The Mississippi Legislature officially adjourned for 2025 — but not with a flourish. Lawmakers left town without passing a state budget, setting the stage for a special session to be called by the Governor.
The failure to pass a budget was the dramatic finale of a session marked by high-profile disagreements between House and Senate leadership.
A Typo Makes Tax History
No bill drew more attention than House Bill 1, the latest installment in the push to eliminate Mississippi’s income tax. The House and Senate passed their own versions of a tax plan but ultimately settled on the Senate tax plan, which was signed by the Governor. But the Senate’s version drew a lot of attention for having an unintended benchmark in the legislation. The Senate wanted a fiscal trigger that would activate only when state revenues hit 85% of a designated benchmark in 2031.
But a crucial typo dropped a decimal where it didn’t belong — setting the trigger at just 0.85%.
Rather than fix the error, House leaders doubled down and passed the flawed version. Governor Reeves, a longtime advocate of ending the income tax, eagerly signed it into law, effectively locking in the mishap. Since the trigger wouldn’t activate for another six years, lawmakers figure there’s plenty of time to clean it up — assuming the political will to do so still exists in 2031.
Budget Breakdown: House Walks, Senate Fumes
If tax policy was the headline, the budget breakdown was the cliffhanger. In a sharp departure from tradition, House Speaker Jason White made clear early in the session that his chamber wouldn’t participate in last-minute “conference weekend” budget negotiations.
And he meant it.
Instead of hashing out differences, the Senate and House adjourned, leaving the state without a budget.
With no budget, Governor Reeves must now call a special session to avoid a government shutdown before July 30, the last day of the state’s fiscal year.
PBM Bill Fizzles After Last-Minute Maneuver
A major legislative push to rein in Pharmacy Benefit Managers (PBMs) also failed in the final days, this time on a technicality.
After weeks of tense negotiations between lawmakers, independent pharmacies, and large employers, HB 1123 emerged from the conference committee as a compromise. The bill included a key exemption for federally self-insured plans (ERISA), a move supported by business groups wary of rising healthcare costs.
But the bill’s fate was sealed not by policy differences, but by process.
New code sections were added during conference, a violation of House rules unless a point of order is raised. When that point was called on the House floor, the bill was promptly killed. Just like that, months of advocacy and negotiation evaporated.
Cyber Liability Bill Crashes in Conference
Another notable casualty was HB 1380, a bill backed by MADA and other business groups. The legislation sought to shield businesses from lawsuits following cyberattacks, provided they followed federal cybersecurity protocols.
In the wake of last year’s CDK Global hack, which paralyzed dealerships across the country, MADA and its allies pushed hard for the protections. Dealers who used companies like ComplyAuto would have enjoyed additional liability immunity under the proposed law.
But in a procedural stumble, the Senate’s conference committee members failed to gather the required signatures. Two of the three conferees — Senators Mike Thompson and Derek Simmons — refused to sign off, effectively dooming the bill. Both had been appointed by Lt. Gov. Delbert Hosemann.
