Missouri Gov. Mike Kehoe has signed the state’s Fiscal Year 2027 operating and capital budgets, but not without taking a sizable bite out of lawmakers’ spending plans. On Tuesday, June 30, 2026, Kehoe approved what had been a roughly $50.7 billion package and trimmed it to about $49.8 billion through a mix of vetoes and spending holds. Dozens of items were struck or frozen, with about $441 million in new spending put on pause, leaving local projects and capital upgrades in limbo while state officials decide what, if anything, comes back.
Kehoe's Math: Vetoes, Restrictions and the Bottom Line
According to Governor Mike Kehoe’s office, the legislature sent him budget bills totaling $50.7 billion. After the governor’s actions, the operating budget stands at roughly $49.8 billion. The administration says Kehoe issued 65 vetoes and 78 expenditure restrictions, which it characterizes as about $441.3 million in spending on hold. Of that, roughly $337.2 million comes out of general revenue.
Which Projects Were Put on Hold
The governor’s office told local outlets that many of the holds land on brand new initiatives or items tied to funding streams the administration views as shaky. Spectrum News St. Louis highlighted several of the higher profile hits: $4 million for a police training facility in O’Fallon, $3 million for a St. Louis County police communications building and $4 million for upgrades at Jefferson Barracks. A spokesperson told Spectrum that the money “could be restored down the road” after closer review.
Why the Governor Says He Pulled the Brakes
Kehoe cast the move as a necessary dose of restraint, saying in a statement that “state government doesn’t have a revenue problem, we have a spending problem” and arguing that letting spending grow faster than the economy is unsustainable, according to Governor Mike Kehoe’s office. That argument is landing at the same time budget watchdogs are warning that Missouri’s surplus is shrinking and that deeper cuts may be needed in coming years to keep the books balanced, as reported by Missouri Independent.
What Comes Next for Cities and Agencies
The state’s Division of Budget and Planning has posted the full line by line breakdown of vetoes and restrictions, and local officials will be combing through those spreadsheets to figure out exactly what was cut and what was merely frozen. The Office of Administration’s restrictions list details each hold and the dollar amount tied to it. Kehoe’s office says many of the restricted items are new projects or items that were paired with questionable funding sources, which means some of that money could still be released if lawmakers or agencies fix those issues.
In the meantime, cities, counties and law enforcement agencies whose projects landed on the restrictions list are likely to lean hard on the governor’s office and their local legislators to get those dollars restored or find alternative funding. This story will be updated as state officials announce any restorations or provide additional detail on what stays frozen and what gets thawed.
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