, which provides limited immunity to individuals who participated in hazing when they contacted authorities, sought immediate medical attention, provided necessary information to authorities, and remained on scene to assist the victim until authorities arrived.
  • Authorizes Missouri State University to offer research PhDs degrees in disciplines other than engineering and Bachelors of Science in Veterinary Medicine.

SCR 3, sponsored by Senator Jill Carter and Representative Cathy Jo Loy, expands the mission of Missouri Southern State University from operating as a statewide institution of international or global education to also include health and life sciences and immersive learning experiences.

For more information on the legislation and additional provisions signed into law, visit house.mo.gov and senate.mo.gov. Photos from the bill signing will be uploaded to Governor Kehoe's Flickr page. Additional bill signings will continue to take place over the next several days. For more information on the bill signings, view Governor Kehoe's schedule.

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Governor Kehoe Signs Legislation Protecting Missouri's Most Vulnerable Citizens

JULY 9, 2025

 — This morning, Governor Mike Kehoe signed House Bills (HB) 121 and 737, and Senate Bill (SB) 43 into law, highlighting Missouri's commitment to protecting the state's most vulnerable citizens.

“Today's action on this legislation is about standing up for the most vulnerable Missourians; those who often times cannot advocate for themselves,” said Governor Kehoe. “Protecting these individuals is not just a priority, it's a responsibility we all share, and we appreciate the General Assembly for sending this legislation to my desk. We must provide safety, support, and dignity to those who need it most.”

HB 121, sponsored by Representative Jim Murphy and Senator Mary Elizabeth Coleman, establishes the "Safe Place for Newborns Fund" for installing newborn safety incubators.  

  • Extends Missouri's Safe Haven law and creates the "Safe Place for Newborns Fund," giving parents in crisis a secure and anonymous option to safely surrender their child.
  • Establishes the Zero-Cost Adoption Fund to support families during the adoption process with non-recurring expenses and post-adoption assistance.
  • Expands tax credit programs that support maternity homes and diaper banks.

HB 737, sponsored by Representative Melissa Schmidt and Senator Jamie Burger, modifies provisions relating to the protection of children.

  • Guarantees federal benefits are securely allocated to individual beneficiaries currently in the foster care system to help establish their future financial stability.
  • Strengthens legal options for families by establishing the “Child and Family Legal Representation Coordinating Commission,” to ensure families have uniform, high-quality legal representation.
  • Improves child and youth placement processes.

SB 43, sponsored by Senator Travis Fitzwater and Representative Wendy Hausman, modifies provisions relating to protecting vulnerable persons.

  • Increases the protections and rights of children and vulnerable persons in legal proceedings.
  • Strengthens criminal provisions and penalties to help combat sexual abuse and trafficking in Missouri.
  • Expands tax credits to encourage more donations to organizations that help support children and youth.

Governor Kehoe also signed Senator Ben Brown's and Representative Jim Murphy's SB 152, which bans foreign nationals from contributing donations to campaign committees for ballot measures, and Senator Rusty Black's and Representative Cameron Parker's SB 218, which modernizes court operations and enhances judicial efficiency, during an in-office signing ceremony.

For more information on the legislation and additional provisions signed into law, visit house.mo.gov and senate.mo.gov. Photos from the bill signing will be uploaded to Governor Kehoe's Flickr page. Additional bill signings will continue to take place over the next several days. For more information bill signings, view Governor Kehoe's schedule.

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Governor Kehoe Announces Additional Funding Available for Law Enforcement Recruits with Missouri Blue Scholarship

JULY 8, 2025

 — Building on his public safety priorities, Governor Mike Kehoe today announced the maximum benefit of the Missouri Blue Scholarship for law enforcement academy recruits has been increased from $5,000 to $6,000, made possible by a funding increase of $1 million in the Fiscal Year 2026 (FY26) budget. The scholarship program has awarded a total of $4.49 million to 995 law enforcement recruit scholarship recipients since its introduction in October 2022 through June 2025.

