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Labor Department pitches modernization of unemployment and workers’ compensation systems, proposes nursing grants
Summary
The Missouri Department of Labor and Industrial Relations outlined a FY2026 request focused on technology modernization for unemployment insurance and workers’ compensation, asked to right‑size several funds, and proposed ongoing nursing incentive grants to expand nursing education capacity.
The Missouri Department of Labor and Industrial Relations presented its FY2026 budget to the House Budget Committee on Feb. 26 emphasizing continued modernization of unemployment insurance systems, workers’ compensation case management and targeted workforce supports.
Director Anna Hu said the department requested $384.6 million and 788.63 FTE for FY26 across federal, other and a small portion of general revenue spending. On unemployment, the Division of Employment Security is modernizing uInteract, Missouri’s web‑based unemployment insurance application, and has moved applications into cloud hosting to improve performance and scalability. The division said it is now advancing a longer‑term modernization of the system foundation.
On workers’ compensation, acting division director Ben Qualls described Work Comp Connect, a multi‑year modernization effort; Phase 1 is scheduled to go live in December 2025 and will add case management, medical fee dispute handling, adjudication and order entry functions. The department also proposed a $10 million reduction in its Second Injury Fund request to align authority with projected claims, citing lower claim volumes.
The Division of Nursing asked for a $1 million ongoing appropriation for a nursing incentive grant program to fund competitive grants to institutions of higher education to create seats and expand nursing education capacity; the governor did not recommend an additional $3 million NDI that the department had sought for upscaling credentials, though $3 million had been provided one‑time in the prior year.
Committee members asked for vacancy lists and how long vacancies had persisted. The department said it will provide information on the number of staff vacancies over six months and the timeline to fill them. Officials also said that several federal CARES Act administration dollars had ended, prompting a $12 million reduction in Employment Security federal authority in FY26 compared with FY25.
Ending: The committee requested additional data on vacancy timing, the Division of Employment Security’s plan for federal fund drawdowns, details on Work Comp Connect milestones and the nursing grant application process and prior awards; the department agreed to provide the requested follow‑up materials.
