RICHMOND, Va. — The Virginia legislature concluded its 45-day session on Saturday, introducing various budget amendments that cover a range of issues, including tax reductions and child care support. However, certain legislators have indicated they may reconvene later this year due to the impending threat of significant federal layoffs that could affect many workers in the state.
A federal judge recently ruled in favor of the layoffs, prompting state officials to start evaluating their potential impact. The Metropolitan Washington Council of Governments highlights that roughly 315,000 federal employees reside in Virginia. Since the beginning of the month, only a handful of federal workers have submitted unemployment claims to the Virginia Employment Commission, but this number is anticipated to increase as the layoffs take effect.
Virginia Secretary of Labor George ‘Bryan’ Slater stated during a meeting of a newly formed bipartisan committee tasked with studying the impact of these layoffs, “We know we have seen around 300 applications for unemployment. While we expect this number to grow, projections for how many will actually come forward remain uncertain.”
Democratic Delegate David Bulova, who leads the committee, emphasized the personal toll this situation has on families, calling it a matter of vital importance that affects everyday life. Republican Governor Glenn Youngkin mentioned his plans to introduce a support package for those who may lose their jobs, although he did not elaborate on the specifics. Slater mentioned that an online job portal aimed at assisting individuals in finding employment will soon be available, specifically catering to those who have been affected by the layoffs.
Democratic state Senator L. Louise Lucas, who leads the finance committee, expressed that she had yet to be briefed on Youngkin’s plans, stating, “We have not had discussions yet, but I believe it is crucial to discuss how the administration is addressing the impacts on our federal employees.”
Before adjourning, the House of Delegates voted to expand an ongoing special session, a move that would allow legislators to return later this year. While Senate Democrats did not pass the same resolution, they have committed to doing so in the near future.
Lawmakers also approved changes to the two-year budget, which included a $200 rebate for every taxpayer, as well as bonuses for state workers and teachers. These rebates are expected to be distributed by mid-October, coinciding with the upcoming elections for key statewide offices.
No provisions related to potential changes in federal Medicaid matching rates were included in the budget amendments. Virginia is among nine states with legislation that could rapidly terminate Medicaid expansion if federal funds decrease. Although the Senate’s original budget plan had stipulations for oversight regarding potential disenrollment of Virginians in such an event, this measure was left out of the finalized budget.
Governor Youngkin’s proposed amendments, which included the establishment of a permanent, refundable car tax credit for low-income individuals and tax reductions on tips, were also overlooked in the budget passed on Saturday. Now, these budget amendments and numerous other bills await Youngkin’s decision, where he can either sign, veto, or propose modifications. Legislators are expected to reconvene in April to evaluate any suggested changes.
In a statement, Youngkin revealed that he would thoroughly review the legislation over the next month and noted, “There will be many issues to address during the reconvene session.” Many of the bills presented by the Democratic-majority legislature are revived measures that had previously been vetoed by Youngkin last spring, including the removal of a tax exemption for the Daughters of the Confederacy.
Additionally, legislation aimed at addressing maternal health disparities for people of color was passed, which includes coverage for postpartum visits with doulas for those on Medicaid. Moreover, both chambers of the legislature approved legislation that prohibits the use of campaign funds for personal expenses, reversing a prior decision from last year.
