Shirleen Guerra | March 27, 2025
(The Center Square) — Gov. Glenn Youngkin returned 205 budget amendments and a message to the General Assembly: Virginia is booming—and it’s time to lock in tax relief, boost reserves and double down on strategic investments.
Democratic leaders and policy advocates say the plan banks too much on savings while leaving critical needs unmet. Youngkin unveiled his revised budget on March 24, which includes nearly $9 billion in tax relief, proposes $594.5 million in additional deposits to Virginia’s reserve funds, and delivers funding boosts to public education, healthcare, employee compensation and infrastructure.
“We are strong. Because of that strength, we can be dynamic,” Youngkin said in a statement. “And by being dynamic, we will continue winning, together.”
Highlights from the amendments include $1.1 billion in new tax relief, continuing a trend the governor has emphasized throughout his administration. Virginians would receive a $200 rebate for individual filers and $400 for joint filers, expected to be distributed in Oct. 2025.
The political response to the amendments has been swift.
Senate Majority Leader Scott Surovell, D-Fairfax, said the governor’s approach bypasses standard legislative collaboration. “This is not the way we budget in Virginia,” Surovell told Cardinal News. The governor doesn’t seem to understand how the process works; he just seems more interested in scoring political points.”
Ashley C. Kenneth, president and CEO of the Commonwealth Institute, also raised concerns. While she praised the Earned Income Tax Credit expansion, she said the broader amendments “stand in the way of important progress that the General Assembly made in the budget that they passed in February.”
The plan also permanently increases the state’s standard deduction and expands the Refundable Earned Income Tax Credit to 20% of the federal level. The administration expects a total of $9 billion over four years.
To bolster what Youngkin calls “strategic financial strength,” the plan adds $594.5 million to the Revenue Reserve Fund. This will include a $300 million deposit from surplus revenue and $294.5 million from fiscal year 2024 collections. If approved, the state’s reserves would reach $5 billion—17% of defined revenues—up from the 9% reported in 2022.
While the administration frames the move as preparations for federal budget uncertainty, critics say it avoids needed investments in the core. The budget also avoids any new debt issuance beyond what’s already authorized.
Under the proposed amendments, public education receives a substantial funding boost, with $452.6 million in new support for K-12 schools. This includes $134.4 million for $1,000 bonuses to instructional support personnel in June 2025, $110.7 million to serve English Language Learners and $84.7 million to improve student-teacher ratios.
The budget also allocates $7.5 million to add 7,000 early childhood education slots and reduce waiting lists. In higher education, the governor recommended an additional $235 million to support affordability, financial aid and military survival education programs while directing colleges not to increase tuition by more than 2.25% or the rate of inflation.
More than $820 million is also proposed for any capital investments, including funding for the UVA Center for the Arts and the VMI Center for Leadership & Ethics.
Kenneth also criticized the education amendments, particularly the expansion of school vouchers and reduced support for public institutions. “These are steps in the wrong direction,” she said.
This article was made available to EdNews Virginia via The Center Square, a project of the Franklin News Foundation.