On January 28, 2025, Missouri Governor Mike Kehoe delivered his State of the State address and presented his budget priorities. Taken together, Governor Kehoe has outlined his vision for securing Missouri’s future. This article will provide a comprehensive breakdown of the key initiatives Governor Kehoe is proposing. In the coming days, ACT4MO.org will offer an analysis of these proposals.
Public Safety
Governor Kehoe launched the “Safer Missouri” initiative as his top priority, implementing immediate actions through six executive orders.
Executive Order 25-02 – Operation Relentless Pursuit
Establishes a regional anti-crime initiative focusing on intelligence-led policing and cross-jurisdictional collaboration to apprehend dangerous fugitives. The order includes:
- Full-time MSHP Division of Drug and Crime Control investigators in each of the nine troop regions
- Funding for new deputy sheriffs in each MSHP troop dedicated to task force operations
Executive Order 25-03 – Blue Shield Program
Creates a recognition program for local governments demonstrating dedication to effective law enforcement and community safety. The program:
- Highlights initiatives that enhance public safety
- Strengthens support for law enforcement
- Enables qualifying agencies to access specific state grant opportunities
Executive Order 25-04 – Immigration Enforcement
Establishes a 287(g) designation (a written agreement between the Department of Homeland Security (DHS) and a state or local law enforcement agency) with U.S. Immigration and Customs Enforcement (ICE). The order:
- Allows state and local law enforcement to assist in enforcing immigration laws
- Requires specific MSHP troopers to undergo immigration enforcement training
- Focuses on preventing illegal immigration, apprehending criminal offenders, and interdicting drug trafficking
Executive Order 25-05 – Immigration Status Data Collection
Directs the Department of Public Safety and Missouri State Highway Patrol to:
- Include immigration status within the statewide uniform crime reporting system
- Collect immigration status data for individuals charged with crimes in Missouri
- Integrate this information into the existing crime data reporting infrastructure
Executive Order 25-06 – MSHP Pay Grid Adjustment
Modifies the Missouri State Highway Patrol’s salary schedule by:
- Reducing the time required to reach the top salary tier from 15 years to 12 years of service
- Aims to improve retention and recruitment of law enforcement personnel
Executive Order 25-07 – Parole Board Rule Refinements
Directs the Department of Corrections and Parole to:
- Assemble a working group of stakeholders to assess existing parole rules
- Review eligibility criteria, hearing procedures, and conditions for paroled offenders
- Present amended rules to the governor’s office by October 1, 2025
- Update current rules that haven’t been amended since 2017
See the full text of these Executive orders here!
Key investments include $12.8 million for a new crime lab in Cape Girardeau, $10 million for the Blue Shield Program, which supports police training and equipment, and $4 million for fentanyl testing in school wastewater systems[1]. The administration also pledged $2.5 million to support the Missouri Sheriffs’ Retirement System and $25 million for victims of crime services[1].
| Public Safety | |
| New Crime Lab in Highway Patrol Troop E | $ 12,800,000 |
| Grants to Blue Shield Police Departments for Training and Equipment | $ 10,000,000 |
| Fentanyl Testing of School Wastewater | $ 4,000,000 |
| Support for the Missouri Sheriffs’ Retirement System | $ 2,500,000 |
| Support for Victims of Crime | $ 25,000,000 |
| Scholarships for Law Enforcement Academy | $ 1,000,000 |
| Operation Relentless Pursuit | $ 1,250,000 |
| Re-Entry 2030 Initiative | $ 500,000 |
| Total for Public Safety | $ 57,050,000 |
Economic Development
Governor Mike Kehoe outlined a comprehensive economic development vision for Missouri during his 2025 State of the State address, emphasizing tax reduction, business growth, and infrastructure investment.