“The Missouri Blue Scholarship Program has made law enforcement training more accessible to Missourians interested in joining the profession and helped bolster the number of licensed peace officers in Missouri,” Governor Kehoe said. “We appreciate the General Assembly approving our administration’s recommended $1 million increase in the scholarship fund. This increased investment allows the Missouri Department of Public Safety to raise the maximum scholarship award and make the scholarship available to more recruits who want to join the ranks of law enforcement and serve their communities.”

The State of Missouri FY26 budget, which took effect July 1, included increased funding for the scholarship from $2 million to $3 million. In FY25, $1,917,942 was awarded for 420 recruits.

While some Missouri law enforcement agencies, including the Highway Patrol, St. Louis Metropolitan Police and others, have their own basic training academies and pay recruits, many Missouri agencies do not have the funding to pay a salary or the cost of an academy. These graduating non-sponsored recruits are essential to staffing many sheriffs’ offices, smaller police departments, and even some larger departments. The Missouri Blue Scholarship expands the applicant pool and makes it easier for more young officers to stay in law enforcement without the burden of loans to repay once hired. Law enforcement academy tuition can be as high as $11,725.

“Given the price of attending some of Missouri’s law enforcement academies and the shortage of officers around the state, raising the maximum scholarship amount to $6,000 is another way we can support recruitment efforts and will further allow DPS to provide scholarships to qualifying academy recruits this fiscal year,” Missouri Department of Public Safety Director Mark James said.

Prior to the introduction of the Missouri Blue Scholarship in October 2022, an average of 1,025 peace officers were licensed annually in Missouri from 2020 to 2022. In 2023, the year the scholarship was first available before recruits started academy training, 1,050 peace officers were licensed; and in 2024, 1,099 peace officers were licensed.

The impact of the Missouri Blue Scholarship is also evident in the number of scholarship recipients staffing Missouri law enforcement agencies. As of June 30, 2025, the Camden County Sheriff’s Office had 81 commissioned officers and 11 were Missouri Blue Scholarship recipients; the Fulton Police Department had 25 commissioned officers and 10 were Missouri Blue Scholarship recipients; the Henry County Sheriff’s Office had 29 commissioned officers and nine were Missouri Blue Scholarship recipients; and the University City Police Department had 62 commissioned officers and nine were Missouri Blue Scholarship recipients.

The Missouri Department of Public Safety administers the scholarship, and law enforcement academy recruits can apply at this link. The $6,000 maximum scholarship is possible because of the FY26 appropriation by the Missouri General Assembly. Future scholarship awards will be determined by appropriations going forward.

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Governor Kehoe Orders Flags to Fly at Half-Staff in Honor of St. Louis Fire Department Firefighter Lee Kraus

JULY 7, 2025

 — Today, in honor of St. Louis Fire Department Firefighter Lee M. Kraus, Governor Mike Kehoe ordered U.S. and Missouri flags be flown at half-staff at government buildings in the City of St. Louis, the Fire Fighters Memorial of Missouri in Kingdom City, and firehouses statewide on Wednesday, July 9, from sunrise to sunset.

“Lee Kraus committed his life to public service at age 22 and remained steadfast in that commitment for over three decades, no matter how dangerous the emergency or trying the circumstances,” Governor Kehoe said. “He began as an EMT and went on to serve 27 years as a firefighter—answering thousands of calls, from house fires to highway crashes. He will be remembered not only for his steadiness and professionalism with which he handled each call, but for the compassion he gave each person he served.”   

On July 1, Firefighter Kraus, 52, died in a hospital after suffering a medical emergency while on duty on June 29.

The flags will be held at half-staff on the day Firefighter Kraus is laid to rest. To view the Governor’s proclamation, click here.

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Governor Kehoe Signs Five Bills into Law

JULY 2, 2025

 — Today, Governor Mike Kehoe signed five pieces of legislation into law: Senate Bills (SB) 28 and 396, and House Bills (HB) 105, 169, and 974.

"Today, we were proud to sign five bills that will benefit businesses and local governments across our state," said Governor Kehoe. "Thank you to the men and women of the General Assembly for sending many pieces of quality legislation to my desk this session. We look forward to signing even more legislation that improves the lives of Missourians next week."

