As Missouri’s congressional delegation returns to the office in January, they have specially prepared bills ready for debate. First, the Governor needed to speak. On Tuesday, January 13, 2026, Governor Kehoe gave his state of the state address. He spoke about the budget and his priorities as governor in 2027.
Budget
The Governor’s address centered on delivering a responsible, conservative budget recommendation. As state finances normalize following the unprecedented influx of federal funds and elevated general revenue spending, the Governor’s budget aligns ongoing spending with ongoing revenues to return state finances to a sustainable, pre-pandemic framework. Just before the pandemic, Missouri’s congressional delegation was putting in place large rebates for Missourians. Governor Kehoe’s recommendation reduces more than $600 million from the general revenue core operating budget. These reductions prioritize fiscal discipline while continuing to meet mandatory and high-priority obligations, including Medicaid matching requirements, child care subsidies, and disaster relief, without cutting core funding for higher education or the K-12 foundation formula.
Eliminate Income Tax
While emphasizing smaller government and fiscal discipline, Governor Kehoe highlighted his support for modernizing Missouri’s tax code by eliminating Missouri’s individual income tax through a responsible, sustainable plan.
The first step in this plan is placing the measure before Missourians. Governor Kehoe called on the General Assembly to pass a joint resolution to place a plan for the phased elimination of the individual income tax on the ballot this year. Voter approval would allow legislators to take action on Governor Kehoe’s plan next legislative session.
Governor Kehoe previewed the types of modern services that are not currently taxed and could generate new revenue, as well as the safeguards in his plan to ensure fiscal responsibility and protect against economic downturns, including triggering reductions in the income tax rate.
Governor Kehoe said,
Eliminating the income tax is not about runaway sales taxes, and I will never support extending sales taxes on agriculture, healthcare, or real estate [1]A FOUNDATION FOR GROWTH: Governor Kehoe Delivers 2026 State of the State Address |/ref].
Priorities
Kehoe prioritized four items in his first year of service that he wants to prioritize again: public safety, economic development, agriculture, and education.
Summary
The Governor’s address also featured several special guests, highlighting Missouri’s economic development tools, public safety initiatives, the next generation of agriculture, access to educational opportunities, and the brave heroes and first responders who answered the call when Missouri was tested.
