Virginia Governor Glenn Youngkin announced that the state’s general fund revenues saw a significant increase in December, rising by 21 percent compared to the same month last year. This represents an increase of $641.9 million and surpasses projections by 10.7 percent, making it one of the strongest monthly revenue performances so far in fiscal year 2026.
For the first six months of the fiscal year, Virginia’s general fund revenues have grown by 8.6 percent, totaling an additional $1.2 billion over last year. Revenues are now 2.6 percent ($395.4 million) above the official forecast, which was raised by $822.5 million in the Governor’s December budget submission. The growth has been driven mainly by a 62.7 percent increase ($399.6 million) in individual income tax nonwithholding payments and an 11.3 percent rise ($170.9 million) in withholding payments.
Governor Youngkin commented on the results: “The strong year-over-year increase is not noise, it is real. It reflects strong job creation, rising incomes, healthy consumer activity, and disciplined fiscal stewardship,” said Governor Glenn Youngkin.“Because of this performance, revenues could decline by 1.6 percent over the rest of the year, and we would still meet our forecast. That is the strength of the Commonwealth’s financial position under our commonsense agenda – more jobs and lower tax burdens yield strong revenues.”
Secretary of Finance Stephen E. Cummings also addressed the state’s financial situation: “With half the fiscal year complete, Virginia’s revenue performance is not only strong, but also resilient,” said Secretary of Finance Stephen E. Cummings.“Collections are growing nearly three times faster than the 3.0 percent growth assumed in the forecast, giving the Commonwealth a substantial cushion against future economic uncertainty. Even with moderating national job growth and mixed macroeconomic signals, Virginia’s core revenue streams—income and sales taxes—continue to perform at levels that position us well to exceed spending priorities in the 2026–28 Biennial Budget.”
The full December 2025 revenue report will be made available online.