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HB 2866

Creates, repeals, and modifies provisions governing elementary and secondary education

2026 Regular Session Introduced by Dane Diehl

HB 2866 expands school choice by creating Missouri Empowerment Scholarship Accounts funded by tax credits and broadening charter school oversight and accountability.

Referred: Emerging Issues(H)
#education #elementaryandsecondary #elementaryandsecondaryeducation #dept.of
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Bill Summary · HB 2866

Summary of HB 2866 (Missouri, 2026)

Purpose and intent

HB 2866 repeals and replaces a set of provisions governing elementary and secondary education with sixteen new sections. The bill establishes a comprehensive framework for a Missouri Empowerment Scholarship Accounts Program, expands charter school authority and oversight, and adjusts various related education financing and governance provisions. The overall aim appears to promote parental choice in education through tax-credit-funded educational assistance and to modernize charter school operations and accountability.

Key provisions and changes

  • Missouri Empowerment Scholarship Accounts Program (135.712 – 135.719; 166.700 – 166.720):

    • Creates an educational options program funded by tax credits and private contributions routed to approved educational assistance organizations (EAOs).
    • Tax credits: eligible taxpayers can claim credits equal to 100% of their qualifying contributions, up to 50% of the taxpayer’s state tax liability; credits are nonrefundable and can be carried forward up to four years.
    • Cumulative annual cap: initially set at $150 million (previously $75 million) with annual adjustments tied to changes in state aid for school districts.
    • Contributions must be cash (with limited exceptions); stocks, bonds, and most other securities are excluded.
    • An EAO distributes scholarships to qualified students (the bill details governance and funding mechanisms, including a dedicated Missouri Empowerment Scholarship Accounts Fund in the state treasury).
    • A four-percent allocation to administration/marketing and a separate two-percent allocation to the administrative fund are specified, with the state treasurer overseeing allocations and auditing.
    • Creates a governing board (Missouri Empowerment Scholarship Accounts Board) to assist the state treasurer and oversee the program, with specified membership and four-year terms.
    • The program is conditioned in timing on transportation funding levels and availability of appropriations.

  • Charter schools (160.400 – 160.425; 160.415; 160.410; 168.189):

    • Charter schools are reaffirmed as independent public schools with expanded eligibility criteria and sponsor options beyond traditional districts.
    • Sponsors may include local school boards, public/private colleges, community colleges, private nonprofits with certain criteria, and the Missouri Charter Public School Commission.
    • New and revised sponsorship provisions emphasize governance, performance contracts, financial accountability, and intervention/renewal processes.
    • Detailed requirements for charters covering mission, governance, budget, personnel policies, academic program, graduation requirements, special education, and compliance with federal/state laws.
    • Admission and enrollment provisions allow resident and certain nonresident students (including those under urban transfer programs and Missouri Empowerment Scholarship Accounts), with non-discrimination except for allowed preferences (sibling, employee, high-risk focus, geographic areas, and certain lunch eligibility considerations).
    • Equal emphasis on accountability: annual performance reports, assessments, and a system of sponsorship evaluation every three years; explicit grounds for intervention or revocation.
    • Provisions for charter finances, debt, evaluation, audits, and accountability, including a framework for petitions to convert to a local education agency if applicable.
    • Transportation funding and services can be arranged via agreements with districts; penalties and remedies for late payments and disputes between districts and charters are specified.
    • Provisions ensure transparency (public access to charters, contracts, and performance data) and require background checks for governance members.

Who would be affected

  • Taxpayers and students: Eligible taxpayers may claim credits for qualifying contributions to EAOs; families of qualified students may receive scholarship funds to pursue education outside their resident district.
  • Educational assistance organizations: Certified EAOs would manage scholarship accounts and must comply with reporting, eligibility, and spending requirements.
  • Charter schools and sponsors: A broad set of entities may sponsor charters; schools must meet rigorous governance, financial, and academic performance standards and are subject to renewal, intervention, or revocation processes.
  • School districts: Districts may interact with charter schools via funding transfers, transportation arrangements, and contractual services.

Timeline and procedural notes

  • The program’s operative provisions appear to activate in fiscal years tied to transportation funding levels and appropriation milestones.
  • The bill establishes reporting requirements at five years post-implementation and ongoing sponsor evaluations every three years.
  • Revisions to adoptions and renewals include specified deadlines for sponsor actions and state board reviews (e.g., charter approvals by January 31 prior to opening; state board review within 60 days in certain scenarios).

Overall, HB 2866 significantly expands school choice mechanisms in Missouri through empowerment scholarship accounts and a robust framework for charter school governance, funding, and accountability.

Compiled from official sources — confirm details with the bill’s official record.

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