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Gov. Mike Kehoe Signs 2027 Fiscal Year Budget, Withholds $441M in Spending

Kehoe cut spending on new projects and withheld funds for several local items, lowering the signed budget to about $49.8 billion, officials said.

  • Missouri Gov. Mike Kehoe signed the 2027 fiscal year budget yesterday, taking effect today at roughly $49.8 billion after he reduced total spending through vetoes and withholdings.
  • Lawmakers sent Kehoe a $50.7 billion budget plan before the May deadline, but he cut nearly $500 million, describing the reductions as 'rightsizing government' for fiscal sustainability.
  • Kehoe issued vetoes on more than $52 million in spending and withheld more than $441 million in other line items, targeting new projects and improper funding sources.
  • Withheld funds include $4 million for a police training facility in Fallon, $3 million for a Louis County Police communications building, and $4 million for Jefferson Barracks, though officials said these could be restored later.
  • Kehoe stated, "State government doesn't have a revenue problem, we have a spending problem," emphasizing that fiscal discipline will build a more resilient Missouri.
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The Business Journals broke the news in United States on Tuesday, June 30, 2026.
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