Youngkin tells legislators Virginia's economy is strong
dailyprogress.com -- Friday, August 15, 2025, 6:28:27 AM Eastern Daylight Time
Categories: Presidential Campaigns
Gov. Glenn Youngkin said Virginia will carry a $1.7 billion "cash cushion" heading into the 2026 fiscal year which starts July 1.
Gov. Glenn Youngkin told the General Assembly Thursday that Virginia's finances have grown even stronger and that worries about President Donald Trump's policies have proved unfounded.
But he said the Virginia Clean Economy Act, which mandates an end to power plants fired by fossil fuels needs revision -- and later told reports the act should be dismantled.
Crime-courts State police investigating alleged school-funded abortions in Fairfax, says Youngkin DAVE RESS Richmond Times-Dispatch
Youngkin said the state's economic development efforts have generated hundreds of thousands of jobs and hundreds of million dollars of investment. But he also took time to blast Fairfax County for what he termed its reluctance to offer incentives and for its recent meals tax increase.
"Virginia is as strong financially as she has ever been," Youngkin said in his annual address reporting on state government finances and the state economy in the past fiscal year, which ended June 30.
Youngkin will propose a new two-year budget to the money committees in December before he leaves office in January.
"Performance that we saw in fiscal year 2025 and see again in the first month of 2026, combined with carryover balances from 2025, creates $1.7 billion in a cash cushion as we head into fiscal year 2026," Youngkin said. "Based on what we know today, this cushion and the prudent nature of our 2026 forecast provide great confidence that we can achieve the budget."
Youngkin said that given the strong performance in 2025, forecast revenue for fiscal year 2026 only requires growth of $127 million, or 0.4% over the 2025 results of $31.2 billion "in order for us to meet plan" in 2026.
"Our strong revenue enables us to invest, to save and, yes, to provide substantial tax relief," he said. "We are in a stronger financial position today because we have more money and less uncertainty than we did just six months ago. Many of the things that caused some uncertainty earlier in the year have been addressed: The stock market is at an all-time high, trade deals are getting cut and D.C. gridlock has not materialized."
'Good outcomes'
Later, he told reporters the uncertainties he referred to were views that Trump's policies would harm the economy, which he said turned out to be mistaken.
"They were accusations of uncertainty, candidly from the Democrat leadership in Washington and in our state, and it seemed that they were hoping, hoping that things wouldn't go well," Youngkin said. "They seemed to be really advocating for bad outcomes, when, in fact, we've had good outcomes.
"And I just think that needs to be said very clearly, many of those uncertainties which they were pointing to have not only disappeared ... but we are ... seeing real opportunity as a result of President Trump's policies," he added.
State Sen. Louise Lucas, D-Portsmouth, head of the Senate Finance Committee, said Thursday: "While Virginia's economy is doing better than expected, we do know that the changes the Trump administration has sent our way are going to be detrimental to the commonwealth's budget."
She said the Trump administration is shifting some costs to the state and that federal job cuts will hurt.
Power plays
Youngkin said the state needs to continue a focus on workforce development and that "we need not impose government mandates on businesses. It also means that we need to pull together and recognize the power challenges that we have."
"We know that the VCEA [Virginia Clean Economy Act] is not working for Virginia. We know the VCEA is not working because energy bills are way too high and ratepayers are the ones paying the prices. We know the VCEA is not working because we are too reliant on importing too much power from out of state. We know the VCEA is not working because $5.5 billion in compliance costs are projected to be passed along to ratepayers over the next 10 years," Youngkin said.
"It just needs to be dismantled," he told reporters after his address.
He again called for "all-of-the-above" approach to generating power.
"Yes, there's absolutely room for renewables. We finish our projects, but we need to unleash gas power generation," Youngkin said. "We need to continue to press forward with leading the nation in nuclear power, particularly small modular reactors," he said.
Youngkin said the state is focused on economic development: recruiting new businesses to come to Virginia and encouraging Virginia firms to expand here.
