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

RICHMOND, Va. (AP) 鈥 Republican Gov.
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FILE - Virginia Gov. Glenn Youngkin gestures as he delivers his annual State of the Commonwealth address before a joint session of the Virginia General Assembly at the Capitol, Jan. 13, 2025 in Richmond, Va. (AP Photo/Steve Helber, file)

RICHMOND, Va. (AP) 鈥 Republican Gov. Glenn Youngkin said on Monday that he hoped to bolster Virginia鈥檚 rainy-day fund by $300 million in light of economic uncertainty surrounding the White House鈥檚 overhaul of federal jobs and its impact on the state鈥檚 workforce.

At a news conference, Youngkin announced he had more than 200 amendments to a bipartisan budget bill adopted last month by the Virginia General Assembly, including trimming state spending to add additional funds to Virginia鈥檚 coffers.

The $300 million would be on top of already slated to be set aside over the biennium. Youngkin said the reserved revenue would give Virginia a cushion of $5 billion.

鈥淚t enables us to feel confident that if there is a bump in the road, we can deal with it,鈥 he said.

Youngkin鈥檚 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鈥檚 administration has created a job website and encouraged impacted workers to explore other opportunities in Virginia.

鈥淧resident 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,鈥 Youngkin said. 鈥淎s 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.鈥

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 鈥 its state budget had a , 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 in light of the fiscal cuts. Lawmakers announced they would expand a so that they could reconvene later this year.

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

鈥淲e need a governor who will support Virginians,鈥 Scott said in a statement, 鈥渘ot cave to Trump and Musk.鈥

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 鈥 including the budget bill, which amends the last year of the state鈥檚 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 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 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鈥檚 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 鈥淥pportunity Scholarship鈥 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.

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

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. 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. is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

Olivia Diaz, The Associated Press

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