Virginia Lawmakers Reshape Youngkin's Final Budget with Focus on Affordability, No New Taxes

The Senate and House advance plans that prioritize housing, health care, and education without raising taxes

Published on Feb. 22, 2026

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The Virginia General Assembly's money committees have rolled out sweeping amendments to former Gov. Glenn Youngkin's proposed two-year, $212 billion state budget. Both the House and Senate are advancing plans that emphasize affordability, backfill federal funding gaps, and avoid new taxes as they reshape the Republican's final spending blueprint.

Why it matters

The budget negotiations come as Democrats take control of both the General Assembly and the governor's office. The final budget will set the state's spending priorities for the next two years, with a focus on issues like housing, health care, and education.

The details

The Senate plan would allow a data center sales tax exemption to expire, potentially generating $1.6 billion in annual revenue. It also includes $100 tax rebates for individual filers and $200 for joint filers, raises the standard deduction, protects Medicaid, funds 3% annual teacher raises, invests $50 million in affordable housing, and provides $205.7 million for Metro. The House 'Affordable Virginia Budget' similarly prioritizes housing, health care, and education, with larger investments in the Virginia Housing Trust Fund and a broader package of worker protections and labor initiatives.

  • Youngkin unveiled his final proposed budget on December 17, 2025.
  • The Senate and House are expected to pass their respective budget proposals next week, with the House voting on Thursday.

The players

Glenn Youngkin

Former Republican governor of Virginia who proposed the original $212 billion state budget.

Louise Lucas

Democratic chair of the Senate Finance Committee, who led the effort to amend Youngkin's budget proposal.

Richard Stuart

Republican state senator from King George, who voted for the Senate budget in committee.

Creigh Deeds

Democratic state senator and chair of the Health and Human Resources Subcommittee.

Rodney Willett

Democratic state delegate and chair of the House Health and Human Resources Subcommittee.

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What they’re saying

“I can't tell you how much I appreciate the fact that there are no tax increases in this budget, that you've kept a very conservative forecast of revenues going forward, that we have not built the base budget, but we're using one-time monies.”

— Richard Stuart, Republican state senator (Virginia Mercury)

“Thank you very much, I really appreciate that compliment, I didn't see that one coming. Where are the tissues?”

— Louise Lucas, Democratic chair of the Senate Finance Committee (Virginia Mercury)

What’s next

The House and Senate are expected to pass their respective budget proposals next week, with the House voting on Thursday. Lawmakers will then work to reconcile the differences in a conference committee in the coming weeks.

The takeaway

The budget negotiations highlight the shifting political landscape in Virginia, with Democrats now in control of the General Assembly and the governor's office. The final budget will reflect the priorities of the new Democratic leadership, focusing on issues like affordability, housing, health care, and education, while avoiding new taxes.