Fairfax frustrations
He added that "most localities compete like crazy, and while some areas win more than others, they all are competing, winning, growing and seeing the benefits for their citizens. ... However, there are select counties that have not been eager to collaborate, to offer the kinds of incentives that are necessary to attract business opportunities."
He did not name the county in his remarks, but told reporters he was talking about Fairfax County, the most populous in the state.
"I've been very frustrated with the constant refrain coming out of Fairfax County," he said.
"Fairfax County has been running an enormous budget deficit long before we ever got into the fiscal year, calendar year 2025," he said. "Their response to that has been to raise taxes on their citizens with an increased meals tax, their response to that has been to look to their saving grace, to be a casino, as driving economic development, and they have refused to really fully participate in economic development opportunities and provide the kinds of incentives."
Effective Jan. 1, Fairfax County will begin levying a tax on the purchase of all prepared food and beverages sold as meals. The food and beverage tax is 4% of the total cost of food and beverages sold by restaurants, caterers or other designated establishments defined as restaurants.
Fairfax County officials are divided over a proposal to allow a Tysons Corner casino. A measure that would have added Fairfax County to the list of Virginia localities eligible to develop a casino failed in the legislature this year.
"The reality is that Fairfax County is seeing people move away faster than they move in," Youngkin said. "They are seeing budget deficits, and what's their response? Raise taxes. So if there is a microcosm of bad policy decisions, in my view, it's Fairfax County, and I firmly believe that Fairfax County needs to just get with the program."
Rural health care
Youngkin has directed state officials to develop a plan to tap the $50 billion in funds for rural health care from Trump's tax and budget bill.
He expects Virginia's share of that will be $500 million to $1 billion over the next five years.
Youngkin has also directed state officials to make a push to reduce error rates in processing applications for food stamps through the Supplemental Nutrition Assistance Program, or SNAP, better known as food stamps, since the new tax and budget bill requires states to increase their share of the cost of this program if too many people are mistakenly granted food stamps.
If Virginia does not cut its current 11.5% error rate, the state would have to fund 15% of the cost of benefits paid, or $270 million a year. Getting the rate to less than 6% means the state would not have to contribute anything to the food stamps program.
Local social services departments are responsible for determining who can get food stamps, so the state push will involve training and incentives in an effort to push these agencies to do a better job.
Sign Our PetitionThe recent statements by Virginia Governor Glenn Youngkin regarding the state’s economic condition underscore an ongoing tension between fiscal optimism and the realities of social justice and environmental concerns. Youngkin's claims of a robust $1.7 billion "cash cushion" as Virginia approaches the 2026 fiscal year are a clear attempt to frame the state's finances in a positive light. However, this narrative deserves critical examination within the larger context of economic policy, historical trends, and social equity.
Historically, Virginia's economy has been shaped by a complex interplay of agricultural, industrial, and technological sectors, with significant reliance on government spending due to its proximity to Washington, D.C. Youngkin's portrayal of economic strength, particularly his assertion that the fears surrounding President Trump's policies were misplaced, ignores the nuanced economic disparities that persist within the state. Economic growth does not inherently translate to equitable prosperity. The assertion that the stock market is booming, for example, often fails to account for the widening wealth gap and the reality that many working-class families continue to struggle with stagnant wages, housing insecurity, and inadequate access to essential services.
Youngkin’s criticism of Fairfax County regarding its incentive offerings and recent meals tax increase highlights another critical aspect of economic governance: the need for a balanced approach to local taxation and government support for community services. Taxes, when applied fairly, can serve as tools for social equity, funding education, healthcare, and infrastructure—all essential for ensuring that economic growth benefits all citizens, not just the wealthy. The call to dismantle the Virginia Clean Economy Act, which aims to phase out fossil fuel dependency, raises alarms about the long-term sustainability of both the economy and the environment. This act is not merely a regulatory measure; it is a commitment to a just transition towards renewable energy that protects our planet and the most vulnerable populations impacted by climate change.
