Enacted Budget Adjustments – Fiscal Year 2026
On May 2, Virginia Governor Glenn Youngkin signed adjustments to the fiscal 2026 budget into law, amending the biennial budget. Total operating expenses are $92.5 billion in fiscal 2026, an increase of 3.8 percent over the original fiscal 2026 budget. General fund appropriations are $32.7 billion, an increase of 2.4 percent over the original 2026 budget. The governor vetoed 37 items from the budget totaling approximately $849.5 million, retaining a total of $900.5 million as a cushion against near-term potential risks.
The amended biennial budget provides tax relief and also makes incremental general fund investments in shared priorities. In tax relief, the budget increases the standard deduction, increases the threshold for estimated payments, and increases the refundability of the Earned Income Tax Credit. In health and human resources, the budget provides additional funds for the forecast of utilization and inflation in the Medicaid program; increases funding for the Children’s Services Act; and allocates increased funds for the Children’s Health Insurance Program. The budget increases support for education, including funds to increase the number of state-recognized support positions; establish an add-on to per-pupil basic aid for each special education student; and support additional English Learner students identified as requiring intense support. Other areas receiving additional funding include increased inmate medical costs, modernization of regulatory IT systems and support for increased premiums in the state employee health insurance program.