In a statement on Friday, Virginia’s Republican Governor Glenn Youngkin revealed that he plans to reduce the state’s budget by $900 million due to anticipated shifts in next year’s tax revenue projections. This decision comes as a response to the economic uncertainty created by federal spending changes instigated by the White House, which might affect Virginia.
During a press briefing, Youngkin declared that he had signed a bipartisan budget bill, initially passed by the Virginia General Assembly in February, but had also vetoed 37 specific line items to create a financial buffer for the state. Although he continues to support President Donald Trump’s efforts to revamp federal spending and alter global trade via tariffs, Youngkin acknowledged the possibility of temporary adverse effects on Virginia’s economy.
“The actions to overhaul fiscal policies and trade relationships are bound to have short-term impacts on the Virginia workforce and the state’s revenue streams,” Youngkin stated. “This $900 million budget reduction is a strategic move to ensure Virginia remains financially stable and adaptable.”
The cuts predominantly impact financial allocations for 10 capital projects at higher education institutions, with Youngkin also removing funding for projects that could be delayed and funded using existing resources. Funding for a public-private partnership designed to address child care was also eliminated, which Youngkin described as an interesting but premature initiative to revisit in the next legislative session.
This announcement follows Youngkin’s earlier proposal in late March, which included over 200 amendments to the Virginia House budget bill to trim state spending by $300 million. The majority of Youngkin’s proposed amendments were ignored by Democratic leaders, who hold majorities in both state legislative chambers. Upon reconvening, lawmakers accepted about 30 of Youngkin’s suggestions but rejected the rest.
Considering the legislative constraints, state law permits Youngkin to veto the budget entirely or use a line-item veto after legislators return. However, such scrutiny is restricted once lawmakers reconvene, prompting Youngkin to veto specific capital projects and achieve a threefold reduction compared to his initial proposal.
“Line-item vetoing, unfortunately, is a coarse method,” Youngkin remarked, highlighting: “Often, using a line-item approach leads to unintended consequences as it can affect multiple areas.”
House of Delegates Minority Leader Todd Gilbert expressed a desire for more collaboration from Democrats on Youngkin’s $300 million cut but commended the governor’s fiscal prudence. “Thanks to Governor Youngkin’s conservative stewardship, Virginia is now better prepared for future challenges,” Gilbert stated. “I urge my Democratic peers to prioritize the Commonwealth’s fiscal well-being over political maneuvers.”
Democratic House Appropriations Committee Chair Luke Torian recognized that while not all their priorities were included, the signed budget represents the diligent efforts of House and Senate Democrats to advance meaningful progress for Virginians.
The budget bill joins a group of 91 bills remaining on Youngkin’s desk to decide upon, with a deadline by the end of the day for signing, vetoing, or allowing them to automatically become law. These bills reached his desk after legislators rejected his April amendments to the legislation. “There are repeat vetoes that we are reinforcing,” Youngkin noted regarding the remaining legislations. “Some bills are intriguing despite amendment failures, but we are proceeding to endorse them nonetheless.”