SB 28, sponsored by Senator Jason Bean and Representative Donnie Brown, modifies provisions relating to transportation.

  • Adds retired law enforcement and judicial members to the confidential motor vehicle and drivers licensing records statute.
  • Requires motor vehicle sales taxes to be paid before a temporary tag can be issued. This now includes transactions between individuals and through out-of-state dealers.
    • The effective date of this is delayed until the Missouri Department of Revenue's (DOR) Motor Vehicle and Driver License System is completed.
  • Modifies specialty license plate provisions, including creating a new United States Space Force military specialty license plate.
  • Places vehicle, boat, and powersports dealers on a level playing field in regards to the fees they are required to remit to DOR.

SB 396, sponsored by Senator Ben Brown and Representative Brad Banderman, authorizes the board of trustees of a consolidated public library district to change the dates of the fiscal year.

  • Allows the board of trustees of a consolidated library district to select a different fiscal year structure than the state fiscal year calendar.

HB 105, sponsored Representative Jeff Vernetti and Senator Mike Bernskoetter, authorizes the conveyance of certain state property.

  • Outlines the deed property language for the conveyance of the Lee C. Fine Memorial Airport from the Missouri Department of Natural Resources to the city of Osage Beach, giving Osage Beach more freedom and flexibility to make improvements without grant funding.
  • Conveys two tracts of land from the site of the former Missouri State Highway Patrol Troop A Headquarters located in Lee’s Summit. The land will be conveyed from the State of Missouri to the Missouri Highways and Transportation Commission for the purpose of a new intersection, allowing the outer roads and city streets to be received by Lee’s Summit once the new bridge and intersection is completed.
  • Outlines the deed property language for conveying a tract of land in Webster County from the State of Missouri to the Missouri Highways and Transportation Commission, allowing for improvements to increase road safety by reducing conflict points, decreasing congestion, and replacing aging infrastructure.

HB 169, sponsored by Representative Donnie Brown and Senator Jason Bean, modifies provisions relating to cotton trailers.

  • Redefines “cotton trailers,” increasing the allowed maximum speed to 70 MPH from 40 MPH.
  • Updates specific hauling requirements for cotton trailers to align with modern technological advancements.

HB 974, sponsored by Representative Jim Murphy and Senator Sandy Crawford, establishes provisions relating to insurance for certain uses of motor vehicles.

  • Implements the National Association of Insurance Commissioners (NAIC) model language related to cyber security standards on insurance companies, aimed at protecting consumer data.
  • Implements the National Council of Insurance Legislators model language related to peer-to-peer driving rental services.

For more information on the legislation and additional provisions signed into law, visit house.mo.gov and senate.mo.gov. Photos from the bill signing will be uploaded to Governor Kehoe's Flickr page.

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Governor Kehoe Provides Update on State of Missouri's Continued Disaster Response and Recovery Efforts

JULY 2, 2025

 — Today, Governor Mike Kehoe shared the following updates on the State of Missouri’s support for communities recovering from the severe weather and flooding that has affected much of the state in 2025.  

"Our state team members have done an outstanding job this year, working shoulder to shoulder with local counterparts to aid Missouri families and businesses recovering from an unprecedented string of damaging storms,” Governor Kehoe said. “These efforts—along with the work of our faith-based and volunteer disaster response partners, and the federal disaster support approved by President Trump—are making a tremendous difference as we move forward together as a state.”

On Monday, Governor Kehoe signed Executive Order 25-27 extending a State of Emergency in Missouri through August 31, 2025. The extension will help further assist with disaster recovery efforts, as additional flooding and severe storms occurred in Southwest Missouri over this past weekend. Governor Kehoe first declared a State of Emergency on March 14, 2025, through Executive Order 25-19 in preparation for severe weather. The State of Emergency declaration in Executive Order 25-19 was subsequently extended by Executive Order 25-22Executive Order 25-23, and now Executive Order 25-27.

