Virginia’s 45-day legislative session concluded Saturday with a $200 taxpayer rebate plan and bipartisan anxiety over federal job cuts targeting the state’s 315,000 government workers. Lawmakers approved $1 billion in tax relief and teacher bonuses but left critical questions unanswered about Medicaid funding and unemployment support.
Federal judge rulings this month cleared the path for Trump-era layoffs, prompting Virginia to launch an emergency jobs portal. Only 300 federal employees have filed unemployment claims since March 1, but Labor Secretary Bryan Slater warns numbers will surge.
“These are kitchen-table issues affecting real families,”said Democratic Delegate David Bulova, chair of Virginia’s new bipartisan workforce crisis committee.
Key budget decisions include:
- $200 rebates for taxpayers by mid-October
- State employee and teacher bonuses
- No Medicaid contingency plan if federal funding drops
Governor Glenn Youngkin’s proposed car tax credits and tipped wage reforms were rejected. Democrats instead prioritized maternal health coverage and campaign finance restrictions. The legislature also revived vetoed bills targeting Confederate tax exemptions.
Medicaid expansion remains at risk under Virginia’s trigger law, which could immediately end coverage if federal support declines. Senate Democrats unsuccessfully pushed for oversight protections before disenrolling recipients.
With 17% of Virginia’s workforce tied to federal jobs, economists warn prolonged layoffs could destabilize local economies. Youngkin promises a relief package for affected workers but provided no timeline or dollar amounts. “We’ll have much to address in April,” the governor stated, referencing the upcoming reconvened session.