Tax Reform and Business Climate
The centerpiece of Kehoe’s economic agenda is an ambitious plan to eliminate Missouri’s individual income tax. While acknowledging this won’t happen immediately, he has directed the Missouri Department of Revenue to develop a sustainable and comprehensive plan for the tax’s eventual elimination. This move aims to help families keep more of their earnings while making Missouri more competitive for business investment.
Infrastructure Investment
Understanding the link between infrastructure and economic growth, Kehoe’s budget includes several key investments:
- Reappropriation of $100 million for rural road improvements
- Support for the Deal Closing Fund, sponsored by Senator Bernskoetter and Representative Knight
- $40.5 million allocation for the 2026 FIFA World Cup in Kansas City, focusing on security, transportation, and tourism promotion
Workforce Development
The governor announced several initiatives he claims will strengthen Missouri’s workforce:
- $15 million in new funding for career and technical education centers’ equipment and space needs
- $5 million annual increase for operational support of technical centers
- $1 million expansion of career counseling services in high schools
Childcare Solutions
Governor Kehoe said childcare access is crucial for workforce participation. Kehoe proposed the following to address it:
- $10 million in grant funding for partnerships between employers, community partners, and childcare providers
- Executive Order for streamlining childcare regulations
- Implementation of timely payments for childcare providers beginning in fiscal year 2026
Regulatory Reform
Kehoe emphasized the need to reduce bureaucratic barriers to business growth, promising substantial regulatory cuts while maintaining necessary oversight. He specifically called for passage of tort reform legislation, which he said is needed to prevent frivolous lawsuits from impeding economic growth.
| Economic Development | |
| Child Care for Low Income Families | $ 161,500,000 |
| Improvements to Rural Roads | $ 60,000,000 |
| FIFA World Cup | $ 40,500,000 |
| Career Centers | $ 20,000,000 |
| Child Care Innovation Grants | $ 10,000,000 |
| Postsecondary Career Advising | $ 1,000,000 |
| Total Economic Development | $ 293,000,000 |
Agriculture
During his first State of the State address, Governor Mike Kehoe emphasized agriculture as a critical component of Missouri’s economic success. He highlighted several key initiatives to support the state’s $93.7 billion agricultural industry.
Infrastructure Investment
The governor announced a significant investment in the Missouri State Fair facilities, proposing $55 million in new bonding to support the construction of:
- A 40,000-square-foot covered multi-use livestock barn
- An 80,000-square-foot stalling barn for equine and other livestock
Governor Kehoe stated that these facilities are expected to be self-sustaining, with bonds to be repaid through revenues generated from national and regional events at the fairgrounds.
Support for Future Farmers
At Senator Black’s urging, Kehoe allocated $800,000 in permanent funding to the Missouri FFA. He introduced Ms. Adeline Thessen, whom he had as one of his invited guests. Ms. Adeline Thessen is a fifth-generation farmer, and Kehoe used her story as support for this proposal.
Leadership Continuity
Kehoe announced he has retained Chris Chinn as Director of the Missouri Department of Agriculture. Chinn has served since 2017. Governor Kehoe said Director Chinn will continue leading efforts to promote and protect the state’s leading economic driver.
Regulatory Approach
The governor emphasized his commitment to reducing government interference in agriculture, stating that Missouri must “get government out of the way and let farmers and ranchers do what they do best: work hard and continue to produce results.” This approach aligns with his broader economic strategy of reducing regulations and supporting business growth.
Value-Added Agriculture
Kehoe’s administration plans to expand Missouri’s meat and poultry inspection and production capacity to minimize delays for producers. Governor Kehoe claims this initiative aims to support value-added practices and create additional opportunities for growth in the agricultural sector.
The governor stated that his agricultural agenda reflects his personal connection to farming. Both he and First Lady Claudia Kehoe are first-generation farmers, giving them a firsthand understanding of the industry’s challenges and opportunities.
| Agriculture | |
| Bonding for State Fair Facilities | $ 55,000,000 |
| Missouri Meat and Poultry Inspection Program Team Expansion | $ 330,871 |
| Animal Health Disease Control Specialist | $ 105,822 |
| Total for Agriculture | $ 55,436,693 |
Education
In his first State of the State address, Governor Kehoe outlined his education agenda focused on funding reforms, school choice, and career preparation initiatives.
