Youngkin cuts $900M in Virginia budget to prep for Trump-era impact
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Gov. Youngkin is cutting $900 million from the amended two-year state budget to brace for fallout from President Trump's federal cuts, workforce reductions and tariffs.
The big picture: Youngkin still backs the federal policies, and said he thinks they'll eventually benefit the state, but he also acknowledged their "short-term risks" to Virginia's economy.
- The cuts will provide a "cushion" to offset the potential loss of revenue, he says.
Zoom in: The majority of the cuts ($691 million) come from state funding for construction projects that have yet to begin — mostly at state universities. They include:
- VCU buying the Altria research facility downtown.
- A new performing arts center at UVA.
- Renovations at VSU, JMU and William & Mary.
The remaining $209 million in cuts were for funding toward over 35 items, including:
- Programs for first-time homebuyers, rental assistance and employee child care assistance.
- Community violence reduction grants.
- More funding for dementia services in Richmond and Roanoke.
- Additional funding for the state community flood protection fund.
- HVAC improvements at Nottoway Correctional Center.
- Deferred maintenance at Virginia State Parks.
- Marketing campaigns for tourism and economic development.
Between the lines: The governor is barred by law from vetoing only portions of a budget item, which is why some, like the university projects, were cut entirely.
Zoom out: Federal funding has accounted for just over a quarter of revenue in Virginia, per the latest available data from 2022. That's among the smallest shares, compared to almost every state.
- But Virginia also has more federal workers than most states due to being home to major government and military facilities, which means the state still significantly relies on federal dollars.
What's ahead: Youngkin will submit his final proposed budget in December. He said he'd reintroduce the funding then, if it made sense financially.
What we're watching: Proposed cuts to Medicaid could throw a wrench in Virginia's plans. Virginia would be unlikely to absorb the cost.