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Govt Spending

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Budget response to federal cuts

Virginia finalized a $205+ billion 2026-2028 budget after a special session, with the governor and legislature highlighting roughly $1 billion and other measures to protect Virginians from federal cuts tied to national legislation referred to as the ‘One Big Beautiful Bill,’ while still funding education, healthcare, and affordability priorities. Timing pressure before the July 1 fiscal deadline shaped negotiations.

How should Virginia’s budget respond to federal funding cuts and cost pressures?

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Sources

Governor’s budget recommendations (HB30) — https://budget.lis.virginia.gov/amendment/2026/2/HB30/Enrolled/GR
On June 22, 2026, the House of Delegates and Senate of Virginia sent me a budget that addresses our shared priorities to lower costs for Virginians, invest in our schools and communities, and address the devastating impacts of the so-called ‘One Big Beautiful Bill.’
Governor Abigail D. Spanberger — https://www.governor.virginia.gov/newsroom/news-releases/2026/june-releases/name-1120418-en.html
Budget Includes Record $2 Billion in New Public Education Funding, First-of-Its-Kind Energy Consumption Tax on Data Centers, & $1 Billion to Protect Virginians From Federal Cuts
WDBJ — https://www.wdbj7.com/2026/06/20/virginia-lawmakers-release-state-budget-details
The Virginia state budget was released Saturday, June 20, with just over 10 days left before the July 1 deadline to approve the two-year budget. The proposed budget totals more than $205 billion...
Positions on this issue  ·  liberal → conservative
  1. Replace lost federal funds with larger state spending and new progressive revenue sources
  2. Use substantial state backfill and targeted investments to shield families from federal cuts
  3. Partially offset federal cuts while holding overall budget growth in check
  4. Avoid major backfills; cut matching programs and prioritize lower taxes over replacements
  5. Shrink state spending in parallel with federal cuts and reject new taxes or backfills