Legislative Update - Session Ends!
Legislative Update
The First Regular Session of the 103rd General Assembly has concluded earlier than anticipated.
As noted in my previous report, the Complex Care Assistant new decision item under the Private Duty Nursing Program was the only home care initiative to receive funding this session. Initially absent from both the Governor’s and the House’s proposed budgets, it was included solely in the Senate version. Fortunately, this critical difference was addressed during the conference committee, and the $11 million in funding remained intact in the final budget passed by the legislature.
We will continue to work closely with the Department of Health and Senior Services and will share further information about the Complex Care Assistant program as it becomes available.
Also, as my notice sent earlier this morning addressed, the repeal of the sick leave provision from Proposition A was included in this session’s developments. We will continue to provide additional information as it becomes available or in the event of any fallout from this action.
Please see below for a recap from our lobbying firm, which includes further details on the budget and legislative activities from this week’s session.
Thanks,
Carol Hudspeth
Executive Director
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Last Week’s Budget Update
It was a lengthy and, at times, uncertain process, but the 13 FY2026 operating budget bills were Truly Agreed to and Finally Passed roughly 3 hours before the 6 pm Friday, May 9th constitutional deadline. The bills contain nearly $53.5 billion in spending, which includes $16.2 billion in general revenue and required the usage of surplus general revenue. Overall, the budget calls for spending about $20 million less than recommended by Governor Mike Kehoe.
Wednesday the conferees worked steadily to negotiate the differences between the two chambers late into the evening before adjourning the hearing before completing HBs 10, 11, 12, 13, and 17. The conferees were set to meet Thursday morning at 10:30 am to complete their negotiations but kept pushing the deadline back until a complete communication breakdown occurred which left many wondering if the budget would be completed by the constitutional deadline. However, by mid-afternoon, the conferees met to complete the negotiations on the remaining bills.
Some of the larger negotiated items included:
An additional $300 million to fully fund the foundation formula;
An additional $107 million for childcare subsidies;
Allocating $93 million to pay off a judgement against the state for damages claimed by a vendor who worked on the state’s Medicaid enrollment system;
Allocate nearly $750 million for more than 300 earmarked projects;
Allocated $50 million for the MO Scholars program;
Allocated a 3% increase for all state colleges and universities;
Removed language directing the Missouri Lottery to begin a three-year pilot program for lottery courier services;
Agreed to county jail prisoner per diem rates at $24.95 per prisoner per day; and,
Agreed to the cuts in full-time employees, along with the corresponding funding, to both the Lieutenant Governor and the Secretary of State’s Offices.
Friday saw the Senate complete the work on the remaining $1.2 billion capital improvement bills (HBs 18, 19, and 20) where few substantive changes were made from the House recommendations. Before the House began to debate the Senate changes, the Senate chamber adjourned for the week. The House did pass HB 18 which contains funding for statewide maintenance projects and HB 20 which contains the reappropriation of ARPA funding. Only when the House itself adjourned without taking up HB 19, which contained all new capital improvement projects, it was clear that the bill would die. The Constitution forbids lawmakers from considering spending bills in the final week of their regular session.
This Week’s Activities in the House and Senate - ADJOURNED
The 2025 Missouri legislative session officially came to an end shortly after 2:00 pm today, May 15. With the election of Governor Mike Kehoe and the influx of new Representatives and Senators, many were hopeful for a productive session and wanted to focus on priority issues like school choice, IP reform and removal of the capital gains tax. Legislators even filed a new record amount of bills with a total of 2,684 bills to be considered this session. However, despite the countless hours spent in committee hearings and floor debate only 66 bills were Truly Agreed to and sent to Governor Kehoe and, of those, 16 were appropriation bills.
There is a natural tendency for priorities to change throughout the session and some issues arise that force the Legislature to react quickly. With only four days left in regular session, Governor Kehoe met with members of the House and Senate to impress on them the importance of passing a plan to cover up to half of the cost of a new stadium for the Royals and a refurbished Arrowhead Stadium for the Chiefs. The proposal passed on a 108-40 vote in the Missouri House despite never having been introduced as a formal bill or ever having a public hearing. Instead, it was added as an amendment to a Senate bill (SB 80) pertaining to student-athletes. Senators complained that they were being asked to vote on a stadium funding plan that could cost hundreds of millions of dollars with only days left in the session and with no advanced notice. Many voiced their resentment over the fact that it was approved by the House just days after it refused to allow a vote on a $500 million spending bill (HB19) that would have funded projects for health care, education, and law enforcement across the state. Ultimately, the bill was laid over for possible debate later in the week.
However, in a complete reversal of what had been a relatively productive session in the Senate, the use of two procedural motions, known as the PQ, brought debate and functionality to an end early Wednesday evening. Negotiations on the repeal of Amendment 3 (abortion), Proposition A (paid sick leave), and economic incentives for the Royals and Chiefs completely broke down, with Democrats blaming the Republicans for the breakdown on the Senate floor. Quickly after this, the privileged motion was made to “move the previous question” and halted the debate on the repeal of Amendment 3. Immediately after the repeal was passed, the modifications to Proposition A also received a privileged motion to “move the previous question” and was passed with no further debate. Thus, no more business was conducted in the Senate for the last two days and they adjourned.
In response, House leadership sent out a notification to members alerting them that Thursday, May 15 would be the last day of session. A full day before the constitutional deadline of 6:00 pm on Friday, May 16. The House spent the day stripping House Committee Substitutes and giving final approval to the underlying Senate bills, in between members thanking staff for their efforts for the year.
Governor Kehoe’s administration will spend the next eight weeks reviewing the Truly Agreed To & Finally Passed (TAFP) bills and issuing his signature or vetoes. Bills signed by the Governor will become law on August 28, unless they were passed with an emergency clause, in that event, they will become effective immediately upon signature. Appropriation decisions must be made by June 30 and policy decisions must be made by July 14. The FY 26 budget fiscal year starts July 1. We will continue to monitor the Governor's actions and will provide updates, as needed, throughout the interim.