Some recent highlights on the state's response include:

  • More than $22 million in Federal Emergency Management Agency (FEMA) and State Emergency Management Agency (SEMA) assistance has been provided to over 4,600 families in the City of St. Louis, St. Louis, and Scott counties. This funding follows President Trump’s June 9 approval of a federal Major Disaster Declaration for the May 16 tornado and severe storms that devastated parts of Missouri.
  • During the activation of the Missouri National Guard to the City of St. Louis, guard members supported debris management collection at four drop-off sites and hauled hundreds of dump truck loads to the landfill. This support enabled the city and its residents to remove the equivalent of well over 200 football fields piled one foot high with debris.
  • On June 14, Governor Kehoe signed Senate Bill 1 into law after the special session, allocating $100 million to the Department of Public Safety (DPS) for disaster relief to help the City of St. Louis recover from the May 16 tornado that damaged or destroyed thousands of homes.
  • More than $3.8 million in FEMA/SEMA assistance has been provided to over 750 households impacted by the March 14-15 storms and wildfires in Bollinger, Butler, Camden, Carter, Franklin, Howell, Iron, Jefferson, Oregon, Ozark, Perry, Phelps, Reynolds, Ripley, St. Louis, Wayne, Webster, and Wright counties. President Trump approved Governor Kehoe’s federal Major Disaster Request for this disaster on May 21.
  • Currently eight Disaster Recovery Centers (DRC) are open for residents impacted by the May 16 or March 14-15 severe storms to help with disaster assistance applications, answer questions, and upload required documents. Search Missouri locations at fema.gov/DRC. The fastest way to apply is at DisasterAssistance.gov or by calling the FEMA Helpline at 800-621-3362. If residents were impacted March 14-15, the deadline to apply for FEMA Individual Assistance is July 22. For those impacted on May 16, the deadline is August 11.

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Governor Kehoe Announces Over 200 Communities Earned Missouri Blue Shield Designation for Commitment to Effective Law Enforcement and Community Safety

JULY 1, 2025

 — Today, Governor Mike Kehoe announced that 201 Missouri counties, cities, and towns have received the Missouri Blue Shield designation in recognition of their dedication to enhancing public safety, strengthening support for law enforcement, and building sustainable public safety partnerships. The Blue Shield Program, as outlined in Executive Order 25-03, is part of the Governor’s Safer Missouri initiative announced on his first day in office.

Following the Governor's approval of Fiscal Year 2026 budget funding yesterday, the Blue Shield communities are now able to tap into a $10 million dollar fund for grants for law enforcement training, equipment, and technology.

“I’ve said from day one that improving public safety is the top priority of our administration and the response of communities, large and small, across our state shows that Missourians want to have safer streets and support law enforcement,” Governor Kehoe said. “Now, all 201 of the Blue Shield communities will be able to apply for funding through the Missouri Department of Public Safety to further bolster public safety through grants for training, equipment, and technology.”

A total of 60 counties, 137 cities and four towns were approved as Blue Shield communities after applying by June 1 to the Department of Public Safety. A map of Blue Shield communities and the full list of approved jurisdictions is available here.

The Missouri Department of Public Safety (DPS) is administering the Blue Shield Program and opened grant applications today, the beginning of State Fiscal Year 2026. Communities may spend grant funds for any combination of training, equipment, or technology for their law enforcement agencies to strengthen public safety. Eligible expenditures include ballistic vests, body-worn cameras, security and surveillance systems, gunshot detection technology, and crime analytics software. The $10 million will be split equally among approved Blue Shield applicants.

“We knew going into this that there was overwhelming support for law enforcement among Missourians and high interest in building stronger alliances between law enforcement and the communities they serve, but the response to the Blue Shield Program has been even stronger than we anticipated,” Missouri Department of Public Safety Director Mark James said. “We are looking forward to receiving funding proposals from the 201 communities and our DPS team will be processing grant applications quickly.”

Blue Shield counties, cities, and towns must maintain their commitments each year to retain the Blue Shield designation via annual reporting about their ongoing efforts to support public safety to DPS. There will be another opportunity for other communities to apply for the Blue Shield designation and take advantage of future grants in 2026.

