Virginia Ends Fiscal Year With $2.7B Surplus

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Gov. Glenn Youngkin delivered Virginia’s official budget closeout to the Joint Money Committee on Thursday, confirming the commonwealth ended fiscal year 2025 with a $2.7 billion surplus, a $1.7 billion cash reserve and $4.7 billion in the Rainy Day Fund.

The surplus finished $572 million above revenue projections. Individual income tax collections rose 7.8%. Sales tax collections were up 2.2%. Corporate income taxes declined 1.5%.

Virginia’s AAA bond rating was reaffirmed earlier this year. Youngkin said the commonwealth’s strong balance sheet is “not about geography, it is about responsible fiscal management.”

Since 2022, the administration reports $9 billion in tax relief, $125 billion in new business investment and more than 265,000 additional Virginians working. The commonwealth has roughly 250,000 open jobs.

House Republican Leader Terry Kilgore called the report “the kind of news every Virginian should cheer,” citing revenues nearly $600 million ahead of projections, $9 billion returned to taxpayers and record reserve levels.

Youngkin said Virginia expects at least $500 million, and possibly up to $1 billion, in federal funds to expand rural health care access through a rural health transformation initiative.

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