VA Gov Spanberger pleased with budget compromise; Republican leaders, not so much

Gov. Abigail Spanberger is calling Virginia’s newly approved two-year budget a compromise that keeps state government operating.

Spanberger called the budget a compromise that keeps state government operating while making investments in schools, public employees and health care.

“Today, the General Assembly has moved forward with a budget proposal – and that means we are keeping our government open and delivering for the 8.8 million people who call our Commonwealth home,” Spanberger said in a statement.

House GOP Leader Terry Kilgore said lawmakers avoided a government shutdown but criticized the budget process.

“The budget has finally passed, but not in a manner that should make any Virginian proud,” Kilgore said. “More than 100 days after the General Assembly adjourned, lawmakers were forced to consider a budget that was substantially rewritten at the last minute and loaded with policy provisions that should have been debated openly during the regular legislative session.”

One provision in the budget has also drawn praise from healthcare advocates.

Protect Our Care Virginia said the spending plan includes funding intended to help offset some of the effects of upcoming federal health care changes.

“We applaud Democrats in the General Assembly … for finding state funds to try to mitigate some of the damage,” Virginia State Director Katie Baker said in a statement.

The budget includes $150 million to reduce health insurance premiums by about 70% for Virginians with incomes between 138% and 250% of the federal poverty level who purchase coverage through the state’s health insurance exchange.

It also provides a $350 million Medicaid contingency reserve, a $225 million fund to address potential federal health care changes, and $10 million for free clinics. Another $3 million over the two-year budget will help connect people newly subject to Medicaid and SNAP work requirements with employment, volunteer opportunities and other resources.

The budget approved Monday also includes a temporary electricity consumption tax on qualifying data centers, establishes the framework for Virginia’s adult-use cannabis market, creates a $25 million employee childcare assistance pilot program and includes raises for teachers and state employees, as previously reported by The Center Square.

The legislation now heads to Spanberger, who has until Monday to act on the budget before the new fiscal year begins July 1.