Mississippi Governor signs bulk of appropriations bills into law, setting $7.135 billion FY 2026 budget

• Reeves did veto certain bills, in part or in whole. The new fiscal year begins July 1.

Governor Tate Reeves signed the bulk of the spending bills that set the state’s $7.135 billion Fiscal Year 2026 budget into law Thursday, saying that it “essentially halts government growth” and is the most conservative in seven years.

“I’m not excited about all of the legislative drama it took to get here, but I am proud of what we accomplished on behalf of Mississippians,” Reeves said, adding the state is in the best financial situation since its founding.

Lawmakers were forced to return to the Capitol for a special session to pass appropriations bills after negotiations between the two chambers broke down at the end of the regular session.

The new fiscal year begins July 1.

The governor had scores of spending bills to examine after last month’s two-day special legislative session. When the dust settled, he vetoed four bills, in part or in whole, according to his office. They were:

• HB 19, a partial veto of a funding bill that would defray the cost of the Department of Health for a variety of programs.

• HB 50, a full veto of a measure to give the Attorney General’s Office $2.5 million to combat human trafficking from the Capital Expense Fund.

• SB 2044, a partial veto of a bill to defray the cost of the Department of Finance and Administration.

• SB 2046, a partial veto of a bill authorizing the defraying of costs for the state’s Development Authority. 

The partial veto of HB 19 was to “disallow” $1.9 million in funding to Methodist Rehab that would have placed the state’s supplemental Medicaid funding to hospitals in jeopardy. 

“My veto of these two items should not be construed as a value statement on their individual merits, but rather a belief in my duty to our constitution and a commitment to minimizing risks to the enhanced payments generated for hospitals by the MHAP program we developed with what is now the Mississippi Healthcare Collaborative in 2023,” Reeves said.

The governor’s line-item veto of the measures related to the Mississippi Development Authority and the Department of Finance and Administration were to address several projects that he included on the special session call but that were not funded by the Legislature as a result of its failure to pass Senate Bill 2050. 

“These State Agencies cannot spend money that they don’t have…so I determined the only prudent action was to eliminate any confusion with respect to whether those funds were available or not,” Reeves said.

The governor went on to highlight parts of the state’s FY 2026 budget that he is proud of, specifically noting that it “fully funds the waitlist for our current ESA (Educational Scholarship Account) program.”

“Our students with special needs should never be denied options to better their education experience, and this budget will ensure that doesn’t happen this year! Parents – not the government or bureaucrats – know what’s best for their kids,” Governor Reeves said.

Reeves said the new budget ensures the Magnolia State remains in the black, while funding the government agencies at levels that allow them to successfully perform their missions. 

“It will allow us to successfully eliminate Mississippi’s income tax and continue to shatter records by attracting unprecedented private sector capital investment and new jobs,” the governor said. “In short, the $7.135 billion budget will help us get the job done on your behalf, and it will help us Break New Ground all across our state.”

Governor Reeves also noted that he is willing to work with the Main Street Association and other legislative supporters on a competitive grant program for investment in downtown communities as well as expressing support for continued investment for needed improvements at LeFleur’s Bluff State Park “to make our capital city a more thriving and welcoming community for both residents and guests.”