Moreover, Youngkin's framing of economic success as a direct consequence of Trump-era policies warrants scrutiny. While it is true that certain macroeconomic indicators may appear favorable, it's crucial to dissect the broader implications of such policies. The trickle-down economic theory, which undergirds much of conservative economic thought, has historically failed to produce equitable outcomes. Instead, it often exacerbates inequalities, as tax cuts and deregulation disproportionately benefit corporations and the wealthiest individuals, while leaving marginalized communities behind. Thus, to assess Virginia's economic health, one must consider who is truly benefiting from these policies and at what cost.
Finally, the implications of Youngkin’s remarks extend beyond mere economic statistics; they intersect with ongoing social struggles for justice and equity. The current discourse surrounding school-funded abortions in Fairfax and the broader implications of reproductive rights reflect a critical cultural battle. As states grapple with these issues, it becomes evident that economic policy cannot be disentangled from social policy. The framing of economic strength should also encompass the health, rights, and dignity of all citizens. A truly robust economy is one where all individuals have access to healthcare, education, and the ability to thrive, rather than just survive.
In conclusion, while Governor Youngkin celebrates Virginia’s financial prospects, it is imperative to critically analyze the implications of his assertions. A comprehensive understanding of economic health must account for social equity, environmental sustainability, and the broader impacts of policy decisions on marginalized communities. The ongoing economic discourse in Virginia should embrace a vision of inclusivity and justice, advocating for policies that uplift all citizens and protect the planet for future generations. This conversation is not just about numbers; it is about the very fabric of society and the values we choose to uphold as we navigate the complexities of our time.
Governor Glenn Youngkin's recent address to the Virginia General Assembly highlights a crucial intersection of economic rhetoric and environmental responsibility. While he touts a $1.7 billion cash cushion for the state and claims that fears surrounding the economic impact of former President Trump’s policies were misplaced, his dismissal of the Virginia Clean Economy Act raises significant concerns about the future of clean energy initiatives. Historically, states such as Virginia have grappled with balancing economic growth and environmental sustainability, but Youngkin's push to dismantle this vital legislation threatens to reverse progress made in combating climate change and transitioning to renewable energy sources.
Youngkin's assertion that Virginia's economy is thriving due to the current administration's policies conveniently overlooks the broader context of economic trends and the critical role of sound environmental policy. The Virginia Clean Economy Act was a landmark piece of legislation aimed at phasing out fossil fuels and investing in clean energy. It reflects a larger national and global movement toward sustainability and climate action, which is increasingly recognized as essential for long-term economic prosperity. By arguing for its revision, Youngkin is not only undermining a strategic plan for a sustainable future but also diminishing the potential for job creation in the burgeoning green economy sector. Research indicates that investments in renewable energy can create far more jobs per dollar spent compared to fossil fuel investments, a key point that should be emphasized in discussions with those who prioritize economic growth.
To address the implications of Youngkin's statements and policies, it is essential for citizens to engage in constructive dialogue about the value of clean energy initiatives. Americans can advocate for legislation that encourages renewable energy investments and holds leaders accountable for their environmental policies. Grassroots movements, public forums, and town halls can serve as platforms to educate the community about the economic benefits of clean energy and the potential risks of relying on fossil fuels. By sharing success stories from states that have successfully transitioned to renewable energy, advocates can counteract Youngkin's narrative with evidence of the economic viability of clean energy.
Furthermore, it is crucial to challenge the framing of economic success in purely fiscal terms, as Youngkin does. Real economic success should encompass social equity and environmental health. By advocating for policies that prioritize equitable access to clean energy and job training in green technologies, we can articulate a broader vision of prosperity that includes all Virginians. Engaging with right-wing perspectives on economic growth requires presenting data and case studies that illustrate how clean energy initiatives can lead to job creation, improved public health, and enhanced community resilience against climate impacts.