Among the Blue Shield designation eligibility criteria were:

  • Passage of a resolution demonstrating a commitment to public safety, including to reduce violent crime within the jurisdiction;
  • Extraordinary investments in public safety funding;
  • Community policing initiatives or local partnerships to invest in and/or improve public safety;
  • Law enforcement officer recruitment and retention program;
  • Demonstrated effectiveness in reducing crime or innovative programs that attempt to reduce crime;
  • Participates in regional anti-crime task forces, or a commitment to be a willing partner with these in the future; and
  • Compliance with Missouri crime reporting and traffic stop data requirements and other related statutes.
     
  • Blue Shield Year One.png

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Governor Kehoe Takes Action on FY26 State Operating Budget Bills

JUNE 30, 2025

 — Delivering on his promise to present Missourians with a reasonable, conservative budget that continues to secure Missouri’s future, today Governor Mike Kehoe signed the Fiscal Year 2026 (FY26) state operating and capital improvement budget bills. Governor Kehoe’s action to deliver a $50.8 billion budget includes 208 vetoes, totaling nearly $300 million in general revenue, and 32 expenditure restrictions, totaling $211 million in general revenue.

The budget sent to the Governor's Office added 450 items and nearly $775 million in additional spending beyond the Governor’s original budget recommendation. This excessive spending requires decisive action, particularly when combined with reduced pandemic federal dollars, broad tax cuts that benefit Missourians, and the undeniable need for extraordinary emergency disaster relief.

"We appreciate the work of the General Assembly in getting this budget to my desk," said Governor Kehoe. "While we exercised veto authority to rein in unsustainable spending, we are proud to support funding for smart policies advancing our shared vision of a safer, stronger, and more prosperous Missouri. We believe this budget reflects our commitment to limited government, fiscal discipline, and a long-term vision to support public priorities."

Approved Budgetary Spending

Prioritizing Public Safety

In his inaugural State of the State Address, Governor Kehoe emphasized that securing Missouri’s future begins with public safety. The FY26 budget includes critical law enforcement and crime prevention tools, training, and resources:

  • $10 million in new funding to assist local communities who prioritize public safety with equipment and training needs through the Blue Shield Program.
  • $7 million investment for fentanyl testing in wastewater systems at schools.
  • $2 million in support for the Missouri sheriff’s retirement system.

For more public safety budget highlights, click here.

Emphasizing Economic Development

Missouri’s economy is driven by investing in initiatives that create jobs, enhance infrastructure, and provide critical support to families and businesses. By addressing needs such as rural roads, childcare access, and career-technical training, we foster innovation, strengthen communities, and ensure that Missouri remains a competitive and thriving state for all:

  • $91 million for rural road improvements.
  • $10 million to offer grant funding opportunities to support partnerships between employers, community partners, and the childcare industry to make more childcare slots available for Missouri families.
  • $11 million in new funding to address equipment, space, and operational needs of career and technical centers across the state.

For more economic development budget highlights, click here.        

Bolstering Agriculture

Missouri’s agriculture industry is the backbone of the state's economy, feeding and clothing not just Missourians, but the world. To ensure the continued growth and resilience of this vital sector, Governor Kehoe is committed to investing in critical infrastructure, modernizing facilities, and supporting animal health initiatives. The FY26 budget includes:

  • $55 million in bonding for Missouri State Fair facilities.
  • $800,000 in ongoing funding for Missouri FFA.
  • $330,871 to increase Missouri’s inspection and production capacity in the meat and poultry industry.

For more agriculture budget highlights, click here.

Strengthening Education

Governor Kehoe believes that funding our state’s education system ensures every student has the opportunity to achieve their full potential while preparing Missouri’s future workforce for success. The legislature approved the following education spending:

  • $376.6 million to support the state’s full reimbursement of transportation costs to school districts, including $15 million in new funding.
  • $50 million in general revenue funding to bolster the Empowerment Scholarship Account program.
  • $33.4 million to ensure all teachers are paid at least the statutory minimum.

For more education budget highlights, click here.

