Gov. Glenn Youngkin said Friday he is vetoing several budget proposals, including some of his own, to keep a $900 million “cushion” to hedge against risks coming from new federal policies.
The $900 million comes from plans to spend a projected $3.2 billion surplus, and mostly comes from one-time capital investments.
The budget still includes $1 billion in tax relief, mostly in the form of rebate checks set to go out this fall. Those are also funded via the projected surplus.
“We all know that as President [Donald] Trump rightfully resets trade imbalances and restores fiscal responsibility in D.C., there are short-term disruptions,” said Youngkin. “Those short-term disruptions, I think, require us to be responsible and not spend 100% of this forecasted surplus today.”
Measures of Virginia’s economy conflict on how Trump’s policies on trade and the federal workforce are affecting Virginia.
All but a quarter of the cushion comes from capital expenses — most of it in the form of early-stage projects for Virginia’s state universities. Those include Virginia Commonwealth University’s acquisition of the Altria Building and replacing a utility plant for The College of William & Mary’s law school.
The other major vetoed capital items are funding for HVAC improvements at Nottoway Correctional Center, deferred maintenance at two Virginia State Parks and other improvements at George Mason University.
“Line item veto authority for a governor, unfortunately, is a blunt instrument,” Youngkin told the media after the announcement. “Some of the items that I might have taken a scalpel to, if I [decided to] go after the whole item, [it would] have a whole lot of collateral damage.”
Senate Majority Leader Scott Surovell (D–Fairfax) said in a call with reporters Friday he found the list of items to be vetoed confusing.
“Infrastructure spending stimulates all different parts of the economy, and it percolates down through the entire state. And this is exactly the wrong kind of spending to be cutting,” he said. “It's impossible to negotiate with a guy who can't even agree with the own things he proposes. So it's just really unusual behavior.”
Youngkin said Friday that budget items that were outside of one-time investments were for water projects and a public-private partnership in childcare.
It’s not clear whether the General Assembly could spend the $900 million if it returns for a special session to address budget impacts of federal policies.
Youngkin also said he took action on 91 bills, but the details were not available Friday afternoon.
This is a developing story and will be updated.