In this pivotal moment for Virginia's future, Americans must prioritize engagement with their representatives and local governments. This involves not only advocating for the preservation of the Virginia Clean Economy Act but also pushing for more comprehensive environmental policies that align with economic growth. By fostering a culture of accountability and transparency, citizens can ensure that their leaders prioritize sustainable development and the well-being of future generations. In the face of rhetoric that seeks to diminish the importance of environmental policies, we must amplify the message that a robust economy and a sustainable environment are not mutually exclusive; they are, in fact, deeply interconnected.
In light of the statements made by Governor Youngkin regarding Virginia's economy and his critique of the Virginia Clean Economy Act, there are several actions we can take as engaged citizens to advocate for a more sustainable and equitable economic future. Here’s a detailed list of actions:
### What Can We Personally Do About This?
1. **Advocate for the Virginia Clean Economy Act**: Express support for maintaining and strengthening the Virginia Clean Economy Act, which aims to phase out fossil fuels and promote renewable energy sources.
2. **Educate and Mobilize**: Share information about the importance of renewable energy and the potential consequences of dismantling the Clean Economy Act. Engage friends, family, and community members in discussions about the impact of fossil fuels on climate change and public health.
3. **Contact Local Representatives**: Reach out to your state legislators to voice your concerns about the proposed revisions to the Clean Economy Act and to advocate for sustainable economic policies.
4. **Support Local Environmental Organizations**: Join or donate to local environmental advocacy groups that work to promote clean energy and hold politicians accountable for their actions.
5. **Participate in Public Meetings**: Attend town halls or public meetings where discussions about the budget and environmental policies are held. Make your voice heard on issues that matter to you.
### Exact Actions We Can Take:
1. **Sign Petitions**: - **Petition for Clean Energy**: Look for petitions on platforms like Change.org or local activist organizations that advocate for maintaining and strengthening the Virginia Clean Economy Act. For example, you can sign the petition titled "Stand Up for Clean Energy in Virginia" at [change.org](https://www.change.org). - **Local Environmental Organizations**: Websites like the Virginia Chapter of the Sierra Club often have petitions you can support.
2. **Contact Legislators**: - Write to your state representatives to express your views. Here are a few key contacts: - **Delegate Jennifer McClellan** - Email: DelJMcClellan@house.virginia.gov - Mailing Address: P.O. Box 406, Richmond, VA 23218 - **Senator Adam Ebbin** - Email: district30@senate.virginia.gov - Mailing Address: P.O. Box 396, Richmond, VA 23218 - **Governor Glenn Youngkin** - Email: constituents@governor.virginia.gov - Mailing Address: 1111 East Broad Street, Richmond, VA 23219
3. **What to Say**: - When contacting your representatives, consider the following points: - Express your support for the Virginia Clean Economy Act and emphasize its importance in combating climate change. - Highlight concerns about dismantling policies that promote renewable energy and the long-term economic benefits of transitioning to clean energy. - Encourage your representatives to consider the voices of their constituents who prioritize environmental health and sustainability.
4. **Join Local Advocacy Groups**: - Engage with organizations like: - **Virginia Conservation Network**: [virginiaconservationnetwork.org](https://www.virginiaconservationnetwork.org) - **Alliance for the Chesapeake Bay**: [allianceforthebay.org](https://allianceforthebay.org)
5. **Engage on Social Media**: - Use platforms like Twitter and Facebook to share articles, news, and personal stories about the importance of clean energy. Tag your representatives and use hashtags to amplify your message.
6. **Attend Local Government Meetings**: - Check the Virginia General Assembly website for upcoming meetings and hearings related to budgets and environmental policies. Prepare a short statement to share your views when you attend.
### Conclusion
By taking these actions, we can collectively make our voices heard and influence policy decisions that prioritize a sustainable and equitable economic future for Virginia. Engaging with local representatives, supporting petitions, and mobilizing community support are essential steps in standing up for clean energy and environmental justice.