Budget Vetoes & Expenditure Restrictions

The Missouri FY26 state operating budget is approximately $50.8 billion, including $15.4 billion in general revenue. In the FY26 budget approved by the General Assembly, nearly $775 million in new general revenue spending was added above the Governor's budget recommendation, including 450 items that Governor Kehoe did not propose or went beyond his recommendation.

Additionally, the Office of Administration’s Division of Budget and Planning estimates a nearly $1 billon shortfall in general revenue starting in FY27. Contributing to this shortfall, ongoing general revenue spending authorized in the FY26 budget is projected to outpace ongoing revenues by over $1 billion and grow larger in future years. While Missouri currently has a general revenue fund balance to absorb some of this imbalance in the short term, the current trajectory of state-level spending grows this imbalance, exhausts any remaining surplus, and leads to the aforementioned $1 billion shortfall starting in FY27, if correction is not made.

There were also several budgetary and legislative decisions made during the 2025 Legislative Session and Extraordinary Session that were not considered in Governor Kehoe’s FY26 budget recommendation but compound the budgetary challenges the State is facing:

  • Additional funding for the K-12 Foundation Formula – In his budget recommendation, Governor Kehoe proposed a $200 million increase for public education funding, representing the largest increase ever seen, and nearly 4 times larger than the average annual increase. The General Assembly chose to spend an additional $297 million on top of Governor Kehoe’s historic recommendation.
  • Tax Cuts – The General Assembly approved, and Governor Kehoe has committed to signing, pro-growth legislation eliminating the income tax on capital gains, which is expected to reduce state revenues by approximately $400 million annually. Governor Kehoe supports tax cuts and is proud to return Missourians’ hard-earned dollars back to them, but the reduction in state revenues must be accounted for in current and future budget decisions.
  • Disaster Relief – Unforeseen severe storms, tornadoes, and flooding have caused unprecedented damage to communities across the state. Governor Kehoe supported, and the General Assembly approved, over $210 million in extraordinary emergency disaster relief for Missourians. While the need is undeniable, the cost must still be reconciled in the budgetary process.

Governor Kehoe issued 208 vetoes, totaling nearly $300 million in general revenue. To view the complete list of budget vetoes, click here.

"As Governor, I have a constitutional obligation to balance the budget, and our administration will always follow the Constitution and rule of law," said Governor Kehoe. "We support funding for education, and have proudly championed tax cuts for hard-working Missouri families and the desperately needed resources for our fellow Missourians affected by natural disasters this spring. However, these initiatives do not come without budgetary consequences."

In addition to his vetoes in the FY26 budget, Governor Kehoe today also restricted spending on 32 budget items, totaling $211 million in general revenue, from the FY26 state operating budget. To view the complete list of expenditure restrictions, click here.

"We do not take this action lightly, but state government cannot spend beyond our means," said Governor Kehoe. "With current circumstances, the fiscally responsible and conservative thing to do is reduce spending and protect Missouri’s nationally recognized financial strength in preparation for difficult budget years ahead. These restrictions are not an indication of project worthiness – we understand their value, and that’s why we chose not to veto them. Rather, these withholds allow us to direct Missourians’ hard-earned tax dollars toward the most critical programs and projects that support Missouri families."

Governor Kehoe is taking these fiscally conservative steps now in an effort to help ease the burden of broader budget cuts required to balance the budget, a constitutional responsibility of the Missouri Governor, in FY27 and future years. Governor Kehoe and his Office of Administration's Division of Budget and Planning budget team, working alongside the General Assembly, will continue to assess Missouri’s financial outlook and evaluate the likely need for additional budget restrictions moving forward.

"We want to assure Missourians that this action is not indicative of a larger economic problem, as our economy remains strong and resilient," said Governor Kehoe. "Just as the Trump administration is reining in federal spending, the State of Missouri must do the same. While we do not have an economic problem in Missouri, we do have a spending problem in state government. By working with the General Assembly, our administration commits to the people of Missouri to get spending under control and support Missouri’s economic growth so that our fiscal outlook improves and these restrictions may be released in future years."

To view the FY26 state operating budget bills, click here.

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