Lawmakers begin second half of the 2026 legislative session

State budget and taxes set to dominate debate in the State Capitol

The members of the Missouri General Assembly returned to Jefferson City on Monday, March 23, for the start of the second half of the legislative session. During the first half of session, lawmakers sent three bills to the governor's desk for his consideration. These include a supplemental spending bill providing funds for the remainder of the 2026 fiscal year; a criminal justice reform measure; and legislation removing legal barriers for pregnant women pursuing a divorce. One of these measures, the supplemental spending bill, has already been signed into law by the governor.

As lawmakers begin the second half of the session, legislative leadership in the Missouri Senate point to tax reform as being one of their top priorities.

"Our caucus remains united around a clear set of priorities, and we are going to see them through — chief among them is tax relief for Missouri families," said Sen. Cindy O'Laughlin, president pro tem of the Missouri Senate. "Missourians work hard for their money, and we believe they should keep as much of it as they can. They can make decisions on how to spend it more wisely than we can."

Prior to the legislative spring break, members of the Missouri House of Representatives put their stamp of approval on a proposed change to the Missouri Constitution designed to begin the process of eliminating the state's income tax. House Joint Resolution 173 asks voters if they want the state to go down the path of replacing the income tax with an expanded sales tax base. If approved by voters, the resolution gives the General Assembly three years to rewrite the state's tax code to generate the funding needed to replace the income tax.

The Missouri House of Representatives approved the income tax measure by a 98-54 vote with four Republicans voting against the tax measure. If approved by the Missouri Senate, the measure must also receive voter approval at the ballot box before the General Assembly can begin the process of rewriting the state's tax laws.

Additionally, lawmakers are turning their attention to meeting their lone constitutional-required duty: passing a balanced budget. In previous years, lawmakers have passed record-setting budgets with the assistance of federal funding – a majority of which has been spent.

"The budget environment that we're experiencing now going forward is much different than the environment that we've been under for the past five years," said Rep. Jon Patterson, speaker of the Missouri House of Representatives. "We've only known surpluses and now our chairman is tasked with finding areas where we can have savings."

During his State of the State Address in January, the governor presented his proposed spending plan for the state's Fiscal Year 2027 operating budget, totaling more than $53 billion to meet the state's needs. The bills that make up the state's operating budget start in the House and finish in the Senate. Lawmakers are required by the state constitution to have all work on the state budget completed by Friday, May 8.

From an energy perspective, lawmakers have introduced more than 75 measures affecting electric and gas utilities. Several of these measures involve solar generation facilities and attempt to place restrictions on where they locate, how they are taxed and more. In addition, legislators have sponsored several measures to change the state's Renewable Energy Standard (RES). Passed by voters at the ballot box in 2008, the RES mandates utilities generate 15% of their electricity from renewable sources. Several of the measures being considered by lawmakers attempt to add nuclear generation and battery energy storage systems to the list of resources included in the standard, while also lowering the RES to 7.5%.

"As a company, we look forward to working with lawmakers to find ways we can continue to power the quality of life for our customers," said Rob Dixon, vice president of Regulatory and Legislative Affairs for Ameren Missouri. "A balanced mix of energy generation, including nuclear, natural gas, renewables and others is what provides our customers with reliable energy at affordable prices."