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JEFFERSON CITY, Mo. – Missouri Gov. Mike Parson says time is of the essence and if the Federal Reimbursement Allowance (FRA) program is not extended by July 1 his administration will have to make huge budget cuts that will be felt across the state.  

Last week, the governor warned cuts could be coming if lawmakers didn’t take action. It comes after they failed to renew the ‘critical’ tax that funds the state’s medicaid program.

He said he will continue working with House and Senate leaders until noon tomorrow and if lawmakers aren’t called back for a special session to extended the program there will be no other opportunity.

“To be clear this means we would need to close a $1.4B funding gap over next two years, meaning investment in state through education, work force development, and infrastructure would have to be put on hold and that is frankly unacceptable,” Parson said.

Governor Parson addressed a hold up over abortion and contraception coverage and he said he disagrees with those concerns and believes the coverage is pro life.

The FRA program is a tax collected from medical providers like hospitals to support medicaid – the tax brings in 1.6 billion for medicaid