The 2026 Regular Legislative Session convened on January 6, 2026 and advanced several policy priorities with broad statewide impact. After completing most of their work by early April, lawmakers returned on April 15 to consider several gubernatorial vetoes. Lacking the votes to override, the Legislature concluded its business and adjourned Sine Die.

Alternate Pathways to CPA Licensure
HB1137 was our major push this session. Signed 3/13/26. Effective 7/1/26.
Amends Section 73-33-5 for initial licensure. Amends Section 73-33-17 for practice privileges/mobility.
Sponsored by Rep. Lee Yancy with support from Speaker White and Lt. Governor Hosemann, this
historic bill for the profession maintains the existing 150 hours pathway, ensures clarity for those obtaining post-baccalaureate degrees, and establishes a new pathway to licensure upon earning a bachelor’s degree. The bill also preserves practice privileges/mobility across state lines with safeguards for those already in practice, thereby aligning Mississippi with other states to ensure minimal disruption for the profession. Pathways include the following:

A bachelor’s degree with additional hours of education for a total of 150 or more semester hours with an accounting concentration or equivalent, passing the CPA exam, and one year of experience; or
A master’s degree with an accounting concentration or equivalent, passing the CPA exam, and one year of experience; or
A bachelor’s degree with an accounting concentration or equivalent, passing the CPA exam, and two years of experience

Grant Administration of State & Federal Funds
HB1171 passed, and the MSCPA Legislation Committee has met to plan pursuing amendments next session.
Signed 3/30/26. Effective 1/1/27.

This bill creates the Mississippi Grant and Subgrant Administration Transparency and Accountability of Non-Governmental Organizations Act of 2026. Its purpose is to impose tighter oversight, reporting, auditing, and conflict-disclosure requirements on non-governmental organizations and quasi-public entities that receive state or federal funds appropriated by the Mississippi Legislature. State agencies administering grants must also establish performance metrics and conduct comprehensive reviews. Primary and subrecipients must file annual reports of expenditures and administrative costs with details. Any covered NGO or quasi-public entity receiving legislative appropriations as a grantee or subgrantee must undergo a compliance audit and require its executive officers and board members to submit signed disclosures. This bill will significantly raise the compliance burden for nonprofits and other nongovernmental entities receiving legislative appropriations.

Budget
The Fiscal Year 2027 budget totals approximately $7.4 billion in state support appropriations and reflects legislators’ return to a more typical budget process after last year’s impasse. In addition to core agency operations, the budget includes targeted increases for education, Medicaid, and mental health. Alongside the regular appropriations bills, lawmakers also passed HB 1939, a deficit appropriations measure funded through the Capital Expense Fund, to address FY 2026 shortfalls across several agencies. The largest allocation, $35 million, went to the Division of Medicaid, which also received an increase in its regular FY 2027 appropriation bringing its total budget to $8.5 billion, including $1.026 billion in state funds. Education remained a major priority as well. Legislators approved a $2,000 across-the-board pay raise for K–12 public school teachers and set the Mississippi Department of Education’s total budget at approximately $5.3 billion, a $121 million increase over last year across state, federal, and special funds.

The Legislature also used the Capital Expense Fund to finance local government projects across Mississippi. Through SB 2189, lawmakers approved a $253 million statewide local projects package, supporting nearly 400 city and county projects ranging from water and sewer upgrades to street and bridge repairs, public buildings, parks, and emergency services.

PERS Reform
The Mississippi Legislature made several changes to the Public Employees’ Retirement System of Mississippi this session. After HB 1 created a new Tier 5 in 2025, requiring public employees to work 35 years before receiving retirement benefits, legislators faced significant public pushback. In response, they amended HB 4073 to reduce the years of service requirement for Tier 5 members from 35 years to 30 years. The bill also shortens the mandatory “sit out” period for retirees returning to state employment from 90 days to 30 days, easing reentry for agencies struggling with workforce shortages.

School Choice
Before the session began, school choice was expected to dominate legislative conversations, with Speaker Jason White identifying it as his signature policy priority. HB 2 encompassed full school choice reform by allowing public to public school portability and creating Magnolia Scholarship Accounts, which would have allowed families to use state allocated funds for a range of educational expenses, including private school tuition, tutoring, and after school or summer programs. The bill passed the House by a narrow 61–59 margin. The Senate pursued a different strategy. Its proposal, SB 2002, focused more narrowly on student transfers by removing the requirement that a sending school district can deny a transfer when the receiving district agreed to accept the student. When the two chambers exchanged bills, neither advanced in the opposite chamber, killing all school choice legislation for the year.

The Clay Firm wishes to express our gratitude for your continued partnership and looks forward to next year’s regular session that will begin on January 5, 2027.