K-12 Education Funding
Governor Kehoe proposed a $200 million increase for the Foundation Formula, marking the largest increase since its creation. However, his budget notably underfunds the formula by approximately $300 million, as he believes the current system needs modernization.
He stated:
“The Foundation Formula in its current form has gotten out of control. With funding requirements this body has implemented as well as changing educational needs across the state, we no longer feel the formula, as currently written, appropriately allocates funding for public education.”
School Transportation and Teacher Support
The budget allocates $370 million to fund school transportation needs fully and includes $33 million for teacher salaries. Additionally, $30 million is earmarked for Small School Grants to support rural school districts.
Career and Technical Education
The governor emphasized career preparation by providing $15 million in new funding for career and technical centers’ equipment and operational needs, plus an additional $5 million annual increase. The plan also includes expanded career counseling services in high schools.
School Choice Initiatives
Kehoe advocated for educational options across all formats. His budget includes $50 million for the Empowerment Scholarship Account Program, which he said will allow families to receive funding for school choice. He also urged the General Assembly to implement voluntary open enrollment in public schools.
Reform Initiatives
Kehoe signed Executive Order 25-14 to address systemic changes, establishing the School Funding Modernization Task Force. In his address he said:
“We know that rewriting the formula is a monumental task. It’s about looking decades ahead and not just the current needs of school districts. We must modernize the way we fund education, while recognizing high-performing schools and ensuring lower-performing schools have a plan to do better.”
Childcare Support
Starting in fiscal year 2026, Kehoe promised more timely payments for childcare providers partnering with the state. “Providers will receive payments from the state at the beginning of the month, and we will pay on enrollment – just like private pay.”
| Education | |
| State Funding for K-12 Public Schools | $ 4,000,000,000 |
| School Transportation | $ 376,600,000 |
| Empowerment Scholarship Account Program | $ 50,000,000 |
| Teacher Baseline Salaries | $ 33,400,000 |
| Small Schools Grant | $ 30,000,000 |
| Increase for Higher Education Institutions | $ 16,800,000 |
| Capital Improvements to Charter Schools | $ 7,000,000 |
| Fast Track Scholarships | $ 6,700,000 |
| Total for Education | $ 4,520,500,000 |
Healthcare & Mental Health
Under his leadership, Governor Kehoe stated that Missouri’s healthcare landscape is undergoing significant changes. The governor has placed considerable emphasis on addressing both healthcare access and mental health challenges across the state.
Healthcare Initiatives
Governor Kehoe has made healthcare workforce development a key priority, recognizing Missouri’s critical shortage of healthcare professionals. He has proposed investing $50 million to expand healthcare education programs and increase the number of healthcare workers in the state.
Mental Health Focus
A significant portion of Kehoe’s healthcare agenda centers on mental health services. He has advocated for strengthening the state’s mental health infrastructure and improving access to behavioral health services. The governor supports expanding crisis centers and mental health facilities across Missouri to ensure residents can access care when needed.
Rural Healthcare Access
The governor has specifically addressed the challenges rural Missouri communities face in accessing healthcare services. His administration has proposed measures to attract and retain healthcare professionals in rural areas through loan forgiveness programs and other incentives.
Telehealth Expansion
Kehoe supports the expansion of telehealth services to reach underserved areas, making healthcare more accessible to residents regardless of their location. This initiative includes improving broadband infrastructure to support remote healthcare delivery.
