Governor Mike Kehoe has signed Missouri’s Fiscal Year 2026 (FY26) state operating and capital improvement budget, totaling $50.8 billion, while issuing 208 line-item vetoes and 32 spending restrictions to address what he called "unsustainable spending." The vetoes total nearly $300 million in general revenue, with an additional $211 million withheld.

The budget passed by the General Assembly included 450 new items and nearly $775 million in spending beyond Kehoe’s original proposal. Citing reduced federal pandemic aid, major tax cuts, and emergency disaster relief funding, Kehoe said the state must act now to avoid a projected $1 billion revenue shortfall by FY27.

“This budget reflects our commitment to fiscal discipline, limited government, and long-term investment in Missouri’s priorities,” said Kehoe. “We cannot spend beyond our means.”

Key Spending Highlights:

Public Safety: $10M for the Blue Shield Program, $7M for fentanyl testing in schools, and $2M for sheriff retirement support.
Economic Development: $91M for rural roads, $10M for childcare expansion grants, and $11M for career and technical centers.
Agriculture: $55M for Missouri State Fair facilities, $800K for Missouri FFA, and $330K to boost meat and poultry inspection.
Education: $376M to fully fund school transportation, $50M for scholarship accounts, and $33M to raise teacher pay to the statutory minimum.

Kehoe emphasized the importance of balancing the budget in light of other recent legislative decisions, including:

An additional $297 million in K-12 funding beyond his historic $200 million recommendation.
$400 million in anticipated annual revenue loss due to elimination of capital gains taxes.
Over $210 million in emergency disaster relief funds for recent storm damage.

“These cuts are not a reflection of a weak economy, but of a government spending problem,” said Kehoe. “By acting now, we aim to avoid more severe budget cuts in the future.”

Kehoe’s administration will continue monitoring the state’s financial outlook, with the possibility of further budget restrictions if necessary.

For a full list of vetoed and restricted budget items, visit budget.mo.gov.

KPGZ News – Brian Watts contributed to this story.

On Monday, January 13, Mike Kehoe was sworn in as the 58th Governor of Missouri, at a ceremony at the Missouri State Capitol, marking a new chapter of leadership for the state.

Building on his distinguished record of public service, successful business career, and an unwavering commitment to Missouri’s communities, Governor Kehoe vowed to honor the state’s rich legacy while forging an ambitious path toward a brighter future. With a focus on public safety, education, economic development, and agriculture, he outlined his administration’s goal to tackle the most pressing challenges and seize the opportunities for growth.

“My life—growing up in the inner city, moving to a small town, building businesses, operating a ranch—these experiences have taught me one thing: Missourian’s are more alike than we are different,” said Governor Kehoe. "It will take each of us, working together, to secure an even safer, stronger, and more prosperous Missouri.”

For his first official act in office, Governor Mike Kehoe took decisive action to prioritize public safety by signing six executive orders and officially launching his comprehensive Safer Missouri public safety initiative.

Developed in close collaboration with law enforcement partners and representatives across all levels of law enforcement within the state, the Safer Missouri plan sets the stage for immediate and impactful action. The measures introduced today represent the first steps in a comprehensive, multi-phase plan that focuses on reducing crime, supporting law enforcement, and fostering community partnerships to achieve lasting change.

Further steps requiring General Assembly action are slated for implementation in the coming weeks, with additional details to be unveiled during Governor Kehoe’s 2025 State of the State address.

"By standing with the brave officers who protect us every day and implementing strategic, forward-thinking measures, we are working to make Missouri a safer place to live, work and raise a family," said Governor Kehoe. "In the coming weeks, months, and years, my administration will be relentless in our pursuit to make Missouri a place where it’s easier to be a cop than a criminal."

Other Executive Orders have been posted HERE.

KPGZ News – Brian Watts contributed to this story.