Governor Glenn Youngkin addressed the Joint Money Committee to provide an update on Virginia’s fiscal standing for 2025 and discuss future priorities. Speaking to committee chairs, members of the General Assembly, and state officials, Youngkin outlined what he described as “Four Truths” about the Commonwealth’s financial health.
According to Youngkin, “Virginia is as financially strong as she has ever been.” He highlighted that a combination of fiscal outperformance in 2025 and early results from 2026, along with carry-over balances, has created a $1.7 billion cash cushion entering the new fiscal year. “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 said.
Youngkin attributed Virginia’s current financial strength to economic development efforts that have led to increased business investment and job growth. He emphasized pro-business policies such as deregulation and workforce readiness while warning against adopting practices seen in other states that he believes are less business-friendly.
He acknowledged ongoing concerns about reductions in the federal workforce but pointed out there are currently about 250,000 open jobs in Virginia. The governor stated that recent surpluses were not accidental but resulted from deliberate policy choices. He noted that during his administration, Virginia has experienced surpluses totaling $10 billion in excess revenue.
“We have large carry over balance, funds appropriated, but not spent, thanks to prudent fiscal management and bringing efficiency back to government,” Youngkin said. He also reported maintaining a conservative debt load with an incremental borrowing capacity of $1.3 billion per year and ending FY 2025 with $4.7 billion in rainy day fund balances.
Youngkin reported general fund revenues grew by more than 6% over the past fiscal year; July revenues at the start of FY 2026 grew by 7.3% year-over-year—$145 million above projections—with wage growth and consumer spending lifting sales tax collections by 2.2%. Individual income taxes rose by 7.8% while corporate income taxes declined slightly by 1.5%.
The governor highlighted investments made possible by strong revenues: “Our strong revenue enables us to invest, to save, and yes, to provide substantial tax relief.” He credited these policies for supporting record investments in education, public safety, health care—including behavioral health—and tax relief totaling over $9 billion during his administration.
Youngkin cited more than $125 billion in capital commitments secured over three-and-a-half years which he said will underpin future job opportunities across Virginia: “Today we have over 265,000 more people working in Virginia than when we all started together three and a half years ago.”
He also noted a reversal of out-migration trends for the first time in a decade: “For the first time in a long time, more people moved into Virginia than moved away.”
While commending most localities for collaborating on economic development initiatives with state agencies such as VEDP (Virginia Economic Development Partnership) and DHCD (Department of Housing and Community Development), Youngkin called on those not yet participating fully to join statewide efforts: “It’s not too late to engage in the collaboration that leads to winning and economic growth.”
Referencing recovery efforts after Hurricane Helene impacted Southwest Virginia last year—where block grants were signed with USDA—he said aid would begin flowing next month directly to farmers and forest land owners.
On energy policy issues, Youngkin criticized current law under VCEA (Virginia Clean Economy Act), citing high energy bills and reliability concerns: “We know VCEA isn’t working because energy bills are too high…we face a looming reliability crisis without enough baseload power.” He urged lawmakers to work together during upcoming sessions on potential changes.
Addressing relations with federal agencies after pauses affecting roughly $2.5 billion worth of programs or grants earlier this year—which he said had mostly resumed—Youngkin stressed ongoing cooperation was necessary.
On Medicaid changes set for implementation starting in 2027 affecting able-bodied adults without dependents or disabilities—the governor clarified no one is losing coverage: “I want to say that again: not a single Virginian is ‘losing access’ to Medicaid or getting kicked off the program.” Instead new requirements will mandate work or related activities averaging at least eighteen-and-a-half hours weekly.
Regarding SNAP error rates—which affect potential state costs beginning in 2027—Youngkin committed state support for localities administering these programs aiming at reducing error rates statewide.
In closing remarks reflecting on progress made since taking office alongside legislative partners across party lines Youngkin expressed optimism about sustaining momentum: “If we continue working together…this great Commonwealth’s future will continue to be bright.”
