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Child care tax credits get warm reception in committee
The House Economic Development Committee heard HB 2409, sponsored by Representative Shields, which would authorize three related child care tax credits:
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A child care contribution tax credit to encourage businesses and individuals to donate to child care efforts by offering a state tax credit for qualifying contributions.
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An employer-provided child care assistance tax credit to incentivize employers to help their employees access child care — whether by subsidizing employees’ costs, contracting with providers for employees to use, or building onsite child care facilities — through a tax credit tied to such assistance.
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A child care providers tax credit to directly support the supply side aimed at lowering costs for providers to expand capacity, stabilize operations, or address workforce needs.
The overall proposal is designed to address Missouri’s ongoing child care shortage from multiple angles: incentivizing private contributions, encouraging employers to directly support or provide care, and supporting the providers themselves.
Lawmakers and witnesses repeatedly described the package not simply as social policy, but as an economic development strategy.
The hearing proceeded smoothly, with no direct opposition raised during questioning. Committee members largely characterized the legislation as an investment in workforce stability and business recruitment.
The Missouri Chamber of Commerce emphasized that neighboring states are advancing similar policies and argued Missouri risks losing companies during site selection when child care access is limited. According to testimony, the state is forfeiting billions in potential economic activity when working families cannot reliably secure care.
The bill reflects a broader trend nationally: states are increasingly positioning child care policy as core workforce support rather than ancillary family support.
At least 17 states currently offer employer-provided child care tax credits, using the tax code to encourage businesses to help employees access care. That matters for competitiveness because it signals to employers (and site selectors) that a state is serious about the workforce constraints families face.
By contrast, contribution credits and provider-focused credits are much less common and tend to show up in a narrower set of states, often with tighter eligibility rules or smaller-scale programs.
A package that combines all three approaches is notable because it tries to address the child care gap from multiple angles at once: expanding resources flowing into the system, increasing employer participation, and strengthening provider capacity so more slots exist in the first place.
Aligned’s take: When families can’t access reliable care, businesses struggle to hire, retain talent, and grow. These tax credits recognize reality. Incentivizing private investment, employer participation, and stabilizing providers, Missouri can strengthen its position in the regional market. If the state wants to compete for talent and business opportunities, child care must be part of the strategy.
Open enrollment bill advances with changes
This week, the Senate Education Committee heard SB 906 and SB 971, moving forward with Senate committee substitute SB 971 as a combined piece of legislation, like how open enrollment legislation took shape in 2025.
Open enrollment refers to policies that allow students to transfer from their home (“resident”) public school district to another district, so long as the “receiving” district has capacity and the student meets other requirements. In short: it expands access across district lines, and raises questions about logistics, funding, and transportation.
The Senate’s substitute bill establishes a phased transfer cap on students moving between districts, starting at 3% of students eligible to transfer. If the cap is reached, it may increase by 1 percentage point each time, up to a maximum of 5%.
The Senate substitute also builds a formal statewide framework. The program would not take effect until July 1, 2028. Participating districts must opt-in annually to receive transfer students and DESE would administer a centralized application and lottery system.
Transportation is split: parents are responsible for getting students to the boundary of the receiving district, while the receiving district must provide transportation within its boundaries. State aid would follow the student, and the bill creates a dedicated Parent Public School Choice Fund to support implementation, including capped reimbursement for certain special education costs.
During discussion, Senator Maggie Nurrenbern expressed frustration that the substitute language was delivered late on Monday, limiting review ahead of the hearing.
Ultimately, the committee voted the bill out of executive session 5-2, sending it to the Senate floor for consideration.
Accountability report cards advance
The House Elementary and Secondary Education Committee voted 16–6 this week to advance HB 2710, sponsored by Representative Dane Diehl, which would establish letter-grade report cards for every public school building, district, and charter school in Missouri.
The bill moved forward with a committee substitute that significantly expanded its scope.
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The revised version requires each report card to include a plain-language summary identifying performance, strengths, and year-over-year academic growth.
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DESE would be directed to annually calibrate the grading scale against the state's highest-performing schools — a design choice that sets a dynamic, performance-based benchmark rather than a fixed standard.
The substitute also introduced the Show Me Success Program, which would award performance-based funding to districts demonstrating student growth, improved outcomes, and postsecondary or workforce readiness — subject to funding.
Districts falling below a 95% testing participation rate would face a separate reporting structure, creating an accountability floor for data integrity.
Notable additions include a requirement that DESE develop an annual statewide report benchmarking Missouri student performance against NAEP, and a State Board appeal process for districts contesting their grades.
Committee discussion focused on a persistent tension in accountability design: the distinction between growth and proficiency. How a state weights those two measures shapes whether schools serving high-need populations can realistically earn strong grades or whether the system inadvertently rewards demographics over instructional quality.
Priority bill update
Missouri’s education agenda is moving fast and details are changing quickly. We’re tracking every hearing, substitute, and vote in our Priority Bill Tracker, which we’re updating weekly as bills advance.
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