Governor amends Virginia's budget bill to increase rainy-day reserves over changes in Washington

Youngkin’s announcement comes after a mix of roughly 1,000 Virginian federal workers and contractors have filed claims for unemployment since the end of January after President Donald Trump and adviser Elon Musk began cutting jobs and programs in Washington, state officials have said.

In addition to the budget amendment, Youngkin’s administration has created a job website and encouraged impacted workers to explore other opportunities in Virginia.

“President Trump has been very, very clear, and he has not shied away from the fact that there could and may be economic disruption in the short term,” Youngkin said. “As he resets things in Washington, I agree with him that we will have long-term opportunity, and that is going to be good for Virginia.”

Before 2025, Virginia was home to roughly 315,000 federal workers, according to the Metropolitan Washington Council of Government. In the past few years, the state has done well economically — its state budget had a multibillion-dollar surplus, and more people were moving to the state than moving away, officials have said.

But, as the Democratic-led legislature gaveled out of its session, some acknowledged they may need to revise the budget in light of the fiscal cuts. Lawmakers announced they would expand a previously established special session so that they could reconvene later this year.

Following Youngkin’s announcement, Democratic Virginia House Speaker Don Scott blasted the governor for not protecting residents.

“We need a governor who will support Virginians,” Scott said in a statement, “not cave to Trump and Musk.”

Youngkin has until just before midnight on Monday to either sign, veto or seek amendments to all legislation sent to his desk after passing the statehouse earlier this year — including the budget bill, which amends the last year of the state’s two-year spending plan.

Lawmakers will then take up his revisions and vetos on April 2.

In his original budget presented in December, Youngkin proposed providing permanent relief by ending taxes on tips and cars for lower- and middle-income earners. The Virginia House of Delegates and Senate nixed his idea. Instead, they passed a budget that would give each taxpayer a $200 rebate.

On Monday, Youngkin said he would support the rebates, which had bipartisan support among lawmakers.

In the budget bill, lawmakers also scrapped Youngkin’s proffer to cut off funds toward local entities that do not fully comply with U.S. Immigration and Customs Enforcement. Further, Youngkin originally allotted money for a $50 million “Opportunity Scholarship” program, which would provide low-income families with vouchers to send their children to private schools. Lawmakers tossed out that idea, too.

In his amendments, Youngkin added versions of those provisions back into the budget bill.

“I pared back my request: Let’s take $25 million, and let’s provide lower-income Virginia families an opportunity to pursue an alternative education path that might fit their family and their children’s best opportunities,” he said of the scholarship program. “Why not try it?”

Youngkin also said he added an amendment authorizing the consideration of establishing Oak Hill, the home of former President James Monroe, as a state park. A bill to that effect failed in the legislature during the session.

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Olivia Diaz is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.