Speaker Don Scott, D-Portsmouth, on the House floor Saturday. (Photo by Markus Schmidt/Virginia Mercury)
The Virginia General Assembly adjourned its 2025 session on Saturday after approving a series of amendments to the state’s biennial budget, which passed with overwhelming bipartisan support — 81-18 in the House and 27-3 in the Senate. The budget package, now headed to Gov. Glenn Youngkin, includes one-time bonuses for state employees, targeted tax cuts for working families, and increased funding for public education.
House Speaker Don Scott, D-Portsmouth, emphasized the bipartisan nature of the budget deal, noting that even some of the most prominent Republican lawmakers praised the final agreement.
“I’m not sure what the governor will do with the budget, but I do know that we had 30 Republicans vote for the budget,” Scott told reporters Saturday evening. “Even McDougle came out and said, ‘this is a great budget.’ He praised the conferees, he praised us,” Scott said, referring to Senate Minority Leader Ryan McDougle, R-Hanover. “Anytime you can get 30 Republicans to join us in a huge bipartisan way to pass the budget, I think that says a lot.”
Under the revised budget, state employees will receive a 1.5% bonus, while teachers and public school employees will get a $1,000 bonus. The budget also provides $1.1 billion in tax cuts, primarily through one-time income tax rebates of $200 for individuals and $400 for couples filing jointly.
Additionally, the standard deduction will increase by $250 for individuals and $500 for couples, while the refundable portion of the Earned Income Tax Credit (EITC) rises from 15% to 20%.
This tax policy shift means that a married couple with two children earning $30,000 annually will receive over $1,000 back during tax season, providing much-needed financial relief to offset an increase in prices for groceries, gas, and other essentials.
While Youngkin has yet to indicate whether he will sign, amend, or veto the budget, Scott made it clear that rejecting it would be an uphill battle given the broad bipartisan consensus.
“I’m not sure what the governor will do, but it would be ridiculous for him to do anything to not [sign] a budget,” Scott said. “If he doesn’t, then the next governor will get to allocate those resources.”
With a wave of legislation and the newly passed budget now on his desk, Youngkin emphasized that his work is just beginning.
“This General Assembly is sending me a multitude of bills, including a budget, and over the next 30 days I will go to work to review and take action on those bills and budget,” he said in a statement after the legislature adjourned.
Looking ahead to the reconvened session, where lawmakers may take up any amendments or vetoes he proposes, Youngkin noted that there will be “much to address” but said he remained appreciative of the work put in by legislators and their staff throughout the session.
For the first time in over 15 years, lawmakers are lifting the cap on state funding for student support positions, enabling school divisions to add 4,725 additional staff to assist students. The budget also allocates $52.8 million in flexible funds to help localities support students with disabilities, covering expenses such as learning aids and assistive technology.
Additionally, the budget keeps Virginia on track for a $15 minimum wage by 2027 and expands paid family and medical leave for workers who previously lacked access. Lawmakers say these measures will help working families stay financially secure while allowing employees to take time off for personal or family health needs.
Supporters of the budget praised its focus on working families and economic fairness.
Ashley Kenneth, president and CEO of The Commonwealth Institute for Fiscal Analysis, emphasized that increasing the EITC would make the tax code “more progressive and fair.”
“This tax policy choice will mean a married couple with two kids making $30,000 a year will get an additional $300+ back during tax filing season compared to the 15% option, totaling more than $1,000,” Kenneth said. “That will help families buy groceries, pay for gas, and keep the lights on. We strongly urge Governor Youngkin to approve these transformative investments that will expand opportunity and support for people across the commonwealth.”
Freedom Virginia co-Executive Directors Rhena Hicks and Ryan O’Toole also praised the deal, noting that it rejects corporate tax cuts in favor of helping working Virginians.
“The General Assembly has created a budget to guarantee a more fair and affordable economy that ensures Virginians can get ahead,” they said in a joint statement.
“Advancing a budget to ensure Virginians can afford child care, housing, and tax relief is only the first step. Governor Youngkin now has a choice: prioritize hardworking Virginians and sign this budget or delay relief at a time when Virginians are under increasing economic assault from reckless federal cuts. We sincerely hope he chooses the former.”
The budget also includes a major change in gaming revenue distribution. Starting July 1, 2026, Richmond and other localities hosting historical horse racing parlors — such as Rosie’s Gaming Emporium — will keep the revenues generated in their communities rather than sending half to New Kent County, home to Colonial Downs, Virginia’s only live horse racing track.
In return, New Kent will no longer be responsible for providing security on race days at Colonial Downs. Instead, the track’s owner, Churchill Downs, will assume that responsibility.
House Appropriations Chairman Luke Torian, D-Prince William, confirmed the change earlier this week, calling it a priority for localities that host gaming facilities, including Dumfries, Hampton, Roanoke County, Emporia, and Collinsville.
However, the budget agreement does not include a Senate proposal to legalize electronic skill games and a House proposal to establish a state gaming commission to oversee all non-lottery gaming operations. While Youngkin supports the creation of a gaming commission, he remains opposed to legalizing electronic skill games.
With the General Assembly’s approval in place, Youngkin now faces a March 24 deadline to act on the budget amendments before the current fiscal year ends on June 30.
If he takes no action, the existing biennial budget will remain in effect for the next fiscal year. However, if he proposes amendments or vetoes certain provisions, lawmakers will have to reconvene to review his changes or attempt to override any vetoes, potentially setting up a budget battle in the months ahead.
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