Budget battles and education funding: Missouri's fiscal 2026 proposal scrutinized

Five weeks into the 2025 legislative session, the Missouri House of Representatives has passed its first set of bills, focusing on key reforms to improve business conditions, protect individual freedoms, and enhance public services across the state.

Among the legislation passed, HB 737 & 486 ensures foster children retain their rightful benefits and introduces important child welfare reforms. HB 594 & 508 seeks to eliminate the state income tax on capital gains, aiming to boost economic growth. HB 595 & 343 limits local government regulations on landlords, preserving property rights.

Meanwhile, HB 75, the ‘Missouri Religious Freedom Protection Act,’ reinforces protections for religious gatherings, preventing undue government interference. With these measures now heading to the Senate, lawmakers continue to push forward on critical issues affecting Missourians statewide.

Budget Committee Weighs Educational Needs of the State

This week, the House Budget Committee received a presentation from the Department of Elementary and Secondary Education to discuss the department’s budget requests and funding.

The Governor’s fiscal 2026 budget proposal allocates $4 billion to the foundation formula, the state’s primary education funding program, an increase from $3.8 billion this year. While this aligns with legislative commitments, it falls short of the $500 million requested by the Department of Elementary and Secondary Education. Notably, the proposal excludes the additional $300 million needed to meet the state’s “adequacy target” set by the Missouri School Improvement Program. Governor Kehoe justified withholding these funds, citing his intention to overhaul the foundation formula. The budget also designates $50 million to expand a scholarship program for private schools—funding not mandated by last year’s education bill. This program, which aids families earning up to 300% of the free-and-reduced-lunch eligibility threshold, was originally intended to rely on donations and tax credits. Additional education funding includes $33.4 million to raise base teacher salaries, $16.8 million for higher education support, and $15 million to maintain full funding for public school transportation.

Seeking an End to Call Spoofing

Legislation aimed at curbing unwanted calls from unknown numbers is making its way through the Missouri legislature. The proposed bill, HB 564, known as the Caller ID Anti-Spoofing Act, seeks to penalize individuals who engage in caller ID spoofing. The bill also includes provisions to add business subscribers to the No-Call List and removes the need for individuals to renew their objection to receiving telephone solicitations. Under the proposed law, the first offense of caller ID spoofing would be classified as a class A misdemeanor, while subsequent offenses would escalate to a class E felony. Victims of spoofed calls would have the right to seek actual and punitive damages of up to $5,000 per call, and they could pursue legal action as a class. Additionally, the Missouri Attorney General would have the authority to initiate or intervene in legal proceedings on behalf of call recipients. The sponsor of the bill has been working with AT&T in an effort to develop methods for identifying those responsible for placing spoofed calls. While presenting the bill before the House Committee on Utilities, the sponsor likened the challenge to identifying a driver who runs a red light, emphasizing the difficulty of pinpointing the actual perpetrator rather than just the owner of the number used. The bill is designed to directly target offenders who use caller ID spoofing to deceive or defraud individuals while ensuring that innocent parties are not unfairly implicated. The legislation is currently under review by a House committee, which could soon vote on the measure. If passed, the bill would strengthen protections against phone scams and hold offenders accountable