Missouri Governor Vetoes $2B From State Budget

Missouri Governor Mike Kehoe signed a $50.8 billion budget for the 2026 fiscal year, fully funding the K-12 public education foundation formula and allocating $375 million for school transportation and $50 million for Empowerment Scholarship Accounts. Kehoe vetoed or withheld over $2 billion across more than 200 line items, including over $1 billion for a Federal Road Fund, $2.5 million for a St. Louis literacy program, and $1.6 million for teacher scholarship programs. Funding for CASA, which aids foster children, was also reduced. The governor cited a need to prioritize education, tax cuts, and disaster resources, and indicated some withheld funds may be released if the state's fiscal outlook improves. Additional signed legislation includes changes to transportation regulations, property conveyances, and local government fiscal operations. Kehoe emphasized fiscal discipline and advancing public priorities while cutting unsustainable spending.