Missouri Braces for High-Stakes Legal Battle, Economic Transformation, and Tax Overhaul in 2026
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According to ABC News, China has filed suit against Missouri after the state’s attorney general moved to collect on a roughly 25 billion dollar judgment over China’s handling of COVID-19, escalating a years-long legal and diplomatic dispute that could drag on in federal courts.[ABC News] St. Louis Public Radio reports that state Sen. Lincoln Hough is warning the Missouri Senate has been “permanently damaged” by recent partisan battles, including GOP moves to cut off filibusters on abortion and ballot initiative measures, raising questions about the chamber’s tradition of open debate ahead of the 2026 session.[St. Louis Public Radio]
On the policy front, Gov. Mike Kehoe is previewing an aggressive 2026 legislative agenda centered on public safety, economic development, and a dramatic proposal to eliminate the state income tax, saying on Missourinet affiliate KFEQ that his office is working on a “Safer Missouri 2.0” package and promising any tax overhaul would avoid the budget problems Kansas faced with its own cuts.[Missourinet] LegiScan data show a flurry of 2025 laws now taking effect, including measures on workforce development, K–12 education, chaplains in schools, water preservation, and public safety recruitment and retention, as well as major appropriations bills funding state operations.[LegiScan]
Economically, Missouri is leaning into entrepreneurship. Startland News reports the state has released more than 33 million dollars in federal State Small Business Credit Initiative funds to the Missouri Technology Corporation and lender Justine Petersen, money expected to leverage far larger amounts of private capital for startups and small firms over the next two years.[Startland News] The Department of Economic Development says Beckwood Press is expanding in Fenton with help from the Missouri Works program, adding manufacturing capacity and at least 10 new jobs in the St. Louis region.[Missouri Department of Economic Development] The state’s own economists note that Missouri’s Purchasing Managers Index recently surged to 62.7, a strong signal of manufacturing expansion.[Missouri Economic Research and Information Center]
In communities, KCUR reports Kansas City Public Schools are building their first new facility in three decades, a 68 million dollar Dr. Martin Luther King Jr. Elementary and King Empowerment Center funded by a voter-approved 474 million dollar bond and a separate 100 million dollar financing package, aimed at modern classrooms and wraparound family services.[KCUR] The University of Missouri–Kansas City is celebrating a new School of Medicine building in St. Joseph, which campus officials say will bolster rural health training in northwest Missouri.[University of Missouri–Kansas City] The Rockwood School District outside St. Louis projects thousands in annual savings after HVAC upgrades at three elementary schools, supported by Ameren Missouri incentives and earlier voter-backed funding.[Rockwood School District] And the Missouri Department of Transportation is moving ahead with a 581 million dollar Improve I‑70 design‑build project between Kingdom City and Warrenton to widen and modernize a busy 44‑mile stretch of interstate.[Missouri Department of Transportation]
No major, statewide extreme weather disasters have been reported in recent days, though winter storms and cold snaps remain a concern as Missourians head deeper into the season.
Looking Ahead, listeners should watch for the opening of the 2026 legislative session and the debate over eliminating the income tax, further legal twists in the China lawsuit and congressional redistricting fights, and the rollout of federal-backed small business funding and big infrastructure projects that could shape Missouri’s economy and communities for years.
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