Medicaid Tax Cap Faces Setback

Good morning, St. Louis. A Senate proposal to cap Medicaid provider taxes—raising concerns for Missouri's healthcare—has stalled in Congress, leaving funding for hospitals and rural care in question. Here’s today’s update:

MAIN STORY

Medicaid Tax Cap Proposal Stalls

A U.S. Senate plan to cap states’ medical provider taxes—a move that alarmed Missouri health care leaders—ran into obstacles Thursday after Senate parliamentarian Elizabeth MacDonough ruled it would require 60 votes to advance. The proposal had targeted Medicaid provider taxes, which help fund Missouri’s program at a rate as high as 6%, higher than the proposed 3.5% ceiling.

The Missouri Hospital Association warned the cap could cost Missouri hundreds of millions in Medicaid funding and hurt rural hospitals. Some Missouri lawmakers, including Sen. Josh Hawley, said the plan would threaten care for rural patients. Critics of medical provider taxes call them a “money laundering” scheme, but many state officials argue they are vital for Medicaid financing.

Senate Republicans could try to revise the provision, but with strong opposition and high vote requirements, its future remains uncertain. Missouri’s Medicaid expansion, enshrined in the state constitution, further complicates potential changes.

AROUND TOWN

The U.S. Supreme Court ruled 6-3 that Medicaid patients cannot sue states for not providing a choice of providers. The decision, authored by Justice Neil Gorsuch, closes off Planned Parenthood’s primary court path to maintaining Medicaid funding, with implications for organizations in Missouri and across the country. South Carolina led the challenge, with $90,000 in annual Medicaid funding to Planned Parenthood at stake, while advocates warn this affects access for rural and vulnerable patients; dissenters stress patients lose choice in providers.

Rising Ameren electric bills and more shutoffs raise concerns about safety during Missouri’s extreme heat. Shauna Thomas, a 55-year-old St. Ann woman, died in her apartment after nearly two weeks without power, prompting calls from consumer advocates for stronger protections, especially for vulnerable residents. Since March 2024, Ameren has disconnected 120,000 customers amid a 12.5% approved rate hike affecting 1.2 million households. Missouri’s new law extending shutoff protections takes effect in August; advocates urge a summer-long moratorium. Read more on Ameren shutoffs and rising rates.

The Immaculate Conception, a landmark Arnold church dating back to 1895, will be razed to make way for a new building. The Archdiocese of St. Louis announced plans for demolition due to structural damage and declining attendance, with a proposed modern Holy Family church to seat 400 and an estimated cost of $5 million, with half to be raised by parishioners. St. David's church, established in the 1960s, may be sold eventually, as part of the archdiocese’s “All Things New” downsizing plan.

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Juneteenth Block Party Draws Record Crowd

Over 5,000 people gathered Thursday for the 6th Annual Juneteenth Festival Block Party on Washington Avenue, nearly doubling last year's attendance. House of Soul founder Nichol Stevenson and the crowd celebrated with music, vendors, and a Juneteenth-inspired fashion show.

Every Black-owned vendor sold out, and Stevenson honored four community leaders for their contributions to St. Louis. Event organizers hope to expand the celebration to the Arch Grounds in the future. For photos and more details, see this festival highlight from St. Louis American.

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Kwality Indian Eatery & Ice Cream Debuts in O’Fallon

Kwality Indian Eatery & Ice Cream, located at 2550 Highway K in O’Fallon, opened last fall and offers Indian cuisine alongside 25 traditional Indian ice cream flavors sourced from New Jersey. The restaurant operates from 11 a.m. to 10 p.m. on weekdays, and until midnight on weekends.

Co-owner Avinash Abbineni says Kwality fills a gap for Indian dining on Highway K and offers a fast-casual, family-friendly experience. The 2,800-square-foot eatery offers both savory and sweet options and is part of a growing portfolio owned by franchisees with locations across the U.S. and Canada. Learn more about Kwality’s menu and concept from the feature article.

QUICK HITS

St. Louis Kaplan Feldman Holocaust Museum will feature “Stitching History from the Holocaust” from July 17 through Oct. 19, showcasing reconstructed garments by Jewish fashion designer Hedwig Strnad and exploring loss, creativity, and resilience.

St. Louisan Ryan Kalkbrenner was selected by the Charlotte Hornets with the No. 34 pick in the NBA draft on Thursday, becoming the 33rd Creighton Bluejay ever drafted.

Temple Emanuel has named longtime educator Kevin Lee as assistant director of its religious school, with responsibilities including curriculum development, operations, and family engagement, effective ahead of the 2025 school year.

An Alton & Southern Railway train derailed near St. Louis around 7 a.m., and officials quickly removed the train by 8:30 a.m. without injuries, though the cause and contents remain unknown.

Roscoe Crenshaw passed away on June 20, 2025, at the age of 82, after decades of documenting St. Louis's Black arts and jazz community through photography, writing, and cultural advocacy.

GENERATING BUZZ

St. Louis features four major skylines—Clayton, Central West End, Midtown, and Downtown—lined east to west, forming the city's urban backbone. The community is exploring where a potential fifth skyline might emerge, considering areas ripe for densification and improved transit connectivity. Discussions highlight ongoing downtown transformations, including the $670 million Millennium Hotel redevelopment and the recent momentum near Energizer Park, aiming to knit together activity nodes across the city. The new 2025 Strategic Land Use Plan supports walkability, mixed-use development, and diverse housing, which could influence the shape of this next skyline. Check it out.

ON THIS DAY

Debut of St. Louis Municipal Band at Lafayette Park; On June 27, 1877, the newly formed St. Louis Municipal Band performed its inaugural open-air concert in Lafayette Park. Drawing an enthusiastic crowd, the band featured local musicians and marked the city’s growing commitment to public music events, laying the groundwork for St. Louis’s rich musical traditions.