Governor Glenn Youngkin’s final budget, presented Wednesday to both legislative chambers, conforms with new tax cuts under President Donald Trump’s One Big Beautiful Bill to offer about $750 million in tax relief.
But the outgoing governor didn’t conform entirely - some business tax breaks were skipped, and no tax on tips and other Trump concepts were delayed too soften the financial blow to the state.
“All of that enables us to substantially conform and yet provide some limitations on the overall dollar amount,” Youngkin told reporters following his budget presentation.
The governor also included a 2% bonus and 2% raise for teachers and state employees: “And I think that’s really good budgeting and they deserve it.”
There’s also $35 million for an inland port in Southwest Virginia that would connect freight rail and highway truck routes.
“When we begin to connect together our nationally leading infrastructure, all of Virginia will thrive,” Youngkin said.
He also pointed to big dollar business investments he’s announced during his term as setting the Commonwealth up for success after he leaves.
“We’re leading the nation in winning manufacturing investments and Virginia used to never be able to do that,” he said, suggesting the Commonwealth used to chase company headquarters, but now he’s leaving manufacturing legacy from the coast to Appalachia.
“What comes with manufacturing is supply chains, service companies,” he said. “And it’s not isolated just to our urban areas.”
But Democratic Senate Majority Leader Scott Surovell disagreed with Youngkin’s rosy outlook.
“We have a general economic slowdown going on in this state and you didn’t hear a word about it from this team,” Surovell said after the budget briefing. “And they seem completely out of touch with the realities of everyday Virginians."
But Youngkin downplayed economic concerns. Instead, he decried the “doom and gloom” he said was coming from people pushing for Virginia to fail in the wake of President Trump’s election.
“We are soaring in economic development. We have record job growth. We have strong consumers,” the governor said. “While our federal government workers have been impacted, it’s not been near the level the doomsday guys thought it would be.”
He pointed to increased national defense spending from the federal government, and the 72% of federal workers who are involved in that work, as grounds for the Commonwealth’s resilience. There’s also the $612 million in new investments in naval ship construction that will bring more work to the Norfolk Naval Shipyard.
Youngkin’s budget will be considered as a starting point when Governor-elect Abigail Spanberger takes over next month.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
