Youngkin pitches ‘no tax on tips’ bill, Democrats push 'momnibus' to address maternal healthcare

Governor Glenn Youngkin, Democratic House Speaker Don Scott and Senate President pro Tempore Louise Lucas all backed new spending priorities Monday, ahead of the 2025 legislative session.

Youngkin announced a ‘no tax on tips’ effort at McLean's Restaurant, a favorite diner in downtown Richmond Monday morning.

Dionna Kelleher, a veteran server who's been slinging pancakes, coffee and hashbrowns at McLean’s for about 35 years, welcomed the idea when asked about the new proposal.

“It's not a wage, and it should be a gift,” Kelleher said as she ran between tables.

Youngkin said his plan has an estimated cost of about $70 million and could impact as many as 250,000 working servers in the Commonwealth. By my reporter math, that could be about $300 a server. The governor said all they’d have to do is claim a deduction on their state tax return.

“This is a way for us to give them a raise, for us to let them keep more of that hard earned money in their pocket,” Youngkin told reporters after shaking hands and pouring coffee refills in a packed room of diners.

It’s an idea Republican lawmakers like Harrisonburg-area Senator Mark Obenshain hope will garner bipartisan support after President-elect Donald Trump and Vice President Kamala Harris both supported the idea leading up to the 2024 election.

“It just seemed like a no-brainer to look at something that, on the national scene, Republicans and Democrats had linked arms and agreed was a good idea,” Obenshain, who signed on to the effort last week alongside Republican Ryan McDougle, last week.

Lynchburg Delegate Wendell Walker made the trip to McLean's to support Youngkin’s tax-free tips effort. Walker’s district includes four colleges; he said students could benefit under Youngkin’s plan.

“This just means more money for those college students, paying those college bills," he said.

Eric Terry, President of the Virginia Restaurant Lodging and Travel Association also welcomed the tax-free tips plan, saying it could help service industry workers “achieve and maintain their financial independence.”

In a press conference hours later, Speaker Scott said he would have to see more details about Youngkin's effort before getting on board.

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"Any idea that's going to put money back into the pockets of Virginians, we're going to take a look at it," he said. "If he's doing that then we're on board. But if it's irresponsible, then we're not."

"We're not just doing things for the front page of the newspaper," Scott added. "We're doing things that we know are responsible."

To that end Scott and Lucas announced a new package of maternal health bills Monday afternoon, calling it their "Momnibus" bill.

Based off of information collected from a Black maternal health summit held in Richmond a few weeks back, the leaders of their respective chambers said they are looking to set national standards for laws that will address concerns about maternal mortality rates, especially those for Black women.

“The bills in the 'Momnibus' will focus on improving health resources for women before during and after childbirth,” Scott told reporters, pointing to issues like the 80% of maternal deaths that experts at the March of Dimes say are otherwise preventable.

Stacey Brayboy is with the March of Dimes. She said a new report from the maternal healthcare watchdog found 30% of Virginia counties are considered maternal health deserts.

"You have to drive anywhere between 45 minutes to an hour just to access care in some Virginia counties," Brayboy warned.

Other 'Momnibus' efforts include expanding Medicaid to cover the cost of baby supplies and a pilot program to create monitoring systems for women who live far from healthcare providers and funds for childcare programs.

Among initiatives is a remote treatment pilot which involves virtual visits, but possibly even wearable medical tech that allows doctors to monitor pregnant mothers from a distance.

"We're constantly hearing about access to healthcare and these kinds of technology-driven options can really increase access," said Delegate Amy Laufer, a Charlottesville Democrat who sits on the state's rural healthcare committee.

"We know people can convalesce better at home anyway, so as long as a doctor is able to monitor what's going on and patients aren't coming in for appointments they don't need," she said.

Lucas said she’d spoken to female workers at the shipyard in her Portsmouth district and that helped inform the Momnibus package.

“Women are the backbone of families, the heart of economies and the champions of progress in every corner of the globe. Yet too often women face preventable maternal health challenges,” Lucas said.

Del. Michael Feggans is involved in a yet-to-be published bill that he said will aid working mothers, including a new pilot program in Virginia Beach that's designed to help teachers get childcare.

"Economic stress doesn't just impact mothers, it impacts children, families and our communities," he said. The pilot, if funded, would run for a year and may expand across the state if Feggans has his way.

Scott noted workforce shortages have led to an increase in female workforce participation. He said the state needs to step up to help those willing to leave the house to work.

"A lot of those jobs are going to be filled by single moms, so we need to take this seriously, as a workforce development initiative," the speaker said.

Delegate Candi Mundon King pointed to recent comments from House Finance Committee Chair Delegate Luke Torian which showed support for expanded funding to open more state-funded childcare slots.

"For low-income families in particular, it's important to expand funding for that waitlist," Mundon King said.

Specifics on the cost of the bill were not yet available, but conservative budgeting has led Virginia to billions in excess funds as it goes to amend the 2024 budget.

Mundon King said whatever steps Democrats take -whether on tax breaks or in the Momnibus bill- they'll be "fiscally responsible" steps.

With legislative majorities in both chambers, they'll have to work with Youngkin, and vice-versa, to agree on a new spending package by the end of the 2025 legislative session.

This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.