Lawmakers cut MTC’s funding to zero: Venture fund will move forward, leader says, but future grantmaking in jeopardy

Editor’s note: The following commentary was originally released May 14 by Jack Scatizzi, executive director and CEO of Missouri Technology Corporation, as an update on the 2026 funding outlook for MTC, a public-private partnership created by the Missouri General Assembly to promote entrepreneurship. The perspectives expressed in this commentary are the author’s alone.

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As many of you know, the Missouri Senate and House recently passed a state budget that did not include funding for the Missouri Technology Corporation (MTC) in the upcoming fiscal year. Below, I have provided an overview of the state budget process with notes on MTC’s annual appropriation recommendations for those seeking additional details.

Jack Scatizzi, executive director and CEO of the Missouri Technology Corporation (MTC), speaks with fellow 2024 InvestMidwest attendees in Kansas City; photo by Tommy Felts, Startland News

MTC’s primary funding comes from appropriations within the state’s General Revenue, allocated through the Department of Economic Development’s annual operating budget. The state may also designate MTC to oversee the distribution of federal funding.

Our mission is to make strategic investments that help entrepreneurs create and grow technology-based businesses in Missouri. To accomplish this, MTC awards public funding through two main programmatic activities: Ecosystem Building and a State-Sponsored Venture Capital Program (IDEA Fund).

Over the past 15 years, MTC’s IDEA Fund, the state-sponsored venture capital program, has invested $53 million in 160 companies, leveraging $2.1 billion in private capital and creating over 8,000 jobs across Missouri. In 2022, Missouri was allocated $95 million through the federally funded SSBCI 2.0 program, with at least $65 million designated for deployment through the IDEA Fund. As a result, MTC anticipates that its state-sponsored venture capital activities will experience limited impact from the state budget decision.

However, MTC’s grant-based financial support of entrepreneurial support organizations and universities relies heavily on annual state appropriations. The increase in our grant activities over the past three fiscal years has been directly tied to funding increases for FY23 through FY25. As a result, our competitive grant programs for FY26 (July 1, 2025 – June 30, 2026) will be the most impacted by this decision. Rest assured, any active or pending grants or contracts will remain unaffected, as they are supported by prior appropriations.

Message of gratitude

While we are disappointed with this outcome, we are deeply grateful for the overwhelming support from our advocates and partners. Over the past two weeks, NEXT Missouri issued calls to action that led to nearly 2,000 emails being sent to legislators advocating for MTC funding. Additionally, more than two dozen organizations stood firmly behind us, signing a letter to Governor Kehoe in support of MTC.

We also extend our thanks to the House Budget Committee and House leadership for their belief in our mission and their recommendation of a $2 million increase in our appropriation compared to the governor’s initial proposal.

RELATED: Advocates want a startup-boosting Missouri angel investor tax credit (but they’ll have to beat legislature’s ticking clock)

Moving forward

• Programmatic budget development: Ahead of our next Board Meeting, MTC staff will review unallocated funds from prior appropriations and develop a programmatic budget for FY26.
• Refining external messaging: We are also committed to evaluating and improving our external messaging to ensure stakeholders and elected officials fully understand MTC’s impact over the past 15 years.

Additional thoughts

• Stakeholder and supporter advocacy works. As noted, nearly 2,000 emails were sent to legislators in support of fully funding MTC. This extraordinary outreach has led to more inquiries from elected officials about MTC’s work in the past few weeks than I’ve received in my five years as executive director. Additionally, I’ve been included in numerous positive exchanges between stakeholders and their representatives, highlighting MTC’s impact in districts across the state and reinforcing the importance of our mission.
• Value of competitive-based grants. The differing approaches in the House and Senate budgets reflect contrasting philosophies on funding distribution. The House recommended $10.5 million for MTC to continue competitive-based grant programs, which ensure funding is allocated based on merit, economic impact, financial need, and financial sustainability. In contrast, the Senate budget allocated $0 to MTC and $14 million in direct appropriations to specific organizations.
  • While we acknowledge the achievements of the organizations selected for direct appropriations, MTC firmly believes that competitive-based programs provide the highest return on investment for Missouri. These programs ensure accountability and maximize the economic development impact of public funds.

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How to get engaged

Missouri lawmakers voted May 9 to cut all funding for MTC. Advocates at NEXT Missouri are organizing a stakeholder conversation to discuss reversing the funding decision.

The virtual gathering is planned for 1 p.m. Tuesday, June 10. Click here to register.

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How can you help?

• Share widely: Distribute this update with your networks and on social media. We would encourage you to include your thoughts on the situation, including any potential impacts of the decision or how MTC has impacted your journey. For those leading entrepreneurial support organizations, we would encourage you to share this with your leadership, including directors and advisory boards.
• Prepare for future engagement: Begin having active discussions within your networks and entrepreneurial support organizations about engaging elected officials. More specifically, exploring ways to educate elected officials and policymakers on the impact of innovation and entrepreneurship on the state and MTC’s role in providing financial support for those efforts.

Jack Scatizzi is the executive director and CEO of the Missouri Technology Corporation (MTC). He leads MTC’s vision is to transform Missouri through the power of entrepreneurship by serving as a catalyst for technology-based innovation to achieve sustainable economic growth.

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Overview of the state budget process

• Governor’s budget: Released in late January; recommended $8.5 million for MTC.
• House budget: Released in mid-March; recommended $10.5 million for MTC.
• Senate budget: Released in early April; recommended $0 for MTC and nearly $14 million in direct appropriations to five organizations.
  • Keystone Innovation District: $5 million (adopted)
  • Advanced Manufacturing Innovation Center STL (AMICSTL): $3.75 million (adopted)
  • Future Leaders Outreach Network (FLON): $1 million (adopted)
  • LaunchKC: $350,000 (adopted)
  • Innovate SOMO: $4 million (not adopted)
• Budget conference: Adopted the Senate’s $0 recommendation for MTC.
• Final budget approval: Passed by both chambers on May 9. The governor has veto authority over individual items by the end of June