Governor Glenn Youngkin addressed the Joint Money Committee on August 14, providing an update on Virginia’s fiscal outlook for 2025 and looking ahead to the next biennium. In his remarks, Youngkin highlighted what he called “Four Truths” about the state’s finances.
“One, Virginia is as financially strong as she has ever been,” Youngkin said. He pointed to a $1.7 billion cash cushion entering fiscal year 2026, attributing this position to outperformance in FY 2025 and prudent forecasting. “Based on what we know today, this cushion and the prudent nature of our 2026 forecast, provide great confidence that we can achieve the budget for the second year of this biennium.”
Youngkin emphasized economic development and job growth as central to Virginia’s financial strength. He cited pro-business policies such as deregulation and workforce investment while warning against adopting practices seen in other states that he described as anti-business.
He also noted ongoing concerns about reductions in the federal workforce but referenced roughly 250,000 available jobs in Virginia: “Some do persist, such as the expected reduction in the federal workforce and how quickly these Virginians will find new opportunities in the Commonwealth’s deep well of available jobs, which is currently estimated to be roughly 250,000 available and unfilled positions.”
The governor credited intentional decisions made by his administration and legislators for recent surpluses totaling $10 billion in excess revenue over three and a half years. He reported a conservative debt load with borrowing capacity of $1.3 billion per year and rainy day fund balances at $4.7 billion at fiscal year end 2025.
“Our rainy day fund balances at fiscal year end 2025 were $4.7 billion. Well done. We have a strong balance sheet,” Youngkin stated.
General fund revenues grew more than six percent over the past fiscal year, with July revenues up 7.3% compared to last year—exceeding projections by nearly $145 million—and individual income taxes rising by 7.8% in 2025.
The governor discussed investments in site development for businesses, regulatory streamlining that he said saved taxpayers $1.2 billion annually, and tax relief totaling over $9 billion during his administration: “And when you lower the tax burdens by providing $9 billion in tax relief that we have again collectively provided Virginians in our Administration…when you streamline regulations by 25%, saving the taxpayer $1.2 billion annually…we kick an amazing and virtuous cycle into high gear.”
According to Youngkin, capital commitments exceeding $125 billion have been secured for projects across Virginia since he took office: “Over the past three and a half years, the Commonwealth has secured over $125 billion in capital commitments to invest.” This investment supports new factories, headquarters, research centers, distribution centers—and contributes to job growth.
“Today, we have over 265,000 more people working in Virginia than when we all started together three and a half years ago,” Youngkin said.
He also mentioned reversing out-migration trends: “But for the first time in a long time, more people moved into Virginia than moved away to the other 49 states!”
Youngkin encouraged collaboration among localities for economic development but noted some counties are not engaging fully: “However…there are select counties that have not been eager to collaborate…and it means they are losing out on opportunities.”
The governor singled out Southwest Virginia’s recovery from Hurricane Helene with support from block grants signed with USDA—a measure intended to help farmers recover starting next month.
On energy policy, Youngkin criticized VCEA (Virginia Clean Economy Act), arguing it led to higher energy bills and reliability concerns: “VCEA is not working for Virginia…energy bills are too high…we face a looming reliability crisis.”
He called on lawmakers to consider unwinding VCEA during upcoming legislative sessions.
Youngkin reported progress unlocking paused federal funds—$2.1 billion out of approximately $2.5 billion had resumed flow after constructive work with federal agencies; most remaining funds were expiring COVID-related grants.
Addressing Medicaid changes planned for 2027—including new work or education requirements—he stated: “I want to say that again: not a single Virginian is ‘losing access’ to Medicaid or getting kicked off the program.”
He acknowledged high SNAP error rates administered locally but committed state support for improvement efforts before new cost-sharing rules take effect in two years.
Reflecting on his tenure so far, Youngkin concluded: “A journey where we have strengthened the Spirit of Virginia together…I am proud of the progress we have made together…this great Commonwealth’s future will continue to be bright and Virginia will continue to lead the nation.”
