fiscal year 2027

The House of Representatives passed a continuing resolution to extend federal funding until Dec. 4, avoiding a government shutdown until after the November midterms. The bill passed 220 to 205, with most Republicans supporting it and nearly all Democrats opposing it. Speaker Mike Johnson and House Republicans aim to prevent a spending fight before the midterms, while Democrats criticized the measure for potential funding flexibility issues.

The House passed an appropriations bill funding the State Department, national security, and other programs for fiscal year 2027. The measure advanced to the Senate with a 217-209 vote, supported by most members but with one Democrat and one Republican voting contrary to their party's position.

Missouri Medicaid (MO HealthNet) will stop covering chiropractic care starting July 1 due to budget cuts. A 2018 law had authorized the coverage, expecting cost savings by reducing surgeries, emergency room visits, and opioid use, but state officials cited lack of evidence showing savings and low usage (2,000 annual recipients) as reasons for the cut.

States are experiencing budget pressures due to rising costs and slow economic growth, with governors proposing flat spending for fiscal year 2027. Many states are implementing spending cuts, such as eliminating vacant positions and freezing hiring, while rainy day fund reserves show mixed growth. Tax revenues varied across states, with 29 reporting higher-than-expected collections.

A survey by the National Association of State Budget Officers reveals states face budget pressures due to rising costs and slow growth, with many implementing spending cuts like eliminating vacant positions and freezing hiring. Most governors proposed flat spending for fiscal year 2027, while 25 states plan to increase rainy day funds amid mixed tax revenue results.