Healthcare Workforce Development
The governor’s proposals include specific measures to address the healthcare workforce shortage:
- Support for nursing education programs
- Incentives for healthcare professionals to work in underserved areas
- Funding for medical education facilities
Budget Allocation
Governor Kehoe has emphasized the need for strategic investment in healthcare infrastructure. His budget proposals include significant funding for:
- Mental health facilities
- Healthcare education programs
- Rural healthcare initiatives
Governor Kehoe said that these initiatives reflect his commitment to improving healthcare access and mental health services across Missouri, with a particular focus on addressing the needs of underserved communities and strengthening the healthcare workforce pipeline.
| Healthcare & Mental Health | |
| Treatment and Support for Developmental Disabilities | $ 149,000,000 |
| Behavioral Health Residential and In-Home Support Needs | $ 71,600,000 |
| First Steps (Support for children under 3yrs old with disabilities or delays) | $ 17,900,000 |
| Alternatives to Abortion (50%) | $ 4,000,000 |
| 988 Suicide and Crisis Lifeline | $ 3,900,000 |
| Community Behavioral Health Liaisons | $ 3,750,000 |
| Behavioral Health Crisis Centers | $ 2,000,000 |
| Prescribed Pediatric Extended Care | $ 115,504 |
| Total for Healthcare & Mental Health | $ 252,265,504 |
Veterans & Military Services
In his first State of the State Address, Governor Mike Kehoe demonstrated his commitment to supporting Missouri’s veterans and military personnel through several key initiatives and funding proposals.
Veterans Homes Funding
The Governor made a definitive pledge regarding veterans homes, stating “Under the Kehoe Administration, NO veterans home will close due to a lack of state funding”. To support this commitment, his budget includes an additional $10 million in funding for Missouri Veterans Homes, with a total allocation of $163 million for operations across the state’s seven veterans homes.
Military Recognition
Kehoe emphasized the importance of military service in his closing remarks, stating “Our work in this building is only possible because of those who came before us: the sacrifices of our brave service men and women.”. During his address, he specifically recognized USS Missouri Crew Members among his special guests..
| Veterans & Military Services | |
| Support for Veterans Homes | $ 10,000,000 |
| Nurse Call Systems in State Veterans Homes | $ 7,300,000 |
| Electronic Health Records System for State Veterans Homes | $ 1,430,000 |
| Total for Veterans & Military Services | $ 18,730,000 |
Government Improvements
In his address, Governor Kehoe outlined several initiatives aimed at improving Missouri’s state government operations and workforce management.
State Employee Retention
A centerpiece of Kehoe’s government improvement agenda is a new retention pay plan for state employees. The plan would provide a 1% pay increase for every two years of service, capped at twenty years. This means long-serving employees could receive up to a 10% boost in compensation. However, newly hired employees from the past year would not receive increases, though officials noted that starting salaries have increased recently.
DEI Programs
The Governor took a firm stance on Diversity, Equity, and Inclusion (DEI) programs in state government, stating unequivocally: “This administration will be built on merit, and we will not support DEI programs in state government.” He indicated that specific actions regarding DEI programs would be announced in the coming weeks.
DOGE Initiative
Kehoe announced plans to implement Missouri’s version of a DOGE (Department of Government Efficiency) initiative. While specific details were not included in the current budget, the Governor emphasized that this program would involve industry experts from around the state donating their time to assist state agencies. He explained: “For every dollar we invest in this, we will ask that they invest the same in their time and efforts.”
Merit-Based Administration
Kehoe emphasized his commitment to building an administration focused on merit and efficiency throughout his address. Kehoe claims his approach aims to modernize state operations while maintaining fiscal responsibility. The Governor stressed that these improvements are essential for securing a brighter future for Missouri, stating that “we cannot secure a brighter future for our state without a functioning and efficient state government that serves Missouri families well.”
| Government Improvements | |
| Investments in the State Workforce (Pay increases) | $ 129,900,000 |
| Customer Service Enhancements for Family Support Division | $ 6,300,000 |
| State Child Abuse and Neglect Hotline | $ 719,995 |
| Total for Government Improvements | $ 136,919,995 |
See the whole address here: