RICHMOND, Va. – The appropriations committees from both chambers of Virginia’s Democratic-controlled legislature unveiled their state budget proposals on Sunday, which feature one-time tax refunds for all taxpayers. These plans stand in contrast to Republican Governor Glenn Youngkin’s initiative to implement permanent tax reductions on automobiles.
In a show of solidarity, both the House and Senate committees unanimously adopted similar budgets aimed at modifying the concluding year of Virginia’s two-year financial plan. They suggested providing $200 tax rebates for individual income tax filers and $400 for joint filers by October. Meanwhile, Youngkin’s amendments focus on establishing ongoing tax reductions aimed at supporting lower and middle-income individuals during tax season.
“Immediate assistance is essential for working families and individuals—again, immediate help,” stated Senator L. Louise Lucas, who leads the Senate finance committee. “For this reason, I have reservations about the specifics of the governor’s proposal.” The budget propositions put forth by the committees also aim to make Virginia’s earned income tax credit fully refundable at a rate of 20% of the federal credit amount.
The budget plans will move to their respective chambers for further discussion and voting. Once approved, these proposals will transfer to the other chamber for evaluation before entering a conference committee. This committee, comprised of a select group of lawmakers, will convene privately to negotiate and reach a compromise.
The timing of the proposed budgets follows the recent pause of federal grants and loans, which includes Medicaid, by the White House—a decision that sparked significant uncertainty until a federal judge intervened, temporarily blocking the directive, which was later overturned. During a news conference that took place after the Virginia House appropriations committee convened, lawmakers indicated that they had not significantly altered their budget proposals in response to events at the federal level.
“Any proposals to eliminate Medicaid will need to arise from both the House and the Senate,” commented Democratic Delegate Mark Sickles, referencing activities within the U.S. Congress. “There remains much work ahead. We are closely monitoring the situation. However, should severe cuts be proposed by some, we’ll have to reconvene here in Richmond and address it.”
While there is significant agreement on the budget proposals between the Virginia House and Senate, there are minor discrepancies. Democratic House Appropriations Chair Luke Torian acknowledged that lawmakers will still need to negotiate on funding issues related to skill games and similar slot-like betting machines. “We’ll see what solutions come out of the conference room,” Torian remarked.
